Central Connecticut Real Estate BlogRecently posted or modified blog postshttps://www.searchallcthomes.com/blog/Copyright SearchAllCTHomes.com2024-03-15T10:57:14-07:00tag:searchallcthomes.com,2012-09-20:15260The Benefits of Downsizing When TYou Retire In ConnecticutThe Benefits of Downsizing When You Retire In Connecticut
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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.simplifyingthemarket.com/en/2024/02/27/why-todays-housing-supply-is-a-sweet-spot-for-sellers/?a=256783-97401f3dc4d75220bf95779361521561" 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.simplifyingthemarket.com/en/2024/02/08/home-equity-can-be-a-game-changer-when-you-sell/?a=256783-97401f3dc4d75220bf95779361521561" 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.simplifyingthemarket.com/en/2024/02/06/houses-are-still-selling-fast/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">next move</a>, your real estate agent will be your guide through every step of <a href="https://www.simplifyingthemarket.com/en/2024/02/19/its-time-to-prepare-your-house-for-a-spring-listing/?a=256783-97401f3dc4d75220bf95779361521561" 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.simplifyingthemarket.com/en/2024/02/09/winning-plays-for-buying-a-home-in-todays-market-infographic/?a=256783-97401f3dc4d75220bf95779361521561" 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.simplifyingthemarket.com/en/2024/02/28/why-you-want-an-agents-advice-for-your-move/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">let’s connect</a> about your goals in the housing market this year.2024-03-18T07:00:00-07:002024-03-15T10:57:14-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:15223Why Access Is So Important When Selling Your House In Connecticut Why Access Is So Important When Selling Your House In Connecticut
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If you’re gearing up to <a href="https://www.simplifyingthemarket.com/en/2024/02/27/why-todays-housing-supply-is-a-sweet-spot-for-sellers/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">sell your house</a> in Connecticut this spring, one of the early conversations you’ll have with your agent is about how much access you want to give buyers. And you may not realize just how important it is to make your house easy to tour.
Spring is the peak homebuying season, so opening up your house to as many showings as possible can really help you <a href="https://www.simplifyingthemarket.com/en/2024/02/06/houses-are-still-selling-fast/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">capitalize</a> on all the extra buyer activity we see at this time of year.
Since buyer competition ramps up in the spring, buyers are going to want to move fast to see your house once they find <a href="https://www.simplifyingthemarket.com/en/2024/02/19/its-time-to-prepare-your-house-for-a-spring-listing/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">your listing</a>. And, if they see it and fall in love with it at a time they know they’re competing with other buyers, you may be more likely to get the offer you’re looking for on your home.
It’s understandable you want to keep the disruptions to your own schedule to a minimum, and you may be stressed about having to keep it clean, but it’s worth it. As an article from Investopedia <a href="https://www.investopedia.com/articles/mortgages-real-estate/08/home-seller-mistakes-selling-house.asp" rel="noopener noreferrer" target="_blank">explains</a>:
“If someone wants to view your house, you need to accommodate them, even if it inconveniences you. Clean and tidy the house before every single visit. A buyer won’t know or care if your house was clean last week. It’s a lot of work, but stay focused on the prize.”
To figure out what’s best for you, your agent will walk you through options like the ones below. This list breaks things down, starting with what’s most convenient for buyers and getting less buyer-focused as the list goes on:
Lockbox on the Door – A key is available via a lockbox, which makes it easy for agents to show the home to potential buyers. This gives the most flexibility because the key is on-site and convenient.
Providing a Key to the Home – An agent would have to stop by an office to pick up the key with this option. This is still pretty convenient for showings, but not quite as simple.
Open Access with a Phone Call – You allow a showing with just a phone call’s notice, which can be great for someone who sees your house while driving by.
By Appointment Only – This gives you a more advanced warning so you can get the house tidied up and be sure you have somewhere else you can go in the meantime. But it’s also a bit more restrictive.
Limited Access – You might go this route if you only want to have your house available on specific days or at certain times of day. But realize this is the most difficult and least flexible of the choices.
As an article from U.S. News Real Estate <a href="https://realestate.usnews.com/real-estate/slideshows/secrets-to-selling-your-home-faster?slide=15" rel="noopener noreferrer" target="_blank">says</a>:
“Buyers like to see homes on their schedule, which often means evenings and weekends. Plus, they want to be able to tour a home soon after they find it online, especially if they're competing with other buyers. If your home can be shown with little or no notice, more prospective buyers will see it. If you require 24 hours’ notice, they may choose to skip your home altogether.”
<a href="https://www.simplifyingthemarket.com/en/2024/02/28/why-you-want-an-agents-advice-for-your-move/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">Your agent</a> is going to help you find the right path forward based on your schedule and what’s working for other sellers in your area. And if you’ve got a hardline on granting buyers more access or have interested out of town buyers that just can’t be there in person, your agent will get creative and help you explore other options like video tours, virtual showings, and more.
Bottom Line
When it comes to selling your house, you want to be sure to get as much buyer activity as you can. Let’s connect to talk about which level of access helps make that possible.2024-03-13T06:00:00-07:002024-03-11T12:10:01-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:15221Why Ther Won't Be a Recession That Tanks the Housing Market In ConnecticutWhy There Won’t Be a Recession That Tanks the Housing Market In Connecticut
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There’s been a lot of recession talk over the past couple of years. And that may leave you worried we’re headed for a repeat of what we saw back in 2008. Here’s a look at the latest expert projections to show you why that isn’t going to happen.
<a href="https://www.builderonline.com/data-analysis/how-the-election-and-unemployment-could-impact-the-2024-housing-market_c" rel="noopener noreferrer" target="_blank">According</a> to Jacob Channel, Senior Economist at LendingTree, the economy’s pretty strong:
“At least right now, the fundamentals of the economy, despite some hiccups, are doing pretty good. While things are far from perfect, the economy is probably doing better than people want to give it credit for.”
That might be why a <a href="https://www.wsj.com/economy/economic-forecasting-survey-archive-11617814998" rel="noopener noreferrer" target="_blank">recent survey</a> from the Wall Street Journal shows only 39% of economists think there’ll be a recession in the next year. That’s way down from 61% projecting a recession just one year ago (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240304/20240305-More-Economists-Now-See-a-Soft-Landing.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240304/20240305-More-Economists-Now-See-a-Soft-Landing.png" alt="a graph of the economic growth of the economy" /></a>
Most experts believe there won’t be a recession in the next 12 months. One reason why is the current unemployment rate. Let’s compare where we are now with historical data from <a href="https://www.macrotrends.net/countries/USA/united-states/unemployment-rate" rel="noopener noreferrer" target="_blank">Macrotrends</a>, the <a href="https://www.bls.gov/news.release/pdf/empsit.pdf" rel="noopener noreferrer" target="_blank">Bureau of Labor Statistics</a> (BLS), and <a href="https://tradingeconomics.com/united-states/unemployment-rate#:~:text=Unemployment%20Rate%20in%20the%20United,percent%20in%20May%20of%201953." rel="noopener noreferrer" target="_blank">Trading Economics</a>. When we do, it’s clear the unemployment rate today is still very low (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240304/20240305-Unemployment-Rate-Near-All-Time-Lows.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240304/20240305-Unemployment-Rate-Near-All-Time-Lows.png" alt="a graph of a graph showing the number of employment rate" /></a>
The orange bar shows the average unemployment rate since 1948 is about 5.7%. The red bar shows that right after the financial crisis in 2008, when the housing market crashed, the unemployment rate was up to 8.3%. Both of those numbers are much larger than the unemployment rate this January (shown in blue).
But will the unemployment rate go up? To answer that, look at the graph below. It uses data from that same Wall Street Journal <a href="https://www.wsj.com/economy/economic-forecasting-survey-archive-11617814998" rel="noopener noreferrer" target="_blank">survey</a> to show what the experts are projecting for unemployment over the next three years compared to the long-term average (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240304/20240305-Unemployement-Expected-to-stay-below-5-percent.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240304/20240305-Unemployement-Expected-to-stay-below-5-percent.png" alt="a graph of blue bars" /></a>
As you can see, economists don’t expect the unemployment rate to even come close to the long-term average over the next three years – much less the 8.3% we saw when the market last crashed.
Still, if these projections are correct, there will be people who lose their jobs next year. Anytime someone’s out of work, that’s a tough situation, not just for the individual, but also for their friends and loved ones. But the big question is: will enough people lose their jobs to create a flood of foreclosures that could crash the housing market?
Looking ahead, projections show the unemployment rate will likely stay below the 75-year average. That means you shouldn't expect a wave of foreclosures that would impact the housing market in a big way.
Bottom Line
Most experts now think we won't have a recession in the next year. They also don't expect a big jump in the unemployment rate. That means you don’t need to fear a flood of foreclosures that would cause the housing market to crash.2024-03-12T06:00:00-07:002024-03-11T11:10:32-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:15206What To Know About Credit Scores Before Buying a Home In ConnecticutWhat To Know About Credit Scores Before Buying a Home In Connecticut
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If you want to <a href="https://www.simplifyingthemarket.com/en/2024/02/20/strategic-tips-for-buying-your-first-home/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">buy a home</a> in Connecticut, you should know your credit score is a critical piece of the puzzle when it comes to <a href="https://www.simplifyingthemarket.com/en/2024/02/07/why-pre-approval-is-even-more-important-this-year/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">qualifying for a mortgage</a>. Lenders review your credit to see if you typically make payments on time, pay back debts, and more. Your credit score can also help determine your mortgage rate. An article from US Bank <a href="https://www.usbank.com/home-loans/mortgage/first-time-home-buyers/credit-score-for-mortgage.html" rel="noopener noreferrer" target="_blank">explains</a>:
“A credit score isn’t the only deciding factor on your mortgage application, but it’s a significant one. So, when you’re house shopping, it’s important to know where your credit stands and how to use it to get the best mortgage rate possible.”
That means your credit score may feel even more important to your <a href="https://www.simplifyingthemarket.com/en/2024/02/16/achieve-your-dream-of-homeownership-with-condos-and-townhomes-infographic/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">homebuying plans</a> right now since <a href="https://www.simplifyingthemarket.com/en/2024/01/30/2-of-the-factors-that-impact-mortgage-rates/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">mortgage rates</a> are a key factor in <a href="https://www.simplifyingthemarket.com/en/2024/01/26/why-its-more-affordable-to-buy-a-home-this-year-infographic/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">affordability</a>. According to the Federal Reserve Bank of New York, the median credit score in the U.S. for those taking out a mortgage is <a href="https://www.newyorkfed.org/medialibrary/interactives/householdcredit/data/pdf/HHDC_2023Q4" rel="noopener noreferrer" target="_blank">770</a>. But that doesn’t mean your credit score has to be perfect. The same article from US Bank <a href="https://www.usbank.com/home-loans/mortgage/first-time-home-buyers/credit-score-for-mortgage.html" rel="noopener noreferrer" target="_blank">explains</a>:
“Your credit score (commonly called a FICO Score) can range from 300 at the low end to 850 at the high end. A score of 740 or above is generally considered very good, but you don’t need that score or above to buy a home.”
Working with a trusted lender is the best way to get more information on how your credit score could factor into your home loan and the mortgage rate you’re able to get. As FICO <a href="https://www.myfico.com/credit-education/credit-scores" rel="noopener noreferrer" target="_blank">says</a>:
“While many lenders use credit scores like FICO Scores to help them make lending decisions, each lender has its own strategy, including the level of risk it finds acceptable. There is no single “cutoff score” used by all lenders and there are many additional factors that lenders may use to determine your actual interest rates.”
If you’re looking for ways to improve your score, Experian <a href="https://www.experian.com/blogs/ask-experian/what-is-the-average-credit-score-in-the-u-s/" rel="noopener noreferrer" target="_blank">highlights</a> some things you may want to focus on:
Your Payment History: Late payments can have a negative impact by dropping your score. Focus on making payments on time and paying any existing late charges quickly.
Your Debt Amount (relative to your credit limits): When it comes to your available credit amount, the less you’re using, the better. Focus on keeping this number as low as possible.
Credit Applications: If you’re looking to buy something, don’t apply for additional credit. When you apply for new credit, it could result in a hard inquiry on your credit that drops your score.
Bottom Line
Finding ways to make your credit score better could help you get a lower <a href="https://www.simplifyingthemarket.com/en/2024/02/12/whats-really-happening-with-mortgage-rates/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">mortgage rate</a>. If you want to learn more, talk to a <a href="https://www.simplifyingthemarket.com/en/2024/02/09/winning-plays-for-buying-a-home-in-todays-market-infographic/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">trusted lender</a>.2024-03-11T06:00:00-07:002024-03-11T08:13:25-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:14772Are Home Owners Selling as Mortgage Rates are Coming DownAre More Homeowners Selling as Mortgage Rates Come Down?
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If you’re looking to <a href="https://www.simplifyingthemarket.com/en/2024/01/05/achieving-your-homebuying-dreams-in-2024-infographic/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">buy a home</a>, the recent downward trend in <a href="https://www.simplifyingthemarket.com/en/2024/01/08/what-lower-mortgage-rates-mean-for-your-purchasing-power/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">mortgage rates</a> is good news because it helps with affordability. But there’s another way this benefits you – it may inspire more homeowners to put their houses up for sale.
The Mortgage Rate Lock-In Effect
Over the past year, one factor that’s really limited the options for your move is how few homes were on the market. That’s because many homeowners chose to delay their plans to sell once mortgage rates went up. An article from Freddie Mac <a href="https://www.freddiemac.com/research/forecast/20231220-us-economy-expanded-in-2023" rel="noopener noreferrer" target="_blank">explains</a>:
“The lack of housing supply was partly driven by the rate lock-in effect. . . . With higher rates, the incentive for existing homeowners to list their property and move to a new house has greatly diminished, leaving them rate locked.”
These homeowners decided to stay put and keep their current lower mortgage rate, rather than move and take on a higher one on their next home.
Early Signs Show Those Homeowners Are Ready To Move Again
According to the <a href="https://www.realtor.com/research/data/" rel="noopener noreferrer" target="_blank">latest data</a> from Realtor.com, there were more homeowners putting their houses up for sale, known in the industry as new listings, in December 2023 compared to December 2022 (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240117/20240124-Sellers-Are-Re-entering-the-market.png" rel="noopener noreferrer" target="_blank"></a>
Here's why this is so significant. Typically, activity in the <a href="https://www.simplifyingthemarket.com/en/2024/01/03/thinking-about-buying-a-home-ask-yourself-these-questions/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">housing market</a> cools down in the later months of the year as some sellers choose to delay their moves until January rolls around.
This is the first time since 2020 that we’ve seen an uptick in new listings this time of year. This could be a signal that the rate lock-in effect is easing a bit in response to <a href="https://www.simplifyingthemarket.com/en/2023/12/20/why-mortgage-rates-could-continue-to-decline/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">lower rates</a>.
What This Means for You
While there isn’t going to suddenly be an influx of options for your <a href="https://www.simplifyingthemarket.com/en/2023/11/21/are-there-actually-more-homes-for-sale-right-now/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">home search</a>, it does mean more sellers may be deciding to list. According to a <a href="https://www.jchs.harvard.edu/blog/homeowner-mobility-stalls-amid-rising-interest-rates" rel="noopener noreferrer" target="_blank">recent article</a> from the Joint Center for Housing Studies (JCHS):
“A reduction in interest rates could alleviate the lock-in effect and help lift homeowner mobility. Indeed, interest rates have recently declined, falling by a full percentage point from October to November 2023 . . . Further decreases would reduce the barrier to moving and give homeowners looking to sell a newfound sense of urgency . . .”
