Central Connecticut Real Estate BlogRecently posted or modified blog posts in the category - community eventshttps://www.searchallcthomes.com/blog/Copyright SearchAllCTHomes.com2023-05-25T12:17:00-07:00tag: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,2012-09-20:126396 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,2012-09-20:12593How 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,2012-09-20:12586The 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,2012-09-20:125304 Tips for Making Your Best Offer on a Home In Connecticut4 Tips for Making Your Best Offer on a Home In Connecticut
<br /><img src="https://files.keepingcurrentmatters.com/content/images/20230308/four-tips-for-making-your-best-offer-on-a-home-KCM.jpg" width="600" /><br /><br />
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
<br /><img src="https://files.keepingcurrentmatters.com/content/images/20230421/20230424-what-homebuyers-need-to-know-about-credit-scores.jpg" width="600" /><br /><br />
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,2012-09-20:12474What 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,2012-09-20:124715 Reasons Millennials Are Buying Homes In Connecticut5 Reasons Millennials Are Buying Homes In Connecticut
<br /><img src="https://files.keepingcurrentmatters.com/content/images/20230417/20230418-5-reasons-millennials-are-buying-homes.jpg" width="600" /><br /><br />
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
<br /><img src="https://files.keepingcurrentmatters.com/content/images/20230414/20230417-think-twice-before-waiting-for-lower-home-prices-KCM.jpg" width="600" /><br /><br />
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
<br /><img src="https://files.keepingcurrentmatters.com/content/images/20230412/20230413-want-to-sell-your-house-this-spring-price-it-right-KCM.jpg" width="600" /><br /><br />
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 Jonestag:searchallcthomes.com,2012-09-20:12417Tips for Touring Listings with Childern In ConnecticutTips for Touring Listings with Children In Connecticut
Searching for a new home can be an exciting adventure, but it can also be a stressful experience, especially when you have young children in tow. It can be difficult to keep them entertained and engaged while you're trying to focus on evaluating potential properties. However with a bit of planning and preparation, it is possible to make touring properties with children a more enjoyable and successful experience.
In the blog post, we'll share some tips and tricks to help you navigate the process and find your dream home while keeping your little ones entertained and happy.
Simple Tips for Touring Listings with Children
Be Safe - First and foremost, it's important to keep your children safe. Do not assume that the home is child proof, in fact assume the opposite. Kids love to poke around. Be aware that there could be dangerous chemicals and products within their reach. Medicine cabinets could have potent drugs and cleaning supplies may be under the sink.
Be Respectful - Often family homes have toys and other children's items within easy reach but it's important to keep your own kids from playing with these toys. It may be a tempting way to avoid boredom but be respectful of the home.
Plan Ahead - Remember that your children may be bored or hungry. Plan ahead; keep food and drink in the car to snack on between showings or consider taking turns with a spouse to allow the children to stay in the car with toys or videos. Finally, if you can limit the amount of time you are out looking at homes.
Touring properties with children can be a challenge, but with the right approach it can also be a fun and rewarding experience for the whole family. By keeping your children engaged and finding your dream home.
Remember to plan ahead, brings snacks and toys, and involve your children in the process. With these tips and tricks you'll be well on your way to findings the perfect home for you and your family.
2023-04-17T07:00:00-07:002023-04-11T11:35:47-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:12416Creative Ideas for Decorating Your Home on a Budget In ConnecticutCreative Ideas for Decorating Your Home on a Budget In Connecticut
Decorating your home can be a fun and exciting experience, but it can also be a costly one. However, with a bit of creativity and some DIY skills, you can decorate your home on a badge and still achieve the look you want. In this blog post, we'll share some creative ideas for decorating your home on a budget.
Shop Secondhand
One of the easiest ways to decorate your home on a budget is to shop secondhand. You can find some incredible deals on furniture and decor items at thrift stores, garage sales and online marketplaces. Don't be afraid to haggle a bit to get an even better deal. You may also want to consider attending estate sales, where you can often find unique and high-quality pieces at a fraction of their original cost.
Repurpose and Upcycle
Another way to save money on home decor is to repurpose and upcycle items that are already owned or found secondhand. For example, you can turn an older ladder into a stylish bookshelf or a set of vintage suitcases into unique side tables. With a little creativity and some basic DIY skills. you can transform almost everything into a decorative and functional piece for your home.
Use Wall Art
Adding wall art to your home is an easy and affordable way to add some color and personality to your walls. You don't have to spend a lot of money on original artwork; there are plenty of affordable prints, posters and photographs available online. You can also create your own wall art by framing fabric swatches, postcard, or even pages from old books.2023-04-14T07:00:00-07:002023-04-11T11:03:15-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:12412The Big Advantage If You Sell This Spring In ConnecticutThe Big Advantage If You Sell This Spring In Connecticut
<br /><img src="https://files.keepingcurrentmatters.com/content/images/20230410/20230411-the-big-advantage-if-you-sell-this-spring-KCM.jpg" width="600" /><br /><br />
Thinking about selling your house? If you’ve been waiting for the <a href="https://www.simplifyingthemarket.com/en/2023/04/10/homebuyer-activity-shows-signs-of-warming-up-for-spring/?a=256783-97401f3dc4d75220bf95779361521561" rel="noopener noreferrer" target="_blank">right time</a>, it could be now while the supply of homes for sale is so low. HousingWire <a href="https://news.move.com/2023-03-30-Realtor-com-R-March-Housing-Report-Spring-Thaw-Lures-Buyers-Back-into-the-Housing-Market" rel="noopener noreferrer" target="_blank">shares</a>:
“. . . the big question is whether we are finally starting to see the seasonal spring increase in inventory. The answer is no, because active listings fell to a new low last week for 2023 . . .”
The National Association of Realtors (NAR) <a href="https://www.nar.realtor/newsroom/existing-home-sales-surged-14-5-in-february-ending-12-month-streak-of-declines" rel="noopener noreferrer" target="_blank">confirms</a> today’s housing inventory is low by looking at the months’ supply of homes on the market. In a balanced market, about a six-month supply is needed. Anything lower is a sellers’ market. And today, the number is much lower:
“Total housing inventory registered at the end of February was 980,000 units, identical to January and up 15.3% from one year ago (850,000). Unsold inventory sits at a 2.6-month supply at the current sales pace, down 10.3% from January but up from 1.7 months in February 2022.”
Why Does Low Inventory Make It a Good Time To Sell?
