Gold Country CA Real Estate Blog and NewsRecently posted or modified blog postshttps://www.goldcountrymodern.com/blog/Copyright GoldCountryModern.com2024-03-11T13:38:12-07:00tag:goldcountrymodern.com,2012-09-20:33385Finding Your Perfect Gold County Home in a Fixer Upper<img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240308/Header-Image-202302-SG.png" alt="" class="img-thumbnail mx-auto d-block" />
If you’re trying to <a href="https://www.mykcm.com/2024/02/26/the-truth-about-down-payments/" rel="noopener noreferrer" target="_blank">buy a home</a> and are having a hard time finding one you can afford, it may be time to consider a fixer-upper. That’s a house that needs a little elbow grease or some updates, but has good bones. Fixer-uppers can be a really great option if you’re looking to <a href="https://www.mykcm.com/2024/02/20/strategic-tips-for-buying-your-first-home/" rel="noopener noreferrer" target="_blank">break into</a> the housing market or want to stretch your budget further. <a href="https://www.nerdwallet.com/article/mortgages/buying-a-fixer-upper" rel="noopener noreferrer" target="_blank">According</a> to NerdWallet:
“Buying a fixer-upper can provide a path to homeownership for first-time home buyers or a way for repeat buyers to afford a larger home or a better neighborhood. With the relatively low inventory of homes for sale these days, a move-in ready home can be hard to find, especially if you’re on a budget.”
Basically, since the number of homes for sale is still so low, if you’re only willing to tour homes that have all your dream features, you may be cutting down your options too much and making it harder on yourself than necessary. It may be time to cast a wider net.
Sometimes the perfect home is the one you perfect after buying it.
Here’s some information that can help you pinpoint what you truly need so you can be strategic in your <a href="https://www.mykcm.com/2023/12/08/your-homebuying-adventure-infographic/" rel="noopener noreferrer" target="_blank">home search</a>. First, make a list of all the features you want in a home. From there, work to break those features into categories like this:
Must-Haves - If a house doesn’t have these features, it won’t work for you and your lifestyle.
Nice-To-Haves - These are features you’d love to have but can live without. Nice-to-haves aren’t dealbreakers, but if you find a home that hits all the must-haves and some of these, it’s a contender.
Dream State - This is where you can really think big. Again, these aren’t features you’ll need, but if you find a home in your budget that has all the must-haves, most of the nice-to-haves, and any of these, it’s a clear winner.
Once you’ve sorted your list in a way that works for you, share it with your <a href="https://www.mykcm.com/2024/02/28/why-you-want-an-agents-advice-for-your-move/" rel="noopener noreferrer" target="_blank">real estate agent</a>. They’ll help you find homes that deliver on your top needs right now and have the potential to be your dream home with a little bit of sweat equity. Lean on their expertise as you think through what’s possible, what features are easy to change or add, and how to make it happen. <a href="https://www.progressive.com/answers/buying-a-fixer-upper/" rel="noopener noreferrer" target="_blank">According</a> to Progressive:
“Many real estate agents specialize in finding fixer-uppers and have a network of inspectors, contractors, electricians, and the like.”
Your agent can also offer advice on which upgrades and renovations will set you up to get the greatest return on your investment if you ever decide to sell down the line.
Bottom Line
If you haven’t found a home you love that’s in your budget, it may be worth thinking through all your options, including fixer-uppers. Sometimes the perfect home for you is the one you perfect after buying it. To see what’s available in our area, let’s connect.
Contact us for experienced representation when buying or selling a <a href="http://www.goldcountrymodern.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="10" data-ogsc="">home in Amador County CA</a>.2024-03-11T13:36:56-07:002024-03-11T13:38:12-07:00Gold Country Teamtag:goldcountrymodern.com,2012-09-20:33332The Benefits of Downsizing When You Retire<img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240304/20240307-The-Benefits-of-Downsizing-When-You-Retire.jpg" alt="" class="img-thumbnail mx-auto d-block" />
If you’re taking a look at your expenses as you retire, saving money where you can has a lot of appeal. One long-standing, popular way to do that is by <a href="https://www.mykcm.com/2024/02/27/why-todays-housing-supply-is-a-sweet-spot-for-sellers/" rel="noopener noreferrer" target="_blank">downsizing</a> to a smaller home.
When you think about cutting down on your spending, odds are you think of frequent purchases, like groceries and other goods. But when you downsize your house, you often end up downsizing the bills that come with it, like your mortgage payment, energy costs, and maintenance requirements. Realtor.com <a href="https://www.realtor.com/advice/move/how-to-downsize-your-home-with-zero-regrets/" rel="noopener noreferrer" target="_blank">shares</a>:
“A smaller home typically means lower bills and less upkeep. Then there’s the potential windfall that comes from selling your larger home and buying something smaller.”
That windfall is thanks to your <a href="https://www.mykcm.com/2024/02/08/home-equity-can-be-a-game-changer-when-you-sell/" rel="noopener noreferrer" target="_blank">home equity</a>. If you’ve been in your house for a while, odds are you’ve built up a considerable amount of equity. And that equity is something you can use to help you buy a home that better fits your needs today. Daniel Hunt, CFA at Morgan Stanley, <a href="https://www.morganstanley.com/articles/using-home-equity-in-retirement" rel="noopener noreferrer" target="_blank">explains</a>:
“Home equity can be a significant source of wealth for retirees, often representing a large portion of their net worth. . . . Retirement planning can be complex, but your home equity shouldn't be overlooked.”
And when you’re ready to use that equity to fuel your <a href="https://www.mykcm.com/2024/02/06/houses-are-still-selling-fast/" rel="noopener noreferrer" target="_blank">next move</a>, your real estate agent will be your guide through every step of <a href="https://www.mykcm.com/2024/02/19/its-time-to-prepare-your-house-for-a-spring-listing/" rel="noopener noreferrer" target="_blank">the process</a>. That includes setting the right price for your current house when you sell, finding the home that best fits your evolving needs, and understanding what you can afford at today’s mortgage rate.
What This Means for You
If you’re thinking about downsizing, ask yourself these questions:
Do the original reasons I bought my current house still stand, or have my needs changed since then?
Do I really need and want the space I have right now, or could somewhere smaller be a better fit?
What are my housing expenses right now, and how much do I want to try to save by downsizing?
Then, meet with a <a href="https://www.mykcm.com/2024/02/09/winning-plays-for-buying-a-home-in-todays-market-infographic/" rel="noopener noreferrer" target="_blank">real estate agent</a> to get an answer to this one: What are my options in the market right now? A local real estate agent can walk you through how much equity you have in your house and how it positions you to win when you downsize.
Bottom Line
Want to save money in retirement? Consider downsizing – it could really help you out. When you’re ready, <a href="https://www.mykcm.com/2024/02/28/why-you-want-an-agents-advice-for-your-move/" rel="noopener noreferrer" target="_blank">let’s connect</a> about your goals in the housing market this year.
Contact the Gold Country Modern Team, your <a href="http://www.goldcountrymodern.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="8" data-ogsc="">Amador County real estate</a> connection, for assistance buying or selling a home in the Gold Country.
2024-03-07T17:20:13-07:002024-03-07T17:22:05-07:00Gold Country Teamtag:goldcountrymodern.com,2012-09-20:33040Strategic Tips for Buying Your First Home<img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240215/20240220-Strategic-Tips-for-Buying-Your-First-Home.png" alt="" class="img-thumbnail mx-auto d-block" />
<a href="https://www.mykcm.com/2024/02/07/why-pre-approval-is-even-more-important-this-year/" rel="noopener noreferrer" target="_blank">Buying</a> your first home is a big, exciting step and a major milestone that has the power to improve your life. As a first-time homebuyer, it's a <a href="https://www.mykcm.com/2024/01/15/homeownership-is-still-at-the-heart-of-the-american-dream/" rel="noopener noreferrer" target="_blank">dream</a> you can make come true, but there are some hurdles you'll need to overcome in today’s housing market – specifically the limited supply of <a href="https://www.mykcm.com/2024/01/24/are-more-homeowners-selling-as-mortgage-rates-come-down/" rel="noopener noreferrer" target="_blank">homes for sale</a> and ongoing <a href="https://www.mykcm.com/2024/01/18/3-key-factors-affecting-home-affordability/" rel="noopener noreferrer" target="_blank">affordability</a> challenges.
So, if you're ready, willing, and able to <a href="https://www.mykcm.com/2024/01/26/why-its-more-affordable-to-buy-a-home-this-year-infographic/" rel="noopener noreferrer" target="_blank">buy</a> your first home, here are three tips to help you turn your dream into a reality.
Save Money with First-Time Homebuyer Programs
Paying the initial costs of homeownership, like your down payment and closing costs, can feel a bit daunting. But there are many assistance programs for <a href="https://www.mykcm.com/2024/01/19/key-terms-every-homebuyer-should-learn-infographic/" rel="noopener noreferrer" target="_blank">first-time homebuyers</a> that can help you get a loan with little or no money upfront. <a href="https://www.bankrate.com/mortgages/first-time-homebuyer-loans-and-programs/" rel="noopener noreferrer" target="_blank">According</a> to Bankrate:
“. . . you might qualify for a first-time homebuyer loan or assistance. First-time buyer loans typically have more flexible requirements, such as a lower down payment and credit score. Many help buyers with closing costs and the down payment through grants and low-interest loans.”
To find out more, talk to your state's housing authority or check out websites like <a href="https://downpaymentresource.com/" rel="noopener noreferrer" target="_blank">Down Payment Resource</a>.
Expand Your Options by Looking at Condos and Townhomes
Right now, there aren’t enough homes for sale for everyone who wants to buy one. That’s pushing home prices up and making affordability tight for buyers. One way to deal with that issue and find a home right now is to consider condos and townhomes. Realtor.com <a href="https://www.realtor.com/news/trends/condo-townhome-biggest-savings-in-these-expensive-cities/" rel="noopener noreferrer" target="_blank">explains</a>:
“For many newbies, it might just be a matter of making a shift toward something they can better afford—like a condo or townhome. These lower-cost homes have historically been a stepping stone for buyers looking for a less expensive alternative to a single-family home.”
One reason why they may be more affordable is because they’re often smaller. But they still give you the chance to get your foot in the door and achieve your goal of owning a home and building equity. And that equity can help fuel your move into a larger home later on if you decide you need something bigger in the future. Hannah Jones, Senior Economic Analyst at Realtor.com, <a href="https://www.realtor.com/news/trends/condo-townhome-biggest-savings-in-these-expensive-cities/" rel="noopener noreferrer" target="_blank">says</a>:
“Condos can help prospective homebuyers who perhaps have a smaller budget, but who are really determined to get a foothold in the market and start to accumulate some equity. It can be a really great entry point.”
Consider Pooling Your Resources To Buy a Multi-Generational Home
Another way to break into the market is by purchasing a home with <a href="https://www.mykcm.com/2024/01/25/the-top-benefits-of-buying-a-multi-generational-home/" rel="noopener noreferrer" target="_blank">friends or loved ones</a>. That way you can split the cost of things like the mortgage and bills, to make it easier to afford a home. <a href="https://money.com/buying-house-with-friends-pros-cons/" rel="noopener noreferrer" target="_blank">According</a> to Money.com:
“Buying a home with another person has some obvious advantages in the mortgage department. With two incomes in the mix, buyers can likely qualify for a larger mortgage — a big help in today’s high-cost market.”
Bottom Line
By exploring first-time homebuyer assistance, condos, townhomes, and multi-generational living, it can be easier to <a href="https://www.mykcm.com/2024/02/09/winning-plays-for-buying-a-home-in-todays-market-infographic/" rel="noopener noreferrer" target="_blank">find and buy</a> your <a href="https://www.mykcm.com/2024/01/16/why-you-may-want-to-seriously-consider-a-newly-built-home/" rel="noopener noreferrer" target="_blank">first home</a>. When you’re ready, let’s connect.
Contact us for experienced representation when buying or selling a <a href="http://www.goldcountrymodern.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="10" data-ogsc="">home in Amador County CA</a>.
2024-02-20T15:23:10-07:002024-02-20T15:25:33-07:00Gold Country Teamtag:goldcountrymodern.com,2012-09-20:32639Foreclosure Activity Is Still Lower than the Norm<img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240130/20240131-Foreclosure-Activity-Is-Still-Lower-than-the-Norm.jpg" alt="" class="img-thumbnail mx-auto d-block" />
Have you seen headlines talking about the increase in foreclosures in today’s <a href="https://www.mykcm.com/2023/12/19/expert-quotes-on-the-2024-housing-market-forecast/" rel="noopener noreferrer" target="_blank">housing market</a>? If so, they may leave you feeling a bit uneasy about <a href="https://www.mykcm.com/2024/01/12/home-prices-forecast-to-climb-over-the-next-5-years-infographic/" rel="noopener noreferrer" target="_blank">what’s ahead</a>. But remember, these clickbait titles don’t always give you the full story.
The truth is, if you compare the current numbers with what usually happens in the market, you’ll see there’s no need to worry.
Putting the Headlines into Perspective
The increase the media is calling attention to is misleading. That’s because they’re only comparing the most recent numbers to a time where foreclosures were at historic lows. And that’s making it sound like a bigger deal than it is.
In 2020 and 2021, the moratorium and forbearance program helped millions of homeowners stay in their homes, allowing them to get back on their feet during a very challenging period.
When the moratorium came to an end, there was an expected rise in foreclosures. But just because foreclosures are up doesn’t mean the <a href="https://www.mykcm.com/2023/11/29/why-the-economy-wont-tank-the-housing-market/" rel="noopener noreferrer" target="_blank">housing market</a> is in trouble.
Historical Data Shows There Isn’t a Wave of Foreclosures
Instead of comparing today’s numbers with the last few abnormal years, it’s better to compare to long-term trends – specifically to the housing crash – since that’s what people worry may happen again.
Take a look at the graph below. It uses foreclosure <a href="https://www.attomdata.com/news/market-trends/foreclosures/attom-2023-year-end-u-s-foreclosure-market-report/" rel="noopener noreferrer" target="_blank">data</a> from ATTOM, a property data provider, to show foreclosure activity has been consistently lower (shown in orange) since the crash in 2008 (shown in red):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240130/20240131-us-forclosure-activity-increases-from-2022-but-still-below-pre-pandemic-levels.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240130/20240131-us-forclosure-activity-increases-from-2022-but-still-below-pre-pandemic-levels.png" /></a>
So, while foreclosure filings are up in the latest report, it’s clear this is nothing like it was back then.
In fact, we’re not even back at the levels we’d see in more normal years, like 2019. As Rick Sharga, Founder and CEO of the CJ Patrick Company, <a href="https://www.forbes.com/advisor/mortgages/real-estate/housing-market-predictions/" rel="noopener noreferrer" target="_blank">explains</a>:
“Foreclosure activity is still only at about 60% of pre-pandemic levels. . .”
That’s largely because buyers today are more qualified and less likely to default on their loans. Delinquency rates are still low and most homeowners have <a href="https://www.mykcm.com/2024/01/09/ways-your-home-equity-can-help-you-reach-your-goals/" rel="noopener noreferrer" target="_blank">enough equity</a> to keep them from going into foreclosure. As Molly Boesel, Principal Economist at CoreLogic, <a href="https://www.corelogic.com/intelligence/loan-performance-insights-january-2024/" rel="noopener noreferrer" target="_blank">says</a>:
“U.S. mortgage delinquency rates remained healthy in October, with the overall delinquency rate unchanged from a year earlier and the serious delinquency rate remaining at a historic low… borrowers in later stages of delinquencies are finding alternatives to defaulting on their home loans.”
The reality is, while increasing, the data shows a foreclosure crisis is not where the market is today, or where it’s headed.
Bottom Line
Even though the housing market is experiencing an expected rise in foreclosures, it’s nowhere near the crisis levels seen when the housing bubble burst. If you have questions about what you’re hearing or reading about the housing market, let’s connect.
Contact us for experienced representation when buying or selling a <a href="http://www.goldcountrymodern.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="10" data-ogsc="">home in Amador County CA</a>.
2024-01-31T18:04:09-07:002024-01-31T18:05:37-07:00Gold Country Teamtag:goldcountrymodern.com,2012-09-20:32521How to Prepare now to Sell in Spring - Amador County<img src="https://assets.site-static.com/userfiles/602/image/By_Jessa_Schmidt.jpg" width="2000" height="1304" />
Spring is the one of the BEST times to sell a home! If your plan is to list this Spring, make sure you are maximizing your biggest asset by preparing your home properly. There are a lot of things you can between now and Spring to make your property more attractive to Buyers and ensure a smoother transaction. Use this as your checklist to pre-sale prep!
Curb Appeal: Even though most homes in Amador County don’t have actual curbs, we still have to consider the exterior when selling. What is the first thing a Buyer will see when they pull up to your home? Maybe you need to trim some trees, paint, clear brush, or declutter your yard, deck, or driveway. You want potential Buyers to get excited about getting inside! I see Buyers get overwhelmed by home exteriors all the time. If your property looks hard to maintain, it could cost you a Buyer.
Time to Purge: Decluttering your home makes a HUGE impact when it comes to selling. Not only will it make it easier for buyers to focus on the space rather than your stuff, but it can also make your space feel bigger and more peaceful. Clear surfaces, remove unnecessary items, or furniture. Decluttering your home now will also benefit you when it comes time to move! Just think: less to pack, less to move.
Minor Repairs: Most of us have small maintenance items we have been meaning to get around to. Doing those items now can help ensure a smoother sale. Things like, patching a hole, painting, replacing a screen, fix a leaky faucet. These are things that may otherwise be called out during an inspection.
Light it up: What do buyers want? Light and bright! Of course, natural light is important, but you may have areas that could benefit from a lamp, or accent light. You should also replace burnt out bulbs to ensure your space is appropriately lit. A well-lit space can make your home feel bigger and more inviting.
As you prepare to sell your home this Spring completing these items can make your home stand out in the market. Remember the goal is to create a welcoming environment to help buyers envision themselves living in the space. If you’d like a personal consultation to talk about how to get your specific property ready give me a call!
Contact Amador County Realtor Jessa Schmidt
Call me directly at 209-418-9571 or email me at Jessa@GoldCountryModern.com if I can assist you with YOUR real estate needs in the Gold Country. You can also learn more about me below:<br />2024-01-24T19:00:00-07:002024-02-01T09:42:23-07:00Jessa Schmidttag:goldcountrymodern.com,2012-09-20:32329Homeownership Is Still at the Heart of the American Dream<img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240112/Header-Image-pg-18.png" alt="" class="img-thumbnail mx-auto d-block" />
Buying a home is a powerful decision, and it remains at the heart of the American Dream. Unlike renting, owning a home means more than just having a place to live – it offers a sense of belonging, stability, and freedom. <a href="https://www.cnbc.com/2023/12/15/heres-what-to-expect-in-2024-if-you-want-to-buy-a-home.html#:~:text=%E2%80%9CThe%20American%20Dream%20is%20still,in%20America%2C%E2%80%9D%20said%20Lautz." rel="noopener noreferrer" target="_blank">According</a> to Nicole Bachaud, Senior Economist at Zillow:
“The American Dream is still owning a home. There’s a lot of pent-up demand for ownership; that isn’t going to go away.”
Let’s explore just a few of the reasons why so many Americans continue to value homeownership.
The Financial Benefits of Owning a Home
One possible reason homeownership is viewed so highly is because owning a home is a significant <a href="https://www.mykcm.com/2023/11/07/homeowner-net-worth-has-skyrocketed/" rel="noopener noreferrer" target="_blank">wealth-building</a> tool. That may be why Jessica Lautz, Deputy Chief and VP of Research at the National Association of Realtors (NAR), <a href="https://www.cnbc.com/2023/12/15/heres-what-to-expect-in-2024-if-you-want-to-buy-a-home.html#:~:text=Indeed%2C%20%E2%80%9Chomeownership%20is%20the%20number,American%20dream%20of%20financial%20stability." rel="noopener noreferrer" target="_blank">says</a>:
“Homeownership is the number one way to build wealth in America.”
Over time, owning a home not only helps boost your own <a href="https://www.mykcm.com/2023/10/12/growing-your-net-worth-with-homeownership/" rel="noopener noreferrer" target="_blank">net worth</a>, but it also sets future generations up for success as you pass that wealth down. Habitat for Humanity <a href="https://www.habitat.org/sites/default/files/Evidence-Brief_Wealth-building-for-homeowners.pdf" rel="noopener noreferrer" target="_blank">explains</a>:
“Overall, homeownership promotes wealth building by acting as a forced savings mechanism and through home value appreciation. Homeowners make monthly payments that increase their equity in their homes by paying down the principal balance of their mortgage. . . . In addition, owning a home promotes intergenerational homeownership and wealth building. Children of homeowners transition to homeownership earlier — lengthening the period over which they can accumulate wealth . . .”
It can also provide meaningful <a href="https://www.mykcm.com/2023/10/25/invest-in-yourself-by-owning-a-home/" rel="noopener noreferrer" target="_blank">financial stability</a> compared to renting. When you buy with a fixed-rate mortgage, you can lock in your monthly housing payments for the length of your home loan.
The Non-Financial Benefits of Homeownership
But, owning a home offers more than just <a href="https://www.mykcm.com/2023/10/06/how-homeowner-net-worth-grows-with-time-infographic/" rel="noopener noreferrer" target="_blank">financial benefits</a>—it benefits you socially and <a href="https://www.mykcm.com/2023/11/23/why-homeowners-are-thankful-they-own/" rel="noopener noreferrer" target="_blank">emotionally</a> too. Your <a href="https://www.mykcm.com/2023/12/25/these-non-financial-benefits-turn-a-house-into-a-happy-home/" rel="noopener noreferrer" target="_blank">home</a> provides feelings of achievement, responsibility, and more. In a recent survey, Fannie Mae <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">outlines</a> just a few of these more emotionally-driven benefits, including:
“The top three were having control over what you do with your living space (94%) to having a sense of privacy and security (91%) and having a good place for your family or to raise your children (90%) . . .”
What Does That Mean for You?
If your idea of the <a href="https://www.mykcm.com/2023/11/30/is-owning-a-home-still-the-american-dream-for-younger-buyers/" rel="noopener noreferrer" target="_blank">American Dream</a> involves greater freedom, security, and prosperity, homeownership could be a key player in bringing that dream to life. And with <a href="https://www.mykcm.com/2024/01/08/what-lower-mortgage-rates-mean-for-your-purchasing-power/" rel="noopener noreferrer" target="_blank">mortgage rates</a> now on a downward trend, it might be a good time for you to consider making a move.
If you’re ready and able to buy, know that there are incredible benefits waiting at the end of your journey. You'll gain more than just a home – it's a place to grow your wealth and call your very own. Like Ksenia Potapov, Economist at First American <a href="https://blog.firstam.com/economics/building-wealth-brick-by-brick" rel="noopener noreferrer" target="_blank">says</a>:
“...homeownership remains an important driver of wealth accumulation and the largest source of total wealth among most households.”
Bottom Line
Buying a home is a powerful decision and the cornerstone of the American Dream. If finding a place to call your own is part of your <a href="https://www.mykcm.com/2024/01/05/achieving-your-homebuying-dreams-in-2024-infographic/" rel="noopener noreferrer" target="_blank">dream</a> for this year, let’s connect to start the process today.
Contact us for experienced representation when buying or selling a <a href="http://www.eastbaymodern.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="13" data-ogsc="">home in the East Bay</a>.
