Owning Your Home Helps You Build Wealth

Here are some ways homeownership can contribute to wealth-building: Equity Buildup: As you make mortgage payments, a portion of each payment goes towards reducing the principal balance of your loan. This gradual reduction in debt is called building equity. Over time, as you build equity, you increase your ownership stake in the property. The more equity you have, the more wealth you have tied up in the property. Appreciation: Real estate has historically appreciated in value over the long term, although it can fluctuate in the short term. As your home's value appreciates, so does your wealth. Homeowners who hold onto their properties for several years often benefit from the appreciation in their home's value. Tax Benefits: Homeownership can provide various tax benefits that help homeowners save money. Mortgage interest and property tax deductions are among the most common tax advantages. These deductions can reduce your taxable income and potentially increase your overall savings. Stability and Predictable Housing Costs: Owning a home can provide stability in terms of housing costs. With a fixed-rate mortgage, your monthly payment remains consistent over the loan term, while rent prices may increase over time. This stability can make it easier to plan and budget for the future, contributing to overall financial security. Leverage for Other Investments: As you build equity in your home, you may have the opportunity to leverage that equity for other investments or financial goals. For example, you could use a home equity loan or line of credit to fund home improvements, pay for education, or invest in other real estate properties. Forced Savings: Homeownership encourages regular savings through mortgage payments. Even though a portion of the payment goes toward interest, the rest builds equity, effectively acting as a form of forced savings. This can be beneficial for individuals who may struggle to save money otherwise.

Important Credit Score Information for Homebuyers

Lending Standards Are Not Like They Were Leading Up to the Crash

The financial crash you are referring to is likely the global financial crisis of 2008, which was triggered by a combination of factors including lax lending standards, subprime mortgage lending, and the subsequent collapse of the housing market. In the years leading up to the crisis, lending standards were indeed quite loose, with many financial institutions offering mortgages to borrowers with little or no documentation of their income or assets. These subprime mortgages were then bundled together and sold as complex financial products, spreading the risk throughout the financial system. Since the 2008 financial crisis, there have been significant changes in lending standards and regulations to prevent a similar crisis from occurring again. Some of the key changes include: 1) Stricter mortgage regulations 2) Increased oversight and supervision 3) Improved risk assessment 4) Securitization reforms: Securitization 5) Stress testing: Banks and financial institutions While these measures have generally improved lending standards and reduced the risk of another financial crisis, it's important to note that regulations and practices can vary across countries and financial institutions. It is crucial for regulators to remain vigilant and adapt to evolving market conditions to ensure the stability of the financial system.

Why Homeownership Wins in the Long Run

Homeownership has long been considered a cornerstone of the American dream and a symbol of financial stability. While renting can offer flexibility and convenience, there are several reasons why homeownership often wins in the long run: 1) Equity and Wealth Building 2) Stability and Control 3) Tax Benefits 4) Forced Savings 5) Long-Term Cost Stability 6) Potential Rental Income 7) Retirement and Legacy Planning It's important to note that the advantages of homeownership can vary depending on factors such as location, housing market conditions, and individual financial situations. Owning a home also comes with responsibilities, including maintenance, property taxes, and potential market risks. Therefore, it's crucial to carefully evaluate your personal circumstances and consider all factors before making a decision about homeownership.

Things To Avoid After Applying for a Mortgage

Are Home Prices Going Up or Down? That Depends…

It's important to understand the distinction between year-over-year (Y-O-Y) and month-over-month (M-O-M) comparisons because it can provide different insights into the housing market. In the context you mentioned, where home prices in April, May, and June of 2022 were exceptionally high, the Y-O-Y comparison may show a depreciation in home values when compared to the same months in 2023. This potential decline in Y-O-Y home prices does not necessarily mean that home prices are universally going down. It's crucial to consider other factors and data points to form a comprehensive understanding of the housing market. M-O-M comparisons, for example, can capture short-term fluctuations and immediate shifts in demand and supply. While the Y-O-Y comparison might suggest a depreciation in home values during those specific months, it doesn't provide a complete picture of the overall market conditions. It's possible that M-O-M comparisons could reveal different trends, such as seasonal fluctuations or localized variations. To gain a more accurate understanding of the housing market, it's advisable to consider a range of data sources, including both Y-O-Y and M-O-M comparisons, as well as other relevant factors like inventory levels, interest rates, economic conditions, and local market dynamics. Real estate markets can be complex, and a holistic analysis is needed to make informed judgments about the direction of home prices.

This Real Estate Market Is the Strongest of Our Lifetime

it's important to note that market conditions can vary widely depending on factors such as location, economic trends, and other local dynamics. Real estate markets are influenced by numerous factors, including supply and demand, interest rates, employment rates, and government policies. While I can't provide information on the current market conditions as my knowledge cutoff is in September 2021, there have been instances in history where certain regions or periods experienced exceptionally strong real estate markets. For example, the early 2000s saw a housing boom in some parts of the United States before the market downturn in 2008. Additionally, various cities around the world have experienced rapid price growth and high demand in recent years. To determine if the current real estate market is truly the strongest of your lifetime, you may want to consult local real estate experts, economists, or industry reports that provide up-to-date information on market trends and conditions specific to your region. They will be better equipped to assess the current market strength and provide insights based on the latest data.