The less inventory there is on the market when you <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>, the less competition you’re likely to face from other sellers. That means your house will get more attention from the buyers looking for a home this spring. And since there are significantly more buyers in the market than there are homes for sale, you could even receive more than one offer on your house. <a href="https://cdn.nar.realtor/sites/default/files/documents/2023-02-realtors-confidence-index-03-21-2023.pdf" rel="noopener noreferrer" target="_blank">Multiple offers</a> are on the rise again (see graph below):
<a href="https://files.keepingcurrentmatters.com/content/images/20230410/20230411-average-number-of-offers-received-on-the-most-recent-closed-sale-MEM.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230410/20230411-average-number-of-offers-received-on-the-most-recent-closed-sale-MEM.png" /></a>
If you get more than one offer on your house, it becomes a bidding war between buyers – and that means you have greater leverage to sell on your terms. But if you want to maximize the opportunity for a bidding war to spark, be sure to lean on your expert real estate advisor. While we’re still 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>, it isn’t the frenzy we saw a couple of years ago, and today’s buyers are focused on the houses with the greatest appeal. Clare Trapasso, Executive News Editor at Realtor.com, <a href="https://news.move.com/2023-03-30-Realtor-com-R-March-Housing-Report-Spring-Thaw-Lures-Buyers-Back-into-the-Housing-Market" rel="noopener noreferrer" target="_blank">explains</a>:
"Well-priced, move-in ready homes with curb appeal in desirable areas are still receiving multiple offers and selling for over the asking price in many parts of the country. So, this spring, it's especially important for sellers to make their homes as attractive as possible to appeal to as many buyers as possible.”
Bottom Line
If you’ve been waiting for the right time to sell your house, low inventory this spring sets you up with a big advantage. Let’s connect today to make sure your house is ready to sell. 2023-04-13T07:00:00-07:002023-04-11T09:19:37-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:12294What You Should Know About Rising Mortgage Rates In ConnecticutWhat You Should Know About Rising Mortgage Rates In Connecticut
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After steadily falling over the winter, mortgage rates have started to rise in recent weeks. This is concerning to some potential <a href="https://www.simplifyingthemarket.com/2023/02/14/why-its-easy-to-fall-in-love-with-homeownership-1/">homebuyers</a> as the combination of higher mortgage rates and higher <a href="https://www.simplifyingthemarket.com/2023/02/16/wondering-whats-going-on-with-home-prices/">prices</a> have made homes less affordable. So, if you’re planning to purchase a home this year, you too may be wondering if now’s the right time to buy or if you should hold off on your search until rates come back down.
The recent uptick in rates has been driven by what’s happening with inflation. Joel Kan, Vice President and Deputy Chief Economist at the Mortgage Bankers Association (MBA), <a href="https://www.cnbc.com/2023/02/15/mortgage-demand-drops-interest-rates-jump.html">explains</a>:
“Mortgage rates increased across the board last week, pushed higher by market expectations that inflation will persist, thus requiring the Federal Reserve to keep monetary policy restrictive for a longer time.”
The most recent weekly average 30-year fixed mortgage rate <a href="https://www.freddiemac.com/pmms">reported</a> by Freddie Mac is 6.5%. It’s the third week in a row that rates have increased and puts them at the highest point they’ve been this year (see graph below):
<a href="https://files.simplifyingthemarket.com/wp-content/uploads/2023/02/27103040/mortgage-rates-trend-up-MEM.png"><img class="aligncenter wp-image-48873" src="https://files.simplifyingthemarket.com/wp-content/uploads/2023/02/27103040/mortgage-rates-trend-up-MEM.png" alt="What You Should Know About Rising Mortgage Rates | Simplifying The Market" width="650" height="488" /></a>
Advice for Home Shoppers
If you’re thinking about pausing your home search because rates have started to go up again, you may want to reconsider. This could actually be an opportunity to buy the home you’ve been searching for. According to the MBA, <a href="https://www.mba.org/news-and-research/newsroom/news/2023/02/22/mortgage-applications-decrease-in-latest-mba-weekly-survey">mortgage applications</a> declined by 13.3% in just one week, so it appears the rise in mortgage rates is leading some potential <a href="https://www.simplifyingthemarket.com/2023/02/23/how-to-make-your-dream-of-homeownership-a-reality/">homebuyers</a> to pull back on their search for a new home.
So, what does that mean for you? If you stay the course, you’ll likely face less competition among other buyers when you’re looking for a home. This is welcome relief in a market that has so few <a href="https://www.simplifyingthemarket.com/2023/02/08/number-of-homes-for-sale-up-from-last-year-but-below-pre-pandemic-years/">homes for sale</a>.
Bottom Line
Over the last few weeks, mortgage rates have risen. But that doesn’t mean you should delay your plans to buy a home. In fact, it could mean the opposite if you want to take advantage of less buyer competition. Let’s connect today to explore the options in our local market.
Bottom Line
Over the last few weeks, mortgage rates have risen. But that doesn’t mean you should delay your plans to buy a home. In fact, it could mean the opposite if you want to take advantage of less buyer competition. Let’s connect today to explore the options in our local market.2023-03-29T07:00:00-07:002023-03-27T11:28:07-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:12242What's Ahead for Home Prices In 2023 In Connecticut What’s Ahead for Home Prices in Connecticut In 2023
<br /><img src="https://files.keepingcurrentmatters.com/content/images/20230316/20230320-whats-ahead-for-home-prices-in-2023-KCM.jpg" width="600" /><br /><br />
Over the past year, home prices have been a widely debated topic. Some have said we’ll see a massive drop in prices and that this could be a repeat of 2008 – <a href="https://www.searchallcthomes.com/" rel="noopener noreferrer" target="_blank">which hasn’t happened</a>. Others have forecasted a real estate market that could see slight appreciation or depreciation depending on the area of the country. And as we get closer to the spring real estate market, experts are continuing to forecast what they believe will happen with home prices this year and beyond.
Selma Hepp, Chief Economist at CoreLogic, <a href="https://www.corelogic.com/intelligence/us-home-price-insights-march-2023/" rel="noopener noreferrer" target="_blank">says</a>:
“While 2023 kicked off on a more optimistic note for the U.S. housing market, recent mortgage rate volatility highlights how much uncertainty remains. Nevertheless, the continued shortage of for-sale homes is likely to keep price declines modest, which are projected to top out at 3% peak to trough.”
Additionally, every quarter, Pulsenomics <a href="https://pulsenomics.com/surveys/#home-price-expectations" rel="noopener noreferrer" target="_blank">surveys</a> a panel of over 100 economists, investment strategists, and housing market analysts regarding their five-year expectations for future home prices in the United States. Here’s what they said most recently:
<a href="https://files.keepingcurrentmatters.com/content/images/20230316/20230320-estimated-home-price-performance-MEM.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230316/20230320-estimated-home-price-performance-MEM.png" /></a>
So, given this information and what experts are saying about home prices, the question you might be asking is: should I buy a home this spring? Here are three reasons you should consider <a href="https://www.searchallcthomes.com/" rel="noopener noreferrer" target="_blank">making a move</a>:
Buying a home helps you escape the cycle of rising rents. Over the past several decades, the median price of rent has <a href="https://www.census.gov/housing/hvs/files/currenthvspress.pdf" rel="noopener noreferrer" target="_blank">risen consistently</a>. The bottom line is, rent is <a href="https://www.searchallcthomes.com/" rel="noopener noreferrer" target="_blank">going up</a>.