2024-01-15T19:13:19-07:002024-01-15T19:14:42-07:00Gold Country Teamtag:goldcountrymodern.com,2012-09-20:32243Avoid These Common Mistakes After Applying for a Mortgage<img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240109/20240110-Avoid-These-Common-Mistakes-After-Applying-for-a-Mortgage.png" alt="" class="img-thumbnail mx-auto d-block" />
If you’re getting ready to <a href="https://www.mykcm.com/2024/01/05/achieving-your-homebuying-dreams-in-2024-infographic/" rel="noopener noreferrer" target="_blank">buy a home</a>, it’s exciting to jump a few steps ahead and think about moving in and making it <a href="https://www.mykcm.com/2023/12/11/the-perfect-home-could-be-the-one-you-perfect-after-buying/" rel="noopener noreferrer" target="_blank">your own</a>. But before you get too far down the emotional path, there are some key things to keep in mind after you apply for your <a href="https://www.mykcm.com/2024/01/08/what-lower-mortgage-rates-mean-for-your-purchasing-power/" rel="noopener noreferrer" target="_blank">mortgage</a> and before you close. Here’s a list of things to remember when you apply for your home loan.
Don’t Deposit Large Sums of Cash
Lenders need to source your money, and cash isn’t easily traceable. Before you deposit any cash into your accounts, discuss the proper way to document your transactions with your loan officer.
Don’t Make Any Large Purchases
It’s not just home-related purchases that could disqualify you from your loan. Any large purchases can be red flags for lenders. People with new debt have higher debt-to-income ratios (how much debt you have compared to your monthly income). Since higher ratios make for riskier loans, borrowers may no longer qualify for their mortgage. Resist the temptation to make any large purchases, even for furniture or appliances.
Don’t Cosign Loans for Anyone
When you cosign for a loan, you’re making yourself accountable for that loan’s success and repayment. With that obligation comes higher debt-to-income ratios as well. Even if you promise you won’t be the one making the payments, your lender will have to count them against you.
Don’t Switch Bank Accounts
Lenders need to source and track your assets. That task is much easier when there’s consistency among your accounts. Before you transfer any money, speak with your loan officer.
Don’t Apply for New Credit
It doesn’t matter whether it’s a new credit card or a new car. When your credit report is run by organizations in multiple financial channels (mortgage, credit card, auto, etc.), it will have an impact on your FICO® score. Lower <a href="https://www.mykcm.com/2023/12/26/get-ready-to-buy-a-home-by-improving-your-credit-score/" rel="noopener noreferrer" target="_blank">credit scores</a> can determine your interest rate and possibly even your eligibility for approval.
Don’t Close Any Accounts
Many buyers believe having less available credit makes them less risky and more likely to be approved. This isn’t true. A major component of your score is your length and depth of credit history (as opposed to just your payment history) and your total usage of credit as a percentage of available credit. Closing accounts has a negative impact on both of those parts of your score.
Do Discuss Changes with Your Lender
Be upfront about any changes that occur or you’re expecting to occur when talking with your lender. Blips in income, assets, or credit should be reviewed and executed in a way that ensures your home loan can still be approved. If your job or employment status has changed recently, share that with your lender as well. Ultimately, it’s best to fully disclose and discuss your intentions with your loan officer before you do anything financial in nature.
Bottom Line
You want your home purchase to go as smoothly as possible. Remember, before you make any large purchases, move your money around, or make major life changes, be sure to consult your lender – someone who’s qualified to explain how your financial decisions may impact your home loan.
Contact us for experienced representation when buying or selling a <a href="http://www.goldcountrymodern.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="10" data-ogsc="">home in Amador County CA</a>.
2024-01-10T19:14:25-07:002024-01-10T19:16:18-07:00Gold Country Teamtag:goldcountrymodern.com,2012-09-20:32066A Guide to the Defensible Space Inspection in Amador County
<img src="https://assets.site-static.com/userfiles/602/image/By_Jessa_Schmidt_1.jpg" width="2000" height="1304" />
Defensible Space Inspections: What You Need To Know During Your Real Estate Transaction
If you are considering Buying or Selling here in Amador County, chances are a Defensible Space Inspection will be a part of your transaction. This guide delves into the steps of the defensible space inspection process, offering valuable insights for homeowners and potential buyers.
What is Defensible Space?: The first step in ensuring a smooth residential sale in high fire risk areas is understanding the concept of defensible space. Cal Fire has defined Defensible Space simply: “Defensible space is the buffer between your structure and the surrounding area.” Ultimately Defensile space is your homes first line of defense against a wildfire. There are many reasons the Defensible Space around your home is important. In the event of a fire not only will proper Defensible Space slow, or even halt fire progress, it also keeps firefighters safe while they defend your home.
Do I have to have a Defensible Space Inspection?: California has stringent regulations in place to mitigate fire risks, but not every home is required to have a Defensible Space Inspection during the sales process. So how do you know if you will need one or not? Homes that are in a High or Very High fire zone are required to have a Defensible Space Inspection. How do you find out if your home is in one of these zones? You can do this by either checking Cal Fires “Fire Severity Zone Map” on their website, or check your Natural Hazard Disclosure Report. This report is generally ordered by your Real Estate Agent. If your home is in a High, or Very High Fire Zone you will need a Defensible Space Inspection.
Steps and Cost of A Defensible Space Inspection: After confirming you need a Defensible Space Inspection the first step is to order it, the good news: this inspection is done for FREE by Cal Fire. You, or your Real Estate Agent can request an inspection on Cal Fires Website. After submitting a request for an inspection, a Cal Fire Inspector will contact you within a week or two to set up a date and time. At the time of the inspection a Cal Fire Inspector will meet your, or your Real Estate Agent at the property. The Inspector will walk the exterior of the home and take note of any areas that are not in compliance. Generally, the Inspector will go over their findings with whoever is onsite and explain what needs to be done. After the Inspection is complete the inspector will give a hard copy of the inspection report to you or your Agent to include in your transaction. The inspection itself only takes around 10-30 minutes depending on the property, quick and easy right?!
What if the property is not in compliance?: Now you have the inspection and Cal Fire has noted some items to be addressed. This is where negotiations can come into play during your real estate transaction. It is totally negotiable as to who will take on addressing the items on the Defensible Space Inspection. This is addressed on a document called “Fire Hardening and Defensible Space Disclosure and Addendum” also referred to as a “FHDS” so make sure to review it fully and ask your agent if you have questions as to how this document is filled out.
When should the Defensible Space Inspection be done?: For my Sellers I always have the Defensible Space Inspection done before the home is listed, and I highly recommend you do the same. Here is why- The first reason is time. During the escrow process time is of the essence, what if Cal Fire is backed up with inspections and can’t get to your property for a week or two? Then it is possible the entire transaction is held up for what could have easily been done ahead of time. The next reason I recommend having it done before you list your property is so you can get negotiations out of the way at the time of the offer. If you have your Defensible Space Inspection done before listing, you can have it available for potential Buyers to review before they even make an offer. This way if there are any negotiations regarding the Defensible Space Inspection it can be handled early on, giving you one less thing to worry about. Or maybe you want to address some, or all of the items noted on the inspection ahead of time, making your property even more appealing to a potential Buyer. If you are a Buyer making an offer on a property and you aren’t sure if a Defensible Space Inspection has been done, just ask. Your Agent can find out for you, and if there hasn’t been one completed and you get into contract, ask your agent to make sure one is ordered ASAP.<br /><br />
Amador County Defensibe Space Inspections
Ultimately the requirement for a Defensible Space Inspection might seem confusing or intimidating at first, but it is here to keep us safe, and isn’t really as intimidating as it seems! I hope this guide gives you clarity on such an important step of your sales process and helps you feel more confident. If you’d like to read more about Defensible Space from Cal Fire you can visit their website <a href="https://www.fire.ca.gov/dspace" title="Cal Fire">here</a>.
2023-12-30T09:15:00-07:002024-02-01T09:18:50-07:00Jessa Schmidttag:goldcountrymodern.com,2012-09-20:31784The Perfect Home Could Be the One You Perfect After Buying<img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231128/20231211-The-Perfect-Home-Could-Be-the-One-You-Perfect-After-Buying.png" alt="" class="img-thumbnail mx-auto d-block" />
There’s no denying <a href="https://www.mykcm.com/2023/10/16/are-higher-mortgage-rates-here-to-stay/" rel="noopener noreferrer" target="_blank">mortgage rates </a>and <a href="https://www.mykcm.com/2023/11/14/home-prices-keep-climbing-in-most-markets/" rel="noopener noreferrer" target="_blank">home prices</a> are higher now than they were last year and that’s impacting what you can <a href="https://www.mykcm.com/2023/11/16/people-are-still-moving-even-with-todays-affordability-challenges/" rel="noopener noreferrer" target="_blank">afford</a>. At the same time, there are still fewer homes <a href="https://www.mykcm.com/2023/11/21/are-there-actually-more-homes-for-sale-right-now/" rel="noopener noreferrer" target="_blank">available for sale</a> than the norm. These are two of the biggest hurdles buyers are facing today. But there are ways to overcome these things and still make your dream of <a href="https://www.mykcm.com/2023/10/25/invest-in-yourself-by-owning-a-home/" rel="noopener noreferrer" target="_blank">homeownership</a> a reality.
As you set out to <a href="https://www.mykcm.com/2023/10/18/what-are-the-real-reasons-you-want-to-move-right-now/" rel="noopener noreferrer" target="_blank">make a purchase</a> this season, you’ll want to be strategic. This includes taking a close look at your wish list and considering what features you really need in your next home versus which ones are nice-to-have. This will help you avoid overextending <a href="https://www.mykcm.com/2023/10/26/affordable-homeownership-strategies-for-gen-z/" rel="noopener noreferrer" target="_blank">your budget</a> or limiting your pool of options too much because you’re searching for that perfect home.
Danielle Hale, Chief Economist at Realtor.com, <a href="https://twitter.com/RDC_Economics/status/1590722818639269889" rel="noopener noreferrer" target="_blank">explains</a>:
“The key to making a good decision in this challenging housing market is to be laser focused on what you need now and in the years ahead, . . . Another key point is to avoid stretching your budget, as tempting as it may be . . .”
To help identify what you truly need, make a list of all the features you’ll want to see. From there, work to break those features into categories. Here’s a great way to organize your list:
Must-Haves – If a house doesn’t have these features, it won’t work for you and your lifestyle (examples: distance from work or loved ones, number of bedrooms/bathrooms, etc.).
Nice-To-Haves – These are features you’d love to have but can live without. Nice-to-haves aren’t dealbreakers, but if you find a home that hits all the must-haves and some of these, it’s a contender (examples: a second home office, a garage, etc.).
Dream State – This is where you can really think big. Again, these aren’t features you’ll need, but if you find a home in your budget that has all the must-haves, most of the nice-to-haves, and any of these, it’s a clear winner (examples: a pool, multiple walk-in closets, etc.).
If you’re only willing to tour homes that have all of your dream features, you may be cutting down your options too much and making it harder on yourself (and your budget) than necessary.
While you’d love to have granite countertops or a pool in the backyard, those are both things you could potentially add after you move. Instead, it may be best to focus on finding the things that you can’t change (like location or a certain number of rooms). Then, you can upgrade or add some of the other features or finishes you want later on.
Sometimes the perfect home is the one you perfect after buying it.
Once you’ve categorized your list in a way that works for you, discuss your top priorities with your <a href="https://www.mykcm.com/2023/10/30/a-real-estate-agent-helps-take-the-fear-out-of-the-market/" rel="noopener noreferrer" target="_blank">real estate agent</a>. They’ll be able to help you refine the list further, coach you through the best way to stick to it, and find a home in your area that meets your top needs.
Bottom Line
With the current affordability challenges and limited housing supply, you’ll want to be strategic so you can find a home that meets your needs while staying within your budget. Let’s connect to make that possible.
Contact us for experienced representation when buying or selling a <a href="http://www.goldcountrymodern.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="10" data-ogsc="">home in Amador County CA</a>.
2023-12-11T17:49:08-07:002023-12-11T17:51:13-07:00Gold Country Teamtag:goldcountrymodern.com,2012-09-20:31681Experts Project Home Prices Will Rise over the Next 5 Years<img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231128/20231205-Experts-Project-Home-Prices-Will-Rise-over-the-next-5-years.png" alt="" class="img-thumbnail mx-auto d-block" />
Even with so much data showing <a href="https://www.mykcm.com/2023/10/23/why-home-prices-keep-going-up/" rel="noopener noreferrer" target="_blank">home prices</a> are actually rising in <a href="https://www.mykcm.com/2023/11/14/home-prices-keep-climbing-in-most-markets/" rel="noopener noreferrer" target="_blank">most of the country</a>, there are still a lot of people who worry there will be another price crash in the immediate future. In fact, a <a href="https://www.fanniemae.com/research-and-insights/surveys-indices/national-housing-survey" rel="noopener noreferrer" target="_blank">recent survey</a> from Fannie Mae shows that 23% of consumers think prices will fall over the next 12 months. That’s nearly one in four people who are dealing with that fear – maybe you’re one of them.
To help ease that concern, here’s what the <a href="https://www.mykcm.com/2023/09/05/expert-home-price-forecasts-revised-up-for-2023/" rel="noopener noreferrer" target="_blank">experts</a> say will happen with <a href="https://www.mykcm.com/2023/11/02/dont-believe-everything-you-read-about-home-prices/" rel="noopener noreferrer" target="_blank">home prices</a> not just <a href="https://www.mykcm.com/2023/11/15/the-latest-2024-housing-market-forecast/" rel="noopener noreferrer" target="_blank">next year</a>, but over the next five years.
Experts Project Ongoing Appreciation
While seeing a small handful of <a href="https://www.mykcm.com/2023/09/08/home-price-forecasts-revised-for-2023-infographic/" rel="noopener noreferrer" target="_blank">expert</a> opinions may not be enough to change your mind, hopefully, a larger group of experts will reassure you. Here’s that larger group.
The <a href="https://pulsenomics.com/surveys/#home-price-expectations" rel="noopener noreferrer" target="_blank">Home Price Expectation Survey</a> (HPES) from Pulsenomics is a great resource to show what experts forecast for home prices over a five-year period. It includes projections from over 100 economists, investment strategists, and housing market analysts. And the results from the latest quarterly release show home prices are expected to go up every year through 2027 (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231128/20231205-Estimated-Home-Price-Performance.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231128/20231205-Estimated-Home-Price-Performance.png" /></a>
And while the projected increase in 2024 isn’t as large as 2023, remember <a href="https://www.mykcm.com/2023/10/11/the-latest-expert-forecasts-for-home-prices-in-2023/" rel="noopener noreferrer" target="_blank">home price</a> appreciation is cumulative. In other words, if these experts are correct after your home’s value rises by 3.32% this year, it should go up by another 2.17% next year.
If you’re worried home prices are going to fall, here’s the big takeaway. Even though <a href="https://www.mykcm.com/2023/10/20/home-price-growth-is-returning-to-normal-infographic/" rel="noopener noreferrer" target="_blank">prices</a> vary by local area, experts project they’ll continue to rise across the country for years to come at a pace that’s <a href="https://www.mykcm.com/2023/11/22/home-prices-still-growing-just-at-a-more-normal-pace/" rel="noopener noreferrer" target="_blank">more normal</a> for the market.
What Does This Mean for You?
If you’re not convinced yet, maybe these numbers will get your attention. They show how a typical home’s value could change over the next few years using the expert projections from the HPES. Check out the graph below:
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231128/20231205-71363-Home-Price-Expectation-Survey.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231128/20231205-71363-Home-Price-Expectation-Survey.png" /></a>
In this example, let’s say you bought a $400,000 home at the beginning of this year. If you factor in the forecast from the HPES, you could potentially accumulate more than $71,000 in <a href="https://www.mykcm.com/2023/10/25/invest-in-yourself-by-owning-a-home/" rel="noopener noreferrer" target="_blank">household wealth</a> over the next five years.
Bottom Line
If you’re someone who’s worried home prices are going to fall, rest assured a lot of experts say it’s just the opposite – nationally, home prices will continue to climb not just next year, but for years to come. If you have any questions or concerns about what’s next for home prices in our local area, let’s connect.
Contact us for experienced representation when buying or selling a <a href="http://www.goldcountrymodern.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="10" data-ogsc="">home in Amador County CA</a>.
2023-12-04T18:45:59-07:002023-12-04T18:47:20-07:00Gold Country Teamtag:goldcountrymodern.com,2012-09-20:31544Home Prices Still Growing – Just at a More Normal Pace<img src="https://files.keepingcurrentmatters.com/content/images/20231114/20231122-Home-Prices-Still-Growing-Just-at-a-More-Normal-Pace.png" alt="" class="img-thumbnail mx-auto d-block" />
If you’re feeling a bit muddy on what’s happening with <a href="https://www.mykcm.com/2023/11/02/dont-believe-everything-you-read-about-home-prices/" rel="noopener noreferrer" target="_blank">home prices</a>, that’s no surprise. Some people are still saying prices are falling, even though data proves otherwise. Part of that <a href="https://www.mykcm.com/2023/10/27/unmasking-scary-myths-about-todays-housing-market-infographic/" rel="noopener noreferrer" target="_blank">misconception</a> is because people are getting their information from unreliable sources. But it’s also coming from some media coverage misrepresenting what the data really shows.
So, to keep things simple, here’s what you really need to know using real data you can trust.
Normal Home Price Seasonality Explained
In the housing market, there are predictable ebbs and flows that happen each year. It’s called seasonality. Spring is the peak homebuying season when the market is most active. That activity is typically still strong in the summer but begins to wane as the cooler months approach.
<a href="https://www.mykcm.com/2023/10/23/why-home-prices-keep-going-up/" rel="noopener noreferrer" target="_blank">Home prices</a> follow along with seasonality because prices appreciate most when something is in high demand. That’s why there’s a reliable long-term home price trend. The graph below uses data from <a href="https://www.spglobal.com/spdji/en/indices/indicators/sp-corelogic-case-shiller-us-national-home-price-nsa-index/#overview" rel="noopener noreferrer" target="_blank">Case-Shiller</a> to show the typical percent change for monthly home price movement from 1973 through 2022 (not <a href="https://www.census.gov/construction/nrs/faqs/faqs_seas.html#quest2" rel="noopener noreferrer" target="_blank">adjusted</a>, so you can see the seasonality):
<a href="https://www.mykcm.com/content/images/20231114/20231122-49-Year-Average-Monthly-Price-Movement.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20231114/20231122-49-Year-Average-Monthly-Price-Movement.png" /></a>
As the data shows, at the beginning of the year, home prices grow, but not as much as they do when entering the spring and summer markets. That’s because the market is less active in January and February since fewer people move in the cooler months. As the market transitions into the peak homebuying season in the spring, activity ramps up, and home prices go up a lot more in response. Then, as fall and winter approach, prices still grow, just at a slower pace as activity eases again.
This Year, Seasonality Has Returned
Now, let’s look at how this year compares to that long-term trend (see graph below):
<a href="https://www.mykcm.com/content/images/20231114/20231122-49-Year-Average-vs-2023-Price-Movement.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20231114/20231122-49-Year-Average-vs-2023-Price-Movement.png" /></a>
Here’s the latest data for this year from that same source. Just like before, the dark bars are the long-standing trend. The green bars represent what’s happened this year. As you can see, the green bars are beginning to fall in line with what’s normal for the market. That’s a good thing because it’s more sustainable price growth than we’ve seen in recent years.
In a nutshell, nationally prices aren’t falling, it’s just that price growth is <a href="https://www.mykcm.com/2023/10/20/home-price-growth-is-returning-to-normal-infographic/" rel="noopener noreferrer" target="_blank">beginning to normalize</a>. Moving forward, there’s a chance the media will misrepresent this slowing of home price growth as prices falling. So don’t believe everything you see in the headlines. The data included here gives you the context you need to really understand what’s happening. So, if you see something in the headlines that’s confusing, don’t just take it at face value. Ask a trusted real estate professional for more information.
Remember, it’s normal to see home price growth slow down as the year goes on. And that definitely doesn’t mean home prices are falling. They’re just rising at a more moderate pace.
Bottom Line
Home price appreciation is returning to normal seasonality and that’s a good thing. If you have questions about what’s happening with prices in our local area, let’s connect.
Contact the Gold Country Modern Team, your <a href="http://www.goldcountrymodern.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="8" data-ogsc="">Amador County real estate</a> connection, for assistance buying or selling a home in the Gold Country.
2023-11-22T11:58:19-07:002023-11-22T11:59:40-07:00Gold Country Teamtag:goldcountrymodern.com,2012-09-20:31242Homeowner Net Worth Has Skyrocketed<img src="https://files.keepingcurrentmatters.com/content/images/20231031/20231107-Homeowner-Net-Worth-Has-Skyrocketed.png" alt="" class="img-thumbnail mx-auto d-block" />
If you’re weighing your options to decide whether it makes more sense to <a href="https://www.mykcm.com/2023/10/13/the-difference-between-renting-and-buying-a-home-infographic/" rel="noopener noreferrer" target="_blank">rent or buy</a> a home today, here’s one key data point that could help you feel more confident in making your decision. Every three years, the Federal Reserve Board releases the <a href="https://www.federalreserve.gov/econres/scfindex.htm" rel="noopener noreferrer" target="_blank">Survey of Consumer Finances</a> (SCF). That report covers the difference in net worth for both homeowners and renters. Spoiler alert: the gap between the two is significant.
The average homeowner’s net worth is almost 40X greater than a renter’s. And here’s the data to prove it (see graph below):
<a href="https://www.mykcm.com/content/images/20231031/20231107-Homeowner-Net-Worth-Almost-40X-Greater.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20231031/20231107-Homeowner-Net-Worth-Almost-40X-Greater.png" /></a>
The Big Reason Homeowner Net Worth Is So High
In the <a href="https://www.federalreserve.gov/econres/scf_2019.htm" rel="noopener noreferrer" target="_blank">previous version</a> of that report, the net worth of the average homeowner was roughly $255,000 and that of the average renter was $6,300. But in <a href="https://www.federalreserve.gov/publications/files/scf23.pdf" rel="noopener noreferrer" target="_blank">the release</a> that just came out this year, the gap widened as homeowner net worth climbed dramatically. As the Survey of Consumer Finances (SCF) report <a href="https://www.federalreserve.gov/publications/files/scf23.pdf" rel="noopener noreferrer" target="_blank">says</a>:
“. . . the 2019-2022 growth in median net worth was the largest three-year increase over the history of the modern SCF, more than double the next-largest one on record.”
One of the biggest reasons homeowner net worth skyrocketed is <a href="https://www.mykcm.com/2023/09/19/your-home-equity-can-offset-affordability-challenges/" rel="noopener noreferrer" target="_blank">home equity</a>.
Over the last few years, known as the <a href="https://www.mykcm.com/2023/05/30/todays-real-estate-market-the-unicorns-have-galloped-off/" rel="noopener noreferrer" target="_blank">‘unicorn’ years</a> for housing, home prices went through the roof. That’s because there weren’t enough homes for sale, and there was a big influx of buyers rushing to buy them and take advantage of the then record-low mortgage rates. That imbalance of <a href="https://www.mykcm.com/2023/09/29/explaining-todays-low-housing-supply-infographic/" rel="noopener noreferrer" target="_blank">supply</a> and demand pushed prices higher and higher. As a result, most homeowners who had a home during that time saw their equity grow a lot.