The Summer Buyer and Seller Guides Give You the Facts

Homeowners Have a Surprising Amount of Equity Right Now

Don’t Wait for Home Prices To Fall

Owning a Home Helps Protect Against Inflation

Owning a home can provide certain advantages when it comes to protecting against inflation, although it is important to consider various factors and market conditions. Here are a few ways in which owning a home can potentially help protect against inflation: Appreciation of property value: Real estate tends to appreciate over time, especially in areas with high demand and limited supply. When inflation occurs, the prices of goods and services typically rise, including housing costs. As a homeowner, the value of your property may increase, which can act as a hedge against inflation. If the value of your home keeps pace with or exceeds inflation, it can provide a measure of protection. Fixed mortgage payments: If you have a fixed-rate mortgage, your monthly mortgage payments remain the same throughout the loan term. This means that while the general cost of living might increase due to inflation, your mortgage payment remains constant. Over time, this can make housing costs more affordable compared to renting, where rent prices may increase with inflation. Potential rental income: In some cases, homeowners can generate rental income by leasing out a portion of their property or renting it out entirely. If rental prices rise with inflation, you may benefit from increased rental income, which can help offset other inflationary pressures. Diversification of assets: Owning a home provides a form of diversification for your investment portfolio. During periods of inflation, other asset classes, such as stocks or bonds, may be negatively affected. Real estate can serve as a tangible and relatively stable asset that may retain its value or appreciate during inflationary periods. It is important to note that the effects of inflation can vary depending on various economic factors, market conditions, and geographic locations. Real estate markets can be influenced by factors beyond inflation, such as local supply and demand dynamics, interest rates, and economic growth. Therefore, while homeownership can potentially provide protection against inflation, it is essential to consider these factors and consult with financial advisors or real estate professionals to make informed decisions based on your specific circumstances.

Moving Fuels the Economy

The Worst Home Price Declines Are Behind Us

The observation of a rebound in home prices can be attributed to the limited availability of housing inventory in the current housing cycle. When there is a lack of inventory in the housing market, meaning there are fewer homes available for sale compared to the demand from buyers, it can lead to increased competition among buyers. This competition often drives up home prices. It's worth noting that local housing markets can vary significantly, and while some areas may be experiencing a rebound, others may still be facing challenges. Factors such as regional economic conditions, population growth, job markets, and local housing policies can influence the dynamics of individual markets.

The Impact of Inflation on Mortgage Rates

Inflation can have an impact on mortgage rates, although the relationship is not always straightforward. Here are a few key points to consider: Interest rates and inflation: Inflation refers to the general increase in prices of goods and services over time. When inflation rises, it erodes the purchasing power of money. To combat the negative effects of inflation, central banks often raise interest rates. By increasing interest rates, central banks aim to reduce borrowing and spending, which can help cool down the economy and lower inflation. Mortgage rates and the bond market: Mortgage rates are influenced by various factors, including the overall state of the economy, supply and demand dynamics, and investor sentiment. One significant factor is the bond market, particularly the yield on long-term government bonds. Mortgage rates are closely tied to long-term bond yields because both are considered relatively safe investments. When inflation expectations rise, bond investors demand higher yields to compensate for the eroding effect of inflation. As a result, mortgage rates tend to increase. Fixed-rate vs. adjustable-rate mortgages: Inflation can affect different types of mortgages differently. Fixed-rate mortgages have a set interest rate for the entire loan term, so they are not directly impacted by short-term inflation fluctuations. However, if inflation expectations rise significantly, lenders may adjust their rates for new fixed-rate mortgages to reflect the new inflation environment. Adjustable-rate mortgages (ARMs), on the other hand, typically have an initial fixed-rate period followed by adjustments based on a benchmark rate, such as the U.S. Treasury rate. If inflation increases, the benchmark rate may rise, causing the interest rate on ARMs to adjust upward. Inflation hedging: Real estate, including homeownership, is often considered a potential hedge against inflation. As prices rise, the value of real estate assets may increase, helping homeowners preserve their purchasing power. However, it's important to note that individual housing markets and properties can still experience fluctuations and may not always align perfectly with overall inflation rates.

Why Today’s Housing Market Is Not About To Crash

Supply and demand dynamics: In many regions, there is a shortage of available housing inventory compared to the demand from potential buyers. This limited supply helps to support stable or increasing prices. Even if there are short-term fluctuations, the overall trend remains positive due to the ongoing demand. Low interest rates: Interest rates play a significant role in the housing market. Currently, interest rates are relatively low, which makes mortgages more affordable for homebuyers. This factor stimulates demand and encourages people to enter the market, thus contributing to its stability. Economic growth and job market: A strong economy and favorable job market conditions are typically associated with a healthy housing market. As economies recover and grow, people have more confidence in making long-term investments, such as buying a home. The positive economic outlook provides support for the stability of the housing market. Changing lifestyle preferences: The COVID-19 pandemic has influenced people's lifestyle preferences and housing needs. Many individuals now seek larger living spaces or homes that accommodate remote work. This shift in demand has led to increased interest in suburban or rural areas, which can sustain the housing market and prevent a crash. Government policies and regulations: Governments often introduce policies and regulations to stabilize the housing market and prevent extreme fluctuations. These measures aim to