Homeownership is a hedge against inflation. A key advantage of homeownership is that it’s one of the best hedges against inflation. When you buy a home with a fixed-rate mortgage, you secure your housing payment, so it won’t go up like it would if you rent.
Homeownership is a powerful wealth-building tool. The average net worth of a homeowner is $255,000 compared to $6,300 for a <a href="https://www.searchallcthomes.com/" rel="noopener noreferrer" target="_blank">renter</a>.
Experts are projecting slight price depreciation in the housing market this year, followed by steady appreciation. Given that, you may be wondering if you should move ahead with buying a home this spring. The decision to purchase a home is best made when you do it knowing all the facts and have an expert on your side.2023-03-27T07:00:00-07:002023-03-24T07:56:57-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:1206810 Things to Remove from Your Home When Listing for Sale In Connecticut10 Things to Remove from Your Home When Listing For Sale In Connecticut
<br />One of the common questions from home sellers is "do I really need to put my family pictures away"? The short answer is "yes", but maybe not for the reasons you assume. The general principle is that buyers need to be able to visualize their own lives in the home in order to buy the house. There is nothing new about this but in this complicated age of security challenges there are also safety reasons to remove your items before showings.
10 Things to Remove
1. Excess Furniture - Consider removing extra chairs, ottomans side tables. etc., anything unnecessary.
2. Family Photos - You do not know who is coming through your home; protect your family by removing any identifiable pictures, awards, certificates, etc.
3. Religious Art/Collectables - Some people may be offended by these kinds of items. Better to avoid issues.
4. Laptops and Cell Phones - Anything easily picked up and removed should be safely stowed.
5. Jewelry - Again, anything of value should be secured out of sight.
6. Important Files and Papers - Hide any papers that may have banking or social security numbers that can be used for fraudulent purposes.
7. Firearms- Protect yourself and others by securing any firearms.
8. Clutter - Nothing new here, keep the home clean.
9. Half of All Décor - Think about removing about half of any decortative items such as pillows, vases, books etc.
10. Pets - Keep your pets save and away from visitors.
If you're ready to start showing your home, taking a little time to depersonalize can not only help your buyers see the potential of the home for their lives, but protect yourself and your family as well.2023-03-23T07:00:00-07:002023-03-02T10:53:51-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:12058Benefits of Switching From Gas to Induction In ConnecticutBenefits of Switching From Gas to Induction In Connecticut
For decades, gas stoves have been the preferred choice for both professional and and amateur chefs alike and it's easy to understand why. Gas stoves allow for quick control of the heat which allows for quick adjustments when cooking. But recently possible bans on gas stoves have dominated national news as unhealthy. Regardless of whether induction stovetops are healthier or not, there are great reasons to make the switch.
What is an Induction Range?
In simple terms, an induction electric range is powered by an electromagnetic field. This allows the range to have the same degree of temperature as a gas powered stove with a similar level of control.
Making the Switch
The first thing to realize is that you'll pay more for an induction stove than a gas range. The increase in cost may be as much as double the price and the installation will require special wiring and circuitry. But this increase in upfront costs will start to pay off very quickly. First home owers can take advantage of a federal rebate of up to $480 and an additional $500 to help with the cost of installation. In addition, these new induction ranges will save energy cost over gas.
There is evidence to suggest that there are significant health advantages as well. This is the reason for the proposed ban in the first place. Gas stoves emit carbon dioxide which can be hazardous without the proper ventilation or for family members with medical issues. Even without the ban, it's time to look at some of the great induction ranges on the market and consider making the switch. 2023-03-22T07:00:00-07:002023-03-01T13:19:22-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:12055FICO Shock? Your Lender Can Help with a Rapid Rescore In ConnecticutFICO Shock? Your Lender Can Help with a Rapid Rescore In Connecticut
If you're ready to buy a new home, you know that a good FICO score is critical to the process. Your FICO affects not just your ability to buy a new home, but the interest rate and fees you'll pay for the new loan. Often, buyers are shocked to realize their credit score is not as high as they thought. Even borrowers who always pay their bills on time can be surprised by a lower FICO score when they apply for a loan. Fortunately, your lender can help with a rapid rescore process.
A rapid rescore is is initiated by our lender to boost your FICO in days. Most lenders offer this service and will start by reviewing your credit report with you. Lenders use what's known as the "middle score", on determining risk. There are three credit bureaus. - Transunion, Equifax and Experian - and they each calculate your score a little differently. The middle score is used for most home loans as your FICO.
Your lender has a program which can esitmate your rescore based on removing false reporting or lowering the balance on a credit card. Even paying off one card can raise your score by 20+ points enough to make a huge difference in your mortgage interest rate. Once the steps are determined and taken, they then request the credit bureaus to verify the report. This takes a few days. Then the new score will be available to the lender to use for your loan.
If you are considering a new home loan, it's important to know your credit score ahead of time, when you can still correct mistakes , But if you are already in the process your lender may be able to use the rapid rescore process to quickly increase your score and offer you a better loan. 2023-03-21T07:00:00-07:002023-03-01T12:19:18-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:11974The Two Big Issues the Housing Market's Facing Right Now In ConnecticutThe Two Big Issues the Housing Market’s Facing Right Now In Connecticut
<img width="750" height="410" src="https://files.mykcm.com/2023/02/16150441/the-two-big-issues-facing-the-housing-market-right-now-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="The Two Big Issues the Housing Market’s Facing Right Now | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2023/02/16150441/the-two-big-issues-facing-the-housing-market-right-now-KCM.jpg 750w, https://files.mykcm.com/2023/02/16150441/the-two-big-issues-facing-the-housing-market-right-now-KCM-600x328.jpg 600w, https://files.mykcm.com/2023/02/16150441/the-two-big-issues-facing-the-housing-market-right-now-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
The biggest challenge the housing market’s facing is how few homes there are for sale. Mark Fleming, Chief Economist at First American, <a href="https://blog.firstam.com/economics/why-housing-market-potential-increased-for-the-second-straight-month" title="explains" target="_blank" rel="noopener noreferrer">explains</a> the root causes of today’s low supply:
“Two dynamics are keeping existing-home inventory historically low – rate-locked existing homeowners and the fear of not finding something to buy.”
Let’s break down these two big issues in today’s housing market.
Rate-Locked Homeowners
According to the Federal Housing Finance Agency (FHFA), the <a href="https://www.fhfa.gov/DataTools/Downloads/Pages/National-Mortgage-Database-Aggregate-Data.aspx" title="average interest rate" target="_blank" rel="noopener noreferrer">average interest rate</a> for current homeowners with mortgages is less than 4% (see graph below):
<a href="https://files.mykcm.com/2023/02/16150439/average-mortgage-rate-is-less-than-4-percent-MEM.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-107542" src="https://files.mykcm.com/2023/02/16150439/average-mortgage-rate-is-less-than-4-percent-MEM.png" /></a>
But today, the typical mortgage rate offered to buyers is <a href="https://www.freddiemac.com/pmms" title="over 6%" target="_blank" rel="noopener noreferrer">over 6%</a>. As a result, many homeowners are opting to stay put instead of moving to another home with a higher borrowing cost. This is a situation known as being rate locked.