If you’re still in the middle of making your decision on whether to rent or buy, you may wonder if you missed the boat on the big net worth boost. But here’s what you need to realize. As a recent article in The Ascent <a href="https://www.fool.com/the-ascent/personal-finance/articles/americans-net-worth-rose-37-from-2019-to-2022-heres-how-to-boost-yours/" rel="noopener noreferrer" target="_blank">explains</a>:
“Whether your net worth increased in recent years or not, there are steps you can take to boost that number in the coming years. . . buying a home can be a great way to grow your net worth, since home values have a tendency to rise over time.”
Historically, <a href="https://www.mykcm.com/2023/10/25/invest-in-yourself-by-owning-a-home/" rel="noopener noreferrer" target="_blank">home prices</a> climb over time. Even now that <a href="https://www.mykcm.com/2023/10/16/are-higher-mortgage-rates-here-to-stay/" rel="noopener noreferrer" target="_blank">mortgage rates</a> are closer to 7-8%, prices are <a href="https://www.mykcm.com/2023/10/23/why-home-prices-keep-going-up/" rel="noopener noreferrer" target="_blank">still rising</a> in many areas of the country because supply is still low compared to demand. That’s why <a href="https://www.mykcm.com/2023/10/11/the-latest-expert-forecasts-for-home-prices-in-2023/" rel="noopener noreferrer" target="_blank">expert forecasts</a> for the next few years call for <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">ongoing appreciation</a> – just at a pace that’s more typical for the housing market.
While it likely won’t be the record ramp-up that happened over the last few years, people who buy now should continue to grow equity in the years ahead. That means, if you’re ready and able to buy a home today, you’ll be making an investment that’ll help build your net worth in the long run.
As Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR), <a href="https://www.nar.realtor/blogs/economists-outlook/instant-reaction-mortgage-rates-october-19-2023" rel="noopener noreferrer" target="_blank">says</a>:
“. . . when deciding to rent vs buy, one must calculate the total cost of homeownership (maintenance, utilities, commuting, etc.) and the total financial benefit. Based on new Fed data . . . the median net worth of homeowners was $396,200 vs renters at $10,400. There is no question about the wealth gains that homeownership provides.”
Bottom Line
If you’re on the fence about whether to rent or buy a home, remember that homeownership can give your net worth a big boost over time. If you want to learn more about this or the many other <a href="https://www.mykcm.com/2023/09/21/the-many-non-financial-benefits-of-homeownership/" rel="noopener noreferrer" target="_blank">benefits of owning</a> a home, let’s connect.
Contact Gold Country Modern Real Estate, experienced <a href="http://www.goldcountrymodern.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="9" data-ogsc="">Realtors in Amador County</a>, for help purchasing or selling a home in Amador County, California.
2023-11-07T12:10:16-07:002023-11-07T12:12:33-07:00Gold Country Teamtag:goldcountrymodern.com,2012-09-20:31210Reasons To Sell Your House Before the New Year<img src="https://files.keepingcurrentmatters.com/content/images/20231106/Reasons-To-Sell-Your-House-Before-the-New-Year.png" alt="" class="img-thumbnail mx-auto d-block" />
As the year winds down, you may have decided it's time to make a 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 make your 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. That’s because people get busy around the holidays and sometimes deprioritize selling their house until the start of the new year when their schedules and social calendars calm down. But that gives you an opportunity 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 <a href="https://www.mykcm.com/2023/08/23/why-you-need-a-true-expert-in-todays-housing-market/" rel="noopener noreferrer" target="_blank">real estate agent</a> today so you can get your house on the market before your neighbors do.
Get Your House in Front of Eager Buyers
Even though the supply of <a href="https://www.mykcm.com/2023/09/29/explaining-todays-low-housing-supply-infographic/" rel="noopener noreferrer" target="_blank">homes for sale</a> 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 also delay their plans to move until January, others will still need to move for <a href="https://www.mykcm.com/2023/10/18/what-are-the-real-reasons-you-want-to-move-right-now/" rel="noopener noreferrer" target="_blank">personal reasons</a> or because something in their life has changed.
Those buyers are still going to 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 <a href="https://www.investopedia.com/articles/personal-finance/102615/why-holidays-are-good-time-sell-your-house.asp" rel="noopener noreferrer" target="_blank">says</a>:
“. . . 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 <a href="https://www.mykcm.com/2023/09/01/homeowners-have-a-lot-of-equity-right-now-infographic/" rel="noopener noreferrer" target="_blank">equity</a>. According to <a href="https://www.corelogic.com/press-releases/home-equity-increases-winter-spring-reducing-underwater-properties-q2/" rel="noopener noreferrer" target="_blank">CoreLogic</a>, the average amount of equity per mortgage holder has climbed to almost $290,000. That means the <a href="https://www.mykcm.com/2023/09/19/your-home-equity-can-offset-affordability-challenges/" rel="noopener noreferrer" target="_blank">equity</a> 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 over time. 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.
Bottom Line
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.
Contact us for experienced representation when buying or selling a <a href="http://www.goldcountrymodern.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="10" data-ogsc="">home in Amador County CA</a>.
2023-11-06T14:18:16-07:002023-11-06T14:20:00-07:00Gold Country Teamtag:goldcountrymodern.com,2012-09-20:31015Invest in Yourself by Owning a Home<img src="https://files.keepingcurrentmatters.com/content/images/20231023/20231025-Invest-in-yourself-by-owning-a-home.png" alt="" class="img-thumbnail mx-auto d-block" />
Are you wondering if it makes sense to <a href="https://www.mykcm.com/2023/10/17/how-buying-a-multi-generational-home-helps-with-affordability-today/" rel="noopener noreferrer" target="_blank">buy a home</a> right now? While today’s <a href="https://www.mykcm.com/2023/10/16/are-higher-mortgage-rates-here-to-stay/" rel="noopener noreferrer" target="_blank">mortgage rates</a> might seem a bit intimidating, here are two compelling reasons why it still may be a good time to become a <a href="https://www.mykcm.com/2023/09/21/the-many-non-financial-benefits-of-homeownership/" rel="noopener noreferrer" target="_blank">homeowner</a>.
Home Values Appreciate over Time
There’s been a lot of confusion around what’s happened with home prices over the past two years. While they did dip ever so slightly in late 2022, this year they’ve been <a href="https://www.mykcm.com/2023/10/03/home-prices-are-not-falling/" rel="noopener noreferrer" target="_blank">appreciating</a> at a more normal pace, which is <a href="https://www.mykcm.com/2023/09/26/the-return-of-normal-seasonality-for-home-price-appreciation/" rel="noopener noreferrer" target="_blank">good news</a> for the housing market. And while looking at price movement over just a year or two can make you worry prices are usually this unpredictable, history shows in the long run, <a href="https://www.mykcm.com/2023/10/12/growing-your-net-worth-with-homeownership/" rel="noopener noreferrer" target="_blank">home values rise</a> (see graph below):
<a href="https://www.mykcm.com/content/images/20231023/20231025-Price-Appreciation-over-the-Last-60-Years.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20231023/20231025-Price-Appreciation-over-the-Last-60-Years.png" /></a>
Using data from the Federal Reserve for the past <a href="https://fred.stlouisfed.org/series/ASPUS" rel="noopener noreferrer" target="_blank">60 years</a>, you can see the overall trend is home prices have climbed quite steadily. Sure, there was an exception around the housing <a href="https://www.mykcm.com/2023/09/27/why-todays-housing-inventory-shows-a-crash-isnt-on-the-horizon/" rel="noopener noreferrer" target="_blank">crash of 2008</a> that caused prices to break the usual trend for a time, but overall, home values have been consistently on the <a href="https://www.mykcm.com/2023/10/11/the-latest-expert-forecasts-for-home-prices-in-2023/" rel="noopener noreferrer" target="_blank">rise</a>.
Increasing home values is one great reason why buying may make more sense than renting. As prices rise, and as you pay down your mortgage, you build equity. Over time, that growing equity gives your <a href="https://www.mykcm.com/2023/10/12/growing-your-net-worth-with-homeownership/" rel="noopener noreferrer" target="_blank">net worth</a> a boost.
Rent Keeps Going Up Through the Years
Another reason you may want to consider buying a home instead of <a href="https://www.mykcm.com/2023/10/13/the-difference-between-renting-and-buying-a-home-infographic/" rel="noopener noreferrer" target="_blank">renting</a> is the never-ending rent hike. If you've ever felt the pinch of rent increasing year after year, you're not alone. That’s because, rents have <a href="https://ipropertymanagement.com/research/average-rent-by-year" rel="noopener noreferrer" target="_blank">climbed steadily</a> over the past six decades (see graph below):
<a href="https://www.mykcm.com/content/images/20231023/20231025-Increase-in-Rents-over-the-Last-60-Years.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20231023/20231025-Increase-in-Rents-over-the-Last-60-Years.png" /></a>
By <a href="https://www.mykcm.com/2023/10/02/unpacking-the-long-term-benefits-of-homeownership/" rel="noopener noreferrer" target="_blank">buying a home</a>, you can lock in your monthly housing costs and bid farewell to those pesky rent hikes. That stability is a game-changer.
In the end, it all boils down to this: your housing payments are an investment, and you've got a choice to make. Do you want to invest in yourself or your landlord?
By becoming a <a href="https://www.mykcm.com/2023/10/06/how-homeowner-net-worth-grows-with-time-infographic/" rel="noopener noreferrer" target="_blank">homeowner</a>, you're investing in your own future. When you rent, that’s money you never get back.
When you factor in home values consistently rising, plus the opportunity to get relief from never-ending rent hikes, homeownership can be a path to financial security. As Dr. Jessica Lautz, Deputy Chief Economist and VP of Research at the National Association of Realtors (NAR), <a href="https://www.forbes.com/advisor/mortgages/real-estate/is-buying-a-home-worth-it/" rel="noopener noreferrer" target="_blank">states</a>:
“If a homebuyer is financially stable, able to manage monthly mortgage costs and can handle the associated household maintenance expenses, then it makes sense to purchase a home.”
Bottom Line
When it comes down to it, buying a home offers more benefits than renting, even when mortgage rates are high. If you want to avoid increasing rents and take advantage of long-term home price appreciation, let’s connect to go over <a href="https://www.mykcm.com/2023/09/22/how-remote-work-helps-with-your-house-hunt-infographic/" rel="noopener noreferrer" target="_blank">your options</a>.
Contact us for experienced representation when buying or selling a <a href="http://www.goldcountrymodern.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-ogsc="">home in Amador County CA</a>.
2023-10-25T18:17:54-07:002023-10-25T18:21:15-07:00Gold Country Teamtag:goldcountrymodern.com,2012-09-20:30491Beginning with Pre-Approval<img src="https://files.keepingcurrentmatters.com/content/images/20230921/20230925-The-Benefit-Of-Beginning-With-Pre-Approval.png" alt="" class="img-thumbnail mx-auto d-block" />
If you’re looking to buy a home this fall, there are a few things you need to know. Affordability is tight with today’s <a href="https://www.mykcm.com/2023/06/07/the-main-reason-mortgage-rates-are-so-high/" rel="noopener noreferrer" target="_blank">mortgage rates</a> and rising <a href="https://www.mykcm.com/2023/09/08/home-price-forecasts-revised-for-2023-infographic/" rel="noopener noreferrer" target="_blank">home prices</a>. At the same time, there’s a <a href="https://www.mykcm.com/2023/09/14/why-is-housing-inventory-so-low/" rel="noopener noreferrer" target="_blank">limited number of homes</a> on the market right now and that’s creating some competition among buyers. But, if you’re strategic, there are ways to navigate these waters. The first thing you’ll want to do is get pre-approved for a mortgage. That way you’ll know your numbers and can set yourself up for success from the start of your home search.
What Pre-Approval Does for You
To understand why it’s such an important step, you need to know what pre-approval is. As part of the homebuying process, a lender looks at your finances to determine what they’d be willing to loan you. From there, your lender will give you a pre-approval letter to help you know how much money you can borrow. Freddie Mac <a href="https://myhome.freddiemac.com/blog/homebuying/how-do-i-get-pre-approved-mortgage" rel="noopener noreferrer" target="_blank">explains</a> it like this:
“A pre-approval is an indication from your lender that they are willing to lend you a certain amount of money to buy your future home. . . . Keep in mind that the loan amount in the pre-approval letter is the lender’s maximum offer. Ultimately, you should only borrow an amount you are comfortable repaying.”
Basically, pre-approval gives you critical information about the homebuying process that’ll help you understand how much you may be able to borrow. Why does this help you, especially today? With higher <a href="https://www.mykcm.com/2023/09/06/mortgage-rates-past-present-and-possible-future/" rel="noopener noreferrer" target="_blank">mortgage rates</a> and <a href="https://www.mykcm.com/2023/08/11/home-prices-are-back-on-the-rise-infographic/" rel="noopener noreferrer" target="_blank">home prices</a> impacting affordability for many buyers right now, a solid understanding of your numbers is even more important so you can truly wrap your head around your options.
Pre-Approval Helps Show Sellers You’re a Serious Buyer
Let’s face it, there are more buyers looking to buy than there are homes available for sale and that imbalance is creating some competition among homebuyers. That means you could see yourself in a multiple-offer scenario when you make an offer on a home. But getting pre-approved for a mortgage can help you stand out from other hopeful buyers.
As an article from Wall Street Journal (WSJ) <a href="https://www.wsj.com/buyside/personal-finance/mortgage-pre-approval-25dd076c" rel="noopener noreferrer" target="_blank">says</a>:
“If you plan to use a mortgage for your home purchase, preapproval should be among the first steps in your search process. Not only can getting preapproved help you zero in on the right price range, but it can give you a leg up on other buyers, too.”
Pre-approval shows the seller you’re a serious buyer that’s already undergone a credit and financial check, making it more likely that the sale will move forward without unexpected delays or financial issues.
Bottom Line
Getting pre-approved is an important first step when you’re buying a home. The more prepared you are, the better chance you have of getting the home you want. Connect with a trusted lender so you have the tools you need to purchase a home in today’s market.
Contact us for experienced representation when buying or selling a <a href="http://www.goldcountrymodern.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-ogsc="" data-linkindex="10">home in Amador County CA</a>.
2023-09-27T09:42:57-07:002023-09-27T09:44:14-07:00Gold Country Teamtag:goldcountrymodern.com,2012-09-20:30108Get Ready for Smaller, More Affordable Homes<img src="https://files.keepingcurrentmatters.com/content/images/20230905/20230907-Get-Ready-for-Smaller-More-Affordable-Homes.jpg" alt="" class="img-thumbnail mx-auto d-block" />
Have you been trying to <a href="https://www.mykcm.com/2023/08/02/how-to-know-if-youre-ready-to-buy-a-home/" rel="noopener noreferrer" target="_blank">buy a home</a>, but higher <a href="https://www.mykcm.com/2023/08/03/how-inflation-affects-mortgage-rates/" rel="noopener noreferrer" target="_blank">mortgage rates</a> and <a href="https://www.mykcm.com/2023/08/11/home-prices-are-back-on-the-rise-infographic/" rel="noopener noreferrer" target="_blank">home prices</a> are limiting your options? If so, here’s some good news – based on what Ali Wolf, Chief Economist at Zonda, has to <a href="https://www.realtor.com/news/trends/first-time-buyers-rejoice-builders-are-finally-putting-up-more-affordably-priced-starter-homes/" rel="noopener noreferrer" target="_blank">say</a> – smaller, more affordable homes are on the way:
“Buyers should expect that over the next 12 to 24 months there will be a notable increase in the number of entry-level homes available.”
In some ways, <a href="https://www.mykcm.com/2023/08/17/people-want-less-expensive-homes-and-builders-are-responding/" rel="noopener noreferrer" target="_blank">smaller homes</a> are already here. When the pandemic hit, the meaning of home changed. People needed the space their home provided not only as a place to live, but as a place to work, go to school, exercise, and more. Those who had that space were more likely to keep it. And those that didn’t were in a position where they were trying to sell their smaller house to move up to a larger one. That meant the homes coming to the market during the pandemic were smaller than those on the market before the pandemic – and that trend continues today (see graph below):<a href="https://www.mykcm.com/content/images/20230905/20230907-Home-Size-Smaller-than-Pre-Pandemic.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230905/20230907-Home-Size-Smaller-than-Pre-Pandemic.png" /></a>This graph also <a href="https://www.realtor.com/research/data/" rel="noopener noreferrer" target="_blank">shows</a> how the size of homes on the market changes seasonally. Larger homes tend to come on the market during the summer months when households with children who are out of school are looking to move.
That seasonality means, based on historical trends and the fact that fall is now approaching, we can expect smaller, more affordable homes to come to the market throughout the rest of the year.
That’s great news because, as Robert Dietz, Chief Economist at the National Association of Home Builders (NAHB), <a href="https://eyeonhousing.org/2023/08/single-family-home-size-moves-lower-to-more-than-a-decade-low/" rel="noopener noreferrer" target="_blank">states</a>, the need for these types of homes has gone up recently:
“. . . as interest rates increased in 2022, and housing affordability worsened, the demand for home size has trended lower.”
What Does This Mean for You?
The seasonal trend of smaller homes coming to the market in the later months of the year, coupled with builders <a href="https://www.mykcm.com/2023/08/17/people-want-less-expensive-homes-and-builders-are-responding/" rel="noopener noreferrer" target="_blank">bringing</a> smaller, more affordable newly built homes to the market right now, is good news – especially if you’re finding it difficult to afford a home. Mikaela Arroyo, Director of the New Home Trends Institute at John Burns Real Estate Consulting, <a href="https://www.marketwatch.com/story/the-shrinking-american-home-as-demand-rises-builders-go-smaller-ed2a327c" rel="noopener noreferrer" target="_blank">says</a> this about a potential increase in the availability of smaller homes:
“It’s not solving the affordability crisis, but it is creating opportunities for people to be able to afford an entry-level home in an area.”
Bottom Line
If a smaller, more affordable home sounds appealing to you, good news – they’re coming. To keep up with what’s available in our area, let’s <a href="https://www.mykcm.com/2023/08/23/why-you-need-a-true-expert-in-todays-housing-market/" rel="noopener noreferrer" target="_blank">connect</a>.
Contact the Gold Country Modern Team, your <a href="http://www.goldcountrymodern.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-ogsc="">Amador County real estate</a> connection, for assistance buying or selling a home in the Gold Country.
2023-09-07T12:49:24-07:002023-09-07T12:51:24-07:00Gold Country Teamtag:goldcountrymodern.com,2012-09-20:30053Expert Home Price Forecasts Revised Up for 2023<img src="https://files.keepingcurrentmatters.com/content/images/20230825/20230905-expert-home-price-forecasts-revised-up-for-2023.png" alt="" class="img-thumbnail mx-auto d-block" />
Toward the end of last year, there were a number of headlines saying <a href="https://www.mykcm.com/2023/06/12/are-home-prices-going-up-or-down-that-depends/" rel="noopener noreferrer" target="_blank">home prices</a> were going to fall substantially in 2023. That led to a lot of fear and questions about whether there was going to be a repeat of the housing crash that happened back in 2008. But the headlines got it wrong.
While there was a slight home price correction after the sky-high price appreciation during the <a href="https://www.mykcm.com/2023/05/30/todays-real-estate-market-the-unicorns-have-galloped-off/" rel="noopener noreferrer" target="_blank">‘unicorn’ years</a>, nationally, <a href="https://www.mykcm.com/2023/06/05/oops-home-prices-didnt-crash-after-all/" rel="noopener noreferrer" target="_blank">home prices</a> didn’t come crashing down. If anything, <a href="https://www.mykcm.com/2023/08/11/home-prices-are-back-on-the-rise-infographic/" rel="noopener noreferrer" target="_blank">prices</a> were a lot more resilient than many people expected.
Let's take a look at some of the expert forecasts from late last year stacked against their most recent <a href="https://www.mykcm.com/2023/08/04/housing-market-forecast-for-the-rest-of-2023-infographic-1/" rel="noopener noreferrer" target="_blank">forecasts</a> to show that even the experts recognize they were overly pessimistic.
Expert Home Price Forecasts: Then and Now
This visual shows the <a href="https://www.zillow.com/research/data/" rel="noopener noreferrer" target="_blank">2023</a> home price <a href="https://www.mba.org/news-and-research/forecasts-and-commentary/mortgage-finance-forecast-archives" rel="noopener noreferrer" target="_blank">forecasts</a> from seven <a href="https://www.fanniemae.com/research-and-insights/forecast/forecast-monthly-archive" rel="noopener noreferrer" target="_blank">organizations</a>. It provides the original 2023 forecasts (released in late <a href="https://ustoday.news/a-20-drop-in-house-prices-7-forecast-models-tend-to-crash-here-the-other-13-models-show-the-housing-market-in-2023/" rel="noopener noreferrer" target="_blank">2022</a>) for what would happen to <a href="https://twitter.com/NewsLambert/status/1671900591113609216" rel="noopener noreferrer" target="_blank">home prices</a> by the end of <a href="https://twitter.com/NewsLambert/status/1671556169712672768" rel="noopener noreferrer" target="_blank">this year</a> and their most recently <a href="https://twitter.com/NewsLambert/status/1686959362563092480" rel="noopener noreferrer" target="_blank">revised</a> 2023 <a href="https://twitter.com/NewsLambert/status/1691799764466008217" rel="noopener noreferrer" target="_blank">forecasts</a> (see chart below):
<a href="https://www.mykcm.com/content/images/20230831/20230905-2023-Year-end-home-price-forecasts.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230831/20230905-2023-Year-end-home-price-forecasts.png" /></a>As the red in the middle column shows, in all instances, their original forecast called for home prices to fall. But, if you look at the right column, you’ll see all experts have updated their projections for the year-end to show they expect prices to either be flat or have positive growth. That’s a significant change from the original negative numbers.
There are a number of reasons why <a href="https://www.mykcm.com/2023/07/17/home-prices-are-rebounding/" rel="noopener noreferrer" target="_blank">home prices</a> are so resilient to falling. As Odeta Kushi, Deputy Chief Economist at First American, <a href="https://blog.firstam.com/economics/the-reconomy-podcast-why-us-homeowners-have-a-big-advantage-in-a-rising-mortgage-rate-environment" rel="noopener noreferrer" target="_blank">says</a>:
“One thing is for sure, having long-term, fixed-rate debt in the U.S. protects homeowners from payment shock, acts as an inflation hedge - your primary household expense doesn't change when inflation rises - and is a reason why home prices in the U.S. are downside sticky.”
A Look Forward To Get Ahead of the Next Headlines
For home prices, you’re going to continue to see misleading media coverage in the months ahead. That’s because there’s <a href="https://www.mykcm.com/2023/07/25/dont-fall-for-the-next-shocking-headlines-about-home-prices/" rel="noopener noreferrer" target="_blank">seasonality</a> to home price appreciation and they’re going to misunderstand that. Here’s what you need to know to get ahead of the next round of negative headlines.
As activity in the housing market slows at the end of this year (as it typically does each year), home price growth will slow too. But, this doesn’t mean prices are falling – it’s just that they’re not increasing as quickly as they were when the market was in the peak homebuying season.
Basically, deceleration of appreciation is not the same thing as home prices depreciating.
Bottom Line
The headlines have an impact, even if they’re not true. While the media said home prices would fall significantly in their coverage at the end of last year, that didn’t happen. Let’s connect so you have a trusted resource to help you separate fact from fiction with reliable data.
Contact us for experienced representation when buying or selling a <a href="http://www.goldcountrymodern.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-ogsc="" data-linkindex="10">home in Amador County CA</a>.