Buyer Activity Is Up Despite Higher Mortgage Rates

Despite higher mortgage rates, the real estate market has seen an increase in buyer activity. There are several factors that could be contributing to this trend. First, the pandemic has caused many people to reconsider their living arrangements, leading to a surge in demand for larger homes, homes with outdoor space, and homes in suburban and rural areas. This increased demand may be driving buyers to act quickly, despite higher mortgage rates. Second, the economy has been recovering from the pandemic-related recession, and many people have been able to save money during this time. This may be making it easier for buyers to afford higher mortgage rates. Third, while mortgage rates have increased, they are still relatively low historically. This may be leading buyers to view the current rates as a good deal and to take advantage of them while they can.

A Recession Doesn’t Equal a Housing Crisis

While a recession can certainly have an impact on the housing market, a recession does not necessarily equal a housing crisis. During a recession, there may be a decrease in demand for housing as people become more cautious with their spending and may delay making big purchases like a home. However, this is not always the case. Depending on the severity of the recession, there may still be strong demand for housing, especially in certain markets or regions where job growth and other economic indicators remain strong. It's also worth noting that a recession does not always result in a decline in home prices. In fact, during the last recession in 2008, while home prices did decline in many areas, they actually increased in some markets. This was largely due to factors like low interest rates, a shortage of homes for sale, and an increase in demand from investors.

Foreclosure Numbers Today Are Nothing Like 2008

Why Today's Foreclosure Numbers Are Nothing Like 2008

The foreclosure numbers today are nothing like 2008 because the conditions leading up to the housing crisis are vastly different. In 2008, the housing market was in a bubble, with lenders providing loans to borrowers who couldn't afford them, and the value of homes was greatly inflated. As a result, many homeowners found themselves in mortgages they couldn't afford, leading to widespread defaults and foreclosures. However, today's housing market is much healthier, with stricter lending standards in place, and the majority of homeowners have built up equity in their homes. Additionally, the COVID-19 pandemic has brought about various foreclosure moratoriums, mortgage forbearance programs, and other forms of relief, which have helped homeowners stay in their homes and avoid defaulting on their mortgages.

4 Tips for Selling Your House

The Three Factors Affecting Home Affordability Today

The three factors that affect home affordability today are: Mortgage Rates: Interest rates on mortgages play a significant role in determining how much you'll pay each month for your home loan. As interest rates rise, your monthly mortgage payments will increase, making homes less affordable. Conversely, when interest rates are low, your mortgage payments will be more affordable. Home Prices: The cost of homes is another critical factor that impacts home affordability. When home prices rise, it becomes more challenging to find a home within your budget. In contrast, when home prices fall, it can create opportunities for buyers to purchase homes that were previously out of reach. Wages: Finally, wages are also a crucial factor that can impact home affordability. When wages increase, it can make it easier for individuals to afford higher-priced homes. On the other hand, when wages stagnate or decrease, it can make it more challenging for individuals to afford homes, even if mortgage rates are low and home prices are reasonable.

Think Twice Before Waiting for Lower Home Prices

time can be a crucial factor when selling a house, as the longer a property sits on the market, the less attractive it may appear to potential buyers. However, it's also important to strike a balance between selling quickly and getting the best possible price for your home. To sell your house quickly, there are several steps you can take: Price your home competitively: Make sure your asking price is in line with the current market value of your property. Stage your home: Make your home as appealing as possible to potential buyers by decluttering, cleaning, and staging it in a way that highlights its best features. Hire a good real estate agent: A knowledgeable and experienced agent can help you market your home effectively, reach a wide range of potential buyers, and negotiate the best possible deal. Use professional photography: High-quality photos can make your home look more appealing online, which is where most buyers start their search. Be flexible with showings: Be willing to accommodate potential buyers' schedules, even if it means showing your home outside of normal business hours.

Time Is Money When Selling Your House

What Does It Mean To Be in a Sellers’ Market?

The Key Advantage of Investing in a Home

One of the key advantages of investing in a home is the potential to build equity over time. Equity is the difference between the market value of the property and the outstanding mortgage balance. As homeowners make mortgage payments and the property appreciates in value, their equity in the home increases.

Homeownership Is a Hedge Against Inflation

Why Aren’t Home Prices Crashing?

There are several reasons why home prices may not be crashing despite the ongoing pandemic and economic uncertainty. One of the main reasons is the limited inventory of available homes for sale. The demand for homes has remained strong, fueled by low mortgage rates and changing lifestyle needs, such as remote work and the desire for more space. However, the supply of homes has not kept up with this demand, which has created a seller's market, where buyers are competing for limited inventory, driving up prices.

How Changing Mortgage Rates Can Affect You

Mortgage rates can have a significant impact on your purchasing power when you are considering buying a home. Even a small shift in mortgage rates can affect your monthly mortgage payment and your overall affordability. For example, let's say you are considering purchasing a $300,000 home with a 20% down payment, which is $60,000. With a 6% interest rate on a 30-year fixed-rate mortgage, your monthly mortgage payment would be around $1,439. However, if the interest rate increases to 7%, your monthly mortgage payment would increase to $1,597. This is an increase of $158 per month, which may not seem like a lot, but it adds up to an additional $56,880 over the life of the loan. Conversely, if the interest rate drops from 6% to 5.5%, your monthly mortgage payment would decrease to $1,352, which would save you $87 per month, or $31,320 over the life of the loan.