When so many homeowners are rate locked and reluctant to sell, it’s a challenge for a housing market that needs more inventory. However, experts project <a href="https://www.simplifyingthemarket.com/2023/01/17/think-twice-before-waiting-for-3-mortgage-rates/?a=256783-97401f3dc4d75220bf95779361521561" title="mortgage rates" target="_blank" rel="noopener noreferrer">mortgage rates</a> will gradually fall this year, and that could mean more people will be willing to move as that happens.
The Fear of Not Finding Something To Buy
The other factor holding back potential sellers is the fear of not finding another home to buy if they move. Worrying about where they’ll go has left many on the sidelines as they wait for more homes to come to the market. That’s why, if you’re on the fence about selling, it’s important to consider all your <a href="https://www.simplifyingthemarket.com/2023/01/30/where-will-you-go-if-you-sell-you-have-options/?a=256783-97401f3dc4d75220bf95779361521561" title="options" target="_blank" rel="noopener noreferrer">options</a>. That includes newly built homes, especially right now when builders are offering concessions like mortgage rate <a href="https://www.simplifyingthemarket.com/2023/2/15/should-you-consider-buying-a-newly-built-home/?a=256783-97401f3dc4d75220bf95779361521561" title="buydowns" target="_blank" rel="noopener noreferrer">buydowns</a>.
What Does This Mean for You?
These two issues are keeping the supply of homes for sale lower than pre-pandemic levels. But if you want to sell your house, today’s market is a <a href="https://www.simplifyingthemarket.com/2023/2/17/the-spring-housing-market-could-be-a-sweet-spot-for-sellers-infographic?a=256783-97401f3dc4d75220bf95779361521561" title="sweet spot" target="_blank" rel="noopener noreferrer">sweet spot</a> that can work to your advantage.
Be sure to work with a local real estate professional to explore the options you have right now, which could include leveraging your current home equity. According to <a href="https://www.attomdata.com/news/market-trends/home-sales-prices/attom-q4-2022-u-s-home-equity-and-underwater-report/" title="ATTOM" target="_blank" rel="noopener noreferrer">ATTOM</a>:
“. . . 48 percent of mortgaged residential properties in the United States were considered equity-rich in the fourth quarter, meaning that the combined estimated amount of loan balances secured by those properties was no more than 50 percent of their estimated market values.”
This could make a major difference when you move. Work with a local real estate expert to learn how putting your equity to work can keep the cost of your next home down.
Bottom Line
Rate-locked homeowners and the fear of not finding something to buy are keeping housing inventory low across the country. But as mortgage rates start to come down this year and homeowners explore all their options, we should expect more homes to come to the market.
2023-03-15T07:00:00-07:002023-02-21T10:43:37-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:11960Spring into Action: Boost Your Homes Curb Appeal with Expert Guidance In ConnecticutSpring into Action: Boost Your Home’s Curb Appeal with Expert Guidance In Connecticut
<img width="750" height="410" src="https://files.mykcm.com/2023/02/16132137/spring-into-action-boost-your-homes-curb-appeal-with-expert-guidance-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="Spring into Action: Boost Your Home’s Curb Appeal with Expert Guidance | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2023/02/16132137/spring-into-action-boost-your-homes-curb-appeal-with-expert-guidance-KCM.jpg 750w, https://files.mykcm.com/2023/02/16132137/spring-into-action-boost-your-homes-curb-appeal-with-expert-guidance-KCM-600x328.jpg 600w, https://files.mykcm.com/2023/02/16132137/spring-into-action-boost-your-homes-curb-appeal-with-expert-guidance-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
To sell your home this spring, it may need more preparation than it would have a year or two ago. Today’s housing market has a different feel. There are more homes for sale than there were at this time last year, but <a href="https://www.simplifyingthemarket.com/2023/02/08/number-of-homes-for-sale-up-from-last-year-but-below-pre-pandemic-years/?a=256783-97401f3dc4d75220bf95779361521561" title="inventory" target="_blank" rel="noopener noreferrer">inventory</a> is still historically low. So, if a house has been sitting on the market for a while, that’s a sign it may not be hitting the mark for potential buyers. But here’s the thing. Right now, homes that are updated and <a href="https://www.simplifyingthemarket.com/2023/01/23/want-to-sell-your-house-price-it-right/?a=256783-97401f3dc4d75220bf95779361521561" title="priced" target="_blank" rel="noopener noreferrer">priced</a> at market value are still selling fast.
Today, homes with curb appeal that are presented well are still selling quickly, and sometimes over asking <a href="https://www.simplifyingthemarket.com/2023/01/20/whats-really-happening-with-home-prices-infographic/?a=256783-97401f3dc4d75220bf95779361521561" title="price" target="_blank" rel="noopener noreferrer">price</a>. According to Danielle Hale, Chief Economist at <a href="https://www.realtor.com/news/trends/a-tale-of-2-housing-markets-why-some-homes-still-cause-heated-bidding-wars-while-others-sit-unsold/" title="realtor.com" target="_blank" rel="noopener noreferrer">realtor.com</a>:
“In a market where costs are still high and buyers can be a little choosier, it makes sense they’re going to really zero in on the homes that are the most appealing.”
With the spring buying season just around the corner, now’s the time to start getting your house ready to sell. And the best way to determine where to spend your time and money is to work with a trusted real estate agent who can help you understand which improvements are most valuable in your local market.
Curb Appeal Wins
One way to prioritize updates that could bring a good return on your investment is to find smaller projects you can do yourself. Little updates that boost your curb appeal usually work well. <a href="https://www.investopedia.com/investing/types-home-renovation-which-ones-boost-value/" title="Investopedia" target="_blank" rel="noopener noreferrer">Investopedia</a> puts it this way:
“Curb-appeal projects make the property look good as soon as prospective buyers arrive. While these projects may not add a considerable amount of monetary value, they will help your home sell faster—and you can do a lot of the work yourself to save money and time.”
Small cosmetic updates, like refreshing some paint and power washing the exterior of your home, create a great first impression for buyers and help it stand out. Work with a real estate professional to find the low-cost projects you can tackle around your house that will appeal to buyers in your area.
Not All Updates Are Created Equal
When deciding what you need to do to your house before selling it, remember you’re making these repairs and updates for someone else. Prioritize projects that will help you sell faster or for more money over things that appeal to you as a homeowner.