And that means you may see more homes come onto the market to give you more <a href="https://www.simplifyingthemarket.com/en/2023/12/11/the-perfect-home-could-be-the-one-you-perfect-after-buying/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">fresh options</a> to choose from.
Bottom Line
As mortgage rates come down, more sellers may re-enter the market – that gives you an opportunity to find the home you’re looking for. <a href="https://www.mykcm.com/2023/12/07/why-you-need-to-use-a-real-estate-agent-when-you-buy-a-home/" rel="noopener noreferrer" target="_blank">Let’s connect</a> so you’ve got a local expert on your side who’ll help you stay on top of the latest listings in our area.2024-02-03T04:26:26-07:002024-02-03T04:38:55-07:00Dave Keysertag:searchallcthomes.com,2012-09-20:14070Don't Believe Everything You Read About Home PricesDon’t Believe Everything You Read About Home Prices
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According to the latest data from Fannie Mae, 23% of Americans still think home prices will go down over the next twelve months. But why do roughly 1 in 4 people feel that way?
It has a lot to do with all the negative talk about home prices over the past year. Since late 2022, the media has created a lot of fear about a price crash and those concerns are still lingering. You may be hearing people in your own life saying they’re worried about home prices or see on social media that some influencers are saying prices are going to come tumbling down.
If you’re someone who still thinks prices are going to fall, ask yourself this: Which is a more reliable place to get your information – clickbait headlines and social media or a trusted expert on the housing market?
The answer is simple. Listen to the professionals who specialize in residential real estate.
Here’s the latest data you can actually trust. Housing market experts acknowledge that nationally, prices did dip down slightly late last year, but that was short-lived. Data shows prices have already rebounded this year after that slight decline in 2022 (see graph below):
<img src="https://files.keepingcurrentmatters.com/content/images/20231030/20231102-Percent-Change-in-Home-Prices.png" />
But it’s not just Fannie Mae that’s reporting this bounce back. Experts from across the industry are showing it in their data too. And that’s why so many forecasts now project home prices will net positive this year – not negative. The graph below helps prove this point with the latest forecasts from each organization:
<a href="https://www.simplifyingthemarket.com/en/content/images/20231030/20231102-2023-Year-End-Home-Price-Forecasts.png?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20231030/20231102-2023-Year-End-Home-Price-Forecasts.png" /></a>
What’s worth noting is that, just a few short weeks ago, the Fannie Mae forecast was for 3.9% appreciation in 2023. In the forecast that just came out, that projection was updated from 3.9% to 6.7% for the year. This increase goes to show just how confident experts are that home prices will net positive this year.
So, if you believe home prices are falling, it may be time to get your insights from the experts instead – and they’re saying prices aren’t falling, they’re climbing.
Bottom Line
There’s been a lot of misleading information about home prices over the past year. And that’s still having an impact on how people are feeling about the housing market today. But it’s best not to believe everything you hear or read.
If you want information you can trust, turn to the real estate experts. Their data shows home prices are on the way back up and will net positive for the year. If you have questions about what’s happening in our local area, let’s connect. 2023-11-02T10:03:37-07:002023-11-02T10:05:46-07:00Bob DiSapiotag:searchallcthomes.com,2012-09-20:14069Are Higher Mortgage Rates Here To Stay?Are Higher Mortgage Rates Here To Stay?
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Mortgage rates have been back on the rise recently and that’s getting a lot of attention from the press. If you’ve been following the headlines, you may have even seen rates recently reached their highest level in over two decades (see graph below):
<a href="https://www.simplifyingthemarket.com/en/content/images/20231012/20231016-Mortgage-Rates-Reach-Highest-Level-In-Almost-23-Years.png?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20231012/20231016-Mortgage-Rates-Reach-Highest-Level-In-Almost-23-Years.png" /></a>
That can feel like a little bit of a gut punch if you’re thinking about making a move. If you’re wondering whether or not you should delay your plans, here’s what you really need to know.
How Higher Mortgage Rates Impact You
There’s no denying mortgage rates are higher right now than they were in recent years. And, when rates are up, that affects overall home affordability. It works like this. The higher the rate, the more expensive it is to borrow money when you buy a home. That’s because, as rates trend up, your monthly mortgage payment for your future home loan also increases.
Urban Institute explains how this is impacting buyers and sellers right now:
“When mortgage rates go up, monthly housing payments on new purchases also increase. For potential buyers, increased monthly payments can reduce the share of available affordable homes . . . Additionally, higher interest rates mean fewer homes on the market, as existing homeowners have an incentive to hold on to their home to keep their low interest rate.”
Basically, some people are deciding to put their plans on hold because of where mortgage rates are right now. But what you want to know is: is that a good strategy?
Where Will Mortgage Rates Go from Here?
If you’re eager for mortgage rates to drop, you’re not alone. A lot of people are waiting for that to happen. But here’s the thing. No one knows when it will. Even the experts can’t say with certainty what’s going to happen next.
Forecasts project rates will fall in the months ahead, but what the latest data says is that rates have been climbing lately. This disconnect shows just how tricky mortgage rates are to project.
The best advice for your move is this: don’t try to control what you can’t control. This includes trying to time the market or guess what the future holds for mortgage rates. As CBS News states:
“If you're in the market for a new home, experts typically recommend focusing your search on the right home purchase — not the interest rate environment.”
Instead, work on building a team of skilled professionals, including a trusted lender and real estate agent, who can explain what’s happening in the market and what it means for you. If you need to move because you’re changing jobs, want to be closer to family, or are in the middle of another big life change, the right team can help you achieve your goal, even now.
Bottom Line
The best advice for your move is: don’t try to control what you can’t control – especially mortgage rates. Even the experts can’t say for certain where they’ll go from here. Instead, focus on building a team of trusted professionals who can keep you informed. When you’re ready to get the process started, let’s connect.2023-11-02T09:59:37-07:002023-11-02T10:02:00-07:00Bob DiSapiotag:searchallcthomes.com,2012-09-20:14068The Risks of Selling Your House On Your OwnThe Risks of Selling Your House on Your Own
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Are you thinking about selling your house as a For Sale by Owner (FSBO)? If so, know there's a whole lot more time and expertise needed in that process than you might think. While the idea of doing it all by yourself might seem tempting, it's important to recognize the challenges you may face if you take it on all by yourself. As a recent article from Bankrate <a href="https://www.bankrate.com/real-estate/sell-house-by-owner-in-california/#pros-v-cons" rel="noopener noreferrer" target="_blank">explains</a>:
“Choosing the right price, crafting a compelling listing, marketing to potential buyers, coordinating showings, preparing paperwork: All of these are tasks that, in the absence of a real estate agent, you will have to do yourself.”
Here’s a bit more information on just a few of those things and how you may miss out if you don’t use an agent.
You May Not Price it Right
Pricing your house right is key to a successful sale. Real estate agents have experience navigating this housing market and understand the art of pricing a home to sell today. Unfortunately, homeowners who sell on their own often lack this all-important experience. That can lead to two common consequences: overpricing or underpricing the house.
“If your home is overpriced, you run the risk of buyers not seeing the listing. . . . But price your house too low and you could end up leaving some serious money on the table. A bargain-basement price could also turn some buyers away, as they may wonder if there are any underlying problems with the house.”
Don’t run this risk. Instead, partner with an agent to make sure your house is priced at current market value, so it catches the eyes of eager buyers. This will put your house in a position to make the best first impression possible.
You Don’t Have as Much Experience in Marketing a House
In this digital age, online marketing has become a real game-changer, especially when it comes to selling your house. A recent report from the National Association of Realtors (NAR), <a href="https://www.nar.realtor/sites/default/files/documents/2023-home-buyers-and-sellers-generational-trends-report-03-28-2023.pdf" rel="noopener noreferrer" target="_blank">explains</a>:
“Among all generations of home buyers, the first step taken in the home search process was to look online for properties.”
When you partner with a real estate agent who knows how to take advantage of online marketing tools and resources, you'll be able to get in front of these tech-savvy house hunters, boosting your chances of a successful sale. But, if you're attempting to sell your house on your own, you might find yourself missing out on the full power of online and social media strategies.
You May Not Be Comfortable Handling All the Back-and-Forth
When you decide to sell your house, you're not just on a quest to find a buyer; you're also stepping into a world of negotiations. You’ll have to coordinate with a bunch of people, including the buyer, the buyer’s agent, the inspection company, the appraiser, and more. It's a dance where every move counts, and the expertise of a real estate agent can make a world of difference in keeping these negotiations on track and sealing the deal.
“Your listing agent will also, of course, be on your side throughout negotiations. They'll double-check paperwork that comes through, communicate with the buyer's agent and other parties to the sale, and generally stay on top of things through to closing day.”
Bottom Line
If you're thinking about selling your house and the idea of going it alone has crossed your mind, be sure to think through that decision carefully. Let's connect to discuss how a real estate agent has the experience needed to take all that stress off your plate.2023-11-02T09:55:12-07:002023-11-02T09:58:18-07:00Bob DiSapiotag:searchallcthomes.com,2012-09-20:14067Unmasking Scary Myths About Today's Housing MarketUnmasking Scary Myths about Today’s Housing Market
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Some Highlights
Here’s what you really need to know about a few myths causing fear in today’s housing market.
Despite common misconceptions, many people can buy a home even if they have student loans, home prices are rising nationally (not falling), and you usually don’t have to have 20% for a down payment.
If you have other fears or reservations about buying a home today, let’s connect so you have an expert to help clear those up.
2023-11-02T09:44:10-07:002023-11-02T09:50:23-07:00Bob DiSapiotag:searchallcthomes.com,2012-09-20:14064Invest In Yourself By Owning a HomeInvest in Yourself by Owning a Home
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Are you wondering if it makes sense to buy a home right now? While today’s mortgage rates might seem a bit intimidating, here are two compelling reasons why it still may be a good time to become a homeowner.
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 appreciating at a more normal pace, which is good news 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, home<a href="https://www.simplifyingthemarket.com/en/2023/10/12/growing-your-net-worth-with-homeownership/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank"> </a>values rise (see graph below):
<a href="https://www.simplifyingthemarket.com/en/content/images/20231023/20231025-Price-Appreciation-over-the-Last-60-Years.png?a=256783-97401f3dc4d75220bf95779361521561" 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 60 years, you can see the overall trend is home prices have climbed quite steadily. Sure, there was an exception around the housing crash of 2008 that caused prices to break the usual trend for a time, but overall, home values have been consistently on the rise.
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 net worth a boost.
Rent Keeps Going Up Through the Years
Another reason you may want to consider buying a home instead of renting 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 climbed steadily over the past six decades (see graph below):
<a href="https://www.simplifyingthemarket.com/en/content/images/20231023/20231025-Increase-in-Rents-over-the-Last-60-Years.png?a=256783-97401f3dc4d75220bf95779361521561" 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 buying a home, 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 homeowner, 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), states:
“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 your<a href="https://www.mykcm.com/2023/09/22/how-remote-work-helps-with-your-house-hunt-infographic/" rel="noopener noreferrer" target="_blank"> </a>options.2023-11-02T07:22:42-07:002023-11-02T07:25:39-07:00Bob DiSapiotag:searchallcthomes.com,2012-09-20:14063The Perks of Selling Your House When Inventory Is LowThe Perks of Selling Your House When Inventory Is Low
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When it comes to selling your house, you’re probably trying to juggle the current market conditions and your own needs as you plan your move.
One thing that may be working in your favor is how few homes there are for sale right now. Here’s what you need to know about the current inventory situation and what it means for you.
The Supply of Homes for Sale Is Far Below the Norm
When you’re selling something, it helps if what you’re selling is in demand, but is also in low supply. Why? That makes it even more desirable since there’s not enough to go around. That’s exactly what’s happening in the housing market today. There are more buyers looking to buy than there are homes for sale.
To tell the story of just how low inventory is, here’s the latest information on active listings, or homes available for sale. The graph below uses data from Realtor.com to show how many active listings there were in September of this year compared to what’s more typical in the market.
<a href="https://www.simplifyingthemarket.com/en/content/images/20231023/20231024-The-Supply-of-Homes-for-sale-Is-Still-Low.png?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20231023/20231024-The-Supply-of-Homes-for-sale-Is-Still-Low.png" /></a>
As you can see in the graph, if you look at the last normal years for the market (shown in the blue bars) versus the latest numbers for this year (shown in the red bar), it’s clear inventory is still far lower than the norm.
What That Means for You
Buyers have fewer choices now than they did in more typical years. And that’s why you could still see some great perks if you sell today. Because there aren’t enough homes to go around, homes that are priced right are still selling fast and the average seller is getting multiple offers from eager buyers. Based on the latest data from the Confidence Index from the National Association of Realtors (NAR):
69% of homes sold in less than a month.
2.6 offers: the average number of offers on recently sold homes.
An article from Realtor.com also explains how the limited number of houses for sale benefits you if you’re selling:
“. . . homes spent two weeks less on the market this past month than they did in the average September from 2017 to 2019 . . . as still-limited supply spurs homebuyers to act quickly . . .”
Bottom Line
Because the supply of homes for sale is so low, buyers desperately want more options – and your house may be just what they’re looking for. Let’s connect to get your house listed at the right price for today’s market. You could still see it sell quickly and potentially get multiple offers.2023-11-02T07:09:06-07:002023-11-02T07:16:01-07:00Bob DiSapiotag:searchallcthomes.com,2012-09-20:13589Gen Z: The Next Generation Is Making Moves in The Housing MarketGen Z: The Next Generation Is Making Moves in the Housing Market
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Generation Z (Gen Z) is eager to put down their own roots and achieve financial independence. As a result, they’re turning to homeownership. According to the latest Home Buyers and Sellers Generational Trends Report from the National Association of Realtors (NAR), 30% of Gen Z buyers transitioned straight from living under their parents' roofs to owning their own homes.
If you’re a member of this generation, and you’re interested in pursuing your own dream of homeownership, here’s some information you may find helpful on why and where your peers are buying.
The Reasons Gen Z Want To Become Homeowners
A recent survey by Rocket Mortgage identifies some of the top motivators driving Gen Z buyers to purchase a home:
“Of those surveyed, 34% said that starting or growing their family was their main motivation to buy a home. . . . Along with growing a family comes establishing a home base.”
Another key reason the survey says Gen Z wants to buy is because homeownership can give them more stability (20.8%). That’s because buying a home allows you to stabilize what’s typically your biggest monthly expense: your housing cost.
When you have a fixed-rate mortgage on your home, you can lock in your monthly payment for the duration of your loan, often 15 to 30 years. If you keep renting, you don’t have that same benefit, and you won’t be protected from rising housing costs.
So, if you’re ready to start a new chapter in your life or if you’re craving more stability, know that your peers feel the same way, and those motivators are why they’re turning to homeownership.
Gen Z's Next Stop: Where Are They Making Their Moves?
If those reasons have you feeling ready to buy, here’s some information on where your peers are finding their homes that could help you with your search. According to a recent Lending Tree survey, Gen Z buyers are focusing on more affordable areas to help boost their buying power and offset the challenges that come with today’s mortgage rates.