Facts About Closing Costs

If you’re thinking about buying a home, be sure to plan for closing costs. Closing costs are typically 2% to 5% of the total purchase price of a home, and they can include things like government recording costs, appraisal fees, and more.

We’re in a Sellers’ Market. What Does That Mean?

A sellers' market is a real estate market where there are more buyers than available homes for sale. This creates a situation where home sellers have an advantage over buyers because they can dictate the terms of the sale, including the selling price. In a sellers' market, the supply of homes for sale is limited, and demand is high. This typically leads to multiple offers on homes, bidding wars, and homes selling quickly. As a result, sellers can often sell their homes for higher prices than they would be able to in a buyer's market. Today's low supply of homes for sale is a result of several factors, including low-interest rates, a lack of new construction, and an increase in demand for homes due to the pandemic. Many people are looking to move to larger homes with more space for remote work, while others are taking advantage of low-interest rates to buy their first home. Overall, a sellers' market is an excellent time to list your house because you are likely to get more interest from buyers, and your home is more likely to sell quickly and for a higher price. However, it's important to work with a knowledgeable real estate agent who can help you navigate the market and ensure that you get the best possible outcome for your sale.

Why a Smaller Home May Be the Best Fit

Get Ready: The Best Time To List Your House Is Almost Here

Traditionally, the spring and summer months tend to be the most popular time to sell a home. This is because the weather is nicer, and families often prefer to move during the summer months when their children are out of school. Additionally, many potential home buyers receive their tax refunds during this time and have more money to put towards a down payment. That being said, the best time to sell a home ultimately depends on a variety of factors, including local market conditions, the current demand for housing in your area, and the overall state of the economy. It's always a good idea to consult with a real estate agent or other qualified professional to determine the best time to sell your home based on your individual circumstances.

Have You Thought About Why You Might Want To Sell Your House?

If your current home no longer meets your needs, selling may be a good option. For example, if you need more space for a growing family or want to downsize as an empty-nester, selling could help you find a home that better suits your needs. Another reason to sell is if you are looking for a change of scenery or a new location. Perhaps you want to move to a different city or state, or you simply want to explore a new neighborhood. Selling your current home can provide you with the financial resources to make that change. Additionally, selling your home can be a smart financial move. If you have built up equity in your current home, selling it can give you a cash infusion that can be used to pay off debt, invest in other assets, or even purchase a new home outright.

What’s Ahead for Home Prices in 2023

past year, home prices have been a widely debated topic. Some have said we’ll see a massive drop in prices and that this could be a repeat of 2008 – which hasn’t happened. Others have forecasted a real estate market that could see slight appreciation or depreciation depending on the area of the country. And as we get closer to the spring real estate market, experts are continuing to forecast what they believe will happen with home prices this year and beyond.

Here’s Why the Housing Market Isn’t Going To Crash

the housing market has undergone significant changes since the 2008 financial crisis. Lending standards have tightened, and the majority of borrowers now have stronger credit profiles and are required to provide more documentation to prove their ability to repay their mortgage loans. Additionally, the number of foreclosures has significantly decreased, indicating that homeowners are more capable of keeping up with their mortgage payments. Another factor that differentiates the current housing market from the one in 2008 is the low inventory of available homes for sale. This has driven up home prices and created a competitive market that favors sellers. Additionally, many homeowners now have significant equity in their homes, providing a financial cushion that can help prevent foreclosure. However, it is important to note that the housing market can still experience fluctuations and challenges, even if it is not expected to experience a crash like the one in 2008. A local real estate professional can provide valuable insight into the current market conditions and help you make informed decisions about buying or selling a home.

Condos Are a Great Entryway to Homeownership

What Buyer Activity Tells Us About the Housing Market

Buyer activity is a critical indicator of the state of the housing market, and it can tell us a lot about supply and demand trends. while buyer activity may have cooled slightly in some areas, demand for housing remains strong due to the shortage of homes on the market. This could lead to higher home prices in certain areas, as buyers compete for a limited number of available homes.

Buying a Home May Make More Sense Than Renting

There are several factors to consider when deciding whether buying a home makes more sense than renting. Here are a few things to keep in mind: Financial Considerations: Buying a home can be a significant financial investment. However, it may also provide long-term benefits in terms of building equity and potentially increasing in value over time. Renting may be a more affordable option in the short-term, but it does not provide the same financial benefits as owning a home. Lifestyle and Flexibility: Renting provides more flexibility than owning a home. You can easily move out of a rented property when your lease is up, without the hassle of selling a property. However, owning a home provides more stability and allows you to customize and personalize your living space. Maintenance and Repair Costs: As a homeowner, you are responsible for all maintenance and repair costs, which can add up over time. When renting, most maintenance and repair costs are the responsibility of the landlord. Market Conditions: It's essential to consider the current real estate market conditions when deciding whether to buy or rent. In some areas, home prices may be high, making it difficult to afford a home. In other areas, renting may be more expensive than buying. Ultimately, whether buying a home makes more sense than renting depends on your individual financial situation, lifestyle, and goals. It's important to carefully weigh the pros and cons of each option before making a decision.