2023-09-05T18:12:17-07:002023-09-05T18:13:23-07:00Gold Country Teamtag:goldcountrymodern.com,2012-09-20:29877Why You May Still Want To Sell Your House After All<img src="https://files.keepingcurrentmatters.com/content/images/20230817/20230822-Why-You-May-Still-Want-To-Sell-Your-House-After-All.jpg" alt="" class="img-thumbnail mx-auto d-block" />
Even though you may feel reluctant to <a href="https://www.mykcm.com/2023/08/01/sellers-dont-let-these-two-things-hold-you-back/" rel="noopener noreferrer" target="_blank">sell your house</a> because you don’t want to take on a <a href="https://www.mykcm.com/2023/07/19/explaining-todays-mortgage-rates/" rel="noopener noreferrer" target="_blank">mortgage rate</a> that’s higher than the one you have now, there’s more to consider. While the financial side of things does matter, your personal needs may actually matter just as much. As an article from <a href="https://www.bankrate.com/real-estate/should-i-sell-my-house-now-or-wait/#sell-now" rel="noopener noreferrer" target="_blank">Bankrate</a> says:
“Deciding whether it’s the right time to sell your home is a very personal decision. There are numerous important questions to consider, both financial and lifestyle-based, before putting your home on the market.”
So, ask yourself this: why did I want to move in the first place?
Chances are your primary motivation wasn’t just financial in nature. Why you’re really thinking about <a href="https://www.mykcm.com/2023/08/08/theres-only-half-the-inventory-of-a-normal-housing-market-today/" rel="noopener noreferrer" target="_blank">selling</a> likely has more to do with something changing in your life or a shift in what you need out of your house.
Reasons Homeowners Still Need To Sell Today
Let’s explore some of the most common reasons sellers are <a href="https://www.mykcm.com/2023/07/27/homebuyers-are-still-more-active-than-usual/" rel="noopener noreferrer" target="_blank">moving</a> today. A recent <a href="https://www.builderonline.com/data-analysis/whats-behind-this-years-high-sales-volume-despite-the-lock-in-effect_o" rel="noopener noreferrer" target="_blank">article</a> from Builder Online helps shed light on this. In this research, they identified the following categories:
Marriage – If you just got married, you may find you either need more space than you currently have, or the two of you want to find a new place you picked out together.
Divorce – If you’re getting separated or are divorcing your partner, chances are it’ll be difficult to live under the same roof. Selling the place you have, so you can own get your own spot, may be necessary.
Births – If your household is growing, you may need more square footage, including more bedrooms. If you’re running out of room for everyone, you may not be able to wait to move.
Deaths – If you’ve recently lost a loved one, it can be hard to spend time in that home. You may need to move for financial reasons or because you no longer need all the space.
Retirement – If you’re in the process of retiring, or you just did, you may be looking to downsize to cut costs, relocate to be closer to loved ones, or move to a dream location. In this new phase of life, your current home may not be able to deliver what you need.
You may find you share one of these top motivators. If any of these resonate with you, it may be <a href="https://www.mykcm.com/2023/08/10/about-11000-houses-will-sell-today/" rel="noopener noreferrer" target="_blank">time to move</a> so you can find a house better suited to your changing needs. A survey from Realtor.com finds other sellers are in the same boat. It <a href="https://mediaroom.realtor.com/2023-04-17-Realtor-com-R-Survey-82-of-Those-Looking-to-Buy-and-Sell-a-Home-Feel-Locked-In-by-Low-Mortgage-Rate" rel="noopener noreferrer" target="_blank">says</a>, 1 in 4 sellers are choosing to move for personal reasons, even with current <a href="https://www.mykcm.com/2023/08/03/how-inflation-affects-mortgage-rates/" rel="noopener noreferrer" target="_blank">mortgage rates</a>:
“. . . more than half of seller-buyers (56%) who are planning to sell in the next 12 months said they are waiting for rates to come down, while 25% need to sell soon for personal reasons.”
If you need to sell now because something in your own life has changed, don’t let rates hold you back from what you want. You have options to help make that move possible. You can use the <a href="https://www.mykcm.com/2023/08/07/four-ways-you-can-use-your-home-equity/" rel="noopener noreferrer" target="_blank">equity</a> you already have in your current home toward your next purchase. And with <a href="https://www.mykcm.com/2023/08/15/equity-is-a-game-changer-for-homeowners-looking-to-sell/" rel="noopener noreferrer" target="_blank">how much</a> equity homeowners have right now, you may be able to finance less than you’d expect, or pay all cash to avoid borrowing at all.
Bottom Line
When you're ready to prioritize your changing needs, let’s connect. You need an expert on your side to help you list your house and find a home that delivers on everything you're looking for.
Contact us for experienced representation when buying or selling a <a href="http://www.goldcountrymodern.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-ogsc="" data-linkindex="10">home in Amador County CA</a>.
2023-08-29T11:24:50-07:002023-08-29T11:26:15-07:00Gold Country Teamtag:goldcountrymodern.com,2012-09-20:29676Why Median Home Sales Price Is Confusing Right Now<img src="https://files.keepingcurrentmatters.com/content/images/20230814/20230821-Why-median-homes-sales-price-is-confusing-right-now.jpg" alt="" class="img-thumbnail mx-auto d-block" />
The National Association of Realtors (NAR) is set to release its most recent Existing Home Sales (EHS) report tomorrow. This monthly release provides information on the volume of sales and price trends for homes that have previously been owned. In the upcoming release, it’ll likely say <a href="https://www.mykcm.com/2023/07/25/dont-fall-for-the-next-shocking-headlines-about-home-prices/" rel="noopener noreferrer" target="_blank">home prices</a> are down. This may seem a bit confusing, especially if you’ve been following along and reading the blogs saying home prices have hit the bottom and have since <a href="https://www.mykcm.com/2023/08/11/home-prices-are-back-on-the-rise-infographic/" rel="noopener noreferrer" target="_blank">rebounded</a>.
So, why would this say <a href="https://www.mykcm.com/2023/06/12/are-home-prices-going-up-or-down-that-depends/" rel="noopener noreferrer" target="_blank">home prices </a>are falling when so many other price reports say they’re going back up? It all depends on the methodology of each one. NAR reports on the median home sales price, while some other sources use repeat sales prices. Here’s how those approaches differ.
The Center for Real Estate Studies at Wichita State University <a href="https://realestate.wichita.edu/question/hpi-vs-median-price/#:~:text=The%20median%20sale%20price%20measures,and%20half%20sold%20for%20less" rel="noopener noreferrer" target="_blank">explains</a> median sales prices like this:
“The median sale price measures the ‘middle’ price of homes that sold, meaning that half of the homes sold for a higher price and half sold for less . . . For example, if more lower-priced homes have sold recently, the median sale price would decline (because the “middle” home is now a lower-priced home), even if the value of each individual home is rising.”
Investopedia helps define what a repeat sales approach <a href="https://www.investopedia.com/terms/r/repeatsales-method.asp" rel="noopener noreferrer" target="_blank">means</a>:
“Repeat-sales methods calculate changes in home prices based on sales of the same property, thereby avoiding the problem of trying to account for price differences in homes with varying characteristics.”
The Challenge with the Median Home Sales Price Today
As the quotes above say, the approaches can tell different stories. That’s why median home sales price data (like EHS) may say prices are down, even though the vast majority of the repeat sales reports show prices are <a href="https://www.mykcm.com/2023/07/17/home-prices-are-rebounding/" rel="noopener noreferrer" target="_blank">appreciating again</a>.
Bill McBride, Author of the Calculated Risk blog, <a href="https://calculatedrisk.substack.com/p/case-shiller-national-house-price-747" rel="noopener noreferrer" target="_blank">sums</a> the difference up like this:
“Median prices are distorted by the mix and repeat sales indexes like Case-Shiller and FHFA are probably better for measuring prices.”
To drive this point home, here’s a simple explanation of median value (see visual below). Let’s say you have three coins in your pocket, and you decide to line them up according to their value from low to high. If you have one nickel and two dimes, the median value (the middle one) is 10 cents. If you have two nickels and one dime, the median value is now five cents.
<a href="https://www.mykcm.com/content/images/20230814/20230821-How-Median-Price-Works.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230814/20230821-How-Median-Price-Works.png" /></a>In both cases, a nickel is still worth five cents and a dime is still worth 10 cents. The value of each coin didn’t change.
That’s why using the median home sales price as a gauge of what’s happening with home values may be confusing right now. Most buyers look at home prices as a starting point to determine if they match their budgets. But most people buy homes based on the monthly mortgage payment they can afford, not just the price of the house. When <a href="https://www.mykcm.com/2023/08/03/how-inflation-affects-mortgage-rates/" rel="noopener noreferrer" target="_blank">mortgage rates</a> are higher, you may have to buy a less expensive home to keep your monthly housing expense affordable.
That’s why a greater number of ‘less-expensive’ houses are selling right now – and that’s causing the median home sales price to decline. But that doesn’t mean any single house lost value.
When you see the stories in the media that prices are falling later this week, remember the coins. Just because the median home sales price changes, it doesn’t mean home prices are falling. What it means is the mix of homes being sold is being impacted by <a href="https://www.mykcm.com/2023/08/02/how-to-know-if-youre-ready-to-buy-a-home/" rel="noopener noreferrer" target="_blank">affordability</a> and current <a href="https://www.mykcm.com/2023/07/19/explaining-todays-mortgage-rates/" rel="noopener noreferrer" target="_blank">mortgage rates</a>.
Bottom Line
For a more in-depth understanding of home price trends and reports, let’s connect.
Contact us for experienced representation when buying or selling a <a href="http://www.goldcountrymodern.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-ogsc="" data-linkindex="10">home in Amador County CA</a>.
2023-08-21T18:33:13-07:002023-08-21T18:35:32-07:00Gold Country Teamtag:goldcountrymodern.com,2012-09-20:29577People Want Less Expensive Homes – And Builders Are Responding<img src="https://files.keepingcurrentmatters.com/content/images/20230816/20230817-People-want-less-expensive-homes-and-builders-are-responding.jpg" alt="" class="img-thumbnail mx-auto d-block" />
In today’s housing market, there are two main affordability challenges impacting buyers: <a href="https://www.mykcm.com/2023/08/03/how-inflation-affects-mortgage-rates/" rel="noopener noreferrer" target="_blank">mortgage rates</a> that are <a href="https://www.mykcm.com/2023/07/19/explaining-todays-mortgage-rates/" rel="noopener noreferrer" target="_blank">higher</a> than they’ve been the past couple of <a href="https://www.freddiemac.com/pmms/archive" rel="noopener noreferrer" target="_blank">years</a>, and rising home prices caused by <a href="https://www.mykcm.com/2023/08/08/theres-only-half-the-inventory-of-a-normal-housing-market-today/" rel="noopener noreferrer" target="_blank">low inventory</a>. To overcome those challenges, many people are working with their agents to find less expensive homes. And with newly built homes making up a historically large <a href="https://www.mykcm.com/2023/06/29/where-will-you-go-if-you-sell-newly-built-homes-might-be-the-answer/" rel="noopener noreferrer" target="_blank">percentage</a> of the total available inventory today, that search often includes brand new homes.
People Are Spending Less on Newly Built Homes
The graph below uses the latest information from the <a href="https://www.census.gov/construction/nrs/index.html" rel="noopener noreferrer" target="_blank">Census</a> to show, in June, more of the newly built home sales in this country were in lower price ranges than in 2022:<a href="https://www.mykcm.com/content/images/20230816/20230817-Newly-built-home-sales-by-price-segment.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230816/20230817-Newly-built-home-sales-by-price-segment.png" /></a>Last year, only 58% of newly built home sales were less than $500,000. This June, that number was up to 65%. This means more people are buying less expensive newly built homes right now while affordability remains a challenge.
Builders Are Offering Lower-Cost Options
Builders have picked up on this trend and are reacting accordingly. George Ratiu, Chief Economist at Keeping Current Matters, <a href="https://twitter.com/KCMcrew/status/1684206839523684355" rel="noopener noreferrer" target="_blank">explains</a>:
“Builders are also responding to this shift by bringing slightly smaller homes to market in an effort to meet lower price points . . .”
New <a href="https://www.census.gov/construction/nrs/index.html" rel="noopener noreferrer" target="_blank">data</a> from the Census further confirms this pattern – it shows the median sales price of newly built homes has dipped down in recent months (see graph below):<a href="https://www.mykcm.com/content/images/20230816/20230817-Newly-built-home-prices-reflect-smaller-homes.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230816/20230817-Newly-built-home-prices-reflect-smaller-homes.png" /></a>And as Mikaela Arroyo, Director of the New Home Trends Institute at John Burns Real Estate Consulting, <a href="https://www.marketwatch.com/story/the-shrinking-american-home-as-demand-rises-builders-go-smaller-ed2a327c?siteid=msnheadlines" rel="noopener noreferrer" target="_blank">says</a>, the builders who are most responsive to this trend are forming pathways to homeownership:
“. . . it is creating opportunities for people to be able to afford an entry-level home in an area. . . . if you get that size down, that automatically will make it a more affordable home. The [builders] that are decreasing [size] the most are probably the ones that try to build more of an affordable product.”
How an Agent Can Help
Builders producing smaller, less expensive newly built homes give you more affordable options at a time when that’s really needed. If you’re hoping to buy a home soon, partner with a local real estate agent to find out what’s available in your area. An agent can help you look at newly built homes or ones under construction nearby.
Bottom Line
If you’re having a hard time finding a home you like in your budget, let’s connect. You need a <a href="https://www.mykcm.com/2023/08/09/the-value-of-an-agent-when-buying-your-new-construction-home/" rel="noopener noreferrer" target="_blank">real estate professional</a> who knows all about the latest inventory in our area, including homes still under construction or just built. That way you have an expert on your side who can provide information on builder reputations, builder contracts and negotiations, and more to help you with the homebuying process.
Contact us for experienced representation when buying or selling a <a href="http://www.goldcountrymodern.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-ogsc="">home in Amador County CA</a>.
2023-08-17T17:10:19-07:002023-08-17T17:12:38-07:00Gold Country Teamtag:goldcountrymodern.com,2012-09-20:29448Where Are People Moving Today and Why? Hint: Amador County checks lots of boxes!<img src="https://files.keepingcurrentmatters.com/content/images/20230809/20230814-Where-are-people-moving-today-and-why.jpg" alt="" class="img-thumbnail mx-auto d-block" />
Plenty of people are <a href="https://www.mykcm.com/2023/07/27/homebuyers-are-still-more-active-than-usual/" rel="noopener noreferrer" target="_blank">still moving</a> these days. And if you’re thinking of making a move yourself, you may be considering the <a href="https://www.mykcm.com/2023/07/14/low-housing-inventory-is-a-sweet-spot-for-sellers-infographic/" rel="noopener noreferrer" target="_blank">inventory</a> and affordability challenges in the <a href="https://www.mykcm.com/2023/08/04/housing-market-forecast-for-the-rest-of-2023-infographic-1/" rel="noopener noreferrer" target="_blank">housing market</a> and wondering what you can do to help offset those. A new <a href="https://474803.fs1.hubspotusercontent-na1.net/hubfs/474803/The%20State%20of%20U.S.%20Population%20Movement_0623.pdf" rel="noopener noreferrer" target="_blank">report</a> from Gravy Analytics provides insight into where people are searching for homes and what they’re prioritizing most right now. That information could help you plan your own move.
1. People Are Moving to Cities with Lower Housing Costs
One big factor motivating where buyers are going is affordability and that’s no big surprise. People are relocating to areas that have less expensive housing options. As a result, small cities are thriving. Hannah Jones, Economics Data Analyst at Realtor.com, <a href="https://www.realtor.com/news/trends/affordable-what-americas-20-hottest-housing-markets-all-have-in-common-now/" rel="noopener noreferrer" target="_blank">summarizes</a> why:
“Affordability is still very much front and center . . . a lot of what’s available is outside of the price range of many buyers. . . . so they look elsewhere for a little more bang for the buck.”
The takeaway for you? If you’re having trouble finding a home that fits your budget, it may help to browse other, more affordable locations nearby.
2. People Want to Live Where They Vacation
And, if you’re already expanding your search radius, you may be able to include a location that features your favorite type of destination, like a suburb near the beach or a mountain town. Data shows many other homeowners are making that type of move a priority today. <a href="https://474803.fs1.hubspotusercontent-na1.net/hubfs/474803/The%20State%20of%20U.S.%20Population%20Movement_0623.pdf" rel="noopener noreferrer" target="_blank">According</a> to the same report from Gravy Analytics:
“Whether it’s the opportunity to enjoy more weekend hikes in the mountains or to wake up to a lakeside sunrise, people are moving to areas that were once thought of as vacation spots.”
Even with today’s <a href="https://www.mykcm.com/2023/07/17/home-prices-are-rebounding/" rel="noopener noreferrer" target="_blank">home prices</a> and <a href="https://www.mykcm.com/2023/08/03/how-inflation-affects-mortgage-rates/" rel="noopener noreferrer" target="_blank">mortgage rates</a>, here’s why a move like this could be possible for you. If you’re already a homeowner, the <a href="https://www.mykcm.com/2023/08/07/four-ways-you-can-use-your-home-equity/" rel="noopener noreferrer" target="_blank">equity</a> you’ll get when you sell your current house can help fuel that move and give you the down payment you’d need for your dream home.
3. People Who Work Remotely Are Taking Advantage of that Flexibility
Ongoing <a href="https://www.mykcm.com/2023/07/13/how-remote-work-expands-your-homebuying-horizons/" rel="noopener noreferrer" target="_blank">remote work</a> is another major factor in where people are moving. A recent <a href="https://www.mckinsey.com/mgi/our-research/empty-spaces-and-hybrid-places-chapter-1" rel="noopener noreferrer" target="_blank">report</a> from the McKinsey Global Institute says this about recent movement patterns:
“Many of these moves happened because employees untethered from their daily commutes began to care less about how far they lived from the office.”
If you’re a remote or hybrid worker, you don’t have to live in the same city, or sometimes even the same state, as your job. That means you can prioritize other things, like being closer to loved ones, when buying a home.
In fact, the same McKinsey Global Institute report <a href="https://www.mckinsey.com/mgi/our-research/empty-spaces-and-hybrid-places-chapter-1" rel="noopener noreferrer" target="_blank">notes</a> for people who moved during the pandemic, 55% reported moving farther from the office. And since remote work is still a popular choice today, homebuyers will likely continue to take advantage of that flexibility.
Bottom Line
Lots of people are still <a href="https://www.mykcm.com/2023/07/26/tips-for-making-your-best-offer-on-a-home/" rel="noopener noreferrer" target="_blank">moving</a> today. If you want help navigating today’s inventory or affordability challenges, and expert advice to <a href="https://www.mykcm.com/2023/08/02/how-to-know-if-youre-ready-to-buy-a-home/" rel="noopener noreferrer" target="_blank">help</a> you find your ideal home, let's connect.
Contact the Gold Country Modern Team, your <a href="http://www.goldcountrymodern.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-ogsc="" data-linkindex="8">Amador County real estate</a> connection, for assistance buying or selling a home in the Gold Country.
2023-08-14T10:55:03-07:002023-08-14T10:57:49-07:00Gold Country Teamtag:goldcountrymodern.com,2012-09-20:29333The Value of an Agent When Buying Your New Construction Home<img src="https://files.keepingcurrentmatters.com/content/images/20230808/20230809-The-Value-of-an-Agent-When-Buying-Your-New-Construction-Home.jpg" alt="" class="img-thumbnail mx-auto d-block" />
Buying a <a href="https://www.mykcm.com/2023/06/29/where-will-you-go-if-you-sell-newly-built-homes-might-be-the-answer/" rel="noopener noreferrer" target="_blank">new construction</a> home can be an exciting experience. From being the very first owner, to customizing your home’s features, there are a lot of benefits. But navigating the complexities of buying a home that’s under construction can also be a bit overwhelming. This is where a skilled real estate agent can make all the difference.
An article from The Mortgage Reports <a href="https://themortgagereports.com/91925/guide-to-buying-a-new-construction-home" rel="noopener noreferrer" target="_blank">sums</a> it up like this:
“Your Realtor or real estate agent will be key to helping you navigate this process. . . . they can guide you through construction and help anticipate and solve for any possible snags along the way.”
Here’s how your agent is an invaluable resource in your search to find and buy your new home.
Agents Know the Local Area and Market
Your agent is well-versed in the emerging communities and upcoming developments that could influence your decision. For example, you'll want to be aware if there were any plans to construct a highway through the woods behind your prospective backyard. It’s important to consider how the neighborhood and the surrounding area might evolve before making your home purchase. Your agent can help you find a community that perfectly aligns with your preferences, lifestyle, and future needs.
Knowledge of Construction Quality and Builder Reputation
An agent also has the expertise to evaluate the construction quality and <a href="https://www.nahb.org/other/consumer-resources/how-to-choose-a-home-builder" rel="noopener noreferrer" target="_blank">reputation</a> of different builders. Their knowledge and experiences with local builders allow them to offer insights into each one’s track record, customer satisfaction, and construction practices. This information can help you avoid any potential risks and help you confidently select a builder known for delivering quality homes.
Assistance with Customization and Upgrades
The most obvious benefit of opting for new home construction is the opportunity to customize your home to suit your preferences. Your agent will guide you through that process and share advice on the upgrades that are most likely to add long-term value to your home. Their expertise ensures you focus your budget on areas that will give you the greatest return on your investment later on.
Understanding Builder Contracts and Negotiations
Builder <a href="https://www.realtor.com/advice/buy/steps-to-buy-a-new-construction-home/" rel="noopener noreferrer" target="_blank">contracts</a> can be complex and differ from traditional home purchase agreements. Your agent can help you navigate these contracts to make sure you fully understand the terms and conditions. They’re also skilled negotiators who can advocate on your behalf, potentially securing better deals, upgrades, or incentives for you throughout the process.
Bottom Line
The guidance and expertise of a local real estate agent can make all the difference in turning your vision of the perfect home into a reality. Let’s connect so you can feel confident about purchasing your new construction home.
Contact us for experienced representation when buying or selling a <a href="http://www.goldcountrymodern.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-ogsc="">home in Amador County CA</a>.
2023-08-09T12:41:31-07:002023-08-09T12:43:21-07:00Gold Country Teamtag:goldcountrymodern.com,2012-09-20:29185How To Know If You’re Ready to Buy a Home2023-08-02T18:32:25-07:002023-08-02T18:32:51-07:00Gold Country Teamtag:goldcountrymodern.com,2012-09-20:29125Homebuyers Are Still More Active Than Usual<img src="https://files.keepingcurrentmatters.com/content/images/20230726/20230727-homebuyers-are-still-more-active-than-usual.jpg" alt="" class="img-thumbnail mx-auto d-block" />
Even though the housing market is no longer experiencing the frenzy that was so characteristic of the last couple of years, it doesn’t mean today’s market is at a standstill. In actuality, buyer traffic is still strong today.
The ShowingTime <a href="https://www.showingtime.com/blog/may-2023-showing-index-results/" rel="noopener noreferrer" target="_blank">Showing Index</a> is a measure of how much buyers are touring homes. The graph below uses that index to illustrate buyer activity trends over time to help put today into the proper perspective.
<a href="https://www.mykcm.com/content/images/20230726/20230727-Buyer-Traffic-Returning-to-Seasonality.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230726/20230727-Buyer-Traffic-Returning-to-Seasonality.png" /></a>
It shows there’s <a href="https://www.mykcm.com/2023/07/25/dont-fall-for-the-next-shocking-headlines-about-home-prices/" rel="noopener noreferrer" target="_blank">seasonality</a> in real estate. If you look at the last normal years in the market (shown in gray), there was a consistent pattern as buyer activity peaked in the first half of each year (during the peak homebuying season in the spring) and slowed as each year came to a close.