The 2022 Remodeling Impact Report from the National Association of Realtors (NAR) <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-remodeling-impact-report-04-19-2022.pdf" title="highlights" target="_blank" rel="noopener noreferrer">highlights</a> popular home improvements and what sort of return they bring for the investment (see graph below):
<a href="https://files.mykcm.com/2023/02/16133943/typical-cost-recovery-for-common-remodeling-projects-MEM-1.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-107538" src="https://files.mykcm.com/2023/02/16133943/typical-cost-recovery-for-common-remodeling-projects-MEM-1.png" alt="Spring into Action: Boost Your Home’s Curb Appeal with Expert Guidance | MyKCM" width="600" height="450" /></a>
Remember to lean on your trusted real estate advisor for the best advice on the updates you should invest in. They’ll know what local buyers are looking for and have the latest insights of what your house needs to sell quickly this spring.
Bottom Line
As we approach the spring season, now’s the time to get your house ready to <a href="https://www.simplifyingthemarket.com/2023/02/06/the-top-reasons-for-selling-your-house/?a=256783-97401f3dc4d75220bf95779361521561" title="sell" target="_blank" rel="noopener noreferrer">sell</a>. Let’s connect today so you can find out which updates make the most sense.
2023-03-14T07:00:00-07:002023-02-20T10:12:34-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:11888Number of Homes for Sale Up from Last Year, but Below Pre-Pandemic Years In ConnecticutNumber of Homes for Sale Up from Last Year, but Below Pre-Pandemic Years In Connecticut
<img width="750" height="410" src="https://files.mykcm.com/2023/02/07124039/number-of-homes-for-sale-up-from-last-year-but-below-pre-pandemic-years-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="Number of Homes for Sale Up from Last Year, but Below Pre-Pandemic Years | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2023/02/07124039/number-of-homes-for-sale-up-from-last-year-but-below-pre-pandemic-years-KCM.jpg 750w, https://files.mykcm.com/2023/02/07124039/number-of-homes-for-sale-up-from-last-year-but-below-pre-pandemic-years-KCM-600x328.jpg 600w, https://files.mykcm.com/2023/02/07124039/number-of-homes-for-sale-up-from-last-year-but-below-pre-pandemic-years-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
The biggest challenge in the housing market right now, and likely for years to come, is how few homes there are for sale compared to the number of people who want to buy. That’s why, if you’re thinking about selling your house, this is a great time to do so. Your house would be welcome in a market that has fewer homes for sale than it did in the years leading up to the pandemic.
<a href="https://www.realtor.com/research/january-2023-data/" title="According" target="_blank" rel="noopener noreferrer">According</a> to the latest Monthly Housing Market Trends Report from realtor.com:
“There were 65.5% more homes for sale in January compared to the same time in 2022. This means that there were 248,000 more homes available to buy this past month compared to one year ago. While the number of homes for sale is increasing, it is still 43.2% lower than it was before the pandemic in 2017 to 2019. This means that there are still fewer homes available to buy on a typical day than there were a few years ago.”
The graph below shows how today’s inventory of homes for sale compares to recent years:
<a href="https://files.mykcm.com/2023/02/07124041/active-monthly-listing-counts-MEM.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-107314" src="https://files.mykcm.com/2023/02/07124041/active-monthly-listing-counts-MEM.png" /></a>
What Does This Mean for You?
Fewer homes for sale means buyers have fewer choices than they did prior to the pandemic—and that frustration is leading some to give up on the homebuying process altogether. But with mortgage rates sitting <a href="https://www.simplifyingthemarket.com/2023/01/31/lower-mortgage-rates-are-bringing-buyers-back-to-the-market/?a=256783-97401f3dc4d75220bf95779361521561" title="lower" target="_blank" rel="noopener noreferrer">lower</a> than they were at the peak last fall, more buyers are willing to come back into the process—they just need to find homes to buy. This is welcome activity for the spring market, especially if you’re thinking of selling your house.
With a renewed interest in buying a home for many, the New York Times (NYT) <a href="https://www.nytimes.com/2023/02/02/business/mortgage-rates-housing-market.html" title="reports" target="_blank" rel="noopener noreferrer">reports</a>:
“Home buyers are edging back into the market after being sidelined last year . . .”
So, if you want to take advantage of a sweet spot in the market, this spring could be your shot.
Bottom Line
The housing market needs more homes for sale to meet the demand of today’s buyers. If you’ve thought about selling, now’s the time for us to connect and get ready for you to make a move this spring.
2023-03-07T08:00:00-07:002023-02-15T13:43:02-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:11807Experts Forecast A Turnaround in the Housing Market in 2023Experts Forecast a Turnaround in the Housing Market in 2023 In Connecticut
<img width="750" height="410" src="https://files.mykcm.com/2023/01/30141759/experts-forecast-a-turnaround-in-the-housing-market-in-2023-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="Experts Forecast a Turnaround in the Housing Market in 2023 | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2023/01/30141759/experts-forecast-a-turnaround-in-the-housing-market-in-2023-KCM.jpg 750w, https://files.mykcm.com/2023/01/30141759/experts-forecast-a-turnaround-in-the-housing-market-in-2023-KCM-600x328.jpg 600w, https://files.mykcm.com/2023/01/30141759/experts-forecast-a-turnaround-in-the-housing-market-in-2023-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
The housing market has gone through a lot of change recently, and much of that was a result of how quickly <a href="https://www.simplifyingthemarket.com/2023/01/17/think-twice-before-waiting-for-3-mortgage-rates/?a=256783-97401f3dc4d75220bf95779361521561" title="mortgage rates" target="_blank" rel="noopener noreferrer">mortgage rates</a> rose last year.
Now, as we move through 2023, there are signs things are finally going to turn around. Home <a href="https://www.simplifyingthemarket.com/2023/01/20/whats-really-happening-with-home-prices-infographic/?a=256783-97401f3dc4d75220bf95779361521561" title="price appreciation" target="_blank" rel="noopener noreferrer">price appreciation</a> is slowing from the recent frenzy, mortgage rates are <a href="https://www.simplifyingthemarket.com/2023/01/24/the-3-factors-that-affect-home-affordability/?a=256783-97401f3dc4d75220bf95779361521561" title="coming down" target="_blank" rel="noopener noreferrer">coming down</a>, inflation is easing, and overall market activity is starting to <a href="https://www.simplifyingthemarket.com/2023/01/26/why-it-makes-sense-to-move-before-spring/?a=256783-97401f3dc4d75220bf95779361521561" title="pick up" target="_blank" rel="noopener noreferrer">pick up</a>. All of that’s great news for the housing market this year. Here’s what experts are saying.
Cristian deRitis, Deputy Chief Economist, <a href="https://www.newsweek.com/housing-market-reckoning-wont-provide-salvation-homebuyers-1774415" title="Moody’s Analytics" target="_blank" rel="noopener noreferrer">Moody’s Analytics</a>:
“The current state of the housing market is that it is certainly in transition.”