Could a Multigenerational Home Be the Right Fit for You?

Multigenerational homes are becoming increasingly popular, as families look for ways to live together and support each other. A multigenerational home is a residence where multiple generations of a family live together, such as grandparents, parents, and children. Here are some factors to consider when deciding if a multigenerational home is the right fit for you: Lifestyle: Living in a multigenerational home requires a certain degree of flexibility, compromise, and understanding. You will need to be comfortable sharing your living space with others and be willing to make accommodations for their needs. Finances: Multigenerational living can be a great way to save money, as expenses can be shared among family members. However, you will need to consider how expenses will be divided and whether everyone is financially able to contribute. Space: Depending on the size of your family and the layout of your home, you may need to make modifications to create separate living areas for each generation. You will also need to consider whether the shared spaces, such as the kitchen and living room, are large enough to accommodate everyone comfortably.

Is It Really Better To Rent Than To Own a Home Right Now?

Whether it is better to rent or own a home depends on various factors, including your financial situation, your lifestyle, your long-term goals, and the current real estate market conditions. In some cases, renting may be a better option than owning a home. For example, if you have a job that requires you to relocate frequently, renting may be more convenient and cost-effective than buying a home that you will need to sell or rent out later. Renting can also give you more flexibility to explore different neighborhoods and living arrangements before committing to a long-term investment. On the other hand, owning a home can provide long-term financial benefits, such as building equity and having a stable housing payment. In some cases, owning a home may also be cheaper than renting, depending on the local real estate market and the cost of living.

Equity Gains for Today’s Homeowners

Homeowners who have owned their homes for several years or purchased them at a lower price point have likely seen a significant increase in equity due to rising home prices. This equity gain is the difference between the current market value of the home and the outstanding mortgage balance. In recent years, home price appreciation has been strong, which has helped boost homeowners' equity positions. However, it's worth noting that home price growth has slowed somewhat in some areas, and it's possible that it may level off or even decline in the future. Nevertheless, homeowners who have built up equity in their homes have a valuable asset that can provide financial flexibility and stability. They may be able to tap into their equity through home equity loans or lines of credit, or by selling their homes and downsizing or relocating to a lower-cost area. Overall, homeowners who have seen their equity grow over the past few years have reason to feel financially secure and may have more options for managing their finances in the future.

Wondering What’s Going on with Home Prices?

The supply of homes for sale remains low in many areas, which has contributed to the increase in home prices. This has been driven in part by a shortage of new construction, as well as homeowners choosing to stay in their homes longer and delaying the sale of their properties. Higher mortgage rates can also impact home prices by reducing demand. As of February 2023, mortgage rates have risen slightly from historic lows seen in 2020 and early 2021, but they are still relatively low by historical standards. Nonetheless, rising rates can make homes less affordable for some buyers and may contribute to a slowdown in price growth. Overall, while the U.S. housing market has experienced significant price increases in recent years, the pace of growth has moderated somewhat in 2022. Low inventory and rising mortgage rates continue to be factors to watch in the coming months. As always, it's important to consult with local real estate professionals for the most up-to-date information on home prices in a specific area.

The Two Big Issues the Housing Market’s Facing Right Now

Rate-Locked Homeowners: Many homeowners have taken advantage of historically low mortgage rates in recent years and locked in their rates for longer periods, making them less likely to sell their homes and move to a new one. This has resulted in a lower supply of homes for sale, as well as a decrease in the number of buyers who are able to find affordable housing. Low Housing Inventory: The low inventory of available homes is driven by both the rate-locked homeowners and the fear of not finding something to buy. Many potential sellers are hesitant to list their homes due to concerns about finding a suitable replacement property in a highly competitive market. This has led to a situation where there are fewer homes on the market, which has increased demand and driven up prices. However, with mortgage rates expected to come down in the coming year, homeowners who previously locked in their rates may start exploring their options for selling their homes and buying new ones. This could lead to an increase in the number of homes for sale, which would help to ease the housing inventory shortage. Additionally, the increasing number of new construction projects in some areas could help to address the housing supply issue in the long term.

The Power of Your Home Equity

Should You Consider Buying a Newly Built Home?

Whether or not to buy a newly built home depends on several factors, including your personal preferences, budget, and the local real estate market. Here are some points to consider: Pros: • Customization: One of the biggest advantages of buying a newly built home is the ability to customize it according to your preferences. You may be able to choose finishes, colors, and even the layout of the home before it is built. • Low maintenance: A new home typically requires less maintenance and repairs than an older home since everything is new and under warranty. • Energy efficiency: New homes are typically more energy-efficient than older homes, which can lead to lower utility bills. Cons: • Cost: New homes can be more expensive than older homes, especially if you add customizations. • Limited location options: New homes are often built in new developments or subdivisions, which may be located outside of established neighborhoods with existing infrastructure and amenities. • Potential construction issues: Although everything is new, newly built homes may still have construction issues that need to be addressed. Ultimately, whether or not to buy a newly built home depends on your individual preferences and circumstances. It's important to do your research, consult with a real estate agent, and thoroughly inspect any home before making a purchase.