When the pandemic hit in March of 2020, that trend was disrupted as the market responded to the resulting uncertainty (shown in blue in the middle). From there, we entered the <a href="https://www.mykcm.com/2023/05/30/todays-real-estate-market-the-unicorns-have-galloped-off/" rel="noopener noreferrer" target="_blank">‘unicorn’ years</a> of housing (shown in pink). This is when mortgage rates were record-low and buyer demand was sky high. Similar seasonal trends still existed even during that time, just at much higher levels.
Now, let’s look at 2023. Traffic is down from the previous month and it’s also lower than the peaks we saw in the <a href="https://www.mykcm.com/2023/06/09/why-you-cant-compare-now-to-the-unicorn-years-of-the-housing-market-infographic/" rel="noopener noreferrer" target="_blank">‘unicorn’ years</a>. But what’s happening isn’t a steep drop off in demand – it’s a slow return toward more normal seasonality. As the ShowingTime report <a href="https://www.showingtime.com/blog/may-2023-showing-index-results/" rel="noopener noreferrer" target="_blank">explains</a>:
“Showing traffic declined about 10% in May . . . This follows a typical seasonal pattern – disrupted by the pandemic but now beginning to return . . .”
And, to highlight this isn’t a drastic decline, let’s zoom in. Here’s a graph using just the May data for the last five years. It shows just how strong buyer demand still is.
<a href="https://www.mykcm.com/content/images/20230726/20230727-Traffic-Remains-Above-Pre-Pandemic-Levels.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230726/20230727-Traffic-Remains-Above-Pre-Pandemic-Levels.png" /></a>
What Does That Mean for You?
Buyers are still out there touring homes. They’re more active than they were in May 2022 (when sticker shock over higher <a href="https://www.mykcm.com/2023/07/19/explaining-todays-mortgage-rates/" rel="noopener noreferrer" target="_blank">mortgage rates</a> started to set in) and certainly more than they were in the last normal years. So, remember, buyer activity is still strong. And it could actually be even stronger if it wasn’t constrained by the <a href="https://www.mykcm.com/2023/07/06/todays-housing-inventory-is-a-sweet-spot-for-sellers/" rel="noopener noreferrer" target="_blank">limited supply</a> of homes for sale. According to <a href="https://realestate.usnews.com/real-estate/articles/when-will-the-housing-market-crash" rel="noopener noreferrer" target="_blank">U.S. News</a>:
“Housing markets have cooled slightly, but demand hasn’t disappeared, and in many places remains strong largely due to the shortage of homes on the market.”
Bottom Line
Don’t lose sight of just how active the market still is today. If your house isn’t on the market, it’s not getting in front of all those buyers who are looking to make a purchase right now. Let’s connect to start the process.
Contact the Gold Country Modern Team, your <a href="http://www.goldcountrymodern.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-ogsc="" data-linkindex="8">Amador County real estate</a> connection, for assistance buying or selling a home in the Gold Country.
2023-08-01T16:32:59-07:002023-08-01T16:34:19-07:00Gold Country Teamtag:goldcountrymodern.com,2012-09-20:28877Foreclosure Numbers Today Aren’t Like 2008<img src="https://files.keepingcurrentmatters.com/content/images/20230721/20230724-foreclosure-numbers-today-arent-like-2008.jpg" alt="" class="img-thumbnail mx-auto d-block" />
If you've been keeping up with the news lately, you've probably come across headlines talking about the increase in foreclosures in today’s housing market. This may have left you with some uncertainty, especially if you're considering <a href="https://www.mykcm.com/2023/07/05/two-questions-to-ask-yourself-if-youre-considering-buying-a-home/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">buying a home</a>. It’s important to understand the context of these reports to know the truth about what’s happening today.
According to a <a href="https://www.attomdata.com/news/market-trends/foreclosures/attom-mid-year-2023-u-s-foreclosure-market-report/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">recent report</a> from ATTOM, a property data provider, foreclosure filings are up 2% compared to the previous quarter and 8% since one year ago. While media headlines are drawing attention to this increase, reporting on just the number could actually generate worry for fear that prices could crash. The reality is, while increasing, the data shows a foreclosure crisis is not where the market is headed.
Let’s look at the latest information with context so we can see how this compares to previous years.
It Isn’t the Dramatic Increase Headlines Would Have You Believe
In recent years, the number of foreclosures has been down to record lows. That’s because, in 2020 and 2021, the forbearance program and other relief options for homeowners helped millions of homeowners stay in their homes, allowing them to get back on their feet during a very challenging period. And with home values rising at the same time, many homeowners who may have found themselves facing foreclosure under other circumstances were able to leverage their <a href="https://www.mykcm.com/2023/05/15/homeowners-have-incredible-equity-to-leverage-right-now/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">equity</a> and sell their houses rather than face foreclosure. Moving forward, <a href="https://www.mykcm.com/2023/06/16/how-owning-a-home-grows-your-wealth-with-time-infographic/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">equity</a> will continue to be a factor that can help keep people from going into foreclosure.
As the government’s moratorium came to an end, there was an expected rise in foreclosures. But just because foreclosures are up doesn’t mean the housing market is in trouble. As Clare Trapasso, Executive News Editor at Realtor.com, <a href="https://www.realtor.com/news/trends/foreclosures-continue-to-surge-with-more-homeowners-now-in-danger-of-losing-their-properties/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">says</a>:
“Many of these foreclosures would have occurred during the pandemic, but were put off due to federal, state, and local foreclosure moratoriums designed to keep people in their homes . . . Real estate experts have stressed that this isn’t a repeat of the Great Recession. It’s not that scores of homeowners suddenly can’t afford their mortgage payments. Rather, many lenders are now catching up. The foreclosures would have happened during the pandemic if moratoriums hadn’t halted the proceedings.”
In a recent article, Bankrate also <a href="https://www.bankrate.com/real-estate/is-the-housing-market-about-to-crash/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">explains</a>:
“In the years after the housing crash, millions of foreclosures flooded the housing market, depressing prices. That’s not the case now. Most homeowners have a comfortable equity cushion in their homes. Lenders weren’t filing default notices during the height of the pandemic, pushing foreclosures to record lows in 2020. And while there has been a slight uptick in foreclosures since then, it’s nothing like it was.”
Basically, there’s not a sudden flood of foreclosures coming. Instead, some of the increase is due to the delayed activity explained above while more is from economic conditions.
To further paint the picture of just how different the situation is now compared to the housing crash, take a look at the graph below. It uses data on foreclosure filings for the first half of each year since 2008 to show foreclosure activity has been consistently lower since the crash.
<a href="https://www.mykcm.com/content/images/20230721/20230724-foreclosures-in-the-first-6-months-of-the-year.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230721/20230724-foreclosures-in-the-first-6-months-of-the-year.png" /></a>
While foreclosures are climbing, it’s clear foreclosure activity now is nothing like it was back then. Today, foreclosures are far below the record-high number that was reported when the housing market crashed.
In addition to all the factors mentioned above, that’s also largely because buyers today are more qualified and less likely to default on their loans.
Bottom Line
Right now, putting the data into context is more important than ever. While the housing market is experiencing an expected rise in foreclosures, it’s nowhere near the crisis levels seen when the housing bubble burst, and that won’t lead to a crash in home prices.
Contact us for experienced representation when buying or selling a <a href="http://www.goldcountrymodern.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-ogsc="">home in Amador County CA</a>.
2023-07-24T12:24:11-07:002023-07-24T12:29:18-07:00Gold Country Teamtag:goldcountrymodern.com,2012-09-20:28786Explaining Today’s Mortgage Rates<img src="https://files.keepingcurrentmatters.com/content/images/20230717/20230719-Explaining-Todays-Mortgage-Rates.jpg" alt="" class="img-thumbnail mx-auto d-block" />
If you’re following <a href="https://www.mykcm.com/2023/07/03/evaluating-your-wants-and-needs-as-a-homebuyer-matters-more-today/" rel="noopener noreferrer" target="_blank">mortgage rates</a> because you know they impact your <a href="https://www.mykcm.com/2023/05/19/the-impact-of-changing-mortgage-rates-infographic/" rel="noopener noreferrer" target="_blank">borrowing costs</a>, you may be wondering what the future holds for them. Unfortunately, there’s no easy way to answer that question because mortgage rates are notoriously hard to <a href="https://www.mykcm.com/2023/07/05/two-questions-to-ask-yourself-if-youre-considering-buying-a-home/" rel="noopener noreferrer" target="_blank">forecast</a>.
But, there’s one thing that’s historically a good indicator of what’ll happen with rates, and that’s the relationship between the 30-Year Mortgage Rate and the <a href="https://www.macrotrends.net/2016/10-year-treasury-bond-rate-yield-chart" rel="noopener noreferrer" target="_blank">10-Year Treasury Yield</a>. Here’s a graph showing those two metrics since Freddie Mac started keeping mortgage rate <a href="https://www.freddiemac.com/pmms/pmms_archives" rel="noopener noreferrer" target="_blank">records</a> in 1972:
<a href="https://www.mykcm.com/content/images/20230717/20230719-For-50-years-the-30-year-mortgage-rate-has-moved-in-unison-with-the-10-year-treasury-yield.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230717/20230719-For-50-years-the-30-year-mortgage-rate-has-moved-in-unison-with-the-10-year-treasury-yield.png" /></a>
As the graph shows, historically, the average spread between the two over the last 50 years was 1.72 percentage points (also commonly referred to as 172 basis points). If you look at the trend line you can see when the Treasury Yield trends up, mortgage rates will usually respond. And, when the Yield drops, mortgage rates tend to follow. While they typically move in sync like this, the gap between the two has remained about 1.72 percentage points for quite some time. But, what’s crucial to notice is that <a href="https://www.freddiemac.com/pmms" rel="noopener noreferrer" target="_blank">spread</a> is <a href="https://www.wsj.com/market-data/quotes/bond/BX/TMUBMUSD10Y/historical-prices" rel="noopener noreferrer" target="_blank">widening</a> far beyond the norm lately (see graph below):
<a href="https://www.mykcm.com/content/images/20230717/20230719-30-year-fixed-mortgage-rate-and-10-year-treasury-yield.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230717/20230719-30-year-fixed-mortgage-rate-and-10-year-treasury-yield.png" /></a>
If you’re asking yourself: what’s pushing the spread beyond its typical average? It’s primarily because of uncertainty in the financial markets. Factors such as <a href="https://www.mykcm.com/2023/06/23/homeownership-helps-protect-you-from-inflation-infographic/" rel="noopener noreferrer" target="_blank">inflation</a>, other economic drivers, and the policy and decisions from the Federal Reserve (The Fed) are all influencing mortgage rates and a widening spread.
Why Does This Matter for You?
This may feel overly technical and granular, but here’s why <a href="https://www.mykcm.com/2023/06/27/why-homeownership-wins-in-the-long-run/" rel="noopener noreferrer" target="_blank">homebuyers</a> like you should understand the spread. It means, based on the normal historical gap between the two, there’s room for mortgage rates to improve today.
And, experts think that’s what lies ahead as long as inflation continues to cool. As Odeta Kushi, Deputy Chief Economist at First American, <a href="https://blog.firstam.com/economics/mind-the-gap-between-mortgage-rates-and-the-10-year-treasury-yield" rel="noopener noreferrer" target="_blank">explains</a>:
“It’s reasonable to assume that the spread and, therefore, mortgage rates will retreat in the second half of the year if the Fed takes its foot off the monetary tightening pedal . . . However, it’s unlikely that the spread will return to its historical average of 170 basis points, as some risks are here to stay.”
Similarly, an article from Forbes <a href="https://www.forbes.com/advisor/mortgages/mortgage-interest-rates-forecast/" rel="noopener noreferrer" target="_blank">says</a>:
“Though housing market watchers expect mortgage rates to remain elevated amid ongoing economic uncertainty and the Federal Reserve’s rate-hiking war on inflation, they believe rates peaked last fall and will decline—to some degree—later this year, barring any unforeseen surprises.”
Bottom Line
If you’re either a first-time home buyer or a current homeowner thinking of moving into a home that better fits your current needs, keep on top of what’s happening with mortgage rates and what experts think will happen in the coming months.
Contact us for experienced representation when buying or selling a <a href="http://www.goldcountrymodern.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-ogsc="">home in Amador County CA</a>.
2023-07-19T10:34:45-07:002023-07-19T10:40:57-07:00Gold Country Teamtag:goldcountrymodern.com,2012-09-20:28551Momentum Is Building for New Home Construction<img src="https://files.keepingcurrentmatters.com/content/images/20230707/20230707-momentum-is-building-for-new-home-construction.jpg" alt="" class="img-thumbnail mx-auto d-block" />
If you’re in the process of looking for a home today, you know the <a href="https://www.mykcm.com/2023/07/06/todays-housing-inventory-is-a-sweet-spot-for-sellers/" rel="noopener noreferrer" target="_blank" style="color: blue;">supply of homes</a> for sale is low because you’re feeling the impact of having a limited pool of options. And, if your biggest hurdle right now is that you’re having trouble finding something you like, don’t forget that a newly built home is a great option.
As a recent article from the National Association of Realtors (NAR) <a href="https://www.nar.realtor/magazine/real-estate-news/contract-signings-slow-but-buyer-demand-is-still-high" rel="noopener noreferrer" target="_blank" style="color: blue;">says</a>:
“Home buyers continue to be met with limited housing options during what’s typically the real estate market’s busiest season. . . . The current supply of existing homes is about half the level it was in 2019 . . . Meanwhile, the market for new construction is a bright spot.”
Here’s a look at a key metric that shows just how much new home construction is ramping up nationwide. It’s called new residential completions. Basically, completions are newly built homes that are finished and ready to move into.
The graph below uses <a href="https://www.census.gov/construction/nrc/current/index.html" rel="noopener noreferrer" target="_blank" style="color: blue;">data</a> from the Census to show the trend of new-home completions over time, including the long-term average for the number of finished housing units (shown in black on the graph):
<a href="https://www.mykcm.com/content/images/20230707/20230711-new-residential-completions-increase.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230707/20230711-new-residential-completions-increase.png" /></a>
As you can see on the left (shown in orange), leading up to the housing crash, builders exceeded that average. The result was an oversupply of homes on the market, so <a href="https://www.mykcm.com/2023/06/12/are-home-prices-going-up-or-down-that-depends/" rel="noopener noreferrer" target="_blank" style="color: blue;">home values</a> declined. That was one of the factors that led to the housing crash back in 2008.
Since then, the level of new home construction has fallen off, and builders haven’t built enough homes to meet the historical average (shown in red). That underbuilding left the housing market with a multi-year inventory deficit. And, that deficit is part of what makes inventory so low right now.
But, here’s the good news. The green on the right shows that according to the <a href="https://www.census.gov/construction/nrc/current/index.html" rel="noopener noreferrer" target="_blank" style="color: blue;">latest report</a> from the Census, builders are matching the long-term average right now. And that means they’re bringing more newly built homes to the market than they have in recent memory.
And residential starts and permits are also gaining momentum. Starts are homes where the construction has officially kicked off. Permits are homes where builders are planning to break ground soon. Since both are up, it’s a sign there are even more newly built homes coming soon.
What This Means for You
More newly built homes in various stages of the construction process means your pool of options just got bigger. If you’re looking to move right now and timing is important to you, reach out to a local<a href="https://www.mykcm.com/2023/05/22/why-buyers-need-an-expert-agent-by-their-side/" rel="noopener noreferrer" target="_blank" style="color: blue;"> real estate professional</a> to explore the homes that were recently completed in your area. If construction is done on those homes, you should be able to move in quickly.
But, if you can wait a bit and the idea of customizing a home from the ground up appeals to you, ask that same agent about the homes in your area that are in the process of being built. If you buy a home that’s still in the works, you can help pick the features and finishings along the way. And when none of the homes you’ve looked at so far are to your liking, being able to tailor one to your taste may be your best option.
Either way, a trusted real estate agent is a crucial part of the process. They’ll know exactly what’s available in your area and can base their recommendations on your unique needs, desired neighborhoods, and more.
Bottom Line
So, if you're having trouble finding a home you like while inventory is so low, it may be time to consider looking into new-home construction. If you'd like to start that conversation, let’s connect so you’re working with an expert on what’s available in our area.
Contact us for experienced representation when buying or selling a <a href="http://www.goldcountrymodern.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-ogsc="" data-linkindex="10">home in Amador County CA</a>.
2023-07-11T14:52:03-07:002023-07-11T14:56:18-07:00Gold Country Teamtag:goldcountrymodern.com,2012-09-20:28300Swingles...The Place to Meat
Ah, the 4th of July! It's a fantastic time for barbecues and outdoor gatherings and if you are close to or passing thru Jackson, CA all the locals know where to meat....
Swingles Meat Co, located at 12640 Kennedy Flat Rd in Jackson CA is favorite in Amador County specializing in marinated meats such as the house favorite "Kona" tri-tip and the "Motherlode" as a close second for me but also offers all the local butcher ammenities and a great option for high-quality meats and if you are vegetarian or fish lover they also have a large frozen section of different types of delicious dishes including pastas and fish.
<img src="https://assets.site-static.com/userfiles/602/image/Kona_Resized_copy.jpg" width="270" height="295" />
Most meats are locally sourced and offer premium cuts of meat along with processing wild game and a big assest to our local FFA (Future Farmer's Of America) program and Amador County Fair. Established in 1945 this long running butcher has provided our community with only the finest quality and care and always supports our hometown locals and welcomes visitors from all over. Come check them out!2023-07-03T08:23:05-07:002023-07-05T07:42:37-07:00Stephanie Thomastag:goldcountrymodern.com,2012-09-20:28009Lending Standards Are Not Like They Were Leading Up to the Crash<img src="https://files.keepingcurrentmatters.com/content/images/20230627/20230628-lending-standards-are-not-like-they-were-leading-up-to-the-crash.jpg" alt="" class="img-thumbnail mx-auto d-block" />
You might be worried we’re heading for a <a href="https://www.mykcm.com/2023/05/09/why-todays-housing-market-is-not-about-to-crash/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">housing crash</a>, but there are many reasons why this housing <a href="https://www.mykcm.com/2023/06/08/this-real-estate-market-is-the-strongest-of-our-lifetime/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">market</a> isn’t like the one we saw in 2008. One of which is how lending standards are different today. Here’s a look at the data to help prove it.
Every month, the Mortgage Bankers Association (MBA) releases the <a href="https://www.mba.org/news-and-research/newsroom/news/2022/05/10/mortgage-credit-availability-decreased-in-april" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">Mortgage Credit Availability Index</a> (MCAI). According to their website:
“The MCAI provides the only standardized quantitative index that is solely focused on mortgage credit. The MCAI is . . . a summary measure which indicates the availability of mortgage credit at a point in time.”
Basically, the index determines how easy it is to get a mortgage. Take a look at the graph below of the MCAI since they started keeping track of this data in 2004. It shows how lending standards have changed over time. It works like this:
When lending standards are less strict, it’s easier to get a mortgage, and the index (the green line in the graph) is higher.
When lending standards are stricter, it’s harder to get a mortgage, and the line representing the index is lower.
<a href="https://www.mykcm.com/content/images/20230627/20230628-lending-standards-still-under-control.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230627/20230628-lending-standards-still-under-control.png" /></a>
In 2004, the index was around 400. But, by 2006, it had gone up to over 850. Today, the story is quite different. Since the crash, the index went down because lending standards got tighter, so today it’s harder to get a mortgage.
Loose Lending Standards Contributed to the Housing Bubble
One of the main factors that contributed to the housing bubble was that lending standards were a lot less strict back then. Realtor.com <a href="https://www.realtor.com/news/trends/is-the-housing-market-in-a-bubble-how-indicators-today-compare-with-the-great-recession/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">explains</a> it like this:
“In the early 2000s, it wasn’t exactly hard to snag a home mortgage. . . . plenty of mortgages were doled out to people who lied about their incomes and employment, and couldn’t actually afford homeownership.”
The tall peak in the graph above indicates that leading up to the housing crisis, it was much easier to get credit, and the requirements for getting a loan were far from strict. Back then, credit was widely available, and the threshold for qualifying for a loan was low.
Lenders were approving loans without always going through a verification process to confirm if the borrower would likely be able to repay the loan. That means creditors were lending to more borrowers who had a higher risk of defaulting on their loans.
Today’s Loans Are Much Tougher To Get than Before
As mentioned, lending standards have changed a lot since then. Bankrate <a href="https://www.bankrate.com/real-estate/is-the-housing-market-about-to-crash/#reasons" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">describes</a> the difference:
“Today, lenders impose tough standards on borrowers – and those who are getting a mortgage overwhelmingly have excellent credit.”
If you look back at the graph, you’ll notice after the peak around the time of the housing crash, the line representing the index went down dramatically and has stayed low since. In fact, the line is far below where standards were even in 2004 – and it’s getting lower. Joel Kan, VP and Deputy Chief Economist at MBA, <a href="https://www.mba.org/news-and-research/research-and-economics/single-family-research/mortgage-credit-availability-index-x241340/2023/06/13/mortgage-credit-availability-decreased-in-may" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">provides</a> the most recent update from May:
“Mortgage credit availability decreased for the third consecutive month . . . With the decline in availability, the MCAI is now at its lowest level since January 2013.”
The decreasing index suggests standards are getting much tougher – which makes it clear we’re far away from the extreme lending practices that contributed to the crash.
Bottom Line
Leading up to the housing crash, lending standards were much more relaxed with little evaluation done to measure a borrower’s potential to repay their loan. Today, standards are tighter, and the risk is reduced for both lenders and borrowers. This goes to show, these are two very different housing markets, and this market isn’t like the last time.
Contact Gold Country Modern Real Estate, experienced <a href="http://www.goldcountrymodern.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-ogsc="" data-linkindex="9">Realtors in Amador County</a>, for help purchasing or selling a home in Amador County, California.
2023-06-28T17:26:47-07:002023-06-28T17:29:30-07:00Gold Country Teamtag:goldcountrymodern.com,2012-09-20:27784Why the Median Home Price Is Meaningless in Today’s Market<img src="https://files.keepingcurrentmatters.com/content/images/20230616/20230620-why-the-median-price-is-meaningless-in-todays-market.jpg" alt="" class="img-thumbnail mx-auto d-block" />
The National Association of Realtors (NAR) will release its latest Existing Home Sales (EHS) report later this week. This monthly report provides information on the sales volume and price trend for previously owned homes. In the upcoming release, it’ll likely say <a href="https://www.mykcm.com/2023/06/12/are-home-prices-going-up-or-down-that-depends/" rel="noopener noreferrer" target="_blank" style="color: blue;">home prices</a> are down. This may feel a bit confusing, especially if you’ve been following along and seeing the blogs saying that home prices have bottomed out and <a href="https://www.mykcm.com/2023/05/16/the-worst-home-price-declines-are-behind-us/" rel="noopener noreferrer" target="_blank" style="color: blue;">turned a corner</a>.
So, why will this likely say <a href="https://www.mykcm.com/2023/06/05/oops-home-prices-didnt-crash-after-all/" rel="noopener noreferrer" target="_blank" style="color: blue;">home prices</a> are falling when so many other price reports say they’re going back up? It all depends on the methodology of each report. NAR reports on the median sales price, while some other sources use repeat sales prices. Here’s how those approaches differ.