Many Gen Z buyers still want the convenience and excitement of city life, but also value the affordability, open air, and space more suburban areas offer. Jacob Channel, Senior Economist at LendingTree, explains:
“. . . they want to live in a city, but they also want to be close to nature.”
Locating a home that offers both of those things requires expertise. Working with a trusted real estate professional can help you find a home in your budget and desired area. Your agent will know the most affordable neighborhoods to search in. They can also highlight the amenities and features that location offers and how those are aligned with your goals. They’ll also be able to walk you through how things like remote work can help you cast a broader net for your search.
Bottom Line
If you’re a member of Gen Z and are just getting started on your homebuying journey, or if you want to learn more about the process, let’s connect. That way, you have a guide to help you find a home that fits both your lifestyle and your budget.2023-08-28T04:13:05-07:002023-08-28T04:16:19-07:00Bob DiSapiotag:searchallcthomes.com,2012-09-20:13588Why You Need a True Expert in Today's Housing MarketWhy You Need a True Expert in Today’s Housing Market
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The housing market continues to shift and change, and in a fast-moving landscape like we’re in right now, it’s more important than ever to have a trusted real estate agent on your side. Whether you’re buying your first home or selling once again, it’s mission critical to work with an expert who can guide you through each unique step of the process.
The reality is, not all agents operate the same way. To truly make a powerful and confident decision as you buy or sell a home, you need a real estate expert who uses their knowledge of what’s really happening with home prices, housing supply, industry projections, and more to give you the best possible advice. Someone who can provide clarity and trust like that is essential to your success. 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 for consumers. 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 assist you in figuring out what’s going on at the national level and in your local area. 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 housing market, 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
If you want sound advice and trusted information about our local housing market, let’s connect.2023-08-28T04:06:15-07:002023-08-28T04:08:17-07:00Bob DiSapiotag:searchallcthomes.com,2012-09-20:13587More Jobs and Better Pay Leads to More Buyer DemandMore Jobs and Better Pay Leads to More Buyer Demand
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There’s been talk about a recession for quite a while now. But the economy has been remarkably resilient. Why? One reason is employment and wages have stayed strong. Let’s look at the latest information on each one and why both are good news if you’re thinking about selling your house.
More Jobs Are Being Created
Instead of facing the job losses typical of any recession, the economy has been growing and adding jobs. According to the Bureau of Labor Statistics (BLS), 187,000 jobs were created in July, which is up from the 185,000 created in June. That means more people are finding work. In fact, so many jobs are being added that the unemployment rate is far lower than the long-term average of 5.7% (see graph below):
<a href="https://www.simplifyingthemarket.com/en/content/images/20230822/20230824-Unemployment-Rate-Declined-In-July.png?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230822/20230824-Unemployment-Rate-Declined-In-July.png" /></a>
A low unemployment rate means that most people who want to work are finding jobs. When people have jobs, they have steady incomes – and that can help set them up to consider homeownership.
People Are Making More Money
And data also shows hourly earnings have been going up pretty steadily over the past few years (see graph below):
<a href="https://www.simplifyingthemarket.com/en/content/images/20230822/20230824-Hourly-Earnings-Rise-4.4--from-last-year.png?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230822/20230824-Hourly-Earnings-Rise-4.4--from-last-year.png" /></a>
When wages rise, people have more money that they could save or use toward buying a home. This increase in income helps offset some of the affordability challenges in the housing market today. Affordability depends on three main factors: wages, home prices, and mortgage rates. With higher home prices and mortgage rates right now, Builder Online summarizes how growing wages can help:
“The housing market has been a beneficiary of the strong economy and labor market. Many of those employed have saved money over the past few years and used those funds toward a down payment on a home.”
If you’re thinking about selling your house, a strong job market, growing wages, and the resulting buyer demand is fantastic news. It means there’s a larger pool of potential buyers out there who are in a position to pursue their dreams of homeownership.
Bottom Line
With more jobs and rising wages creating eager buyers, there’s a lot going in your favor. Let’s connect so you have someone who can guide you through the process of selling your house, from setting the right price to getting your home ready to show.2023-08-28T03:58:13-07:002023-08-28T04:00:08-07:00Bob DiSapiotag:searchallcthomes.com,2012-09-20:13586There's Only Half the Inventory Of a Normal Housing Market TodayThere's Only Half the Inventory of a Normal Housing Market Today
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Wondering if it still makes sense to sell your house right now? The short answer is, yes. Especially if you consider how few homes there are for sale today.
You may have heard inventory is low right now, but you may not fully realize just how low or why that’s a perk when you go to sell your house. This graph from Calculated Risk can help put that into perspective:
<a href="https://www.simplifyingthemarket.com/en/content/images/20230807/20230808-Inventory-Is-Still-Historically-Low.png?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230807/20230808-Inventory-Is-Still-Historically-Low.png" /></a>As the graph shows, while housing inventory did grow slightly week-over-week (shown in the blue bar), overall supply is still low (shown in the red bars). Compared to the same week last year, supply is down roughly 10% – and it was already considered low at that time. But, if you look further back, you’ll see inventory is down even more significantly.
To gauge just how far off from normal today’s inventory is, let’s compare right now to 2019 (the last normal year in the market). When you compare the same week this year with the matching week in 2019, supply is about 50% lower. That means there are half the homes for sale now than there’d usually be.
The key takeaway? We’re still nowhere near what’s considered a balanced market. There’s plenty of demand for your house because there just aren’t enough homes to go around. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains:
“There are simply not enough homes for sale. The market can easily absorb a doubling of inventory.”
So, if you want to list your house, know that there’s only about half the inventory there’d usually be in a more normal year. That means your house will be in the spotlight if you sell now and you may see multiple offers and a fast home sale.
Bottom Line
With the number of homes for sale roughly half of what there’d usually be in a more normal year, you can rest assured there’s demand for your house. If you want to sell, let’s connect now so your house can shine above the rest while inventory is so low.2023-08-28T03:49:36-07:002023-08-28T03:51:37-07:00Bob DiSapiotag:searchallcthomes.com,2012-09-20:13585Equity Is a Game Changer for Homeowners Looking To SellEquity Is a Game Changer for Homeowners Looking To Sell
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If you’re a homeowner, you might be torn on whether or not to sell your house right now. Maybe that’s because you don’t want to take on a higher mortgage rate on your next home. If that’s your biggest hurdle, understanding your equity may be exactly what you need to help you feel more comfortable making your move.
What Equity Is and How It Works
Equity is the current value of your home minus what you owe on the loan. And recently, that equity has been growing far faster than you may expect.
Over the last few years, home prices rose dramatically, and that gave your equity a big boost very quickly. While the market has started to normalize, there’s still an imbalance between the number of homes available for sale and the number of buyers looking to make a purchase. And it’s because homes are in such high demand that prices are back on the rise today. Rob Barber, CEO of ATTOM, a property data provider, explains:
“Equity levels were high even during the recent downturn, and now they are going back up and better than ever.”
How Equity Benefits You in Today’s Market
With today’s affordability challenges, that equity can be a game changer when you move. Here’s why. Based on data from ATTOM and the Census, nearly two-thirds (68.7%) of homeowners have either paid off their mortgages or have at least 50% equity (see chart below):<a href="https://www.simplifyingthemarket.com/en/content/images/20230814/20230815-Americans-Sitting-On-Tremendous-Equity.png?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230814/20230815-Americans-Sitting-On-Tremendous-Equity.png" /></a>
That means roughly 70% have a tremendous amount of equity right now.
Once you sell your house, you can use your equity to help with your next purchase. It could be some (if not all) of what you’ll need for your next down payment. It may even be enough to allow you to put a considerably larger down payment on your next home, so you don’t have to finance quite as much. And, if you’ve been in your current house for years, you may have even built up enough equity to pay in all cash. If that’s true for you, you’d be able to avoid borrowing altogether, so you wouldn’t have to worry about today’s mortgage rates.
How To Find Out How Much Equity You Have
The best way to learn how much you have is to reach out to a trusted real estate agent for a Professional Equity Assessment Report (PEAR).
Bottom Line
If you’re planning to make a move, the equity you’ve gained 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.2023-08-28T03:39:24-07:002023-08-28T03:44:56-07:00Bob DiSapiotag:searchallcthomes.com,2012-09-20:13168CONNECTICUT REAL ESTATE MARKET: WILL IT CRASH IN 2023?
Connecticut Real Estate Market: Will it crash in 2023
The Connecticut housing market is experiencing a major shift. The median sale price increased by 7.6% in April 2023 year-on-year, and the number of homes sold dropped by 31%. New buyers are starting to enter the market as mortgage rates are falling week on week, currently at 6.79%.
The Connecticut housing market is warming up, yet risks exist with potential interest rate hikes and a housing market recession.
CT HOUSING MARKET UPDATE 💣
Buyers Have More of an Upper Hand: With a significantly slower market compared to the post-pandemic highs, Connecticut is expected to see a decrease in home prices by 20%.
Mortgage Rates Have Almost Doubled: Mortgage rates increased 33.13% from May 2022’s 5.10% to 6.79% for the month of May, 2023.
Sellers are Slowly Coming Back: The number of listings increased by 116.1% in April 2023. From 1,759 in December 2022.
It’s Taking Longer to Sell: Connecticut homes stayed on the market for an average of 36 days, up from 35 days from last year.
CT Real Estate Market: At a Glance
REAL ESTATE MARKET UPDATES
Connecticut
<img loading="lazy" alt="Connecticut Housing Market" src="https://www.houzeo.com/blog/wp-content/uploads/2023/06/Connecticut.webp" target="_blank" data-lazy-src="https://www.houzeo.com/blog/wp-content/uploads/2023/06/Connecticut.webp" data-ll-status="loaded" class="entered lazyloaded" /><address></address>
Median Sale Price: $380,200 (+7.60% YoY) 🟢
# of Homes Sold:2,644 (-31% YoY) 🔴
Connecticut Real Estate Market Trends
Housing Market MetricsCurrent Housing Market Trend 2023Comparison YoY
1. Median Sale Price
$380,200
🟢 +7.6% YoY
2. Number of Homes Sold
2,644
🔴 -31% YoY
3. Homes Sold Above List Price
58%
🔴 -5.9 pt
4. Homes Sold With Price Drops
40%
🔴 -10.6 pt
5. Homes Sold Sale-to-List Price
102.3%
🔴 -1.1 pt
6. Median Days on Market
36 days
🟢 +1 days YoY
Source: Redfin.com
The current Connecticut housing market statistics reflect the national trend of high demand and low supply. As home sales declined across the state, home prices ascended.
After a decade of steady home price gains, the market has reached the affordability limit for many homeowners.
Connecticut Housing Market Statistics
Average Home Prices: The average median home price in Connecticut is $380,200, up by 7.6% YoY. In 2023, experts predict the median sale price growth to drop by roughly 4%, the first annual drop since 2012. Currently, the sale-to-list price ratio is at 102.3%, with a decline of 1.1 pt. YoY as of April 2023.
Home Sales: As per April 2023 data, home sales are at a low of 31% YoY. In April 2023, 2,644 homes were sold, down from 3,438 in April 2022.
Average Rent Prices: An average tenant pays $1,424 as rent in 2023.
Pending Sales: Pending home sales grew in February by 0.8% for the third consecutive month. There are currently 7,226 pending listings for sale in Connecticut.
Median Days on Market: The median days on the market for homes for sale was <a href="https://www.redfin.com/state/Connecticut/housing-market" target="_blank" rel="noreferrer noopener nofollow external" data-wpel-link="external">36</a> days, up by 1 days YoY.
Will Home Prices Drop in the Second Quarter of 2023?
No. In the second quarter of 2023, NAR experts predict an 8.08% rise in the median sale price, which is down 2.5% YoY. The housing market will continue to warm up between high mortgage rates and economic uncertainty.
As per Zillow’s Connecticut housing market forecast, the national Zillow home value index rose by 4.4% in March 2023. Over the next year, it is expected to rise by 0.6%. NAR predicts 4.78<a href="https://www.nar.realtor/newsroom/nar-forecasts-4-78-million-existing-home-sales-stable-prices-in-2023" target="_blank" rel="noreferrer noopener nofollow external" data-wpel-link="external"> </a>million existing home sales in 2023.
Will the Housing Market Crash in Connecticut?
Several economists believe the housing market will slow down in 2023, but not crash. As the mortgage rates are stabilizing now after the recent bank crisis, more buyers feel confident to enter the housing market.
Let’s look at why most experts believe that the housing market in Connecticut is not going to crash.
5 Reasons Why the Housing Market is Unlikely to Crash
Low Months of Supply: As per May 2023 data, only 2.6 months’ supply is available. This scarcity of inventory explains why many buyers need to bid over the listing price. According to the law of supply-demand, it is predicted that home prices will remain stable for now.
Low Newly Constructed Housing Supply: The supply of newly constructed houses has yet to return to pre-2007 levels. Also, there’s no way for homebuyers to buy land, get regulatory approval, and increase the supply quickly.
New Buyers Entering the Market: There’s a strong demand for homes across various demographics. Millennials and Hispanics are in their prime buying years. As a result, there’s still a limited amount of inventory available.
Strict Lending Standards: There were several cases of liar loans in 2007 where anyone could get a mortgage without a credit check. Today, mortgage lenders in Connecticut place high standards on borrowers, and most home buyers are required to have an excellent credit score.
Fewer Foreclosures: A majority of homeowners own significant equity in their homes. The personal balance sheets of homeowners are much stronger today than they were 15 years ago. As a result, the threat of rising foreclosures in Connecticut is low.
Is 2023 a Buyer’s Market or a Seller’s Market?
2023 is unusual compared to previous housing market trends. That’s why, it’s difficult to gauge whether it is a seller’s or a buyer’s market.
Due to relatively high mortgage rates, buyers entering the market are few. Likewise, low inventory and a reduced number of listings indicate sellers’ reluctance to sell.
In the wake of Silicon Valley Bank’s fall, daily average mortgage rates fell from 7% to 6.5%. Likewise, home prices across the nation fell by 1.8% over the span of a weekend, which saw a sudden spike of 7% in mortgage applications.
After Fed’s recent announcement, the average weekly mortgage rates dropped to 6.42% and 6.32% in the next week. Further, mortgage purchase applications grew by 17% in February-March.
Connecticut Housing Market Predictions 2023
The housing market majorly depends upon the economy’s health. As economies slow, the money supply becomes limited. It becomes difficult to borrow money, fewer home buyers enter the CT housing market.
The national unemployment rate remains at 3.7% in May 2023. The private sector in various states also shows positive job growth, says ADP.
Here are a few real estate housing market predictions for 2023 based on the experts’ forecast.
Mortgage Rates Stabilizing: The 30-year fixed-rate mortgage averaged 6.79% for the month of June, 2023, down from 6.42% the previous week. However, these rates are still lower than last year’s peak of 7.08%.
Fewer Home Sales: Reports predict far fewer home sales for the remainder of 2023. Compared to last year, number of homes being sold plunged by 31%.
Low Home Prices: Home prices will remain low compared to last year, falling by 2.5% in most markets.
Stable Housing Affordability: According to NAR’s chief economist, rates will remain stable for existing homes during 2023, and approx 4.78 million existing homes will be sold.
iBuyers Likely to Buy Homes Below Market Value: During the past year, house flipping profits have fallen by 18.4%. Top iBuyers like Opendoor reported huge losses last quarter. Lastly, Zillow and Redfin shut down their iBuyer services in 2021 and 2022.