It’s Easy To Fall in Love with Homeownership

Owning a home provides personal benefits such as a sense of attachment, comfort, and a space that's truly yours. These benefits remain constant regardless of the housing market changes. The recent increase in time spent at home has emphasized the emotional benefits of homeownership even more.

What You Should Know About Closing Costs

Closing costs are fees associated with the purchase or refinance of a property that are paid at the closing of a real estate transaction. These costs can include a variety of fees charged by lenders, title companies, attorneys, and government agencies. Here are some common closing costs you should know about: 1. Origination fee: This is a fee charged by the lender for processing the loan application. 2. Appraisal fee: This fee covers the cost of determining the value of the property. 3. Title search and title insurance: This fee covers the cost of searching public records to ensure that the seller is the rightful owner of the property and that there are no liens or other claims on the property. Title insurance protects the buyer against title-related issues that may arise in the future. 4. Survey fee: This fee covers the cost of having the property surveyed to confirm its boundaries. 5. Recording fee: This fee covers the cost of recording the transfer of ownership with the local government. 6. Underwriting fee: This fee covers the cost of the lender's underwriters reviewing the loan application and determining the borrower's creditworthiness. 7. Attorney fee: This fee covers the cost of an attorney reviewing and preparing the closing documents. 8. Tax and transfer fee: This fee covers the cost of transferring ownership of the property and paying any taxes that may be due. It's important to note that closing costs can vary widely depending on the lender, the location of the property, and other factors. To get an estimate of the closing costs for a specific transaction, you can ask the lender for a Good Faith Estimate or a Loan Estimate.

one reason Its not a bubble today is because lending standards are tight

Lending standards are indeed one of the factors that can affect the existence of a financial bubble. Tight lending standards refer to strict loan requirements that banks and financial institutions have in place to reduce the risk of default. This helps to minimize the amount of credit that is extended to borrowers who may not be able to repay their loans, which can help to prevent a bubble from forming. However, it's important to note that lending standards are just one of several factors that can contribute to a financial bubble, and other factors such as economic growth, interest rates, investor sentiment, and government policies can also play a role. Additionally, even if lending standards are tight, there is always the risk of a bubble forming if other factors align in a way that creates an environment of excessive risk-taking and over-optimism.

How To Win as a Buyer in Today’s Housing Market

Here are some tips to help you win as a buyer in today's housing market: Get pre-approved for a mortgage: This will give you a better idea of what you can afford and also make you a more competitive buyer. Work with a knowledgeable real estate agent: An experienced real estate agent can help guide you through the home-buying process, negotiate on your behalf, and provide valuable insights into the local housing market. Be flexible: Be open to considering different neighborhoods, types of homes, and even different cities. This will increase your chances of finding the perfect home for you. Be prepared to move quickly: In a competitive market, homes can sell quickly. Be prepared to make an offer and move forward with the process if you find a home you love. Be realistic: It's important to have a clear understanding of what you're looking for in a home and what you can afford. This will help you make informed decisions and avoid disappointment. Make a strong offer: If you find a home you love, don't be afraid to make a strong offer. This can help set you apart from other buyers and increase your chances of winning the bid. Be persistent: The housing market can be tough, but don't give up. Keep searching and working with your real estate agent until you find the right home for you.

Why Today’s Housing Market Isn’t Headed for a Crash

While there is no way to predict the future with certainty, there are several reasons why experts believe that the current housing market is not headed for a crash: Strong economic fundamentals: The economy is currently strong, with low unemployment and steady economic growth, which supports the demand for housing. Low interest rates: Interest rates are at historically low levels, making borrowing for homes more affordable and boosting demand. Limited supply: The supply of housing is currently limited, which is helping to keep prices up. This is due in part to the difficulty in obtaining building permits and the slow pace of new construction. Changing demographics: The aging of the baby boomer generation and the increasing number of young adults entering the housing market are driving demand for housing. Stable lending standards: Lending standards have become more stringent since the 2008 financial crisis, which has helped to prevent another housing bubble. It's worth noting that real estate markets can be impacted by local factors such as job loss, natural disasters, and changes in local economic conditions. However, the overall trend of the housing market seems to be stable and not headed for a crash at this time.

How Experts Can Help Close the Gap in Today’s Homeownership Rate

Closing the gap in today's homeownership rate requires addressing the systemic barriers that have historically disadvantaged non-white communities, including the Black community. This can be done through a combination of measures including: Increasing access to affordable financing options, such as down payment assistance programs and low-interest loans. Providing financial education and counseling to help potential homebuyers understand the home buying process and improve their credit score. Promoting fair housing practices and ensuring that all borrowers have equal access to credit regardless of their race or ethnicity. Investing in communities to improve neighborhood stability and increase the supply of affordable housing.

Number of Homes for Sale Up from Last Year, but Below Pre-Pandemic Years

The number of homes for sale has increased compared to the previous year, but it still remains lower than the levels seen before the COVID-19 pandemic. The pandemic has caused changes in the real estate market, including shifts in consumer demand and disruptions to the supply chain. Despite the increase in the number of homes for sale, the current market conditions may still be challenging for buyers and sellers.