The Center for Real Estate Studies at Wichita State University <a href="https://realestate.wichita.edu/question/hpi-vs-median-price/#:~:text=The%20median%20sale%20price%20measures,and%20half%20sold%20for%20less" rel="noopener noreferrer" target="_blank" style="color: blue;">explains</a> median prices like this:
“The median sale price measures the ‘middle’ price of homes that sold, meaning that half of the homes sold for a higher price and half sold for less . . . For example, if more lower-priced homes have sold recently, the median sale price would decline (because the “middle” home is now a lower-priced home), even if the value of each individual home is rising.”
Investopedia helps define what a repeat sales approach <a href="https://www.investopedia.com/terms/r/repeatsales-method.asp" rel="noopener noreferrer" target="_blank" style="color: blue;">means</a>:
“Repeat-sales methods calculate changes in home prices based on sales of the same property, thereby avoiding the problem of trying to account for price differences in homes with varying characteristics.”
The Challenge with the Median Sales Price Today
As the quotes above say, the approaches can tell different stories. That’s why median price data (like EHS) may say prices are down, even though the vast majority of the repeat sales reports show prices are <a href="https://www.mykcm.com/2023/05/12/the-worst-home-price-declines-are-behind-us-infographic/" rel="noopener noreferrer" target="_blank" style="color: blue;">appreciating again</a>.
Bill McBride, Author of the Calculated Risk blog, <a href="https://calculatedrisk.substack.com/p/case-shiller-national-house-price-747" rel="noopener noreferrer" target="_blank" style="color: blue;">sums</a> the difference up like this:
“Median prices are distorted by the mix and repeat sales indexes like Case-Shiller and FHFA are probably better for measuring prices.”
To drive this point home, here’s a simple explanation of median value (see visual below). Let’s say you have three coins in your pocket, and you decide to line them up according to their value from low to high. If you have one nickel and two dimes, the median value (the middle one) is 10 cents. If you have two nickels and one dime, the median value is now five cents.
<a href="https://files.keepingcurrentmatters.com/content/images/20230616/20230620-how-median-price-works.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230616/20230620-how-median-price-works.png" /></a>
In both cases, a nickel is still worth five cents and a dime is still worth 10 cents. The value of each coin didn’t change.
That’s why using the median home price as a gauge of what’s happening with home values isn’t worthwhile right now. Most buyers look at home prices as a starting point to determine if they match their budgets. But, most people buy homes based on the monthly mortgage payment they can afford, not just the price of the house. When <a href="https://www.mykcm.com/2023/06/07/the-main-reason-mortgage-rates-are-so-high/" rel="noopener noreferrer" target="_blank" style="color: blue;">mortgage rates</a> are higher, you may have to buy a less expensive home to keep your monthly housing expense affordable. A greater number of ‘less-expensive’ houses are selling right now for this exact reason, and that’s causing the median price to decline. But that doesn’t mean any single house lost value.
When you see the stories in the media that prices are falling later this week, remember the coins. Just because the median price changes, it doesn’t mean home prices are falling. What it means is the mix of homes being sold is being impacted by <a href="https://www.mykcm.com/2023/04/26/the-three-factors-affecting-home-affordability-today/" rel="noopener noreferrer" target="_blank" style="color: blue;">affordability</a> and current <a href="https://www.mykcm.com/2023/05/19/the-impact-of-changing-mortgage-rates-infographic/" rel="noopener noreferrer" target="_blank" style="color: blue;">mortgage rates</a>.
Bottom Line
For a more in-depth understanding of home price trends and reports, let’s connect.
Contact the Gold Country Modern Team, your <a href="http://www.goldcountrymodern.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-ogsc="">Amador County real estate</a> connection, for assistance buying or selling a home in the Gold Country.
2023-06-20T17:16:00-07:002023-06-20T17:29:48-07:00Gold Country Teamtag:goldcountrymodern.com,2012-09-20:27747Saving for a Down Payment? Here’s What You Need To Know.<img src="https://files.keepingcurrentmatters.com/content/images/20230615/20230619-saving-for-a-down-payment-heres-what-you-should-know.jpg" alt="" class="img-thumbnail mx-auto d-block" />
If you're planning to buy your <a href="https://www.mykcm.com/2023/05/31/keys-to-success-for-first-time-homebuyers/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">first home</a>, then you're probably focused on saving for all the costs involved in such a big purchase. One of the expenses that may be at the top of your mind is your down payment. If you’re intimidated by how much you need to save for that, it may be because you believe you must put 20% down. That doesn’t necessarily have to be the case. As the National Association of Realtors (NAR) <a href="https://www.nar.realtor/blogs/economists-outlook/tackling-home-financing-and-down-payment-misconceptions" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">notes</a>:
“One of the biggest misconceptions among housing consumers is what the typical down payment is and what amount is needed to enter homeownership.”
And a recent Freddie Mac survey <a href="https://myhome.freddiemac.com/buying/down-payments-and-pmi" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">finds</a>:
“. . . nearly a third of prospective homebuyers think they need a down payment of 20% or more to buy a home. This myth remains one of the largest perceived barriers to achieving homeownership.”
Here’s the good news. Unless specified by your loan type or lender, it’s typically not required to put 20% down. This means you could be closer to your homebuying dream than you realize.
According to NAR, the <a href="https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">median down payment</a> hasn’t been over 20% since 2005. In fact, the median down payment for all homebuyers today is only 14%. And it’s even lower for first-time homebuyers at just 6% (see graph below):
<a href="https://www.mykcm.com/content/images/20230615/20230619-todays-median-down-payment-is-less-than-20-percent.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230615/20230619-todays-median-down-payment-is-less-than-20-percent.png" /></a>
What does this mean for you? It means you may not need to save as much as you originally thought.
Learn About Options That Can Help You Toward Your Goal
And it’s not just how much you need for your down payment that isn’t clear. There are also misconceptions about down payment assistance programs. For starters, many people believe there’s only assistance available for first-time homebuyers. While first-time buyers have many options to explore, repeat buyers have some, too.
According to <a href="https://downpaymentresource.com/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">Down Payment Resource</a>, there are over 2,000 homebuyer assistance programs in the U.S., and the majority are intended to help with down payments. That same resource goes on to say:
“You don’t have to be a first-time buyer. Over 38% of all programs are for repeat homebuyers who have owned a home in the last 3 years.”
Plus, there are even loan types, like <a href="https://www.hud.gov/buying/loans" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">FHA loans</a> with down payments as low as <a href="https://www.benefits.gov/benefit/504" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">3.5%</a> as well as options like <a href="https://www.va.gov/housing-assistance/home-loans/loan-types/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">VA loans</a> and <a href="https://www.rd.usda.gov/programs-services/single-family-housing-programs/single-family-housing-guaranteed-loan-program" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">USDA loans</a> with no down payment requirements for qualified applicants.
If you’re interested in learning more about down payment assistance programs, information is available through sites like <a href="https://downpaymentresource.com/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">Down Payment Resource</a>. Then, partner with a trusted lender to learn what you qualify for on your <a href="https://www.mykcm.com/2023/06/01/the-true-value-of-homeownership/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">homebuying</a> journey.
Bottom Line
Remember, a 20% down payment isn’t always required. If you want to purchase a home this year, let’s connect to start the conversation about your homebuying goals.
Contact the Gold Country Modern Team, your <a href="http://www.goldcountrymodern.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-ogsc="">Amador County real estate</a> connection, for assistance buying or selling a home in the Gold Country.
2023-06-19T14:27:33-07:002023-09-20T07:11:32-07:00Gold Country Teamtag:goldcountrymodern.com,2012-09-20:27537A Drop in Equity Doesn’t Mean Low Equity<img src="https://files.keepingcurrentmatters.com/content/images/20230613/20230614-a-drop-in-equity-doesnt-mean-low-equity.jpg" alt="" class="img-thumbnail mx-auto d-block" />
You may see media coverage talking about a drop in homeowner equity. What’s important to understand is that equity is tied closely to home values. So, when home prices appreciate, you can expect equity to grow. And when home prices decline, equity does too. Here’s how this has played out recently.
Home prices rose rapidly during the <a href="https://www.mykcm.com/2023/06/09/why-you-cant-compare-now-to-the-unicorn-years-of-the-housing-market-infographic/" rel="noopener noreferrer" target="_blank" style="color: blue;">‘unicorn’ years</a>. That gave homeowners a considerable equity boost. But those ‘unicorn’ years couldn’t last forever. The market had to moderate at some point, and that’s what we saw last fall and winter.
As home prices dropped slightly in the back half of 2022, equity was impacted. Based on the most recent <a href="https://www.corelogic.com/intelligence/homeowner-equity-insights-q1-2023/" rel="noopener noreferrer" target="_blank" style="color: blue;">report</a> from CoreLogic, there was a 0.7% dip in homeowner equity over the last year. However, the headlines reporting on that change aren’t painting the whole picture. The reality is, while <a href="https://www.mykcm.com/2023/06/12/are-home-prices-going-up-or-down-that-depends/" rel="noopener noreferrer" target="_blank" style="color: blue;">home price depreciation</a> during the second half of last year caused equity to drop, the data shows homeowners still have near record amounts of equity.
The graph below helps <a href="https://www.blackknightinc.com/wp-content/uploads/2023/04/BKI_MM_FEB2023_Report.pdf" rel="noopener noreferrer" target="_blank" style="color: blue;">illustrate</a> this point by looking at the total amount of tappable equity in this country going all the way back to 2005. Tappable equity is the amount of equity available for homeowners to access before hitting a maximum 80% loan-to-value ratio (LTV). As the data shows, there was a significant equity boost during the <a href="https://www.mykcm.com/2023/05/30/todays-real-estate-market-the-unicorns-have-galloped-off/" rel="noopener noreferrer" target="_blank" style="color: blue;">‘unicorn’ years</a> as home prices rapidly appreciated (see the pink in the graph below).
But here’s what’s key to realize – even though there’s been a small dip, total homeowner equity is still much higher than it was before the ‘unicorn’ years.
<a href="https://www.mykcm.com/content/images/20230613/20230614-tappable-equity-still-near-all-time-highs.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230613/20230614-tappable-equity-still-near-all-time-highs.png" /></a>
And there’s more good news. Recent home price reports show the <a href="https://www.mykcm.com/2023/06/05/oops-home-prices-didnt-crash-after-all/" rel="noopener noreferrer" target="_blank" style="color: blue;">worst home price declines</a> are behind us, and prices have started to <a href="https://www.mykcm.com/2023/05/16/the-worst-home-price-declines-are-behind-us/" rel="noopener noreferrer" target="_blank" style="color: blue;">go up</a> again. As Selma Hepp, Chief Economist at CoreLogic, <a href="https://www.corelogic.com/intelligence/homeowner-equity-insights-q1-2023/" rel="noopener noreferrer" target="_blank" style="color: blue;">explains</a>:
“Home equity trends closely follow home price changes. As a result, while the average amount of equity declined from a year ago, it increased from the fourth quarter of 2022, as monthly home prices growth accelerated in early 2023.”
The last part of that quote is particularly important and is the piece of the puzzle the news is leaving out. To further emphasize the positive turn we’re already seeing, experts say home prices are forecast to appreciate at a more normal rate over the next year. In the same report, Hepp puts it this way:
“The average U.S. homeowner now has more than $274,000 in equity – up significantly from $182,000 before the pandemic. Also, while homeowners in some areas of the country who bought a property last spring have no equity as a result of price losses, forecasted home price appreciation over the next year should help many borrowers regain some of that lost equity.”
And even though Odeta Kushi, Deputy Chief Economist at First American, references a slightly different number, Kushi further <a href="https://twitter.com/odetakushi/status/1667305612298842115" rel="noopener noreferrer" target="_blank" style="color: blue;">validates</a> the fact that homeowners have a lot of equity right now:
“Homeowners today have an average of $302,000 in equity in their homes.”
That means if you’ve owned your home for a few years, you likely still have way more <a href="https://www.mykcm.com/2023/05/15/homeowners-have-incredible-equity-to-leverage-right-now/" rel="noopener noreferrer" target="_blank" style="color: blue;">equity</a> than you did before the ‘unicorn’ years. And if you’ve owned your home for a year or less, the forecast for more typical price appreciation over the next year should mean your equity is already on the way back up.
Bottom Line
Context is everything when looking at headlines. While homeowner equity dropped some from last year, it’s still near <a href="https://www.mykcm.com/2023/06/08/this-real-estate-market-is-the-strongest-of-our-lifetime/" rel="noopener noreferrer" target="_blank" style="color: blue;">all-time highs</a>. Let’s <a href="https://www.mykcm.com/2023/05/22/why-buyers-need-an-expert-agent-by-their-side/" rel="noopener noreferrer" target="_blank" style="color: blue;">connect</a> so you can get the answers you deserve from an expert who’s here to help as you plan your <a href="https://www.mykcm.com/2023/06/02/reasons-to-own-your-home-infographic/" rel="noopener noreferrer" target="_blank" style="color: blue;">move</a> this year.
Contact the Gold Country Modern Team, your <a href="http://www.goldcountrymodern.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-ogsc="">Amador County real estate</a> connection, for assistance buying or selling a home in the Gold Country.
2023-06-14T11:47:12-07:002023-06-14T11:48:41-07:00Gold Country Teamtag:goldcountrymodern.com,2012-09-20:27475Are Home Prices Going Up or Down? That Depends…<img src="https://files.keepingcurrentmatters.com/content/images/20230609/20230612-are-home-prices-going-up-or-down-that-depends.jpg" alt="" class="img-thumbnail mx-auto d-block" />
Media coverage about what’s happening with home prices can be confusing. A large part of that is due to the type of data being used and what they’re choosing to draw attention to. For home prices, there are two different methods used to compare home prices over different time periods: year-over-year (Y-O-Y) and month-over-month (M-O-M). Here's an explanation of each.
Year-over-Year (Y-O-Y):
This comparison measures the change in home prices from the same month or quarter in the previous year. For example, if you're comparing Y-O-Y home prices for April 2023, you would compare them to the home prices for April 2022.
Y-O-Y comparisons focus on changes over a one-year period, providing a more comprehensive view of long-term trends. They are usually useful for evaluating annual growth rates and determining if the market is generally appreciating or depreciating.
Month-over-Month (M-O-M):
This comparison measures the change in home prices from one month to the next. For instance, if you're comparing M-O-M home prices for April 2023, you would compare them to the home prices for March 2023.
Meanwhile, M-O-M comparisons analyze changes within a single month, giving a more immediate snapshot of short-term movements and price fluctuations. They are often used to track immediate shifts in demand and supply, seasonal trends, or the impact of specific events on the housing market.
The key difference between Y-O-Y and M-O-M comparisons lies in the time frame being assessed. Both approaches have their own merits and serve different purposes depending on the specific analysis required.
Why Is This Distinction So Important Right Now?
We’re about to enter a few months when <a href="https://www.mykcm.com/2023/05/12/the-worst-home-price-declines-are-behind-us-infographic/" rel="noopener noreferrer" target="_blank" style="color: blue;">home prices</a> could possibly be lower than they were the same month last year. April, May, and June of 2022 were three of the best months for home prices in the history of the American housing market. Those same months this year might not measure up. That means, the Y-O-Y comparison will probably show values are depreciating. The <a href="https://cdn.nar.realtor/sites/default/files/documents/ehs-04-2023-breakouts-of-single-family-condo-and-co-op-2023-05-18.pdf" rel="noopener noreferrer" target="_blank" style="color: blue;">numbers</a> for April seem to suggest that’s what we’ll see in the months ahead (see graph below):
<a href="https://files.keepingcurrentmatters.com/content/images/20230609/20230612-comparing-now-to-last-years-record-numbers.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230609/20230612-comparing-now-to-last-years-record-numbers.png" /></a>
That’ll generate troubling headlines that say home <a href="https://www.mykcm.com/2023/06/05/oops-home-prices-didnt-crash-after-all/" rel="noopener noreferrer" target="_blank" style="color: blue;">values are falling</a>. That’ll be accurate on a Y-O-Y basis. And, those headlines will lead many consumers to believe that home values are currently cascading downward.
However, on a closer look at M-O-M home prices, we can see prices have actually been appreciating for the last several months. Those M-O-M numbers more accurately reflect what’s truly happening with home values: after several months of depreciation, it appears we’ve hit bottom and are bouncing back.
Here’s an example of M-O-M home price movements for the last 16 months from the CoreLogic Home Price Insights <a href="https://www.corelogic.com/tag/home-price-index/" rel="noopener noreferrer" target="_blank" style="color: blue;">report</a> (see graph below):
<a href="https://files.keepingcurrentmatters.com/content/images/20230609/20230612-home-prices-appear-to-have-bottomed-out.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230609/20230612-home-prices-appear-to-have-bottomed-out.png" /></a>
Why Does This Matter to You?
So, if you’re hearing negative headlines about home prices, remember they may not be painting the full picture. For the next few months, we’ll be comparing prices to last year’s record peak, and that may make the Y-O-Y comparison feel more negative. But, if we look at the more immediate, M-O-M trends, we can see home prices are actually on the way <a href="https://www.mykcm.com/2023/05/16/the-worst-home-price-declines-are-behind-us/" rel="noopener noreferrer" target="_blank" style="color: blue;">back up</a>.
There’s an advantage to buying a home now. You’ll buy at a discount from last year’s price and before prices start to pick up even more momentum. It’s called “buying at the bottom,” and that’s a good thing.
Bottom Line
If you have questions about what’s happening with home prices, or if you’re ready to buy before prices climb higher, let’s connect.
Contact Gold Country Modern Real Estate, experienced <a href="http://www.goldcountrymodern.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-ogsc="" data-linkindex="9">Realtors in Amador County</a>, for help purchasing or selling a home in Amador County, California.
2023-06-12T11:29:34-07:002023-06-12T11:32:10-07:00Gold Country Teamtag:goldcountrymodern.com,2012-09-20:27257The True Value of Homeownership<img src="https://files.keepingcurrentmatters.com/content/images/20230531/20230601-the-true-value-of-homeownership.jpg" alt="" class="img-thumbnail mx-auto d-block" />
Buying and owning your home can make a big difference in your life by bringing you joy and a sense of belonging. And with June being National Homeownership Month, it’s the perfect time to think about all the benefits homeownership provides.
Of course, there are financial reasons to buy a house, but it’s important to consider the non-financial benefits that make a home more than just where you live.
Here are three ways owning your home can give you a sense of accomplishment, happiness, and pride.
You May Feel Happier and More Fulfilled
Owning a home is associated with better mental health and well-being. Gary Acosta, CEO and Co-Founder at the National Association of Hispanic Real Estate Professionals (NAHREP), explains:
“Studies have shown the emotional and psychological benefits that homeownership has on a person’s health and self-esteem . . .”
Similarly, Habitat for Humanity says:
“Residential stability among homeowners is related to improved life satisfaction, . . . along with better physical and mental health.”
So, according to the experts, owning a home can improve your psychological wellness by making you feel happier and more accomplished.
You Can Engage in Your Neighborhood and Grow Your Sense of Community
Your home connects you to your community. Homeowners tend to stay in their homes longer than renters, and that can help you feel more connected to your community because you have more time to build meaningful relationships. And, as Acosta says, when people stay in the same area for a longer period of time, it can lead to them being more involved:
“Homeowners also tend to be more active in their local communities . . .”
After all, it makes sense that someone would want to help improve the area they’re going to be living in for a while.
You Can Customize and Improve Your Living Space
Your home is a place that’s all yours. When you own it, unless there are specific homeowner’s association requirements, you’re free to customize it however you see fit. Whether that’s small home improvements or full-on renovations, your house can be exactly what you want and need it to be. As your tastes and lifestyle change, so can your home. As Investopedia tells us:
“One often-cited benefit of homeownership is the knowledge that you own your little corner of the world. You can customize your house, remodel, paint, and decorate without the need to get permission from a landlord.”
Renting can limit your ability to personalize your living space, and even if you do make changes, you may have to undo them before your lease ends. The ability homeownership gives you to customize and improve where you live creates a greater sense of ownership, pride, and connection with your home.
Bottom Line
Owning your home can change your life in a way that gives you greater satisfaction and happiness. Let’s connect today if you’re ready to explore homeownership and all it has to offer.
Contact Gold Country Modern Real Estate, experienced <a href="http://www.goldcountrymodern.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-ogsc="" data-linkindex="9">Realtors in Amador County</a>, for help purchasing or selling a home in Amador County, California.
2023-06-01T17:04:22-07:002023-06-01T17:44:29-07:00Gold Country Teamtag:goldcountrymodern.com,2012-09-20:27109The Natural Beauty of Custom Log Homes Amador, Eldorado and Alpine counties boast breathtaking landscapes, with towering trees, rolling hills and stunning mountain vistas....what better way to immerse yourself in the serenity and beauty of nature than with a log home. These areas can offer a peaceful and tranquil environment away from the hustle and bustle of city life. Many of these custom log homes open up to a world of outdoor opportunities from hiking and biking trails to fishing, boating and skiing right at your doorstep!
<img src="https://assets.site-static.com/userfiles/602/image/A7R4_-21.jpg" width="2048" height="1365" />
Below are just a few fun facts when you own a log home to consider:
Natural Aesthetic: Log homes provide a warm and rustic ambiance that is difficult to replicate with other construction materials. The natural beauty of the logs adds character and charm to the home, creating a unique and inviting living space.
Energy Efficiency: Logs have natural insulation properties, which can contribute to energy efficiency. The thermal mass of the logs helps regulate temperature, keeping the home cooler in summer and warmer in winter. This can potentially lead to lower heating and cooling costs compared to conventional homes.
Durability and Longevity: Well-built log homes can be highly durable and long-lasting. Logs are naturally resistant to many external elements and can withstand harsh weather conditions. With proper maintenance, log homes can last for generations.
Sound Insulation: Log homes have excellent soundproofing capabilities due to the density of the logs. The solid construction can reduce noise transmission from outside, providing a quieter living environment.
Environmental Friendliness: Logs are a renewable resource, and using them for construction can be more environmentally friendly compared to other building materials. Properly managed forests can ensure a sustainable supply of logs for construction purposes.
Maintaining a log home requires specific attention and care. Here are some considerations for log home maintenance:
Regular Cleaning: Logs should be regularly cleaned to remove dirt, dust, and debris. Power washing or gentle scrubbing with a mild detergent can help maintain the appearance of the logs.
Staining and Sealing: Log homes typically require staining or sealing to protect the wood from moisture, UV rays, and insect damage. The frequency of restaining or resealing depends on the type of wood and the climate in which the home is located.
Managing Moisture: Proper moisture management is crucial for log homes. It's important to address any leaks or water infiltration promptly, as moisture can lead to rot and decay. Regularly inspecting the roof, windows, and ensuring proper drainage can help prevent moisture-related issues.
Pest Control: While logs are naturally resistant to pests, it's still important to take preventive measures. Regularly inspect the logs for signs of insect infestation and promptly address any issues. Applying appropriate treatments or working with professionals can help prevent and control pests.
Regular Inspections: Periodic inspections of the log home, both inside and outside, are essential to identify any maintenance needs or potential problems early on. This allows for timely repairs and helps preserve the structural integrity of the home.
It's worth noting that specific maintenance requirements may vary based on the type of logs, finishes, and climate conditions. Consulting with log home professionals or experts can provide valuable guidance on maintaining your specific log home.
Remember, it's important to thoroughly research the specific market conditions, local regulations, and other factors relevant to the purchase of a log home in these counties. Consulting with real estate professionals familiar with the area can provide valuable insights and guidance throughout the buying process.