Are We in a Housing Bubble Now?
Experts would agree that a housing bubble does exist. A housing market bubble refers to a steep incline in prices with increasing demand and limited supply. Home prices have been steadily rising for the last two years. Inventory is still low, standing at <a href="https://www.redfin.com/news/housing-market-update-new-listings-mortgage-rates-decline/" target="_blank" rel="noreferrer noopener nofollow external" data-wpel-link="external">2.6</a> months’ supply.
Mortgage interest rates touched a record high, and there’s a sharp decline in the number of home sales at 31% YoY. Lastly, there has been a gradual decline in homebuyer interest.
Connecticut Housing Market Predictions for the Next 5 Years
Home prices have risen by 41.1% in the past 5 years. This exponential growth is expected to decline gradually in the coming years.
As mortgage rates continue to increase, homebuyers will delay their purchase. There will be low demand for housing, and the home value growth rate will decrease.
Should I Sell My CT Home Now or Wait?
10% of homeowners believe that now is a good time to sell a home. Home prices are still at record highs, but some experts predict that many markets will decline by 5% to 10%.
If you are in a market where home prices are still high, this might be a good time to sell a house in Connecticut. You can sell your house in the following circumstances:
Before the Mortgage Rates Touch Record Highs: Mortgage rates may touch 7.8% in the coming year as the Fed tries to control inflation. Compared to 1971, the present rate could reach an average of 8% for a 30-year fixed mortgage. As interest rates are still low, many prospective buyers may enter the market now rather than later.
You Need to Upsize or Downsize: Significant changes in family dynamics may require you to sell your property and move to a different one.
You Need to Relocate: If you’ve got a new job or have decided to retire, or relocate to a new state, there is no way around selling. The best time to sell a house is when you’re ready to move.
Tips to Sell Your CT Home In A Slow Market
Price Your Home Competitively: Inventory starts to rise in a slow real estate market. It is better to price your home competitively and get the best deal and quick offers.
Offer Incentives & Seller Credit: You can offer to pay the CT buyer’s closing costs, reduce repair costs, or provide a transferable home warranty as an incentive. If you can’t afford any of these, you can sell your house as is in Connecticut.
List on the Open Market: When you list on MLS in Connecticut, your property gets the best market exposure. And that means inviting offers from all types of buyers, investors and cash home buyers. A Flat Fee MLS Connecticut listing service is the fastest way to list on the MLS.
Sell to Cash Home Buyers: Cash home buyers in Connecticut will make instant cash offers on your house. Although these companies can help you sell your home fast, they offer a lot less than your home’s fair market value.
Tips to Sell Your CT Home in Hot Market
Find the Best Way to Sell: Even if you’re selling your house yourself in Connecticut or through an agent, we recommend listing on the MLS with CT Flat Fee MLS listing services. The best For Sale By Owner websites in Connecticut can help you market your house, either for a small fee or even for free.
Make Quick Repairs: Clean and declutter your home, and make small fixes like repairing a leaky faucet or fixing a shattered window. Know more creative ways to market your house.
Stage Your Home: Preparing your home for sale, with or without the help of a professional home stager, is home staging. It mainly involves cleaning, depersonalizing, and making your home appealing visually.
Should I Buy a CT Home Now or Wait?
According to statistics, 77% of people think that now is a bad time to buy a house in Connecticut. This is mainly because of the relatively high mortgage rates in the past few weeks, which allow only a few buyers with strong financial conditions to enter the market.
If you’re planning to buy now, plan your finances well and make sure you have 5 to 6 months of savings after you put your down payment.
Tips for Buying a CT Home in a Slow Market
Consider the Value of the Property: A slow market is the buyer’s market. There is a high chance that the home values may decrease before it starts to increase again.
Don’t Buy at the Lowest Price: Minnesota house buyers should remain cautious since sellers may conceal major defects. Get a home inspection report before you buy any house that’s too cheap to be true. Otherwise, you can end up with a bad investment.
Don’t Invest in Properties for the Short Run: If you’re not planning to stay in a real estate property for a long time, do not buy it. Buying a home solely for selling will only increase inventory. This won’t be beneficial in a slow real estate market
Tips for Buying a CT Home in a Hot Market
Research Local Market: The Connecticut real estate housing market is highly localized, as market trends vary from region to region.
Lower Your Debt: Lowering your debt-to-income ratio will help you easily qualify for a mortgage preapproval when applying for a loan.
Increase Your Earning Potential: 60% of workers who switched jobs last year earned more money in their new positions, beating inflation. Despite the economic downturn and rising mortgage rates, you must look for opportunities to boost your income.
2023-07-13T07:43:26-07:002023-07-13T08:16:29-07:00Bob DiSapiotag:searchallcthomes.com,2012-09-20:13136Amazingly, 2023 Is Not the Most Unaffordable It's Ever Been To Buy A Home-Not Even CloseYes, we’ve all heard it. Buying a home today might seem like the most unaffordable, and therefore impossible, it’s ever been. Home prices are near record levels, pushed up by bidding wars erupting on anything well-situated and move-in ready. Plus, mortgage rates are nearing 7%.
But here’s the thing: The baby boomers had it worse.
In May of this year, the typical buyer spent just under a third of their household income, about 32.8%, on housing. As uncomfortable as that might be, it’s not even close to how much buyers plunked down in the early 1980s.
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In 1981, the same year the AIDS virus was identified, the Iran hostage crisis came to an end, and “Raiders of the Lost Ark” topped the box office charts, homebuyers that September and October spent 51.3% of their household income on their mortgage payments.
Let that sink in for a moment.
Furthermore, that percentage doesn’t even include what they paid for utilities, property taxes, insurance costs, and homeowners association fees.
Buying a home is “not as unaffordable as it’s ever been,” says Realtor.com Chief Economist Danielle Hale. But, “in the grand scheme of things, housing is pretty unaffordable right now.”
To figure out how affordable buying a home has been over the past 50 years, the Realtor.com data team analyzed data going back to 1973. We looked at monthly existing single-family home prices from the National Association of Realtors®, weekly mortgage interest rates for 30-year fixed loans from Freddie Mac, and median annual household income from the U.S. Census Bureau. Then we calculated the typical mortgage payment of a buyer taking out a loan on the median-priced home and what percentage of their household income that would eat up.
The analysis doesn’t factor in regional price differences, new construction, or the percentage of income that individual buyers spent on homes.
“If you go back in history, you can find a period where housing is more unaffordable than it is now,” says Hale. “But you have to go back almost 40 years.”
Why today's buyers wouldn't want to purchase a home in 1981
In the fall of 1981, homes were cheap by today's standards.
The typical single-family home cost just $66,125—about six times less than the cost this past May, according to the most recent data from NAR.
However, the typical household was bringing in only about $19,074 in 1981, according to U.S. Census Bureau data. And mortgage rates topped 18% that fall. (And you thought 7% was rough.)
Those turbo-sized rates meant that 99.5% of a buyer's first year of mortgage payments was going toward just the towering amount of interest on the loan. The buyer didn't pay down 10% on the principal of the balance until the 18th year of the loan, assuming the buyer didn't refinance—which most buyers did. (This calculation includes a 20% down payment.)
Today's average family is earning about $73,505 a year. But in May, they were contending with median existing-home prices of $410,100 and mortgage rates hovering in the mid-6% range and which have since risen to the high 6% territory. About 85% of their first year's mortgage payments is going to interest.
One important difference is that instead of waiting nearly two decades to have 10% of their principal paid off, they achieve that milestone by year seven.
"Mortgage rates play a really substantial role in how affordable housing is at any time, especially since so many buyers buy with a mortgage," says Hale.
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Uncomfortable similarities between 1981 and 2023
There are a few similarities between then and now. Inflation was soaring in the early '80s, causing the U.S. Federal Reserve to hike interest rates. (Sound familiar?) The nation was also in a full-blown recession in 1981. Fast-forward 42 years, and the nation appears to be flirting with another downturn.
The number of home sales slowed in the early 1980s as well as in this post-pandemic housing market as fewer folks can afford to buy due to higher mortgage rates.
Then, as now, most of those purchasing homes earn more than the median income—unless they had very generous family members, stock options, or trust funds. Or they're existing homeowners who can put the equity they built in their last home into their new one.
"Boomers have been saying things were harder when we were young for a long time. And in some respects, they are right," says Hale. "But in other respects, they don’t have the same amount of student loan debt and child care costs that young people have today."
Plus, once mortgage rates fell, most folks who purchased homes in the early 1980s had refinanced their loans to lock in the new rates and "drastically" lower their monthly mortgage payments. By 1986, rates had fallen back down to the single digits.
Recessions and pandemics may be good times to buy homes
As counterintuitive as this may seem, recessions may be financially advantageous for buyers to purchase homes—if they remain employed and have the funds to do so. That's because interest rates usually (but not always, as the early 1980s demonstrated) fall during economic downturns. That makes homebuying more affordable.
Over the past 50 years, homes were the most affordable as the country climbed out of the Great Recession. In early 2012 and 2013, buyers were spending about 14%—or less—of their income on a home. That's because mortgage rates were below 4%.
The same thing happened in the early days of the pandemic. The economy ground to a halt as stay-at-home orders proliferated and mass layoffs ensued. To stimulate the economy, the Fed cut interest rates and mortgage rates fell below 3%—for the first time ever.
Those low rates triggered the big run-up in prices and offset those gains. Since buyers were spending less on interest, they could afford to purchase more house. The result? In spring 2020, buyers were spending just under 18% of their income on housing.
"Affordability is one of the factors that kicked off the buying frenzy that we saw in the early part of the pandemic," says Hale.
It wasn't until mortgage rates climbed above 4% in March 2022 that buyers began to get priced out. That month they spent just under 25% of their income on housing. As rates ticked up and affordability worsened, more buyers left the market and fewer homes went up for sale (as sellers didn't want to give up their low rates).
The situation has only gotten worse, with buyers spending nearly a third of their income on housing in May.
"When housing is unaffordable, it’s very tempting to stretch your budget," says Hale. But with inflation, rising property taxes, and high energy bills, "now's probably not a good time to do that."
2023-07-10T07:54:57-07:002023-07-13T07:34:23-07:00Bob DiSapiotag:searchallcthomes.com,2012-09-20:12763Homeowners Have Increadible Equity To Leverage Right Now In ConnecticutHomeowners Have Incredible Equity To Leverage Right Now In Connecticut
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Even though <a href="https://www.simplifyingthemarket.com/en/2023/04/05/why-arent-home-prices-crashing/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">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">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.simplifyingthemarket.com/en/2023/05/08/it-may-be-time-to-consider-a-newly-built-home/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">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.simplifyingthemarket.com/en/2023/05/04/how-homeowners-win-when-they-downsize/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">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.simplifyingthemarket.com/en/2023/04/26/the-three-factors-affecting-home-affordability-today/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">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">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">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">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">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.simplifyingthemarket.com/en/2023/04/13/want-to-sell-your-house-this-spring-price-it-right/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">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.2023-05-31T07:00:00-07:002023-05-25T12:34:04-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:12762The Best Time To Sell Your House Is When Others Aren't SellingThe Best Time To Sell Your House Is When Others Aren’t Selling In Connecticut
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If you’re thinking about <a href="https://www.simplifyingthemarket.com/en/2023/04/19/falling-out-of-love-with-your-house-it-may-be-time-to-move/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">selling</a> your house, you should know the number of homes for sale right now is low. That’s because, this season, there are fewer sellers listing their houses for sale than the norm.
Looking back at every <a href="https://www.realtor.com/research/data/" rel="noopener noreferrer" target="_blank">April</a> since 2017, the only year when fewer sellers listed their homes was in April 2020, when the pandemic hit and stalled the housing market (shown in red in the graph below). In more typical years, roughly 500,000 sellers add their homes to the market in April. This year, we saw fewer than 400,000 sellers entering the market in April (see graph below):
<a href="https://files.keepingcurrentmatters.com/content/images/20230510/20230511-the-number-of-sellers-listing-their-homes-is-lower-than-the-norm.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230510/20230511-the-number-of-sellers-listing-their-homes-is-lower-than-the-norm.png" /></a>
While there are a number of factors contributing to this trend, one thing keeping inventory low right now is that some homeowners are reluctant to move when the mortgage rate they have on their current house is lower than the one they could get today on their next house. It’s called rate lock.
As 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">explains</a>, 56% of people who are planning to sell in the next 12 months say they’re waiting for rates to come down.
While this wait-and-see approach is right for some sellers, it also creates an opening for more eager sellers to jump in now.
If your current house truly doesn’t fit your needs anymore and you’re ready to move, don’t miss this chance to <a href="https://www.simplifyingthemarket.com/en/2023/02/20/spring-into-action-boost-your-homes-curb-appeal-with-expert-guidance/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">stand out</a>. When fewer sellers are putting their homes up for sale, buyers will have fewer options, so you set yourself up to get the most eyes possible on your house. That’s why your house could see <a href="https://www.simplifyingthemarket.com/en/2023/04/11/the-big-advantage-if-you-sell-this-spring/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">multiple offers</a> as buyers compete over the limited supply of homes for sale – especially if you <a href="https://www.simplifyingthemarket.com/en/2023/04/13/want-to-sell-your-house-this-spring-price-it-right/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">price it right</a>.
As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), <a href="https://themreport.com/news/data/03-21-2023/existing-home-sales" 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."
Bottom Line
If you’re ready to sell now, beat the competition before it comes onto the market. If you do, your house should stand out and could get multiple offers. Let's connect to get you market ready.2023-05-30T07:00:00-07:002023-05-25T12:25:35-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:12761Why Today's Housing Market Is Not About To Crash In ConnecticutWhy Today’s Housing Market Is Not About To Crash In Connecticut
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There’s been some concern lately that the housing market is headed for a crash. And given some of the <a href="https://www.simplifyingthemarket.com/en/2023/04/26/the-three-factors-affecting-home-affordability-today/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">affordability</a> challenges in the housing market, along with a lot of <a href="https://www.simplifyingthemarket.com/en/2023/05/02/a-recession-doesnt-equal-a-housing-crisis-2/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">recession</a> talk in the media, it’s easy enough to understand why that worry has come up.
But the data clearly shows today’s market is very different than it was before the housing crash in 2008. Rest assured, this isn’t a repeat of what happened back then. Here’s why.
It’s Harder To Get a Loan Now
It was much easier to get a home loan during the lead-up to the 2008 housing crisis than it is today. Back then, banks had different lending standards, making it easy for just about anyone to qualify for a home loan or refinance an existing one. As a result, lending institutions took on much greater risk in both the person and the mortgage products offered. That led to mass defaults, foreclosures, and falling prices.
Things are different today as purchasers face increasingly higher standards from mortgage companies. The graph below uses <a href="https://www.mba.org/news-and-research/newsroom/news/2023/04/11/mortgage-credit-availability-increased-in-march" rel="noopener noreferrer" target="_blank">data</a> from the Mortgage Bankers Association (MBA) to show this difference. The lower the number, the harder it is to get a mortgage. The higher the number, the easier it is.