What Past Recessions Tell Us About the Housing Market

Past recessions can offer some insights into how the housing market may behave during an economic downturn. Typically, during a recession, there may be a decrease in demand for housing and a rise in foreclosures, leading to a decline in home values. However, the extent of the impact on the housing market can vary greatly depending on the specific circumstances of each recession. After the recession, the housing market may recover as the economy improves, interest rates remain low, and demand for housing increases. However, the timeline for recovery can vary, and it can take several years or longer for the housing market to return to pre-recession levels. It's important to note that while past recessions can provide some insights, each recession is unique and may have different impacts on the housing market. Therefore, it's essential to monitor economic and market conditions, as well as seek advice from real estate professionals, when making any decisions about the housing market.

Have Home Values Hit Bottom?

It is difficult to predict with certainty if home values have hit bottom, as real estate markets can be affected by various factors such as interest rates, the economy, and supply and demand. However, some industry experts and economists suggest that the housing market has shown signs of stabilizing and may have hit bottom in certain regions. Nevertheless, it's important to keep in mind that the housing market can be unpredictable and subject to fluctuations, and that specific local markets may be impacted differently. It's always recommended to do your own research and consult with real estate professionals before making any decisions.

putting down 20% is a common misconception when buying a home

putting down 20% is a common misconception when buying a home. While a 20% down payment is often recommended, it's not a requirement. There are many loan options available that allow for lower down payments, such as FHA loans which only require a minimum of 3.5% down payment. Additionally, many lenders offer programs for first-time homebuyers with even lower down payment requirements. It's important to explore all options and choose the one that works best for your financial situation.

Experts Forecast a Turnaround in the Housing Market in 2023

many experts are forecasting a turnaround in the housing market in 2023, after a period of slowdown due to the COVID-19 pandemic. Factors such as low mortgage rates, increasing demand, and a shortage of inventory are expected to drive up home prices and lead to a more active market. However, it's important to note that real estate markets can be highly local and can vary greatly depending on specific region and city. So, the prediction for a nationwide turnaround may not hold true for all areas.

Mortgage Rates Historically DECLINE in Recessions

During a recession, the demand for borrowing decreases, which leads to lower interest rates as lenders compete to attract borrowers. Additionally, central banks often take measures to reduce interest rates to stimulate the economy during a recession, which also contributes to lower mortgage rates. However, it's worth noting that the relationship between the economy and interest rates is complex, and other factors such as inflation and government policies can also have an impact.

Homeownership in New York can be a powerful tool for building wealth over time.

Homeownership in New York can be a powerful tool for building wealth over time. As you make mortgage payments, you are not only paying off the loan but also building equity in the property. Over time, the value of the property may increase, leading to further appreciation in the equity you hold. Additionally, owning a home often provides a stable and appreciating asset, which can be a source of financial security in retirement or a source of funding for other financial goals. However, it's important to consider the responsibilities and costs associated with homeownership, such as property taxes, maintenance, and repairs.

Lower Mortgage Rates Are Bringing Buyers Back to the Market

As mortgage rates rose last year, activity in the housing market slowed down. And as a result, homes started seeing fewer offers and stayed on the market longer. That meant some homeowners decided to press pause on selling. Now, however, rates are beginning to come down—and buyers are starting to reenter the market. In fact, the latest data from the Mortgage Bankers Association (MBA) shows mortgage applications increased last week by 7% compared to the week before. So, if you’ve been planning to sell your house but you’re unsure if there will be anyone to buy it, this shift in the market could be your chance. Here’s what experts are saying about buyers returning to the market as we approach spring. Mike Fratantoni, SVP and Chief Economist, MBA: “Mortgage rates are now at their lowest level since September 2022, and about a percentage point below the peak mortgage rate last fall. As we enter the beginning of the spring buying season, lower mortgage rates and more homes on the market will help affordability for first-time homebuyers.” Lawrence Yun, Chief Economist, National Association of Realtors (NAR): “The upcoming months should see a return of buyers, as mortgage rates appear to have already peaked and have been coming down since mid-November.” Thomas LaSalvia, Senior Economist, Moody’s Analytics: "We expect the labor market to remain robust, wages to continue to rise—maybe not at the pace that they did during the pandemic, but that will open up some opportunity for folks to enter homeownership as interest rates stabilize a bit." Sam Khater, Chief Economist, Freddie Mac: “Homebuyers are waiting for rates to decrease more significantly, and when they do, a strong job market and a large demographic tailwind of Millennial renters will provide support to the purchase market.”