❤️Love where you live and let me help!❤️
Stephanie Thomas, Gold Country Modern Real Estate
209.404.3707
Stephanie@goldcountrymodern.com2023-05-28T14:35:31-07:002023-06-24T17:36:41-07:00Stephanie Thomastag:goldcountrymodern.com,2012-09-20:27067The Benefits of Selling Now, According to Experts<img src="https://files.keepingcurrentmatters.com/content/images/20230524/20230525-the-benefits-of-selling-now-according-to-experts.jpg" alt="" class="img-thumbnail mx-auto d-block" />
If you’re trying to decide if now’s the time to <a href="https://www.mykcm.com/2023/05/05/reasons-to-sell-your-house-today-infographic/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">sell your house</a>, here’s what you should know. The limited number of homes available right now gives you a <a href="https://www.mykcm.com/2023/04/11/the-big-advantage-if-you-sell-this-spring/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">big advantage</a>. That’s because there are <a href="https://www.mykcm.com/2023/05/18/powerful-job-market-fuels-homebuyer-demand/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">more buyers</a> out there than there are homes for sale. And, with so <a href="https://www.mykcm.com/2023/05/11/the-best-time-to-sell-your-house-is-when-others-arent-selling/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">few homes</a> on the market, buyers will have fewer options, so you set yourself up to get the <a href="https://www.mykcm.com/2023/05/03/buyer-activity-is-up-despite-higher-mortgage-rates/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">most eyes possible</a> on your house.
Here’s what industry experts are saying about why selling now has its benefits:
<a href="https://themreport.com/news/data/03-21-2023/existing-home-sales" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">Lawrence Yun</a>, Chief Economist at the National Association of Realtors (NAR):
“Inventory levels are still at historic lows. Consequently, multiple offers are returning on a good number of properties.”
<a href="https://www.bankrate.com/real-estate/housing-market-predictions/#predictions" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">Selma Hepp</a>, Chief Economist at CoreLogic:
e have not seen the traditional uptick in new listings from existing homeowners, so undersupply of housing will continue to heighten market competition and put pressure on prices in most regions. Some markets are already heating up considerably, but price premiums that we saw last spring and summer are unlikely.”
<a href="https://news.move.com/2023-03-30-Realtor-com-R-March-Housing-Report-Spring-Thaw-Lures-Buyers-Back-into-the-Housing-Market" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">Clare Trapasso</a>, Executive News Editor at Realtor.com:
“Well-priced, move-in ready homes with curb appeal in desirable areas are still receiving multiple offers and selling for over the asking price in many parts of the country . . .”
<a href="https://www.marketwatch.com/picks/after-seven-straight-months-of-home-price-declines-heres-what-6-economists-and-real-estate-pros-say-to-expect-from-the-housing-market-this-spring-df79d2c3" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">Jeff Tucker</a>, Senior Economist at Zillow:
“. . . sellers who price and market their home competitively shouldn’t have a problem finding a buyer.”
Bottom Line
If you’re thinking about selling your house, let’s connect so you have the expert insights you need to make the best possible move today.
Contact the Gold Country Modern Team, your <a href="http://www.goldcountrymodern.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-ogsc="" data-linkindex="8">Amador County real estate</a> connection, for assistance buying or selling a home in the Gold Country.2023-05-25T15:43:01-07:002023-05-25T15:47:52-07:00Gold Country Teamtag:goldcountrymodern.com,2012-09-20:26895What You Need To Know About Home Price News<img src="https://files.keepingcurrentmatters.com/content/images/20230516/20230517-what-you-need-to-know-about-home-price-news.jpg" alt="" class="img-thumbnail mx-auto d-block" />
The National Association of Realtors (NAR) will release its latest <a href="https://www.nar.realtor/research-and-statistics/housing-statistics/existing-home-sales" rel="noopener noreferrer" target="_blank" style="color: blue;">Existing Home Sales Report</a> tomorrow. The information it contains on <a href="https://www.mykcm.com/2023/05/16/the-worst-home-price-declines-are-behind-us/" rel="noopener noreferrer" target="_blank" style="color: blue;">home prices</a> may cause some confusion and could even generate some troubling headlines. This all stems from the fact that NAR will report the median sales price, while other home price indices report <a href="https://www.investopedia.com/terms/r/repeatsales-method.asp" rel="noopener noreferrer" target="_blank" style="color: blue;">repeat sales prices</a>. The vast majority of the repeat sales indices show prices are <a href="https://www.mykcm.com/2023/05/12/the-worst-home-price-declines-are-behind-us-infographic/" rel="noopener noreferrer" target="_blank" style="color: blue;">starting to appreciate</a> again. But the median price reported on Thursday may tell a different story.
Here’s why using the median home price as a gauge of what’s happening with home values isn’t ideal right now. <a href="https://realestate.wichita.edu/question/hpi-vs-median-price/#:~:text=The%20median%20sale%20price%20measures,and%20half%20sold%20for%20less" rel="noopener noreferrer" target="_blank" style="color: blue;">According</a> to the Center for Real Estate Studies at Wichita State University:
“The median sale price measures the ‘middle’ price of homes that sold, meaning that half of the homes sold for a higher price and half sold for less. While this is a good measure of the typical sale price, it is not very useful for measuring home price appreciation because it is affected by the ‘composition’ of homes that have sold.
For example, if more lower-priced homes have sold recently, the median sale price would decline (because the “middle” home is now a lower-priced home), even if the value of each individual home is rising.”
People <a href="https://www.mykcm.com/2023/05/03/buyer-activity-is-up-despite-higher-mortgage-rates/" rel="noopener noreferrer" target="_blank" style="color: blue;">buy homes</a> based on their monthly mortgage payment, not the price of the house. When mortgage rates go up, they have to buy a less expensive home to keep the monthly expense <a href="https://www.mykcm.com/2023/04/28/ways-to-overcome-affordability-challenges-in-todays-housing-market-infographic/" rel="noopener noreferrer" target="_blank" style="color: blue;">affordable</a>. More ‘less-expensive’ houses are selling right now, and that’s causing the median price to decline. But that doesn’t mean any single house lost value.
Even NAR, an organization that reports on median prices, acknowledges there are limitations to what this type of data can show you. NAR <a href="https://www.nar.realtor/newsroom/existing-home-sales-slid-2-4-in-march" rel="noopener noreferrer" target="_blank" style="color: blue;">explains</a>:
“Changes in the composition of sales can distort median price data.”
For clarification, here’s a simple explanation of median value:
You have three coins in your pocket. Line them up in ascending value (lowest to highest).
If you have one nickel and two dimes, the median value of the coins (the middle one) in your pocket is ten cents.
If you have two nickels and one dime, the median value of the coins in your pocket is now five cents.
In both cases, a nickel is still worth five cents and a dime is still worth ten cents. The value of each coin didn’t change.
The same thing applies to today’s <a href="https://www.mykcm.com/2023/05/09/why-todays-housing-market-is-not-about-to-crash/" rel="noopener noreferrer" target="_blank" style="color: blue;">real estate market</a>.
Bottom Line
Actual home values are going up in most markets. The median value reported tomorrow might tell a different story. For a more in-depth understanding of home price movements, let’s connect.
Contact the Gold Country Modern Team, your <a href="http://www.goldcountrymodern.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-ogsc="">Amador County real estate</a> connection, for assistance buying or selling a home in the Gold Country.
2023-05-17T11:50:24-07:002023-05-17T11:52:12-07:00Gold Country Teamtag:goldcountrymodern.com,2012-09-20:26798Homeowners Have Incredible Equity To Leverage Right Now<img src="https://files.keepingcurrentmatters.com/content/images/20230512/20230515-homeonwers-have-incredible-equity-to-leverage-right-now.jpg" alt="" class="img-thumbnail mx-auto d-block" />
Even though <a href="https://www.mykcm.com/2023/04/05/why-arent-home-prices-crashing/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">home prices</a> have moderated over the last year, many homeowners still have an incredible amount of equity. But what is equity? In the simplest terms, equity is the difference between the market value of your home and the amount you owe on your mortgage. The National Association of Realtors (NAR) <a href="https://www.nar.realtor/blogs/economists-outlook/single-family-homeowners-typically-accumulated-225K-in-housing-wealth-over-10-years" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">explains</a> how your equity grows over time:
“Housing wealth (home equity or net worth) gains are built up through price appreciation and by paying off the mortgage.”
How Your Equity Can Help You Achieve Your Goals
The equity you build up over the years can be used to your advantage when you sell your current house and buy your <a href="https://www.mykcm.com/2023/05/08/it-may-be-time-to-consider-a-newly-built-home/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">next home</a>. If you no longer have the space you need, it might be time to move into a larger home. Or it’s possible you have too much space and need something <a href="https://www.mykcm.com/2023/05/04/how-homeowners-win-when-they-downsize/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">smaller</a>. No matter the situation, your equity can be a powerful tool you can use to help you make a move in <a href="https://www.mykcm.com/2023/04/26/the-three-factors-affecting-home-affordability-today/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">today’s market</a>. That’s because it may be some (if not all) of what you need for your down payment on your next home.
And how much equity you have may surprise you. A recent survey from Realtor.com <a href="https://news.move.com/2023-04-17-Realtor-com-R-Survey-82-of-Those-Looking-to-Buy-and-Sell-a-Home-Feel-Locked-In-by-Low-Mortgage-Rate" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">finds</a> many homeowners today estimate they’ve built up a significant amount of equity:
<a href="https://files.keepingcurrentmatters.com/content/images/20230512/20230515-homeonwers-today-estimate-they-have-a-significant-amount-of-equity.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230512/20230515-homeonwers-today-estimate-they-have-a-significant-amount-of-equity.png" /></a>
The <a href="https://www.corelogic.com/intelligence/homeowner-equity-insights-q4-2022/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">latest data</a> from CoreLogic helps solidify why homeowners are feeling so good about the equity they’ve likely gained over time. As Selma Hepp, Chief Economist for CoreLogic, <a href="https://www.corelogic.com/intelligence/homeowner-equity-insights-q4-2022/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">says</a>:
“While equity gains contracted in late 2022 due to home price declines in some regions, U.S. homeowners on average still have about $270,000 in equity, nearly $90,000 more than they had at the onset of the pandemic.”
How a Skilled Real Estate Agent Can Help
If you’re looking to leverage your equity to boost your buying power in today’s market, having a trusted agent by your side makes a difference.
A real estate professional can help you better understand the value of your home, so you’ll get a clearer picture of how much equity you likely have. As a recent article from Bankrate <a href="https://www.bankrate.com/real-estate/sell-your-house-while-buying-another/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">says</a>:
“Hiring a skilled real estate agent can give you a realistic estimate of home prices in your area and how to price your current home. Using that figure, you can calculate how much equity you have and what your net proceeds will look like, so you can apply that money toward the down payment and closing costs of your new home.”
Having a solid understanding of your equity is key when it comes to making decisions about buying or selling your home. A skilled agent can help you navigate the often-complicated process of <a href="https://www.mykcm.com/2023/04/13/want-to-sell-your-house-this-spring-price-it-right/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">selling</a> your house and ensure the transaction goes smoothly.
Bottom Line
Today, many homeowners are sitting on a substantial amount of equity, and you may be one of them. Let’s connect so we can estimate how much equity you have and plan how you can use it toward the purchase of your next home.
Contact the Gold Country Modern Team, your <a href="http://www.goldcountrymodern.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-ogsc="" data-linkindex="8">Amador County real estate</a> connection, for assistance buying or selling a home in the Gold Country.
2023-05-15T11:27:14-07:002023-05-15T11:30:44-07:00Gold Country Teamtag:goldcountrymodern.com,2012-09-20:26776Curbside Appeal Can Close The Deal
Curbside appeal refers to the attractiveness and overall aesthetic of a property from the street view. It is the first impression that a property makes on someone passing by. This includes factors such as the condition of the exterior, landscaping, cleanliness, and general upkeep of the property. A property with good curbside appeal is more likely to attract potential buyers or renters and can also increase the value of the property.
Outside appearance is very important in the real estate industry, particularly when it comes to landscaping. A well-maintained landscape can make a significant impact on the overall appearance of a property and can greatly enhance its value. In fact, studies have shown that properties with attractive landscaping can sell for up to 15% more than those without. Additionally, a beautiful landscape can also make a property more memorable to potential buyers or renters, giving it an edge against other properties in the market. Overall, investing in landscaping and curbside appeal can greatly benefit real estate owners and investors in terms of both financial gain and attracting potential buyers or renters.
Stephanie Thomas is a professional who specializes in a range of services related to landscaping and real estate. As a realtor, she helps clients buy and sell properties, providing expert guidance throughout the process. As a landscape consultant, Stephanie offers advice on how to improve the aesthetic appeal of a property through landscaping, hardscaping, and other outdoor features. She also provides design services for clients who want to create a beautiful and functional outdoor space. As a nursery pro, Stephanie has extensive knowledge of plants, trees, and other greenery, and can help clients select the best options for their specific needs and preferences. Overall, Stephanie's expertise in real estate, landscaping, and nursery services allows her to offer a comprehensive range of services to clients who want to enhance the beauty and value of their properties.
❤️Get out there and love where you live!❤️<img src="https://assets.site-static.com/userfiles/602/image/Kona_Resized_copy.jpg" width="659" height="800" />2023-05-13T08:20:04-07:002023-07-05T07:36:38-07:00Stephanie Thomastag:goldcountrymodern.com,2012-09-20:26545Why Buying a Home Makes More Sense Than Renting Today<img src="https://files.keepingcurrentmatters.com/content/images/20230428/20230501-why-buying-a-home-makes-more-sense-than-renting-today.jpg" alt="" class="img-thumbnail mx-auto d-block" />
Wondering if you should continue renting or if you should <a href="https://www.mykcm.com/2023/03/10/buying-a-home-may-make-more-sense-than-renting-infographic/" rel="noopener noreferrer" target="_blank" style="color: blue;">buy a home</a> this year? If so, consider this. Rental affordability is still a challenge and has been for years. That’s because, historically, rents trend up over time. <a href="https://www.census.gov/housing/hvs/files/currenthvspress.pdf" rel="noopener noreferrer" target="_blank" style="color: blue;">Data</a> from the Census shows rents have been climbing pretty steadily since 1988.
And, data from the <a href="https://www.realtor.com/research/march-2023-rent/" rel="noopener noreferrer" target="_blank" style="color: blue;">latest rental report</a> from Realtor.com shows rents continue to grow today, even though it’s at a slower pace than we saw at the height of the pandemic:
“In March 2023, the U.S. rental market experienced single-digit growth for the eighth month in a row . . . The median asking rent was $1,732, up by $15 from last month and down by $32 from the peak but is still $354 (25.7%) higher than the same time in 2019 (pre-pandemic).”
With rents much higher now than they were in more normal, pre-pandemic years, owning your home may be a better option, especially if the long-term trend of rents increasing each year continues. In contrast, homeowners with a fixed-rate mortgage can lock in a monthly mortgage payment for the duration of their loan (typically 15-30 years).
Owning a Home Could Be More Affordable if You Need More Space
The graph below uses national data on the <a href="https://www.realtor.com/research/march-2023-rent/" rel="noopener noreferrer" target="_blank" style="color: blue;">median rental payment</a> from Realtor.com and <a href="https://cdn.nar.realtor/sites/default/files/documents/hai-02-2023-housing-affordability-index-2023-04-14.pdf" rel="noopener noreferrer" target="_blank" style="color: blue;">median mortgage payment</a> from the National Association of Realtors (NAR) to compare the two options. As the graph shows, depending on how much space you need, it’s typically more affordable to own than to rent if you need two or more bedrooms:
<a href="https://files.keepingcurrentmatters.com/content/images/20230428/20230501-the-cost-difference-between-renting-and-buying-based-on-the-number-of-bedrooms.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230428/20230501-the-cost-difference-between-renting-and-buying-based-on-the-number-of-bedrooms.png" /></a>
So, if you’re looking to live somewhere where you have two or more bedrooms to accommodate your household, give you more breathing room to spread out your belongings, or dedicate the extra space to practice your hobbies, it might make sense to consider homeownership.
Homeownership Allows You To Start Building Equity
In addition to shielding you from rising rents and being more affordable when you need more space, owning your home also allows you to start building your own <a href="https://www.mykcm.com/2023/04/07/the-key-advantage-of-investing-in-a-home-infographic/" rel="noopener noreferrer" target="_blank" style="color: blue;">equity</a>, which in turn grows your net worth.
And, as home values typically rise over time and you pay off your mortgage, you build <a href="https://www.mykcm.com/2023/04/06/trying-to-buy-a-home-hang-in-there/" rel="noopener noreferrer" target="_blank" style="color: blue;">equity</a>. That equity can set you up for success later on because you can use it to help fuel a move to an even bigger space down the line. That’s why, <a href="https://www.builderonline.com/data-analysis/what-is-the-millennial-mindset-on-owning-vs-renting_o" rel="noopener noreferrer" target="_blank" style="color: blue;">according</a> to Zonda, the top reason millennial homeowners bought their home over the past year was to build their own equity instead of someone else’s.
Bottom Line
If you’re trying to decide whether to buy a home or continue renting, let’s connect to explore your options. With rents rising, it may make more sense to pursue your dream of homeownership.
Contact us for experienced representation when buying or selling a <a href="http://www.goldcountrymodern.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-safelink="true" data-ogsc="" data-linkindex="10">home in Amador County CA</a>.
2023-05-01T09:00:00-07:002023-05-02T08:54:22-07:00Gold Country Teamtag:goldcountrymodern.com,2012-09-20:26452Why Today's Foreclosure Numbers Are Nothing Like 2008<img src="https://files.keepingcurrentmatters.com/content/images/20230426/20230427-why-todays-foreclosure-numbers-are-nothing-like-2008.jpg" alt="" class="img-thumbnail mx-auto d-block" />
You’ve likely seen headlines about the number of foreclosures climbing in today’s housing market. That may leave you with a few questions, especially if you’re thinking about buying a house. Understanding what they really mean is mission-critical if you want to know the truth about what’s happening today.
According to a <a href="https://www.attomdata.com/news/market-trends/foreclosures/attom-q1-2023-u-s-foreclosure-market-report/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">recent report</a> from ATTOM, a property data provider, foreclosure filings are up 6% compared to the previous quarter and 22% since one year ago. As media headlines call attention to this increase, reporting on just the number could actually generate worry and may even make you think twice about buying a home for fear that prices could crash. The reality is, while increasing, the data shows a foreclosure crisis is not where the market is headed.
Let’s look at the latest information with context so we can see how this compares to previous years.
It Isn’t the Dramatic Increase Headlines Would Have You Believe
In recent years, the number of foreclosures has been down to record lows. That’s because, in 2020 and 2021, the forbearance program and other relief options for homeowners helped millions of homeowners stay in their homes, allowing them to get back on their feet during a very challenging period. And with home values rising at the same time, many homeowners who may have found themselves facing foreclosure under other circumstances were able to leverage their equity and <a href="https://www.mykcm.com/2023/04/11/the-big-advantage-if-you-sell-this-spring/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">sell their houses</a> rather than face foreclosure. Moving forward, equity will continue to be a factor that can help keep people from going into foreclosure.
As the government’s moratorium came to an end, there was an expected rise in foreclosures. But just because foreclosures are up doesn’t mean the housing market is in trouble. As Clare Trapasso, Executive News Editor at Realtor.com, <a href="https://www.realtor.com/news/trends/foreclosures-jump-is-another-wave-about-to-flood-the-housing-market/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">says</a>:
“There’s no reason to panic, at least not yet. Foreclosure filings began ticking up . . . after the federal foreclosure moratorium ended. The moratorium was enacted in the early days of COVID-19, when millions of Americans lost their jobs, to prevent a tsunami of homeowners losing their properties. So some of these proceedings would have taken place during the pandemic but got delayed due to the moratorium. This is a bit of a catch-up.”
Basically, there’s not a sudden flood of foreclosures coming. Instead, some of the increase is due to the delayed activity explained above while more is from economic conditions. As Rob Barber, CEO of ATTOM, <a href="https://www.attomdata.com/news/market-trends/foreclosures/attom-q1-2023-u-s-foreclosure-market-report/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">explains</a>:
“This unfortunate trend can be attributed to a variety of factors, such as rising unemployment rates, foreclosure filings making their way through the pipeline after two years of government intervention, and other ongoing economic challenges. However, with many homeowners still having significant home equity, that may help in keeping increased levels of foreclosure activity at bay.”
To further paint the picture of just how different the situation is now compared to the housing crash, take a look at the graph below. It shows foreclosure activity has been lower since the crash by looking at properties with a foreclosure filing going all the way back to 2005.
<a href="https://files.keepingcurrentmatters.com/content/images/20230426/20230427-US-foreclosure-activity-grows-but-still-below-pre-pandemic-levels.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230426/20230427-US-foreclosure-activity-grows-but-still-below-pre-pandemic-levels.png" /></a>
While foreclosures are climbing, it’s clear foreclosure activity now is nothing like it was during the housing crisis. In addition to all of the factors mentioned above, that’s also largely because buyers today are more qualified and less likely to default on their loans.
Today, foreclosures are far below the record-high number that was reported when the housing market crashed.
Bottom Line
Right now, putting the data into context is more important than ever. While the housing market is experiencing an expected rise in foreclosures, it’s nowhere near the crisis levels seen when the housing bubble burst, and that won’t lead to a crash in home prices.
Contact the Gold Country Modern Team, your <a href="http://www.goldcountrymodern.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-safelink="true" data-ogsc="" data-linkindex="8">Amador County real estate</a> connection, for assistance buying or selling a home in the Gold Country.
2023-04-27T17:07:47-07:002023-04-27T17:10:12-07:00Gold Country Teamtag:goldcountrymodern.com,2012-09-20:26428The Three Factors Affecting Home Affordability Today<img src="https://files.keepingcurrentmatters.com/content/images/20230425/20230426-the-three-factors-affecting-home-affordability-today.jpg" alt="" class="img-thumbnail mx-auto d-block" />
There’s been a lot of focus on higher mortgage rates and how they’re creating affordability challenges for today’s homebuyers. It’s true that <a href="https://www.freddiemac.com/pmms/archive" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">rates climbed</a> dramatically since the record-low we saw during the pandemic. But home affordability is based on more than just mortgage rates – it’s determined by a combination of mortgage rates, home prices, and wages.
Considering how each one of these factors is changing gives you the full picture of home affordability today. Here’s the latest.
1. Mortgage Rates
While mortgage rates are higher than they were a year ago, they’ve hovered primarily between 6% and 7% for nearly eight months now (see graph below):
<a href="https://files.keepingcurrentmatters.com/content/images/20230425/20230426-mortgage-rates-hover-between-6-7.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230425/20230426-mortgage-rates-hover-between-6-7.png" /></a>
As the graph shows, mortgage rates have experienced some volatility during that time. And even a <a href="https://www.mykcm.com/2023/04/03/how-changing-mortgage-rates-can-affect-you/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">small change</a> in mortgage rates impacts your purchasing power. That’s why it’s so important to lean on your team of real estate professionals for expert advice to stay up to date on what’s happening in the market. While it’s hard to project where mortgage rates will go from here, many experts <a href="https://themortgagereports.com/32667/mortgage-rates-forecast-fha-va-usda-conventional" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">agree</a> they’ll likely continue to remain around 6%-7% in the immediate future.
2. Home Prices
Over the past few years, <a href="https://www.mykcm.com/2023/04/05/why-arent-home-prices-crashing/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">home prices</a> appreciated rapidly as the record-low mortgage rates we saw during the pandemic led to a surge in buyer demand. The heightened buyer demand happened while the supply of homes for sale was at record lows, and that imbalance put upward pressure on home prices. However, today’s higher mortgage rates have slowed down price appreciation.