Susan Wachter, Professor of Real Estate and Finance, <a href="https://www.bloomberg.com/news/articles/2023-01-12/housing-market-in-2023-will-be-shaped-by-fed-policy" title="University of Pennsylvania’s Wharton School" target="_blank" rel="noopener noreferrer">University of Pennsylvania’s Wharton School</a>:
“Housing is going to ease up. I think 2023 will be a turnaround year.”
Lawrence Yun, Chief Economist, <a href="https://apnews.com/article/inflation-national-association-of-realtors-business-0fee2b2e18dd8e4aa047f892476fcba8" title="National Association of Realtors" target="_blank" rel="noopener noreferrer">National Association of Realtors</a> (NAR):
“Mortgage rates have fallen in the recent past weeks, so I’m very hopeful that the worst in home sales is probably coming to an end.”
Robert Dietz, Chief Economist and Senior Vice President, <a href="https://www.businessinsider.com/2023-could-be-the-year-that-the-us-housing-market-gets-back-on-track-2023-1" title="National Association of Home Builders" target="_blank" rel="noopener noreferrer">National Association of Home Builders</a> (NAHB):
“. . . it appears a turning point for housing lies ahead. In the coming quarters, single-family home building will rise off of cycle lows as mortgage rates are expected to trend lower and boost housing affordability.”
Bottom Line
If you’re thinking about making a move this year, a turnaround in the housing market could be exactly what you’ve been waiting for. Let’s connect to talk about the latest trends in our area.
2023-03-02T08:00:00-07:002023-02-09T11:50:32-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:11791Should You Rent Your House or Sell It In Connecticut Should You Rent Your House or Sell It In Connecticut
<img width="750" height="410" src="https://files.mykcm.com/2023/01/31112703/should-you-rent-your-house-or-sell-it-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="Should You Rent Your House or Sell It? | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2023/01/31112703/should-you-rent-your-house-or-sell-it-KCM.jpg 750w, https://files.mykcm.com/2023/01/31112703/should-you-rent-your-house-or-sell-it-KCM-600x328.jpg 600w, https://files.mykcm.com/2023/01/31112703/should-you-rent-your-house-or-sell-it-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
If you’re a homeowner ready to make a move, you may be thinking about using your current house as a short-term rental property instead of <a href="https://www.simplifyingthemarket.com/2023/01/23/want-to-sell-your-house-price-it-right/?a=256783-97401f3dc4d75220bf95779361521561" title="selling" target="_blank" rel="noopener noreferrer">selling</a> it. A short-term rental (STR) is typically offered as an alternative to a hotel, and they’re an investment that’s gained popularity in recent years. According to a Harris Poll <a href="https://theharrispoll.com/wp-content/uploads/2022/12/State-of-Real-Estate-December-2022.pdf" title="survey" target="_blank" rel="noopener noreferrer">survey</a>, 28% of homeowners have considered using a rental service to temporarily rent out their home for additional income.
Owning a short-term rental can be a tempting idea, but you may find the reality of being responsible for one difficult to take on. Here are some of the challenges you could face if you rent out your house instead of <a href="https://www.simplifyingthemarket.com/2023/01/26/why-it-makes-sense-to-move-before-spring/?a=256783-97401f3dc4d75220bf95779361521561" title="selling" target="_blank" rel="noopener noreferrer">selling</a> it.
A Short-Term Rental Comes with Responsibilities
Successfully owning and renting a house takes work. Think through your ability to make that commitment, especially if you plan to use a platform that advertises your rental listing. Most of them have specific requirements hosts have to meet, and it takes a lot of work. A recent article from Bankrate <a href="https://www.bankrate.com/real-estate/should-i-sell-or-rent-my-house/" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“Managing a rental property can be time-consuming and challenging. Are you handy and able to make some repairs yourself? If not, do you have a network of affordable contractors you can reach out to in a pinch? Consider whether you want to take on the added responsibility of being a landlord, which means screening tenants and fielding issues, among other responsibilities, or paying for a third party to take care of things instead.”
Not only is there the upfront time and cost of owning a short-term rental, but there are also risks that could come up for you down the road. Investopedia <a href="https://www.investopedia.com/articles/personal-finance/021815/how-make-money-airbnb-risks-rewards.asp" title="warns" target="_blank" rel="noopener noreferrer">warns</a>:
“Risks of hosting include renting your place to rude guests, theft or damaged property, complaints from neighbors, and potential regulatory violations depending on your location.”
There’s a lot to consider before taking the leap and converting your house into a short-term rental. If you aren’t ready for the work it takes, it could be wiser to <a href="https://www.simplifyingthemarket.com/2023/01/30/where-will-you-go-if-you-sell-you-have-options/?a=256783-97401f3dc4d75220bf95779361521561" title="sell" target="_blank" rel="noopener noreferrer">sell</a> instead.
Your House May Not Be Ideal for Your Rental Goals
Not every house ends up being a profitable short-term rental either. One of the biggest factors is where your home is located. The less likely your neighborhood is to be a travel destination, the fewer requests you should expect from potential renters—and that impacts your bottom line. An article from the National Association of Realtors (NAR) <a href="https://www.nar.realtor/magazine/broker-news/network/what-your-clients-need-to-know-about-short-term-rentals" title="advises" target="_blank" rel="noopener noreferrer">advises</a>:
“When it comes to the viability of profitable STRs . . . consider factors like location, amenities, and whether the property is appealing. Most people seek STRs in locations where they vacation, so proximity to attractions is important. Likewise, the property should cater to a variety of travelers.”
It’s smart to do your homework and learn how much rentals in your area go for, how much business they get throughout the year, and how this compares to your goals.
Bottom Line
Converting your home into a short-term rental isn’t a decision you should make without doing your research. To decide if selling your house is a better alternative, let’s connect today.
2023-03-01T08:00:00-07:002023-02-09T09:00:18-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:11735Where Will You Go If You Sell? You Have Options In ConnecticutWhere Will You Go If You Sell? You Have Options In Connecticut
<img width="750" height="410" src="https://files.mykcm.com/2023/01/26201733/where-will-you-go-if-you-sell-you-have-options-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="Where Will You Go If You Sell? You Have Options. | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2023/01/26201733/where-will-you-go-if-you-sell-you-have-options-KCM.jpg 750w, https://files.mykcm.com/2023/01/26201733/where-will-you-go-if-you-sell-you-have-options-KCM-600x328.jpg 600w, https://files.mykcm.com/2023/01/26201733/where-will-you-go-if-you-sell-you-have-options-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
There are plenty of good reasons you might be ready to move. No matter <a href="https://www.simplifyingthemarket.com/2023/01/02/what-are-your-goals-in-the-housing-market-this-year/?a=256783-97401f3dc4d75220bf95779361521561" title="your motivations" target="_blank" rel="noopener noreferrer">your motivations</a>, before you list your current house, you need to consider where you’ll go next.