Why You Shouldn’t Fear Today’s Foreclosure Headlines

If you’ve seen recent headlines about foreclosures surging in the housing market, you’re certainly not alone. There’s no doubt, the stories in the media can be pretty confusing right now. They may even make you think twice about buying a home for fear that prices could crash. The reality is, the data shows a foreclosure crisis is not where the market is headed, and understanding what that really means is mission critical if you want to know the truth about what’s happening today. Here’s a deeper look. According to the Year-End 2022 U.S. Foreclosure Market Report from ATTOM, foreclosure filings are up 115% from 2021, but down 34% from 2019. As media headlines grab onto this 115% increase, it’s more important than ever to put that percentage into context. While the number of foreclosure filings did more than double last year, we need to remember why that happened and how it compares to more normal, pre-pandemic years in the market. Thanks to the forbearance program and other relief options for homeowners, foreclosure filings were down to record-low levels in 2020 and 2021, so any increase last year is — no surprise — a jump up. Rick Sharga, Executive VP of Market Intelligence at ATTOM, notes: “Eighteen months after the end of the government’s foreclosure moratorium, and with less than five percent of the 8.4 million borrowers who entered the CARES Act forbearance program remaining, foreclosure activity remains significantly lower than it was prior to the COVID-19 pandemic. It seems clear that government and mortgage industry efforts during the pandemic, coupled with a strong economy, have helped prevent millions of unnecessary foreclosures.” Clearly, these options meant millions of homeowners could stay in their homes, allowing them to get back on their feet during a very challenging period. 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 sell their houses rather than face foreclosure, and that trend continues today. And remember, as the graph below shows, foreclosures today are far below the record-high 2.9 million that were reported in 2010 when the housing market crashed. So, while foreclosures are rising, keeping perspective in mind is key. As Bill McBride, Founder and Author of Calculated Risk, noted just last week: “The bottom line is there will be an increase in foreclosures over the next year (from record low levels), but there will not be a huge wave of distressed sales as happened following the housing bubble. The distressed sales during the housing bust led to cascading price declines, and that will not happen this time.”

Are We in a Housing Bubble

Think Twice Before Waiting for 3% Mortgage Rates

Last year, the Federal Reserve took action to try to bring down inflation. In response to those efforts, mortgage rates jumped up rapidly from the record lows we saw in 2021, peaking at just over 7% last October. Hopeful buyers experienced a hit to their purchasing power as a result, and some decided to press pause on their plans. Today, the rate of inflation is starting to drop. And as a result, mortgage rates have dipped below last year’s peak. Sam Khater, Chief Economist at Freddie Mac, shares: “While mortgage market activity has significantly shrunk over the last year, inflationary pressures are easing and should lead to lower mortgage rates in 2023.” That’s potentially great news if you’re a buyer aiming to jump back into the housing market. Any drop in mortgage rates helps boost your purchasing power by bringing down your expected monthly mortgage payment. This means the lower mortgage rates experts forecast this year could be just what you need to reignite your homebuying goals. While this opens up a window of opportunity for you, remember: you shouldn’t expect rates to drop back down to record lows like we saw in 2021. Experts agree that’s not the range buyers should bank on. Greg McBride, Chief Financial Analyst at Bankrate, explains: “I think we could be surprised at how much mortgage rates pull back this year. But we’re not going back to 3 percent anytime soon, because inflation is not going back to 2 percent anytime soon.” It’s important to have a realistic vision for what you can expect this year, and that’s where the advice of expert real estate advisors is critical. You may be surprised by the impact even a mild drop in mortgage rates has on your budget. If you’re ready to buy a home now, today’s market presents the opportunity to get a more affordable mortgage rate, find your dream home, and face less competition from other buyers.

Create Your Perfect Home by Perfecting It After You Purchase

Have Home Values Hit Bottom?

Whether you’re already a homeowner or you’re looking to become one, the recent headlines about home prices may leave you with more questions than answers. News stories are talking about home prices falling, and that’s raising concerns about a repeat of what happened to prices in the crash in 2008. One of the questions that’s on many minds, based on those headlines, is: how much will home prices decline? But what you may not realize is expert forecasters aren’t calling for a free fall in prices. In fact, if you look at the latest data, there’s a case to be made that the biggest portion of month-over-month price depreciation nationally may already behind us – and even those numbers weren’t significant declines on the national level. Instead of how far will they drop, the question becomes: have home values hit bottom? Let’s focus in on what the red numbers tell us. The red numbers are the change in home values over the last four months that have been published. And if we isolate the last four months, what the data shows is, in each case, home price depreciation peaked in August. While that doesn’t guarantee home price depreciation has hit bottom, it confirms prices aren’t in a free fall, and it may be an early signal that the worst is already behind us. As the numbers for November and December are released, data will be able to further validate this national trend.

Today’s Housing Market Is Nothing Like 15 Years Ago

There’s no doubt today’s housing market is very different than the frenzied one from the past couple of years. In the second half of 2022, there was a dramatic shift in real estate, and it caused many people to make comparisons to the 2008 housing crisis. While there may be a few similarities, when looking at key variables now compared to the last housing cycle, there are significant differences. In the latest Real Estate Forecast Summit, Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), drew the comparisons below between today’s housing market and the previous cycle: Today’s Housing Market Is Nothing Like 15 Years Ago | MyKCM Looking at the facts, it’s clear: today is very different than the housing market of 15 years ago. There’s Opportunity in Real Estate Today And in today’s market, with inventory rising and less competition from other buyers, there’s opportunity right now. According to David Stevens, former Assistant Secretary of Housing:

What Are Your Priorities in 2023

Top Reasons Why You May Want To Buy a Home