And, the truth is, <a href="https://www.mykcm.com/2023/04/17/think-twice-before-waiting-for-lower-home-prices/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">home price appreciation</a> varies by market. Some areas are seeing slight declines while others have prices that are climbing. As Selma Hepp, Chief Economist at CoreLogic, <a href="https://www.corelogic.com/intelligence/us-home-price-insights-april-2023/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">explains</a>:
“The divergence in home price changes across the U.S. reflects a tale of two housing markets. Declines in the West are due to the tech industry slowdown and a severe lack of affordability after decades of undersupply. The consistent gains in the Southeast and South reflect strong job markets, in-migration patterns and relative affordability due to new home construction.”
To find out what’s happening with prices in your local market, reach out to a trusted real estate agent.
3. Wages
The most positive factor in affordability right now is rising income. The graph below uses <a href="https://www.bls.gov/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">data</a> from the Bureau of Labor Statistics (BLS) to show how wages have grown over time:
<a href="https://files.keepingcurrentmatters.com/content/images/20230425/20230426-average-hourly-earnings-of-all-employees.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230425/20230426-average-hourly-earnings-of-all-employees.png" /></a>
Higher wages improve affordability because they reduce the percentage of your income it takes to pay your mortgage since you don’t have to put as much of your paycheck toward your monthly housing cost.
Home affordability comes down to a combination of rates, prices, and wages. If you have questions or want to learn more, reach out to a real estate professional who can explain what’s happening locally and how these factors work together.
Bottom Line
If you’re planning to <a href="https://www.mykcm.com/2023/04/18/5-reasons-millennials-are-buying-homes/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">buy</a> a home, knowing the key factors that impact affordability is important so you can make an informed decision. To stay up to date on the latest on each, let’s connect today.
Contact us for experienced representation when buying or selling a <a href="http://www.goldcountrymodern.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-safelink="true" data-ogsc="" data-linkindex="10">home in Amador County CA</a>.
2023-04-26T17:20:14-07:002023-04-26T17:22:25-07:00Gold Country Teamtag:goldcountrymodern.com,2012-09-20:26359The Power of Pre-Approval<img src="https://files.keepingcurrentmatters.com/content/images/20230421/20230424-what-homebuyers-need-to-know-about-credit-scores.jpg" alt="" class="img-thumbnail mx-auto d-block" />
If you’re buying a home this spring, today’s housing market can feel like a <a href="https://www.mykcm.com/2023/04/06/trying-to-buy-a-home-hang-in-there/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">challenge</a>. With so few homes on the market right now, plus higher <a href="https://www.mykcm.com/2023/04/03/how-changing-mortgage-rates-can-affect-you/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">mortgage rates</a>, it’s essential to have a firm grasp on your homebuying budget. You’ll also need a sense of determination to find the right house and act quickly when you go to put in an offer. One thing you can do to help you prepare is to get pre-approved.
To understand why it’s such an important step, you need to know what pre-approval is. As part of the process, a lender looks at your finances to determine what they’d be willing to loan you. From there, your lender will give you a pre-approval letter to help you understand how much money you can borrow.
Freddie Mac <a href="https://myhome.freddiemac.com/blog/homebuying/how-do-i-get-pre-approved-mortgage" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">explains</a> it like this:
“A pre-approval is an indication from your lender that they are willing to lend you a certain amount of money to buy your future home. . . . Keep in mind that the loan amount in the pre-approval letter is the lender’s maximum offer. Ultimately, you should only borrow an amount you are comfortable repaying.”
Basically, pre-approval gives you critical information about the homebuying process that’ll help you understand how much you may be able to borrow so you have a stronger grasp of your options. And with higher mortgage rates impacting affordability for many buyers today, a solid understanding of your numbers is even more important.
Pre-Approval Helps Show You’re a Serious Buyer
That’s not the only thing pre-approval can do. Another added benefit is it can help a seller feel more confident in your offer because it shows you’re serious about buying their house. And, with sellers seeing a slight increase in the <a href="https://www.mykcm.com/2023/04/11/the-big-advantage-if-you-sell-this-spring/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">number of offers</a> again this spring, making a strong offer when you find the perfect house is key.
As a recent article from the Wall Street Journal (WSJ) <a href="https://www.wsj.com/buyside/personal-finance/mortgage-pre-approval-25dd076c" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">says</a>:
“If you plan to use a mortgage for your home purchase, preapproval should be among the first steps in your search process. Not only can getting preapproved help you zero in on the right price range, but it can give you a leg up on other buyers, too.”
Bottom Line
Getting pre-approved is an important first step when you’re buying a home. It lets you know what you can borrow for your loan and shows sellers you’re serious. Connect with a local real estate professional and a trusted lender so you have the tools you need to purchase a home in today’s market.
Contact the Gold Country Modern Team, your <a href="http://www.goldcountrymodern.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-safelink="true" data-ogsc="">Amador County real estate</a> connection, for assistance buying or selling a home in the Gold Country.
2023-04-24T17:22:49-07:002023-04-24T17:25:20-07:00Gold Country Teamtag:goldcountrymodern.com,2012-09-20:262515 Reasons Millennials Are Buying Homes<img src="https://files.keepingcurrentmatters.com/content/images/20230417/20230418-5-reasons-millennials-are-buying-homes.jpg" alt="" class="img-thumbnail mx-auto d-block" />
In the United States, there are over <a href="https://www.statista.com/statistics/797321/us-population-by-generation/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">72 million</a> millennials. If you’re part of that generation and have thought about buying a home, you aren’t alone. <a href="https://www.builderonline.com/data-analysis/what-is-the-millennial-mindset-on-owning-vs-renting_o" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">According</a> to Zonda, 98% of millennials want to become a homeowner at some point if they aren’t already. But why? There are plenty of reasons you may choose to become a homeowner. Here’s why other millennials have made that decision (see graph below):
<a href="https://files.keepingcurrentmatters.com/content/images/20230417/20230418-why-did-millennials-decide-to-buy.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230417/20230418-why-did-millennials-decide-to-buy.png" /></a>
This graph shows why millennials are buying homes <a href="https://www.builderonline.com/data-analysis/what-is-the-millennial-mindset-on-owning-vs-renting_o" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">according</a> to Zonda’s 6th annual millennial survey. The top reasons include building equity, a change in life stage, wanting stability, rising home values, and wanting to make somewhere truly their own. Here’s a look at each in more detail.
Building equity – Homeownership is a long-term investment that allows you to build wealth, increase your net worth, and become more financially stable. Beyond that, the alternative to owning a home is typically renting. With the way rents have risen so dramatically over time, it may make sense to build your own equity instead of the equity of the person you’re renting from.
A change in life stage – As a millennial, you’re reaching your prime homebuying years. That means you may be at the point where you need more space or a different location.
Stability or settling down – This could mean establishing your career or just generally deciding more concretely what you want your life to look and feel like. As that idea becomes clearer, you may want to establish that lifestyle in a particular place and put down roots.
Rising home values – By purchasing a home, you own an asset that traditionally increases in value over time. That can mean your home will have a higher resale value if you decide to move again.
Wanting to make somewhere “mine” – Owning a home gives a sense of freedom because you can customize it however you want, make updates as you see fit, and be yourself in a place that’s solely your own.
Bottom Line
There are plenty of great reasons why millennials are buying homes today. If you’ve thought about becoming a homeowner and any of these reasons resonate with you too, let’s connect to explore your options.
Contact Gold Country Modern Real Estate, experienced <a href="http://www.goldcountrymodern.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-safelink="true" data-ogsc="">Realtors in Amador County</a>, for help purchasing or selling a home in Amador County, California.
2023-04-18T17:10:49-07:002023-04-18T17:13:10-07:00Gold Country Teamtag:goldcountrymodern.com,2012-09-20:25976Two Reasons You Should Sell Your House<img src="https://files.keepingcurrentmatters.com/content/images/20230403/20230404-2-reasons-you-should-sell-your-house-KCM.jpg" alt="" class="img-thumbnail mx-auto d-block" />
Wondering if you should sell your house this year? As you make your decision, think about what’s motivating you to consider moving. A recent survey from realtor.com asked why homeowners are thinking about selling their houses this year. Here are the top two reasons (see graphic below):
<img src="https://files.keepingcurrentmatters.com/content/images/20230403/20230404-why-are-you-considering-selling-your-home-in-2023-MEM.png" />
Let’s break those reasons down and explore how they might resonate with you.
1. I Want To Take Advantage of the Current Market and Make a Profit
When you decide to sell your house, how much you’ll make from the sale will likely be top of mind. So, here’s some good news: according to the latest data, the average seller can expect a strong return on their investment when they make a move. ATTOM explains:
“The $112,000 profit on median-priced home sales in 2022 represented a 51.4% return on investment compared to the original purchase price, up from 44.6% last year and from 32.8% in 2020.”
Even though home prices have declined slightly in some markets, they’re still much higher overall than they were just a few years ago. To understand what’s happening with home prices in your area and the current value of your house, work with a local real estate professional. They can give you the best advice on how much you could gain if you sell this year.
2. My Home No Longer Meets My Needs
The average person has been in their house for ten years. That’s a long time when you think about how much may have changed in your life since you moved in. And typically, those changes have a direct impact on what you need in a home. Whether it’s more (or less) space, different features, or a location closer to your work or loved ones, your current house may no longer check all the boxes of what feels like home to you. If that’s the case, it could be time to work with a real estate agent to find a better fit.
Bottom Line
If you’re thinking about selling your house, there’s probably a good reason for it. Let’s connect so you can make a move that’ll help you accomplish your goals this year.
Contact us for experienced representation when buying or selling a <a href="http://www.goldcountrymodern.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-safelink="true" data-ogsc="">home in Amador County CA</a>.
2023-04-04T14:10:31-07:002023-04-04T14:26:06-07:00Gold Country Teamtag:goldcountrymodern.com,2012-09-20:25883We’re in a Sellers’ Market. What Does That Mean?
<img src="https://files.keepingcurrentmatters.com/content/images/20230329/20230330-we-are-in-a-sellers-market-what-does-that-mean-KCM.jpg" alt="" class="img-thumbnail mx-auto d-block" />
Even though activity in the housing market has slowed from the frenzy we saw over a year ago, today’s low supply of homes for sale is still a sellers’ market. But what does that really mean? And why are conditions <a href="https://www.mykcm.com/2023/03/08/2-things-sellers-need-to-know-this-spring/" rel="noopener noreferrer" target="_blank">today</a> so good if you want to list your house?
It starts with the <a href="https://www.mykcm.com/2023/02/17/the-spring-housing-market-could-be-a-sweet-spot-for-sellers-infographic/" rel="noopener noreferrer" target="_blank">number of homes</a> available for sale. The latest <a href="https://www.nar.realtor/research-and-statistics/housing-statistics/existing-home-sales" rel="noopener noreferrer" target="_blank">Existing Home Sales Report</a> from the National Association of Realtors (NAR) shows housing supply is still astonishingly low. Today, we have a 2.6-month supply of homes at the current sales pace. Historically, a 6-month supply is necessary for a ‘normal’ or ‘neutral’ market in which there are enough homes available for active buyers (see graph below):
<a href="https://files.keepingcurrentmatters.com/content/images/20230329/20230329-months-inventory-of-homes-for-sale-MEM.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230329/20230329-months-inventory-of-homes-for-sale-MEM.png" /></a>
What Does This Mean for You?
When the supply of homes for sale is as low as it is right now, it’s much harder for buyers to find one to purchase. That creates increased competition among purchasers and keeps upward pressure on prices. And if buyers know they’re not the only one interested in a home, they’re going to do their best to submit a very attractive offer. As this happens, <a href="https://www.mykcm.com/2023/03/13/leverage-your-equity-when-you-sell-your-house/" rel="noopener noreferrer" target="_blank">sellers </a>are positioned to negotiate deals that meet their ideal terms. Lawrence Yun, Chief Economist at NAR, <a href="https://www.nar.realtor/newsroom/existing-home-sales-surged-14-5-in-february-ending-12-month-streak-of-declines" rel="noopener noreferrer" target="_blank">says</a>:
“Inventory levels are still at historic lows. Consequently, multiple offers are returning on a good number of properties.”
Right now, there are still <a href="https://www.mykcm.com/2023/03/16/what-buyer-activity-tells-us-about-the-housing-market/" rel="noopener noreferrer" target="_blank">buyers</a> who are ready, willing, and able to purchase a home. If you list your house right now in good condition and at the <a href="https://www.mykcm.com/2023/03/29/4-key-tips-for-selling-your-house-this-spring/" rel="noopener noreferrer" target="_blank">right price</a>, it could get a lot of attention from competitive buyers.
Bottom Line
Today’s sellers’ market holds great opportunities for homeowners ready to <a href="https://www.mykcm.com/2023/03/27/get-ready-the-best-time-to-list-your-house-is-almost-here/" rel="noopener noreferrer" target="_blank">make a move</a>. Listing your house now will maximize your exposure to serious, competitive buyers. Let’s connect to discuss how to jumpstart the selling process.
Contact us for experienced representation when buying or selling a <a href="http://www.goldcountrymodern.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-safelink="true" data-ogsc="">home in Amador County CA</a>.
2023-03-30T17:21:38-07:002023-03-30T17:25:01-07:00Gold Country Teamtag:goldcountrymodern.com,2012-09-20:25785Get Ready: The Best Time To List Your House Is Almost Here<img src="https://files.keepingcurrentmatters.com/content/images/20230323/20230327-get-ready-the-best-time-to-list-your-house-is-almost-here-KCM.jpg" alt="" class="img-thumbnail mx-auto d-block" />
If you’re <a href="https://www.mykcm.com/2023/03/08/2-things-sellers-need-to-know-this-spring/" rel="noopener noreferrer" target="_blank">thinking</a> about selling this spring, it’s time to get moving – the best week to list your house is fast approaching.
Experts at <a href="https://www.realtor.com/research/best-time-to-sell-2023/" rel="noopener noreferrer" target="_blank">realtor.com</a> looked at seasonal trends from recent years (excluding 2020 as an uncharacteristic year due to the onset of the pandemic) and determined the ideal week to list a house this year:
“Home sellers on the fence waiting for that perfect moment to sell should start preparations, because the best time to list a home in 2023 is approaching quickly. The week of April 16-22 is expected to have the ideal balance of housing market conditions that favor home sellers, more so than any other week in the year.”
If you’ve been waiting for the best time to sell, this is your chance. But remember, before you put your house on the market, you’ve got to <a href="https://www.mykcm.com/2023/02/24/checklist-for-selling-your-house-this-spring-infographic/" rel="noopener noreferrer" target="_blank">get it ready</a>. And if you haven’t started that process yet, you’ll need to move quickly. Here’s what you should <a href="https://www.mykcm.com/2023/03/03/where-will-you-go-after-you-sell-your-house-infographic/" rel="noopener noreferrer" target="_blank">keep</a> in mind.
Work with an Agent To Determine Which Updates To Make
Start by prioritizing which updates you’ll make. In February, realtor.com <a href="https://www.realtor.com/research/2023-q1-sellers-survey/" rel="noopener noreferrer" target="_blank">asked</a> more than 1,200 recent or potential home sellers what updates they ended up making to their house before listing it (see graph below):
<a href="https://files.keepingcurrentmatters.com/content/images/20230323/20230329-which-updates-did-you-make-MEM.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230323/20230329-which-updates-did-you-make-MEM.png" /></a>
As you can see, the most common answers included landscaping and painting. <a href="https://www.mykcm.com/2023/03/14/an-expert-gives-you-clarity-in-todays-housing-market/" rel="noopener noreferrer" target="_blank">Work</a> with a trusted real estate agent to determine what projects make the most sense for your goals and local market.
If Possible, Plan To Have Your House Staged
Once you’ve made any necessary repairs and updates to your house, consider having it staged. According to the <a href="https://www.nar.realtor/research-and-statistics/research-reports/profile-of-home-staging" rel="noopener noreferrer" target="_blank">National Association of Realtors</a> (NAR), 82% of buyers’ agents said staging a home made it easier for a buyer to visualize the property as a future home. Additionally, almost half of buyers’ agents said home staging had an effect on most buyers’ view of the home in general. Homes that are staged typically sell faster and for a higher price because they help <a href="https://www.mykcm.com/2023/03/16/what-buyer-activity-tells-us-about-the-housing-market/" rel="noopener noreferrer" target="_blank">potential buyers</a> more easily picture their new life in the house.
Bottom Line
Are you ready to <a href="https://www.mykcm.com/2023/03/02/equity-gains-for-todays-homeowners/" rel="noopener noreferrer" target="_blank">sell</a> this spring? <a href="https://www.mykcm.com/2023/03/01/an-expert-makes-all-the-difference-when-you-sell-your-house/" rel="noopener noreferrer" target="_blank">Let’s connect</a> to <a href="https://www.mykcm.com/2023/03/21/the-role-of-access-in-selling-your-house/" rel="noopener noreferrer" target="_blank">plan</a> your next steps. You can start by making a checklist of what you think your house needs to get ready. Then, we can work together to prioritize your list and move forward <a href="https://www.mykcm.com/2023/03/13/leverage-your-equity-when-you-sell-your-house/" rel="noopener noreferrer" target="_blank">together</a>.
Contact the Gold Country Modern Team, your <a href="http://www.goldcountrymodern.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-safelink="true" data-ogsc="" data-linkindex="8">Amador County real estate</a> connection, for assistance buying or selling a home in the Gold Country.
2023-03-27T12:00:00-07:002023-03-27T15:50:39-07:00Gold Country Teamtag:goldcountrymodern.com,2012-09-20:25475An Expert Gives You Clarity in Today’s Housing Market
<img src="https://files.mykcm.com/2023/03/13122255/an-expert-gives-you-clarity-in-todays-housing-market-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="An Expert Gives You Clarity in Today’s Housing Market | MyKCM" width="750" height="410" />
The housing market has been going through shifts lately. That’s why it’s so important to work with an industry professional who can be your guide throughout the process.
A real estate expert uses their knowledge of what’s really happening with home prices, housing supply, expert projections, and more to give you the best advice. Someone who can provide clarity like that is critical right now. Jay Thompson, Real Estate Industry Consultant, explains:
“Housing market headlines are everywhere. Many are quite sensational, ending with exclamation points or predicting impending doom for the industry. Clickbait, the sensationalizing of headlines and content, has been an issue since the dawn of the internet, and housing news is not immune to it.”
Unfortunately, when information in the media isn’t clear, it can generate a lot of fear and uncertainty in the market. As Jason Lewris, Co-Founder and Chief Data Officer at Parcl, says:
“In the absence of trustworthy, up-to-date information, real estate decisions are increasingly being driven by fear, uncertainty, and doubt.”
But it doesn’t have to be that way. Buying a home is a big decision, and it should be one you feel confident making. You can lean on an expert to help you separate fact from fiction and get the answers you need.
The right agent can help you understand what’s happening at the national and local levels, and they can debunk headlines using data you can trust. Experts have in-depth knowledge of the industry and can provide context, so you know how current trends compare to the normal ebbs and flows in the industry, historical data, and more.
Then, to make sure you have the full picture, an agent can tell you if your local area is following the national trend or if they’re seeing something different in your market. Together, you can use all that information to make the best possible decision.
After all, making a move is a potentially life-changing milestone. It should be something you feel ready for and excited about. And that’s where a trusted expert comes in.
Bottom Line
For expert advice and the latest housing market insights, let’s connect.
ontact us for experienced representation when buying or selling a <a href="http://www.goldcountrymodern.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-safelink="true" data-ogsc="" data-linkindex="10">home in Amador County CA</a>.2023-03-14T13:09:07-07:002023-03-14T13:10:18-07:00Gold Country Teamtag:goldcountrymodern.com,2012-09-20:25239Equity Gains for Today’s Homeowners
<img 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" width="750" height="410" />
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.mykcm.com/2023/02/27/one-major-benefit-of-investing-in-a-home/" title="net worth">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.mykcm.com/2023/02/17/the-spring-housing-market-could-be-a-sweet-spot-for-sellers-infographic/" title="homes">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.mykcm.com/2023/02/16/wondering-whats-going-on-with-home-prices/" title="slowed">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" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img class="aligncenter wp-image-107719" src="https://files.mykcm.com/2023/03/01162153/percent-change-in-home-prices-MEM.png" width="960" height="720" /></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.mykcm.com/2023/02/21/the-two-big-issues-the-housing-markets-facing-right-now/" title="sell">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.
Contact Gold Country Modern Real Estate, experienced <a href="http://www.goldcountrymodern.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-safelink="true" data-ogsc="">Realtors in Amador County</a>, for help purchasing or selling a home in Amador County, California.
2023-03-02T11:55:24-07:002023-03-02T11:58:24-07:00Gold Country Teamtag:goldcountrymodern.com,2012-09-20:25170One Major Benefit of Investing in a Home
<img src="https://files.mykcm.com/2023/02/23151144/one-major-benefit-of-investing-in-a-home-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="One Major Benefit of Investing in a Home | MyKCM" width="750" height="410" />
One of the many reasons to buy a home is that it’s a major way to <a href="https://www.mykcm.com/2023/01/27/homeownership-builds-your-wealth-over-time-infographic/" title="build wealth">build wealth</a> and gain financial stability. According to <a href="https://myhome.freddiemac.com/owning/equity-and-appreciation.html" title="Freddie Mac" target="_blank" rel="noopener noreferrer">Freddie Mac</a>:
“Building equity through your monthly principal payments and appreciation is a critical part of homeownership that can help you create financial stability.”
With spring approaching, now’s a great time to consider if <a href="https://www.mykcm.com/2023/02/23/how-to-make-your-dream-of-homeownership-a-reality/" title="buying a home">buying a home</a> makes sense for you. The best way to figure that out is to talk with a trusted real estate professional.
The Largest Part of Most Homeowners’ Net Worth Is Their Equity
You may be surprised to learn just how much of a homeowner’s net worth actually comes from owning their home. The National Association of Realtors (NAR) <a href="https://www.nar.realtor/blogs/economists-outlook/single-family-homeowners-typically-accumulated-225K-in-housing-wealth-over-10-years" title="shares" target="_blank" rel="noopener noreferrer">shares</a>:
“Homeownership is the largest source of wealth among families, with the median value of a primary residence worth about ten times the median value of financial assets held by families. Housing wealth (home equity or net worth) gains are built up through price appreciation and by paying off the mortgage.”
In other words, home equity does more to build the average household’s wealth than anything else. And according to data from <a href="https://blog.firstam.com/economics/homeownership-remains-strongly-linked-to-wealth-building" title="First American" target="_blank" rel="noopener noreferrer">First American</a>, this holds true across different income levels (see graph below):
<a href="https://files.mykcm.com/2023/02/23151142/housing-piece-of-net-worth-is-crucial-MEM.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img class="aligncenter wp-image-107614" src="https://files.mykcm.com/2023/02/23151142/housing-piece-of-net-worth-is-crucial-MEM.png" width="960" height="720" /></a>
Bottom Line
One of the biggest benefits of owning a home, regardless of your income level, is that it provides financial stability and an avenue to build wealth. Let’s connect today so you can start investing in homeownership.
Contact us for experienced representation when buying or selling a <a href="http://www.goldcountrymodern.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-safelink="true" data-ogsc="" data-linkindex="10">home in Amador County CA</a>.
2023-02-27T12:24:08-07:002023-02-27T12:25:32-07:00Gold Country Team