In today’s <a href="https://www.simplifyingthemarket.com/2022/12/13/ready-to-sell-todays-housing-supply-gives-you-two-opportunities/?a=256783-97401f3dc4d75220bf95779361521561" title="market" target="_blank" rel="noopener noreferrer">market</a>, it makes sense to explore all your options. That includes both homes that have been lived in before as well as newly built ones. To help you decide which is right for you, let’s compare the benefits of each. Regardless of which option you choose to explore, working with a trusted real estate professional throughout the process is essential.
The Benefits of Newly Built Homes
First, let’s look at the benefits of purchasing a newly constructed home. With a brand-new house, you’ll be able to:
1. Build your dream home
If you build a home from the ground up, you’ll have the option to select the custom features you want, including appliances, finishes, landscaping, layout, and more. Bankrate puts it like <a href="https://www.bankrate.com/mortgages/build-or-buy-a-house/#building" title="this" target="_blank" rel="noopener noreferrer">this</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. You also won’t be limited to a specific location or neighborhood.”<br />
2. Take advantage of builder concessions
In today’s market, a lot of home builders are working hard to sell their current inventory before they add more to their mix. That means many of them are <a href="https://www.realtor.com/advice/buy/what-are-builder-incentives-deals-on-new-construction/" title="offering concessions" target="_blank" rel="noopener noreferrer">offering concessions</a> and are more willing to negotiate with buyers. That could work to your advantage in the process.
3. Minimize home repairs
Many builders offer a warranty, so you’ll have peace of mind on unlikely repairs. Plus, you won’t have as many little improvement projects to tackle. As realtor.com <a href="https://www.realtor.com/advice/buy/purchasing-new-construction-for-first-time-homebuyers/" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“. . . if something goes wrong with your new home, not only are there likely some manufacturer warranties in place, but many builders also include additional home warranties . . .”
4. Take advantage of energy efficiency
When building a home, you can choose brand-new, energy-efficient options to help lower your utility costs, protect the environment, and reduce your carbon footprint.
The Benefits of Existing Homes
Now, let’s compare those to the perks that come with buying an existing home. With a pre-existing home, you can:
1. Explore a wider variety of home styles and floorplans
With decades of homes to choose from, you’ll have a broader range of floorplans and designs available.
2. Appreciate that lived-in charm
The character of older homes is hard to reproduce. If you value timeless craftsmanship or design elements, you may prefer an existing home.
3. Join an established neighborhood
Existing homes give you the option to get to know the neighborhood, community, or traffic patterns before you commit. Plus, they have more developed landscaping and trees, which can give you additional privacy and curb appeal.
4. Move in faster
If you have a short timeframe to move or you just don’t want the process to take several months while your home is under construction, buying an existing home might make sense for you. U.S. News <a href="https://realestate.usnews.com/real-estate/articles/should-you-buy-a-new-build-or-previously-owned-home" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“When you’re choosing a home, existing or new, you should also consider how long it might take to move into that home. Just because you have a contract doesn’t mean that your new home will be completed (or even started) at the time you agree to the purchase. It can be a struggle waiting for the walls to go up as you wonder what your home will become.”
When thinking about where you’ll go after you <a href="https://www.simplifyingthemarket.com/2023/01/05/3-best-practices-for-selling-your-house-this-year/?a=256783-97401f3dc4d75220bf95779361521561" title="sell your house" target="_blank" rel="noopener noreferrer">sell your house</a>, remember your options. As you start your search, think about what’s most important to you. By working with a trusted <a href="https://www.simplifyingthemarket.com/2022/12/29/planning-to-sell-your-house-its-critical-to-hire-a-pro/?a=256783-97401f3dc4d75220bf95779361521561" title="real estate agent" target="_blank" rel="noopener noreferrer">real estate agent</a>, you can be confident you’re making the most educated, informed decision.
Bottom Line
If you have questions about the options in our area, let’s discuss what's available and what's right for you, so you’re ready to make your next move with confidence.
2023-02-27T08:00:00-07:002023-02-03T14:10:58-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:117055 Modern Details to Update Your Traditional Living Room In Connecticut5 Modern Details to Update Your Traditional Living Room In Connecticut
The New Year is here and as soon as the holiday decorations are stored, it's time to revive the living room space. New Year, new beginnings; your home is ready for an update just like you! Fortunately, you can get a fresh look for your living room without major changes or breaking the bank. Here are 5 cool modern accents you can use to update your living room this weekend.
1. Hyperrealism Art - This art mimics traditional realistic photography or art, but is designed to evoke an emotion rather than just recreate the scene. Emotional pieces of any kid provide a unique focus to the room.
2. Modern Account Chair - An accent piece of furniture such as a chair or table, can immediately add depth to the room. It can be a unique shape or texture; anything that breaks with the overall style of the room.
3. Modern Art Deécor - Pillows and vases are a simple way to update a room. Consider adding a low sleek vase for a single rose or perhaps a knot-shaped pillow on the floor by the fireplace.
4. Curves - Soft curved lines are gaining popularity. Gone are the sleek, harsh lines of the past few years. Add a simple round mirror to a corner wall to not only add softness but a mirror expands the area and reflects light brightening the room.
5. Extra-Large Lighting - Design magazines are featuring giant, oversized paper lanterns. These can be colorful and boho or soft colored and subtle but a fun and inexpensive way to add a quick update to a traditional living area.
Whatever you decide, these are endless ways to create a more eclectic living room while giving your home a boost this season.2023-02-24T13:03:00-07:002023-02-01T13:51:58-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:116496 Factors That Could Damage Your Credit Score 6 Factors That Could Damage Your Credit Score In Connecticut
Having good credit is essential for a number of aspects of your life, ranging form the interest rate on a car loan or credit card to background checks for employment. Poor credit can be incredibly expensive, costing you thousands of dollars in higher interest rates over the course of a home loan. Fortunately, with proper care and attention paid to your finances, it is possible to maintain a good credit rating.
Here are six factors that could damage your credit score:
1. Not paying your bills on time - Bills not paid within 30 days can be reported to the credit bureaus.
2. Utilizing all of your available credit cards - It is important to not max out your credit cards without a plan to pay them off.
3. Not having a diverse mix of credit - Having different types of credit, such as car loans and revolving credit could help improve your score.
4. Applying for too much credit - Multiple applications for credit in a short period of time can be a bad sign.
5. Not using credit at all - You must show that you can responsibly use and manage credit in order to maintain a good score.
6. Closing credit cards - Keeping long-term accounts open is important, as closing them removes the positive history from your report.
Good credit is essential essential when searching for a new home or home loan. Having a good credit score can make the difference between having your loan accepted and being declined. Poor credit is preventable if you pay attention to the above mentioned criteria, so be sure to stay on top of your finances to ensure success.2023-02-23T08:00:00-07:002023-01-27T13:06:00-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:11639Seller Concessions Limts In ConnecticutSeller Concession Limitis In Connecticut
The real estate market is shifting. In some areas of the country, it has flipped to a strong buyer's market. Sellers challenged by this change are looking for creative ways to attract buyers. In addition, buyers suddenly in the driver's seat are asking for more concessions from sellers than ever before.