<a href="https://files.keepingcurrentmatters.com/content/images/20230508/20230509-lending-regulations-are-steady.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230508/20230509-lending-regulations-are-steady.png" /></a>Unemployment Recovered Faster This Time
While the pandemic caused unemployment to spike over the last couple of years, the jobless rate has already recovered back to pre-pandemic levels (see the blue line in the graph below). Things were different during the Great Recession as a large number of people stayed <a href="https://fred.stlouisfed.org/series/UNRATE" rel="noopener noreferrer" target="_blank">unemployed</a> for a much longer period of time (see the red in the graph below):
<a href="https://files.keepingcurrentmatters.com/content/images/20230508/20230509-length-of-crisis-different-than-last-time.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230508/20230509-length-of-crisis-different-than-last-time.png" /></a>
Here’s how the quick job recovery this time helps the housing market. Because so many people are employed today, there’s less risk of homeowners facing hardship and defaulting on their loans. This helps put today’s housing market on stronger footing and reduces the risk of more foreclosures coming onto the market.
There Are Far Fewer Homes for Sale Today
There were also too many homes for sale during the housing crisis (many of which were short sales and <a href="https://www.simplifyingthemarket.com/en/2023/04/27/why-todays-foreclosure-numbers-are-nothing-like-2008/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">foreclosures</a>), and that caused prices to fall dramatically. Today, there’s a shortage of inventory available overall, primarily due to years of underbuilding homes.
The graph below uses data from the <a href="https://www.nar.realtor/research-and-statistics/housing-statistics/existing-home-sales" rel="noopener noreferrer" target="_blank">National Association of Realtors</a> (NAR) and the <a href="https://fred.stlouisfed.org/series/HOSSUPUSM673N" rel="noopener noreferrer" target="_blank">Federal Reserve</a> to show how the months’ supply of homes available now compares to the crash. Today, unsold inventory sits at just a 2.6-months’ supply. There just isn’t enough inventory on the market for home prices to come crashing down like they did in 2008.
<a href="https://files.keepingcurrentmatters.com/content/images/20230508/20230509-housing-supply-is-lower-than-before.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230508/20230509-housing-supply-is-lower-than-before.png" /></a>
Equity Levels Are Near Record Highs
That low inventory of homes for sale helped keep upward pressure on home prices over the course of the pandemic. As a result, homeowners today have near-record amounts of equity (see graph below):
<a href="https://files.keepingcurrentmatters.com/content/images/20230508/20230509-americans-have-record-amounts-of-equity.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230508/20230509-americans-have-record-amounts-of-equity.png" /></a>
And, that equity puts them in a much stronger position <a href="https://fred.stlouisfed.org/series/OEHRENWBSHNO#0" rel="noopener noreferrer" target="_blank">compared</a> to the Great Recession. Molly Boesel, Principal Economist at CoreLogic, <a href="https://www.corelogic.com/intelligence/loan-performance-insights-january-2023/" rel="noopener noreferrer" target="_blank">explains</a>:
“Most homeowners are well positioned to weather a shallow recession. More than a decade of home price increases has given homeowners record amounts of equity, which protects them from foreclosure should they fall behind on their mortgage payments.”
Bottom Line
The graphs above should ease any fears you may have that today’s housing market is headed for a crash. The most current data clearly shows that today’s market is nothing like it was last time.2023-05-29T07:00:00-07:002023-05-25T12:17:00-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:12760It May Be Time To Consider a Newly Built Home In Connecticut It May Be Time To Consider a Newly Built Home In Connecticut
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If you’re looking to <a href="https://www.simplifyingthemarket.com/en/2023/04/06/trying-to-buy-a-home-hang-in-there/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">buy a house</a>, you may find today’s limited supply of homes available for sale challenging. When housing inventory is as low as it is right now, it can feel like a bit of an uphill battle to find the perfect home for you because there just isn’t that much to choose from. If you need to open up your pool of options, it may be time to consider a newly built home.
According to the <a href="https://www.census.gov/construction/nrc/pdf/newresconst.pdf" rel="noopener noreferrer" target="_blank">latest data</a> from the U.S. Census, there’s positive news when it comes to new home construction. When you look at the first three months of this year, you’ll find:
More new homes were completed and are ready to sell. This gives you more move-in-ready options for your search.
Builders broke ground and started construction on more single-family homes. This means there are more homes intended for one household in the beginning stages of construction, allowing you the opportunity to customize one to your liking.
The number of permits for building new single-family homes ticked up. This shows builders are ramping up to start on even more home construction soon.
And, while this is all good news for broadening your options for your home search, there are other perks that come with considering a newly built home.
Customization
When you buy a new home under construction, you can tailor it to your unique needs and taste. Bankrate <a href="https://www.bankrate.com/mortgages/build-or-buy-a-house/#building" rel="noopener noreferrer" target="_blank">says</a>:
“Building means customizing. . . . instead of wishing your home had a certain kind of flooring, a sunroom or some other special amenity, you’ll be able to tailor the property to your exact needs.”
Brand New Everything
Another perk of a new home is that nothing in the house is used. It’s all brand new and uniquely yours from day one.
Minimal Repairs
And, because everything is new, you’ll likely find there are fewer maintenance and repair needs up front. As Realtor.com <a href="https://www.realtor.com/advice/buy/purchasing-new-construction-for-first-time-homebuyers/" rel="noopener noreferrer" target="_blank">explains</a>:
“. . . if something does go wrong with your new home, not only are there likely some manufacturer warranties in place, but many builders also include additional home warranties . . .”
Energy Efficiency
Lastly, building a home gives you the opportunity to incorporate more <a href="https://www.simplifyingthemarket.com/en/2023/04/21/why-you-may-want-an-energy-efficient-home-infographic/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">energy-efficient</a> options that can help lower your costs over time – which can feel especially important when inflation’s raising many of the costs around you.
Bottom Line
If you’re having trouble finding your dream home in today’s market, it may be time to consider newly built homes as an option. Let’s connect so you have an expert on your side to help you explore what’s available in our local area.2023-05-26T07:00:00-07:002023-05-25T12:12:11-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:12690The Real Reason Home Prices Don't Seem to Be Crashing In ConnecticutThe Real Reason Home Prices Don't Seem to Be Crashing In Connecticut
The real estate market today is quite different from what it was just a few months ago. Mortgage rates have risen dramatically which impacts the borrowing power of home buyers. The frantic pace of the past few years has also slowed with homes staying on the market longer than we saw during the last few years.
With all these changes, many potential homebuyers are wondering when the prices will crash. In other words, when is the right time to buy.
The housing market is affected by supply and demand. With a potentially smaller buyer pool, the assumption would be that home prices would fall to attract the few buyers still looking. But prices are not reacting this way in many markets. In fact the supply of homes nationwide has stayed relatively small, which in turn has helped prices stay steady.
While it's difficult to predict the effect of more interest rate hikes on seller's behavior, homebuyers should concentrate on finding the right property for their needs rather than second guessing the market. It's always the right time to buy the perfect property. 2023-05-23T07:00:00-07:002023-05-17T11:37:08-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:12689Showing Instructions and What They Mean In ConnecticutShowing Instructions and What They Mean In Connecticut<br /><br />
<br />Making the decision to sell a home is just one of the many decisions that are made during the home selling process. Many first-time sellers assume that all listings are the same and it's just a function of picking a starting price. The fact is that there are many aspects of listing, but one of the most important is what kind of access you'll provide to the buyers and their agents.
It seems simple, right? Show the home and send an offer. But believe it or not there are many options for how you allow your home to be shown. Depending on your lifestyle and the valuables you have, the way you allow access is one way to safeguard your home. Here are some of the typical types of access:
Lockbox on Door - This allows the most access to agents. Normally accompanied by a request for a phone call. But then agents can see the home as needed.
Access with Phone Call - In this case, the buyer agent must reach the agent or seller who will provide an unlock code for a single use.
By Appointment with Listing Agent - This asks that the buyer and seller agents coordinate so that the listing agent is in attendance.
Limited Access - This type of access often involves specific days or times, and the home is only available to see during those times.
Of course, the choice is always yours, but the more access you offer to the buyers and their agents, the better opportunity you have to get a strong offer.
2023-05-22T07:00:00-07:002023-05-17T11:02:46-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:12677The Impact of Inflation on Mortgage Rates In ConnecticutThe Impact of Inflation on Mortgage Rates In Connecticut
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If you’re reading headlines about inflation or <a href="https://www.simplifyingthemarket.com/en/2023/04/26/the-three-factors-affecting-home-affordability-today/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">mortgage rates</a>, you may see something about the recent decision from the Federal Reserve (the Fed). But what does it mean for you, the housing market, and your plans to <a href="https://www.simplifyingthemarket.com/en/2023/05/01/why-buying-a-home-makes-more-sense-than-renting-today/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">buy a home</a>? Here’s what you need to know.
Inflation and the Housing Market
While the Fed’s working hard to lower inflation, the latest <a href="https://www.bea.gov/data/personal-consumption-expenditures-price-index" rel="noopener noreferrer" target="_blank">data</a> shows that, while the number has improved some, the inflation rate is still higher than the target (2%). That played a role in the Fed's decision to raise the Federal Funds Rate last week. As Bankrate <a href="https://www.bankrate.com/real-estate/how-fed-rate-hike-affects-housing/" rel="noopener noreferrer" target="_blank">explains</a>:
“Keeping its inflation-fighting streak alive, the Federal Reserve has raised interest rates for the 10th time in 10 meetings . . . The hikes aimed to cool an economy that was on fire after rebounding from the coronavirus recession of 2020.”
While the Fed’s actions don’t directly dictate what happens with mortgage rates, their decisions do have an impact and contributed to the intentional cooldown in the housing market last year.
How This Impacts You
During times of high inflation, your everyday expenses go up. That means you’ve likely felt the pinch at the gas pump and in the grocery store. By raising the Federal Funds Rate, the Fed is actively trying to lower inflation. If the Fed is successful, it could also ultimately lead to <a href="https://www.simplifyingthemarket.com/en/2023/05/02/a-recession-doesnt-equal-a-housing-crisis-2/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">lower mortgage rates</a> and better homebuying <a href="https://www.simplifyingthemarket.com/en/2023/04/28/ways-to-overcome-affordability-challenges-in-todays-housing-market-infographic/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">affordability</a> for you. That’s because when inflation is high, mortgage rates tend to be high. But, as inflation cools, experts say mortgage rates will likely fall.
Where Experts Think Mortgage Rates and Inflation Will Go from Here
Moving forward, both inflation and mortgage rates will continue to impact the housing market. And as Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), <a href="https://www.usatoday.com/story/money/2023/05/03/will-mortgage-rates-rise-with-fed-rate-hike/70174099007/" rel="noopener noreferrer" target="_blank">says</a>:
“Mortgage rates are likely to descend lower later in the year as the consumer price inflation calms down . . .”
Mike Fratantoni, Chief Economist at the Mortgage Bankers Association (MBA), <a href="https://www.bankrate.com/real-estate/how-fed-rate-hike-affects-housing/" rel="noopener noreferrer" target="_blank">explains</a>:
“We continue to expect that mortgage rates will drift down over the course of the year as the economy slows . . .”
While there’s no way to say with certainty where mortgage rates will go from here, the experts think mortgage rates will trend down this year if inflation comes down too. To stay informed on the latest insights, connect with a trusted real estate advisor. They keep their pulse on what’s happening today and help you understand what the experts are projecting and how it could impact your homeownership plans.
Bottom Line
Don’t let headlines about the latest decision from the Fed confuse you. Where mortgage rates go from here depends on what happens with inflation. If inflation cools, mortgage rates should tick down as a result. Let’s connect so you have expert insights on housing market changes and what they mean for you.2023-05-19T07:00:00-07:002023-05-15T13:34:36-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:12676The Best Time To Sell Your House Is When Others Aren't Selling In ConnecticutThe Best Time To Sell Your House Is When Others Aren’t Selling In Connecticut
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If you’re thinking about <a href="https://www.simplifyingthemarket.com/en/2023/04/19/falling-out-of-love-with-your-house-it-may-be-time-to-move/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">selling</a> your house, you should know the number of homes for sale right now is low. That’s because, this season, there are fewer sellers listing their houses for sale than the norm.
Looking back at every <a href="https://www.realtor.com/research/data/" rel="noopener noreferrer" target="_blank">April</a> since 2017, the only year when fewer sellers listed their homes was in April 2020, when the pandemic hit and stalled the housing market (shown in red in the graph below). In more typical years, roughly 500,000 sellers add their homes to the market in April. This year, we saw fewer than 400,000 sellers entering the market in April (see graph below):
<a href="https://files.keepingcurrentmatters.com/content/images/20230510/20230511-the-number-of-sellers-listing-their-homes-is-lower-than-the-norm.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230510/20230511-the-number-of-sellers-listing-their-homes-is-lower-than-the-norm.png" /></a>
While there are a number of factors contributing to this trend, one thing keeping inventory low right now is that some homeowners are reluctant to move when the mortgage rate they have on their current house is lower than the one they could get today on their next house. It’s called rate lock.
As 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">explains</a>, 56% of people who are planning to sell in the next 12 months say they’re waiting for rates to come down.
While this wait-and-see approach is right for some sellers, it also creates an opening for more eager sellers to jump in now.
If your current house truly doesn’t fit your needs anymore and you’re ready to move, don’t miss this chance to <a href="https://www.simplifyingthemarket.com/en/2023/02/20/spring-into-action-boost-your-homes-curb-appeal-with-expert-guidance/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">stand out</a>. When fewer sellers are putting their homes up for sale, buyers will have fewer options, so you set yourself up to get the most eyes possible on your house. That’s why your house could see <a href="https://www.simplifyingthemarket.com/en/2023/04/11/the-big-advantage-if-you-sell-this-spring/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">multiple offers</a> as buyers compete over the limited supply of homes for sale – especially if you <a href="https://www.simplifyingthemarket.com/en/2023/04/13/want-to-sell-your-house-this-spring-price-it-right/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">price it right</a>.
As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), <a href="https://themreport.com/news/data/03-21-2023/existing-home-sales" 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."
Bottom Line
If you’re ready to sell now, beat the competition before it comes onto the market. If you do, your house should stand out and could get multiple offers. Let's connect to get you market ready.2023-05-18T07:00:00-07:002023-05-15T13:13:36-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:12674Homeowners Have Incredible Equity To Leverage Right Now In Connecticut Homeowners Have Incredible Equity To Leverage Right Now In Connecticut
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Even though <a href="https://www.simplifyingthemarket.com/en/2023/04/05/why-arent-home-prices-crashing/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">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">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.simplifyingthemarket.com/en/2023/05/08/it-may-be-time-to-consider-a-newly-built-home/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">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.simplifyingthemarket.com/en/2023/05/04/how-homeowners-win-when-they-downsize/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">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.simplifyingthemarket.com/en/2023/04/26/the-three-factors-affecting-home-affordability-today/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">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">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">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">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">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.simplifyingthemarket.com/en/2023/04/13/want-to-sell-your-house-this-spring-price-it-right/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">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.2023-05-17T07:00:00-07:002023-05-15T12:33:55-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:12644Market Signal to Watch For in Real Estate In ConnecticutMarket Signal to Watch For in Real Estate
The housing market has been periods of ups and downs, buyer's markets and seller's markets, yet the frenetic pace and swings since the start of the pandemic has had everyone on edge. Now that interest rates have climbed back to more "normal" levels, those in the market are wondering, "what's next"?
For anyone interested in buying or selling real estate, it can feel like a guessing game. Is it the right time to sell? Can I get the best price? Should I buy a home this spring? Will interest rates go up, or down? It can feel overwhelming.
Yet, there are signs that can help consumers make the right decision for themselves and their families. As spring season starts, there are signs that indicate a strong real estate market. New mortgage applications are rising again. Indicating buyers are starting to look at their options.
After a long period of rising home mortgage rates, the last few weeks have seen a small downturn and buyers are moving to lock in these lower rates. This is also good news for sellers. With more buyers in the market, they can expect better activity and higher home prices.
The key for both buyers and sellers is to keep their expectations reasonable. Experts do not expect a large rush of either buyers or sellers flooding the market, so this sprint looks like an opportunity to slow down a bit, weigh options, and make a solid transation without the pressure.2023-05-16T07:00:00-07:002023-05-10T12:56:19-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:126396 Tips for a Sustainable Home In Connecticut6 Tips for a Sustainable Home In Connecticut
Creating a sustainable environment is on the top of everyone's mind these days. From Disney to Poland, policies that save energy and resources are important ways to reduce waste and help the planet. Your home can be part of this effort as well. With a few small changes, you can create a more sustainable home.
6 Tips for a Sustainable Home
<br />1. Solar Panels - Using solar panels to generate electricity is a great way to save money on your energy bill and reduce your carbon footprint.
2. Switch to LED Lighting - LED bulbs use significantly less energy than traditional incandescent bulbs and last much longer. Making the switch can save you 80% of your typical lighting cost.
3. Install a Programmable Thermostat - Smart home products can help manage energy use. A programmable thermostat can save money on heating and cooling bills by automatically reducing use when not needed.
4. Reduce Water Consumption - You can save water by simple adjustments. High-efficency appliances and low-flow showers are quick changes that don't affect your lifestyle.
5. Use Eco-Friendly Cleaning Products - The market is flooded with green alternatives to the harsh chemical cleaners we're used to. These eco-friendly cleaning products are better for your health as well as the planet.
6. Energy-Efficient Windows - Installing energy efficient windows can also help lower heating and cooling costs. They also reduce noise pollution and improve indoor air quality.
By making a few changes, you can create a more sustainable, energy-efficient home. Save money and reduce the negative impact on the environment by trying these easy ideas to lower your carbon footprint.
2023-05-15T07:00:00-07:002023-05-09T09:58:53-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:12626Reasons To Sell Your House Today In ConnecticutReasons To Sell Your House Today In Connecticut [INFOGRAPHIC]
<br /><img src="https://files.keepingcurrentmatters.com/content/images/20230504/Reasons-To-Sell-Your-House-in-Todays-Market-KCM-Share.png" width="600" /><br /><br />
<a href="https://files.keepingcurrentmatters.com/content/images/20230505/Reasons-To-Sell-Your-House-in-Todays-Market-MEM1.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230505/Reasons-To-Sell-Your-House-in-Todays-Market-MEM1.png" /></a>
Some Highlights
Not sure if selling your house is the right move today? You should know there are a number of reasons it still makes sense to sell now.
Your house will stand out because <a href="https://www.nar.realtor/research-and-statistics/housing-statistics/existing-home-sales" rel="noopener noreferrer" target="_blank">inventory</a> is low. That’s why the <a href="https://cdn.nar.realtor/sites/default/files/documents/2023-03-realtors-confidence-index-04-20-2023.pdf" rel="noopener noreferrer" target="_blank">number of offers</a> on recently sold homes is on the <a href="https://www.nar.realtor/research-and-statistics/research-reports/realtors-confidence-index" rel="noopener noreferrer" target="_blank">rise</a>. And most homeowners have a lot of <a href="https://data.census.gov/all?q=mortgage" rel="noopener noreferrer" target="_blank">equity</a> that can <a href="https://www.attomdata.com/news/market-trends/home-sales-prices/attom-q4-2022-u-s-home-equity-and-underwater-report/" rel="noopener noreferrer" target="_blank">fuel</a> a move.
If you’re thinking about <a href="https://www.searchallcthomes.com/" rel="noopener noreferrer" target="_blank">selling</a> your <a href="https://www.searchallcthomes.com/" rel="noopener noreferrer" target="_blank">house</a>, let’s connect to discuss if now may be the time to move.
2023-05-12T07:00:00-07:002023-05-09T07:05:58-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:12593How Homeowners Win When They Downsize In ConnecticutHow Homeowners Win When They Downsize In Connecticut
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Downsizing has long been a popular option when homeowners reach <a href="https://www.simplifyingthemarket.com/en/2023/02/22/a-smaller-home-could-be-your-best-option/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">retirement</a> age. But there are plenty of other life changes that could make downsizing worthwhile. Homeowners who have experienced a <a href="https://www.simplifyingthemarket.com/en/2023/03/28/how-homeownership-is-life-changing-for-many-women/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">change</a> in their lives or no longer feel like their <a href="https://www.simplifyingthemarket.com/en/2023/04/19/falling-out-of-love-with-your-house-it-may-be-time-to-move/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">house</a> fits their needs may benefit from downsizing too. U.S. News <a href="https://realestate.usnews.com/real-estate/articles/dos-and-donts-of-downsizing-your-home" rel="noopener noreferrer" target="_blank">explains</a>:
“Downsizing is somewhat common among older people and retirees who no longer have children living at home. But these days, younger people are also looking to downsize to save money on housing . . .”
And when inflation has made most things significantly more expensive, saving money where you can has a lot of appeal. So, if you’re thinking about ways to budget differently, it could be worthwhile to take your home into consideration.
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.simplifyingthemarket.com/en/2023/03/13/leverage-your-equity-when-you-sell-your-house/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">home equity</a>. If you’ve been in your house for a while, odds are you’ve developed a considerable amount of equity. Your home equity is an asset you can use to help you <a href="https://www.simplifyingthemarket.com/en/2023/04/28/ways-to-overcome-affordability-challenges-in-todays-housing-market-infographic/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">buy a home</a> that better suits your needs today.
And when you’re ready to make a move, your team of real estate experts will be your guides through every step of the process. That includes setting the right price for your house when you sell, finding the best location and size for your next home, and understanding what you can <a href="https://www.simplifyingthemarket.com/en/2023/04/26/the-three-factors-affecting-home-affordability-today/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">afford</a> 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?
Once you know the answers to these questions, meet with a real estate advisor to get an answer to this one: What are my options in the <a href="https://www.simplifyingthemarket.com/en/2023/04/04/two-reasons-you-should-sell-your-house/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">market</a> right now? A local housing market professional can walk you through how much equity you have in your house and how it positions you to win when you downsize.
Bottom Line
If you’re looking to save money, downsizing your home could be a great help toward your goal. Let’s connect to talk about your goals in the housing market this year.2023-05-11T07:00:00-07:002023-05-04T08:50:28-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:12592Buyer Activity Is Up Despite Higher Mortgage Rates In ConnecticutBuyer Activity Is Up Despite Higher Mortgage Rates In Connecticut
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If you’re a homeowner thinking about <a href="https://www.simplifyingthemarket.com/en/2023/04/19/falling-out-of-love-with-your-house-it-may-be-time-to-move/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">making a move</a>, you may wonder if it’s still a <a href="https://www.simplifyingthemarket.com/en/2023/04/25/what-are-the-experts-saying-about-the-spring-housing-market/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">good time</a> to sell your house. Here’s the good news. Even with higher mortgage rates, buyer traffic is actually <a href="https://www.simplifyingthemarket.com/en/2023/04/11/the-big-advantage-if-you-sell-this-spring/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">picking up speed</a>.
Data from the latest <a href="https://www.showingtime.com/blog/february-2023-showing-index-results-buyer-activity-continues-to-normalize/" rel="noopener noreferrer" target="_blank">ShowingTime Showing Index</a>, which is a measure of buyers actively touring homes, helps paint the picture of how much buyer demand has increased in recent months (see graph below):
<a href="https://files.keepingcurrentmatters.com/content-images-20230502-20230503-showing-traffic-up-again-in-february.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content-images-20230502-20230503-showing-traffic-up-again-in-february.png" /></a>
As the graph shows, the first two months of 2023 saw a noticeable increase in buyer traffic. That’s likely because the limited number of homes for sale kept shoppers looking for homes even during colder months.
To help tell the story of why the latest report is significant, let’s compare foot traffic this February with each February for the last six years (see graph below). It shows this was one of the best Februarys for buyer activity we’ve seen in recent memory.
<a href="https://files.keepingcurrentmatters.com/content-images-20230502-20230503-showing-traffic-is-still-higher-than-pre-pandemic-years.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content-images-20230502-20230503-showing-traffic-is-still-higher-than-pre-pandemic-years.png" /></a>
In the last six years, we saw the most February buyer traffic in 2021 and 2022 (shown in green above), but those years were highly unusual for the housing market. So, if we compare February 2023 with the more normal, pre-pandemic years, data shows this year still marks a clear rise in buyer activity.
The uptick in buyer traffic is even more noteworthy considering the increase in mortgage rates this February. The <a href="https://www.freddiemac.com/pmms/archive" rel="noopener noreferrer" target="_blank">Freddie Mac</a> 30-year fixed mortgage rate rose from 6.09% during the week of February 2nd to 6.50% in the week of February 23rd. But even with higher rates, more buyers were looking for a home.
Jeff Tucker, Senior Economist at Zillow, <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">says</a> the increased buyer activity could continue:
“More buyers will keep coming out of the woodwork. We always see a seasonal uptick in home shoppers in March and April . . .”
If you’re looking to sell your house, seeing buyers still active in the market this year should be encouraging. It’s a sign buyers are out there and could be looking for a home just like yours. Working with a real estate professional to list your house now will help you get your home in front of eager buyers today.
Bottom Line
Rising foot traffic is a bright spot for this year’s housing market and indicates that buyers are looking to purchase this year, even with higher mortgage rates. If you’re ready to sell your house, let’s connect.2023-05-10T07:00:00-07:002023-05-04T08:02:50-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:12588A Recession Doesn't Equal a Housing Crsis In ConnecticutA Recession Doesn’t Equal a Housing Crisis In Connecticut
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Everywhere you look, people are talking about a potential recession. And if you’re planning to buy or sell a house, this may leave you wondering if your plans are still a wise move. To help ease your mind, experts are saying that if we do officially enter a recession, it’ll be mild and short. As the Federal Reserve <a href="https://www.federalreserve.gov/monetarypolicy/files/fomcminutes20230322.pdf" rel="noopener noreferrer" target="_blank">explained</a> in their March meeting:
“. . . the staff’s projection at the time of the March meeting included a mild recession starting later this year, with a recovery over the subsequent two years.”
While a recession may be on the horizon, it won’t be one for the housing market record books like the crash in 2008. What we have to remember is that a recession doesn’t always lead to a housing crisis.
To prove it, let’s look at the historical data of what happened in real estate during previous recessions. That way you know why you shouldn’t be afraid of what a recession could mean for the housing market today.
A Recession Doesn’t Mean Falling Home Prices
To show that home prices don’t fall every time there’s a recession, it helps to turn to <a href="https://www.thebalance.com/the-history-of-recessions-in-the-united-states-3306011" rel="noopener noreferrer" target="_blank">historical data</a>. As the graph below illustrates, looking at recessions going all the way back to 1980, home prices appreciated in four of the last six of them. So historically, when the economy slows down, it doesn’t mean home values will always fall.
<a href="https://files.keepingcurrentmatters.com/content-images-20230428-20230502-a-recession-does-not-mean-falling-prices.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content-images-20230428-20230502-a-recession-does-not-mean-falling-prices.png" /></a>
Most people remember the housing crisis in 2008 (the larger of the two red bars in the graph above) and think another recession will be a repeat of what happened to housing then. But today’s housing market isn’t about to crash because the fundamentals of the market are different than they were in 2008. Back then, one of the big reasons why prices fell was because there was a surplus of homes for sale at the same time distressed properties flooded the market. Today, the number of homes for sale is low, so while home prices may see slight declines in some areas and slight gains in others, a crash simply isn’t in the cards.
A Recession Means Falling Mortgage Rates
What a recession really means for the housing market is falling mortgage rates. As the graph below shows, <a href="https://mtg-specialists.com/recession-interest-rates-and-real-estate/" rel="noopener noreferrer" target="_blank">historically</a>, each time the economy slowed down, mortgage rates decreased.
<a href="https://files.keepingcurrentmatters.com/content-images-20230428-20230502-a-recession-means-falling-mortgage-rates.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content-images-20230428-20230502-a-recession-means-falling-mortgage-rates.png" /></a>
Bankrate <a href="https://www.bankrate.com/real-estate/buying-home-during-recession/" rel="noopener noreferrer" target="_blank">explains</a> mortgage rates typically fall during an economic slowdown:
“During a traditional recession, the Fed will usually lower interest rates. This creates an incentive for people to spend money and stimulate the economy. It also typically leads to more affordable mortgage rates, which leads to more opportunity for homebuyers.”
This year, <a href="https://www.simplifyingthemarket.com/en/2023/04/03/how-changing-mortgage-rates-can-affect-you/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">mortgage rates</a> have been quite volatile as they’ve responded to high inflation. The 30-year <a href="https://www.freddiemac.com/pmms/archive" rel="noopener noreferrer" target="_blank">fixed mortgage rate</a> has hovered between roughly 6-7%, and that’s impacted <a href="https://www.simplifyingthemarket.com/en/2023/04/26/the-three-factors-affecting-home-affordability-today/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">affordability</a> for many potential homebuyers.
But, if there is a recession, history tells us mortgage rates may fall below that threshold, even though the days of 3% are behind us.
Bottom Line
You don’t need to fear what a recession means for the housing market. If we do have a recession, experts say it will be mild and short, and history shows it also means mortgage rates go down.2023-05-09T07:00:00-07:002023-05-03T11:39:53-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:12587Why Buying a Home Makes More Sense Than Renting Today In ConnecticutWhy Buying a Home Makes More Sense Than Renting Today In Connecticut
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Wondering if you should continue renting or if you should <a href="https://www.simplifyingthemarket.com/en/2023/03/10/buying-a-home-may-make-more-sense-than-renting-infographic/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">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">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">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">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">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.simplifyingthemarket.com/en/2023/04/07/the-key-advantage-of-investing-in-a-home-infographic/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">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.simplifyingthemarket.com/en/2023/04/06/trying-to-buy-a-home-hang-in-there/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">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">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. 2023-05-08T07:00:00-07:002023-05-03T11:23:47-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:12586The Three Factors Affecting Home Affordability Today In ConnecticutThe Three Factors Affecting Home Affordability Today In Connecticut
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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">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.simplifyingthemarket.com/en/2023/04/03/how-changing-mortgage-rates-can-affect-you/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">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">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.simplifyingthemarket.com/en/2023/04/05/why-arent-home-prices-crashing/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">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.simplifyingthemarket.com/en/2023/04/17/think-twice-before-waiting-for-lower-home-prices/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">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">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">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.searchallcthomes.com/" rel="noopener noreferrer" target="_blank">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.2023-05-05T07:00:00-07:002023-05-03T11:17:53-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:12585What Are the Experts Saying About he Spring Housing What Are the Experts Saying About the Spring Housing Market In Connecticut
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The housing market’s been going through a lot of change lately, and there’s been uncertainty surrounding what will happen this spring. You may be wondering if more homes will go on the market, what’s next with <a href="https://www.simplifyingthemarket.com/en/2023/04/05/why-arent-home-prices-crashing/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">home prices</a> and <a href="https://www.simplifyingthemarket.com/en/2023/04/03/how-changing-mortgage-rates-can-affect-you/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">mortgage rates</a>, or what the best advice is for someone in your position right now.
Here’s what industry experts are saying right now about the spring housing market and what it means for you:
<a href="https://www.bankrate.com/real-estate/housing-market-predictions/#updates" rel="noopener noreferrer" target="_blank">Selma Hepp</a>, Chief Economist, CoreLogic:
“We see more competition among buyers . . . Housing supply also tends to grow during the spring months. And this is also the time of year when relatively more migration happens, as people graduate and move elsewhere looking for jobs.”
<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">Greg McBride</a>, Chief Financial Analyst, Bankrate:
“I don’t expect big moves in prices in the span of a month, but like the flower buds of spring, the housing market is showing signs of improvement. A pick up in activity with inventory still low does bode well for home prices.”
<a href="https://www.bankrate.com/real-estate/housing-trends/#differ" rel="noopener noreferrer" target="_blank">Rick Sharga</a>, Founder and CEO, CJ Patrick Company:
“If you can find a home you love and can afford at today’s prices, don’t wait. Home prices in most of the country are unlikely to crash, and mortgage rates will only come down very gradually if they decline at all this year.”
<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">Jeff Tucker</a>, Senior Economist, Zillow:
“The market is still much friendlier this spring for buyers who can overcome affordability hurdles, but buyers are going to see more competition than they might expect because there are not many homes on the market to go around. New listings are increasing, which they almost always do this time of year, but not nearly as quickly as usual.”
Bottom Line
If you’re thinking about <a href="https://www.searchallcthomes.com/" rel="noopener noreferrer" target="_blank">selling</a> your house, this spring’s a great time to do so while <a href="https://www.searchallcthomes.com/" rel="noopener noreferrer" target="_blank">inventory</a> is still so low. And if you’re in a good position to buy, lean on your team of expert advisors for the best advice. Whatever your plans, let’s connect to make sure you’re able to navigate the spring housing market with confidence.2023-05-04T07:00:00-07:002023-05-03T10:41:02-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:125304 Tips for Making Your Best Offer on a Home In Connecticut4 Tips for Making Your Best Offer on a Home In Connecticut
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Are you planning to buy a home this spring? Though things are more balanced than they were at the height of the pandemic, it’s still a sellers’ market. So, when you find the home you want to buy, remember these four <a href="https://www.simplifyingthemarket.com/en/2023/02/10/how-to-win-as-a-buyer-in-todays-housing-market-infographic/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">tips</a> to make your best offer.
1. Lean on a Real Estate Professional
Rely on an agent who can support your goals. As Bankrate <a href="https://www.bankrate.com/real-estate/how-to-make-an-offer-on-house/" rel="noopener noreferrer" target="_blank">notes</a>:
“. . . select the best real estate agent for your needs. They will be a critical part of your home buying process.”
Agents are local market experts. They know what’s worked for other buyers in your area and what sellers may be looking for in an offer. It may seem simple, but catering to what a seller needs can help your offer stand out.
2. Know Your Budget
Understanding your <a href="https://www.simplifyingthemarket.com/en/2023/02/03/you-may-not-need-as-much-as-you-think-for-your-down-payment-infographic/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">budget</a> is especially important right now. As Sandy Higgins, Senior Wealth Advisor at Capstone Financial Advisors, <a href="https://www.cnbc.com/2022/10/26/how-to-buy-a-home-in-a-cooling-market-according-to-top-ranked-advisors.html" rel="noopener noreferrer" target="_blank">puts</a> it:
“Understand your current budget … what are your expenses, how’s your spending, would you need to make changes?”
The best way to understand your <a href="https://www.simplifyingthemarket.com/en/2023/02/13/what-you-should-know-about-closing-costs/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">numbers</a> is to work with a lender so you can get pre-approved for a loan. It helps you be more financially confident, and it shows sellers you’re serious. That can give you a competitive edge.
3. Think Through Everything Before Making an Offer
Today’s market isn’t moving at the record pace it did during the pandemic. That means you may have a bit more time to think before you need to make an offer. According to Danielle Hale, Chief Economist at <a href="https://www.realtor.com/advice/buy/homebuying-rules-youve-heard-lately-you-should-break/" rel="noopener noreferrer" target="_blank">realtor.com</a>:
“In general, you likely have more time to make an offer, although that’s certainly not a guarantee. If you’re on the fence about a home or its asking price doesn’t quite fit your budget, you might want to keep an eye on it, and if it doesn’t sell right away, you may have some room to negotiate with the seller.”
While it’s still important to stay on top of the market and be prepared to move quickly, there can be more flexibility today. Lean on the advice of your agent as you explore the options in your market.
4. Work with Your Advisor To Negotiate
During the pandemic, some buyers skipped home inspections or didn’t ask for concessions from the seller in order to submit the winning bid on a home. Fortunately, today’s market is different, and you may have more negotiating power than before. When putting together an offer, your trusted real estate advisor will help you think through what levers to pull.
Bottom Line
When you buy a home this spring, let’s connect so you have the guidance to make your best offer. 2023-05-03T07:00:00-07:002023-04-26T12:55:55-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:12520The Power of Pre-Approval In ConnecticutThe Power of Pre-Approval In Connecticut
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If you’re buying a home this spring, today’s housing market can feel like a <a href="https://www.simplifyingthemarket.com/en/2023/04/06/trying-to-buy-a-home-hang-in-there/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">challenge</a>. With so few homes on the market right now, plus higher <a href="https://www.simplifyingthemarket.com/en/2023/04/03/how-changing-mortgage-rates-can-affect-you/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">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">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.simplifyingthemarket.com/en/2023/04/11/the-big-advantage-if-you-sell-this-spring/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">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">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.2023-05-02T07:00:00-07:002023-04-25T11:24:47-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:12489Creating a Cozy Breakfast Nook In ConnecticutCreating a Cozy Breakfast Nook
<br />Breakfast nooks used to be staples in the average kitchen. Before the advent of the eat-in, center islands or great room designs, homeowners loved sitting down with their first cup of coffee in the kitchen. Often this was in the breakfast nook; a small space carved out of the kitchen where the family could enjoy a casual meal or break.
Recently, floorplans have considered this lifestyle element by incorporating the kitchen into the general living area, but not all homes have the space for this, But a kitchen nook does not need to take up a lot of space. Even if you have only a small area to work with, you can create a lovely little space to enjoy the morning.
Install a Bench - If you don't have enough room for a table and chair, consider installing a bench. A small built-in seat in a window or corner can also add storage under the bench.
Use a Bistro Set - If you do have a little corner a small bistro set can add charm and utility. Most fold easily for storage too when not in use.
Head Outside - No one says the breakfast nook has to be in the kitchen. If you have a patio or deck nearby, breakfast in the sun is a lovely way to start the day.
Finally, however you create the space, use your decor to emphasize the area. A cozy throw pillow on the bench or quaint tablecloth and flowers will make a huge difference and add interest to even the smallest kitchen. 2023-05-01T07:00:00-07:002023-04-20T12:39:50-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:12488What's the Difference Between a Home Inspection and an Appraisal In ConnecticutWhat’s the Difference Between a Home Inspection and an Appraisal In Connecticut
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If you’re planning to <a href="https://www.simplifyingthemarket.com/en/2023/04/06/trying-to-buy-a-home-hang-in-there/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">buy a home</a>, an inspection is an important step in the process. It assesses the condition of the home before you finalize the transaction. It’s also a different step in the process from an appraisal, which is a professional evaluation of the market value of the home you’d like to buy. In most cases, an appraisal is ordered by the lender to confirm or verify the value of the home prior to <a href="https://www.simplifyingthemarket.com/en/2023/04/03/how-changing-mortgage-rates-can-affect-you/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">lending</a> a buyer money for the purchase. Here’s the breakdown of each one and why they’re both important when buying a home.
Home Inspection
Here’s the key difference between an inspection and an appraisal. Bankrate <a href="https://www.bankrate.com/real-estate/home-appraisal-vs-inspection/" rel="noopener noreferrer" target="_blank">says</a>:
“In short, while an appraisal helps you understand a home’s value, inspections help you understand a home’s condition.”
The <a href="https://www.simplifyingthemarket.com/en/2023/04/14/home-inspections-for-sellers-what-you-need-to-know-infographic/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">home inspection</a> is a way to determine the current state, safety, and condition of the home before you finalize the sale. If anything is questionable in the inspection process – like the age of the roof, the state of the HVAC system, or just about anything else – you as a buyer have the option to discuss and negotiate any potential issues or repairs with the seller before the transaction is final. Your real estate agent is a key expert to help you through this part of the process.
Home Appraisal
The National Association of Realtors (NAR) <a href="https://www.nar.realtor/appraisal-valuation/residential-appraisal-process-for-home-buyers" rel="noopener noreferrer" target="_blank">explains</a>:
“A home purchase is typically the largest investment someone will make. Protect yourself by getting your investment appraised! An appraiser will observe the property, analyze the data, and report their findings to their client. For the typical home purchase transaction, the lender usually orders the appraisal to assist in the lender’s decision to provide funds for a mortgage.”
When you apply for a mortgage, an unbiased appraisal (which is required by the lender) is the best way to confirm the value of the home based on the sale price. Regardless of what you’re willing to pay for a house, if you’ll be using a mortgage to fund your purchase, the appraisal will help make sure the bank doesn’t loan you more than what the home is worth.
This is especially critical in today’s <a href="https://www.simplifyingthemarket.com/en/2023/03/30/were-in-a-sellers-market-what-does-that-mean/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">sellers’ market</a> where low inventory is driving an increase in bidding wars, which can push home prices upward. When sellers are in a strong position like this, they tend to believe they can set whatever price they want for their house under the assumption that competing buyers will be willing to pay more.
However, the lender will only allow the buyer to borrow based on the value of the home. This is what helps keep <a href="https://www.simplifyingthemarket.com/en/2023/04/17/think-twice-before-waiting-for-lower-home-prices/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">home prices</a> in check. If there’s ever any confusion or discrepancy between the appraisal and the sale price, your trusted real estate professional will help you navigate any additional negotiations in the buying process.
Bottom Line
The inspection and the appraisal are critical steps when buying a home, and you don’t need to manage them by yourself. Let’s connect today so you have the expert guidance you need to navigate the entire homebuying process.2023-04-28T07:00:00-07:002023-04-20T11:21:00-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:12482Falling out of Love with Your House? It May Be Time To Move In ConnecticutFalling out of Love with Your House? It May Be Time To Move In Connecticut
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Owning a home means having a place that’s solely your own and provides the space, features, and location you and your loved ones need. But what happens when your needs change? If this hits home for you, it may be time to make a move.
According to the latest <a href="https://cdn.nar.realtor/sites/default/files/documents/2023-home-buyers-and-sellers-generational-trends-report-03-28-2023.pdf" rel="noopener noreferrer" target="_blank">Home Buyers and Sellers Generational Trends Report</a> from the National Association of Realtors (NAR), the average person has lived in their current house for ten years. If you’ve been in your home for a while, think about how much in your life has changed since you moved in. Even if you thought it would be your forever home when you bought it, it doesn’t have to be. Work with a local real estate agent to explore all your options in today’s market before settling for your current home.
That’s actually what a lot of homeowners are doing right now. A recent <a href="https://www.realtor.com/research/2023-q1-sellers-survey/" rel="noopener noreferrer" target="_blank">survey</a> from Realtor.com finds that, of people who are considering <a href="https://www.simplifyingthemarket.com/en/2023/04/11/the-big-advantage-if-you-sell-this-spring/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">selling</a> in 2023, one in three are thinking about <a href="https://www.simplifyingthemarket.com/en/2023/03/24/have-you-thought-about-why-you-might-want-to-sell-your-house-infographic/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">moving</a> because their home no longer meets their needs. And according to the same report from NAR, that’s consistent with this year’s top reasons for selling, which include:
Want to move closer to friends or family
Moving due to retirement
Home is too small or too large
Change in family situation
Job relocation
If things in your life have changed, it may be time to make a move. And there’s good news: it’s still a great time to <a href="https://www.simplifyingthemarket.com/en/2023/04/04/two-reasons-you-should-sell-your-house/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">sell</a>. Here’s why.
We’re in a strong <a href="https://www.simplifyingthemarket.com/en/2023/03/30/were-in-a-sellers-market-what-does-that-mean/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">sellers’ market</a>. That means homes listed at <a href="https://www.simplifyingthemarket.com/en/2023/04/13/want-to-sell-your-house-this-spring-price-it-right/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">market value</a> and in <a href="https://www.simplifyingthemarket.com/en/2023/04/14/home-inspections-for-sellers-what-you-need-to-know-infographic/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">good condition</a> are getting attention from buyers and selling quickly. Lean on your expert real estate advisor for the best advice on getting your house ready to sell.
Your equity can power your next move. There’s a good chance you have a significant amount of equity right now thanks to record levels of price appreciation in recent years. When you sell, you can use that <a href="https://www.simplifyingthemarket.com/en/2023/03/13/leverage-your-equity-when-you-sell-your-house/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">equity</a> to help afford your next home. In fact, NAR’s report from above shows 38% of recent buyers used the money from the sale of their previous home to cover the down payment on their next one. Work with a local real estate agent to learn how much equity you have and what you can do with it in today’s housing market.
Bottom Line
If your home no longer meets your needs, consider selling it so you can find your dream home. Let’s connect so you can learn about your options.2023-04-27T07:00:00-07:002023-04-20T12:08:13-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:12480Is This a "Normal" Real Estate Market Yet? In ConnecticutIs This a "Normal" Real Estate Market Yet In Connecticut?
<br />The events of the last few years disrupted almost every facet of our lives and the real estate market was no exception. Buyers and sellers across the country have experienced a market more volatile and unpredictable and are wondering if we will ever return to normal? Will the tougher economic times ahead help balance the real estate market?
As interest rates rise to slow the economy, the housing market is feeling the shift. Gone are the cheap loans and quick one sales. Today's buyers have the luxury of being choosier and sellers must again offer their homes at a reasonable price in good condition. While this "feels" like a normal market condition is it?
The essence of a "normal'' real estate market would be predictability and confidence, but we are not seeing this yet. True the slowing economy and rising interest rates have moved us away from the frantic pace of the past few years, but experts question whether this means a traditional buyers market.
The pandemic changed the way we work and where, also. People around the world are moving. With remote working a normal occurrence, people can live anywhere they want. Cities are emptying out and some states are seeing an influx of new residents anxious to avoid high-tax states.
With all these added elements, the real estate market may not return to the "normal", more predictable patterns we're accustomed to for years, maybe never. For consumers, the most important thing is to make the right decision for their families. There are opportunities in every market, even if it doesn't feel "normal."2023-04-26T07:00:00-07:002023-04-19T12:04:42-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:12474What Not to Say When Someone Ask Why Your're Selling In ConnecticutWhat Not to Say When Someone Ask Why You're Selling In Connecticut
<br />The minute you list your home, everyone will want to know why. You will hear from your neighbors, family members, and friends. Of course there is no harm in speaking freely with family and friends but be careful what you tell your neighbors and especially the buyers and their agents who visit your listing.
First, it's no one's business but your own. You are not obligated to share personal information with anyone, and you must be especially careful when speaking with potential buyers. If they sense desperation, this will affect the kind of offer they write.
A simple, "we are ready for a change" is a great response to anyone who doesn't need to know How you answer is less important than avoiding the wrong answers.
"i got a job" - Job offers or transfers are common reasons for a move. These moves often come with deadlines which alerts buyers that you need a quick sale, and may be willing to compromise on price to get one.
"We need a bigger house" - It's perfectly understandable that a growing family needs more space. Telling a buyer this, however, may cause them to question the size of the home and if it's too small for them also.
Successfully selling a home is more than just marketing. The best course of action is to limit divulging too much personal information about yourself. 2023-04-25T07:00:00-07:002023-04-18T13:05:31-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:12473Advantages of a Multi-Generational Home In ConnecticutAdvantages of a Multi-Generational Home In Connecticut
<br />The concept of multi-generational living has been gaining popularity in recent years as more and more Americans are choosing to share their homes with family members of different ages.
For one, financial considerations play a significant role in the rise of multi-generational living. Younger people who may struggle to afford their own homes are increasingly opting to live with their parents or grandparents in order to save on housing costs. This can be especially appealing in expensive urban areas where housing prices are sky-high. At the same time, older parents or grandparents may prefer to live with their families rather than in assisted living facilities which can be costly.
In addition to financial benefits, multi-generational living also offers emotional support and companionship to family members of different ages. In the past, several generations often lived together and supported each other with emotional support and companionship to family members of different ages. In the past several generations often lived together and supported each other emotionally and practically. Nowadays, families are rediscovering the benefits of this approach to living. Older family members can offer help and guidance to younger generations, while also receiving care and assistance when needed. This can be especially valuable as family members age and face health issues or other challenges.
Furthermore, multi-generational living can foster a sense of community and interdependence by sharing a home and living space, family members of different ages can develop stronger bonds and deeper sense of connection. This can be especially important for children, who benefit from having close relationships with grandparents or other older relatives.
As the trend towards multi-generational living grows, homeowners are finding creative ways to accommodate the different needs and preferences of family members. One popular option is the use of tiny home-style "granny flats", which offer a self-contained living space that is connected to the main house. This allows older family members to have their own space while still being close to their loved ones.
While multi-generational living may require some adjustments and compromises, many families are finding that it is a rewarding and beneficial way to live. It offers financial benefits emotional, support and a stronger sense of community and interdependence. As such it is no surprise that this trend is on the rise and is likely to continue to grow in the years to come. 2023-04-24T07:00:00-07:002023-04-18T12:10:33-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:12504All about Short SalesThe process of selling a home that is underwater, or worth less than the mortgage balance, can be a challenging and stressful experience. Two common options for homeowners in this situation are a short sale or a foreclosure. While both options have their pros and cons, working with a real estate agent in a short sale can offer several advantages compared to a foreclosure.
Avoiding Foreclosure: Foreclosure is a legal process in which a lender takes ownership of a property because the homeowner is unable to repay the mortgage. This can have serious and long-lasting consequences for a homeowner's credit score, financial stability, and ability to purchase a home in the future. A short sale, on the other hand, allows the homeowner to sell the property for less than what is owed on the mortgage and avoid a foreclosure.
Lowering Financial Losses: In a short sale, the lender agrees to accept a lower payoff of the mortgage balance in exchange for the release of the homeowner from further obligation. While the homeowner will still have to bear some financial losses, the difference between the sale price and the mortgage balance will be absorbed by the lender, which can reduce the homeowner's financial losses compared to a foreclosure.
Shorter Process: Foreclosure can be a long and drawn-out process, often taking months or even years to complete. This can put a significant burden on homeowners, as they have to continue making mortgage payments and dealing with the emotional stress of losing their home. A short sale, on the other hand, is typically a shorter process, as the sale of the property is dependent on the lender's approval, but the timeline can be managed by a real estate agent to ensure a quick and successful outcome.
Professional Assistance: A real estate agent has the expertise and experience necessary to guide homeowners through the short sale process. They can provide professional assistance in negotiating with the lender, handling paperwork, and marketing the property to potential buyers. This can help ensure a successful and timely short sale and take a lot of the stress and uncertainty out of the process for homeowners.
Better Outcome: A short sale is often seen as a better outcome for homeowners compared to a foreclosure, as it can allow them to avoid a damaging mark on their credit and provide them with a fresh start. With the help of a real estate agent, homeowners can sell their home for the highest possible price and reduce their financial losses, which can help them move forward and start a new chapter in their lives.
It's important to keep in mind that the specific circumstances of each situation will determine the best course of action and homeowners should consult a financial advisor, attorney, or housing counselor to understand their options and make an informed decision. Working with a real estate agent in a short sale can provide homeowners with several advantages compared to a foreclosure and help them achieve the best possible outcome in a challenging situation.
If you are challenged with mortgage payments and would like to explore your options give me a call at 203-725-1186 or email david.keyser@davejonesrealty.com. 2023-04-22T06:12:41-07:002023-04-22T06:31:57-07:00Dave Keysertag:searchallcthomes.com,2012-09-20:124715 Reasons Millennials Are Buying Homes In Connecticut5 Reasons Millennials Are Buying Homes In Connecticut
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In the United States, there are over <a href="https://www.statista.com/statistics/797321/us-population-by-generation/" rel="noopener noreferrer" target="_blank">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">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">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.2023-04-21T07:00:00-07:002023-04-18T11:01:34-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:12470Think Twice Before Waiting for Lower Home Prices In ConnecticutThink Twice Before Waiting for Lower Home Prices In Connecticut
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As the housing market continues to change, you may be wondering where it’ll go from here. One factor you’re probably thinking about is home prices, which have come down a bit since they peaked last June. And you’ve likely heard something in the news or on social media about a price crash on the horizon. As a result, you may be holding off on <a href="https://www.simplifyingthemarket.com/en/2023/04/06/trying-to-buy-a-home-hang-in-there/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">buying a home</a> until prices drop significantly. But that’s not the best strategy.
A recent <a href="https://www.builderonline.com/data-analysis/what-is-the-millennial-mindset-on-owning-vs-renting_o" rel="noopener noreferrer" target="_blank">survey</a> from Zonda shows 53% of millennials are still renting right now because they’re waiting for home prices to come down. But here’s the thing: the most recent data shows that home prices appear to have bottomed out and are now on the rise again. Selma Hepp, Chief Economist at CoreLogic, <a href="https://www.corelogic.com/intelligence/us-home-price-insights-april-2023/" rel="noopener noreferrer" target="_blank">reports</a>:
“U.S. home prices rose by 0.8% in February . . . indicating that prices in most markets have already bottomed out.”
And the latest data from Black Knight shows the same shift. The graph below <a href="https://www.blackknightinc.com/wp-content/uploads/2023/04/BKI_MM_FEB2023_Report.pdf" rel="noopener noreferrer" target="_blank">compares</a> home price trends in November to those in February:
<a href="https://files.keepingcurrentmatters.com/content/images/20230414/20230417-home-prices-up-in-majority-of-country-KCM.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230414/20230417-home-prices-up-in-majority-of-country-KCM.png" /></a>
So, should you keep waiting to buy a home until prices come down? If you factor in what the experts are saying, you probably shouldn’t. The <a href="https://pulsenomics.com/surveys/#home-price-expectations" rel="noopener noreferrer" target="_blank">data</a> shows prices are increasing in much of the country, not decreasing. And the latest data from the Home Price Expectation Survey indicates that experts project home prices will rise steadily and return to more normal levels of appreciation after 2023. The best way to understand what home values are doing in your area is to work with a local real estate professional who can give you the latest insights and expert advice.
Bottom Line
If you’re waiting to buy a home until prices come down, you may want to reconsider. Let’s connect to make sure you understand what’s happening in our local housing market.2023-04-20T07:00:00-07:002023-04-18T10:22:09-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:12453Want To Sell Your House. This Spring? Price It Right In ConnecticutWant To Sell Your House This Spring? Price It Right In Connecticut
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Over the last year, the housing market’s gone through significant change. While it’s still a <a href="https://www.simplifyingthemarket.com/en/2023/03/30/were-in-a-sellers-market-what-does-that-mean/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">sellers’ market</a>, homes that are priced right are selling, and they get the most attention from buyers right now. If you’re thinking of selling your house this spring, it’s important to lean on your expert real estate advisor when it comes to setting a list price. As Realtor.com <a href="https://www.realtor.com/advice/sell/what-first-time-home-sellers-need-to-know-to-be-successful-this-spring/" rel="noopener noreferrer" target="_blank">explains</a>:
“Move-in-ready homes with curb appeal and in desirable areas—and that are priced to sell—are especially likely to move quickly this spring.”
In today’s market, how you price your house will not only make a big difference to your bottom line, but to how quickly your house will sell.
Why Pricing Your House Right Matters
Your asking price sends a message to potential buyers, especially today.
If it’s priced too low, you may leave money on the table or discourage buyers who may see a lower-than-expected price tag and wonder if that means something is wrong with the home.
If it’s priced too high, you run the risk of deterring buyers. When that happens, you may have to lower the price to drive interest when your house sits on the market for a while. But be aware that a price drop can be seen as a red flag by some buyers who will wonder what it means about the home.
To avoid either headache, price it right from the start. A <a href="https://www.simplifyingthemarket.com/en/2022/12/29/planning-to-sell-your-house-its-critical-to-hire-a-pro/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">real estate professional</a> knows how to determine the ideal asking price. They balance the value of homes in your neighborhood, current market trends, buyer demand, the condition of your house, and more to find the right price. This helps lead to stronger offers and a greater likelihood your house will sell quickly.
The visual below helps summarize the impact your asking price can have:
<a href="https://files.keepingcurrentmatters.com/content/images/20230412/20230412-price-it-right-MEM.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230412/20230412-price-it-right-MEM.png" /></a>
Bottom Line
Homes priced at the current market value are selling faster and at a better price right now. To make sure you price your house appropriately, maximize your sales potential, and minimize your hassles, let’s connect today.2023-04-19T07:00:00-07:002023-04-14T11:55:34-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:12472Advantages of Multi-Generational In ConnecticutAdvantages of a Multi-Generational Home In Connecticut
<br />The concept of multi-generational living has been gaining popularity in recent years as more and more Americans are choosing to share their homes with family members of different ages.
For one, financial considerations play a significant role in the rise of multi-generational living. Younger people who may struggle to afford their own homes are increasingly opting to live with their parents or grandparents in order to save on housing costs. This can be especially appealing in expensive urban areas where housing prices are sky-high. At the same time, older parents or grandparents may prefer to live with their families rather than in assisted living facilities which can be costly.
In addition to financial benefits, multi-generational living also offers emotional support and companionship to family members of different ages. In the past, several generations often lived together and supported each other with emotional support and companionship to family members of different ages. In the past several generations often lived together and supported each other emotionally and practically. Nowadays, families are rediscovering the benefits of this approach to living. Older family members can offer help and guidance to younger generations, while also receiving care and assistance when needed. This can be especially valuable as family members age and face health issues or other challenges.
Furthermore, multi-generational living can foster a sense of community and interdependence by sharing a home and living space, family members of different ages can develop stronger bonds and deeper sense of connection. This can be especially important for children, who benefit from having close relationships with grandparents or other older relatives.
As the trend towards multi-generational living grows, homeowners are finding creative ways to accommodate the different needs and preferences of family members. One popular option is the use of tiny home-style "granny flats", which offer a self-contained living space that is connected to the main house. This allows older family members to have their own space while still being close to their loved ones.
While multi-generational living may require some adjustments and compromises, many families are finding that it is a rewarding and beneficial way to live. It offers financial benefits emotional, support and a stronger sense of community and interdependence. As such it is no surprise that this trend is on the rise and is likely to continue to grow in the years to come. 2023-04-18T11:07:48-07:002023-04-18T12:06:25-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:12452Your Tax Refund Can Help You Achieve Your Hombuying Goals In ConnecticutYour Tax Refund Can Help You Achieve Your Homebuying Goals In Connecticut
<br /><img src="https://files.keepingcurrentmatters.com/content/images/20230411/20230411-your-tax-refund-can-help-you-reach-your-homebuying-goals-KCM.jpg" width="600" /><br /><br />
Have you been saving up to <a href="https://www.simplifyingthemarket.com/en/2023/04/07/the-key-advantage-of-investing-in-a-home-infographic/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">buy</a> a home this year? If so, you know there are a variety of expenses involved – from your down payment to closing costs. But there’s good news – your tax refund can help you <a href="https://www.simplifyingthemarket.com/en/2023/03/23/why-buying-a-home-is-a-sound-decision/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">achieve</a> your goals by paying for some of these expenses.
SmartAsset <a href="https://smartasset.com/data-studies/states-with-the-largest-tax-refunds-2023" rel="noopener noreferrer" target="_blank">estimates</a> the average American will receive a $1,798 tax refund this year. The map below provides a more detailed estimate by state:
<a href="https://files.keepingcurrentmatters.com/content/images/20230411/20230412-average-tax-refund-in-2023-MEM.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230411/20230412-average-tax-refund-in-2023-MEM.png" /></a>
According to <a href="https://myhome.freddiemac.com/blog/homeownership/how-use-your-tax-refund-buy-home" rel="noopener noreferrer" target="_blank">Freddie Mac</a>, there are multiple ways your refund check can help you as a homebuyer. If you’re getting a refund this year and thinking about buying a home, here are a few tips to keep:
Saving for a down payment – One of the largest barriers to homeownership is saving for a <a href="https://www.simplifyingthemarket.com/en/2023/02/03/you-may-not-need-as-much-as-you-think-for-your-down-payment-infographic/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">down payment</a>. You could reach your savings goal more quickly than expected by using your tax refund to help with your down payment.
Paying for closing costs – You have to pay fees to your lender, real estate agent, and other parties involved in the homebuying transaction before you can officially take ownership of your home. You could direct your tax refund toward these <a href="https://www.simplifyingthemarket.com/en/2023/03/31/facts-about-closing-costs-infographic/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">closing costs</a>.
Lowering your interest rate – Your lender might give you the option to <a href="https://myhome.freddiemac.com/buying/mortgage-rates" rel="noopener noreferrer" target="_blank">buy down</a> your mortgage interest rate during the homebuying process. That means, you could pay upfront to have a lower interest rate on your fixed-rate mortgage.
The best way to <a href="https://www.simplifyingthemarket.com/en/2023/03/15/balancing-your-wants-and-needs-as-a-homebuyer-this-spring/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">prepare</a> to buy a home is to work with a trusted real estate professional who understands the process. They’ll help you navigate the costs you may encounter as you <a href="https://www.simplifyingthemarket.com/en/2023/03/22/reasons-to-consider-condos-in-your-home-search/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">begin</a> your homebuying journey.
Bottom Line
Your tax refund can help you reach your goals of <a href="https://www.searchallcthomes.com/" rel="noopener noreferrer" target="_blank">homeownership</a>. Let’s <a href="https://www.searchallcthomes.com/" rel="noopener noreferrer" target="_blank">connect</a> to discuss how you can start your journey today.2023-04-18T07:00:00-07:002023-04-14T11:09:08-07:00Dave Jones