Seller concessions are a useful tool in real estate. Used correctly, it can benefit both buyer and seller. For example, concessions can be offered in lieu of seller repairs or upgrades, saving out of pocket cash in an uncertain market. Buyers can also benefit from "financing" some of their own out-of-pocket costs for specified fees and chargers.
However, there are limits to what the lender will accept for seller concessions and understanding this ahead of time can save time and frustration. Here is a snapshot of the most common loan types and possibly allowed (always check with your lender)
Conventional (Fannie Mae/Freddie Mac):
25% down payment - 9% concessions
10-25% down payment - 6% concessions
<10% down payment -3% concessions
FHA :
6% maximum concessions
VA:
4% closing costs concession
USDA:
USDA allows the seller to pay all the closing costs and prepaid for the buyer with no percentage limit. Other restrictions and considerations apply, so speak with your lender.
Seller concessions are a great way to save cash on both sides. Used properly, it can be a great tool to put real estate transactions together in a challenging market.2023-02-23T08:00:00-07:002023-01-26T14:55:59-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:11638Why It Makes Sense To Move Before Spring In ConnecticutWhy It Makes Sense To Move Before Spring In Connecticut
<img width="750" height="410" src="https://files.mykcm.com/2023/01/25112149/why-it-makes-sense-to-move-before-spring-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="Why It Makes Sense To Move Before Spring | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2023/01/25112149/why-it-makes-sense-to-move-before-spring-KCM.jpg 750w, https://files.mykcm.com/2023/01/25112149/why-it-makes-sense-to-move-before-spring-KCM-600x328.jpg 600w, https://files.mykcm.com/2023/01/25112149/why-it-makes-sense-to-move-before-spring-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
Spring is usually the busiest season in the housing market. Many buyers wait until then to make their move, believing it’s the best time to find a home. However, that isn’t always the case when you factor in the competition you could face with other buyers at that time of year. If you’re ready to buy a home, here’s why it makes sense to move before the spring market picks up.
Spring Should Bring a Wave of Buyers to the Market
In most years, the housing market goes through predictable seasonal trends in activity. Winter is typically a quiet point in the year, while spring sees a surge of buyers begin their search. And experts project that this year will be no exception.
Right now, buyer demand is low due to a combination of normal seasonal trends and a reaction to last year’s rise in mortgage rates. But rates have started to come down since last November, which has more and more potential buyers planning to jump into the market. That means right now is a sweet spot if you’re in a good position to buy, before more buyers reappear. Affordability is beginning to improve, but demand is still low — for now. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), <a href="https://www.housingwire.com/articles/existing-home-sales-ended-the-year-with-a-whimper-in-2022/" title="shares" target="_blank" rel="noopener noreferrer">shares</a>:
“. . . expect sales to pick up again soon since mortgage rates have markedly declined after peaking late last year.”
If you’re ready to buy a home, right now is the best time to do so before your competition grows and more buyers enter the market.
Today’s Sellers Are Motivated
Low demand from buyers often means sellers are more motivated to work with you, and that can set you up to buy a home on your terms. In fact, sellers have been more willing to <a href="https://www.simplifyingthemarket.com/2022/12/14/you-may-have-more-negotiation-power-when-you-buy-a-home-today/?a=256783-97401f3dc4d75220bf95779361521561" title="negotiate" target="_blank" rel="noopener noreferrer">negotiate</a> this winter because there are fewer buyers in the market. According to a recent article from <a href="https://www.forbes.com/sites/brendarichardson/2023/01/05/a-record-share-of-home-sellers-gave-concessions-to-buyers-in-the-4th-quarter/?sh=58dc6ba3fbee" title="Forbes" target="_blank" rel="noopener noreferrer">Forbes</a>:
“. . . sellers gave concessions to buyers in 41.9% of home sales in the fourth quarter of last year.”
But keep in mind, the advantages buyers have this winter won’t last forever. The competition you face could be greater if you wait until spring to make a move, and increased buyer demand means sellers will have less motivation to negotiate with you. Be sure to work with a trusted real estate professional to learn what you can expect in your local market right now.
Bottom Line
If you’re in a good position to make a move, it may make sense to move before spring. Working with your team of expert real estate advisors is the best way to learn about the current market and what it means for you. Let’s connect today to determine the best plan to achieve your homebuying goals.
2023-02-22T08:00:00-07:002023-01-26T13:04:16-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:11637Why You Shouldn't Fear Today's Foreclosure Headlines In ConnecticutWhy You Shouldn’t Fear Today’s Foreclosure Headlines In Connecticut
<img width="750" height="410" src="https://files.mykcm.com/2023/01/24115337/why-you-shouldnt-fear-todays-foreclosure-headlines-kcm.jpg" class="attachment-entry size-entry wp-post-image" alt="Why You Shouldn’t Fear Today’s Foreclosure Headlines | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2023/01/24115337/why-you-shouldnt-fear-todays-foreclosure-headlines-kcm.jpg 750w, https://files.mykcm.com/2023/01/24115337/why-you-shouldnt-fear-todays-foreclosure-headlines-kcm-600x328.jpg 600w, https://files.mykcm.com/2023/01/24115337/why-you-shouldnt-fear-todays-foreclosure-headlines-kcm-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
If you’ve seen recent headlines about foreclosures surging in the housing market, you’re certainly not alone. There’s no doubt, the <a href="https://www.simplifyingthemarket.com/2023/01/10/the-truth-about-negative-home-equity-headlines/?a=256783-97401f3dc4d75220bf95779361521561" title="stories" target="_blank" rel="noopener noreferrer">stories</a> in the media can be pretty confusing right now. They may even make you think twice about buying a home for fear that prices could crash. The reality is, the data shows a foreclosure crisis is not where the market is headed, and understanding what that really means is mission critical if you want to know the truth about what’s <a href="https://www.simplifyingthemarket.com/2023/01/11/todays-housing-market-is-nothing-like-15-years-ago/?a=256783-97401f3dc4d75220bf95779361521561" title="happening today" target="_blank" rel="noopener noreferrer">happening today</a>. Here’s a deeper look.
According to the <a href="https://www.attomdata.com/news/market-trends/foreclosures/attom-year-end-2022-u-s-foreclosure-market-report/" title="Year-End 2022 U.S. Foreclosure Market Report" target="_blank" rel="noopener noreferrer">Year-End 2022 U.S. Foreclosure Market Report</a> from ATTOM, foreclosure filings are up 115% from 2021, but down 34% from 2019. As media headlines grab onto this 115% increase, it’s more important than ever to put that percentage into context.
While the number of foreclosure filings did more than double last year, we need to remember why that happened and how it compares to more normal, pre-pandemic years in the market. Thanks to the forbearance program and other relief options for homeowners, foreclosure filings were down to record-low levels in 2020 and 2021, so any increase last year is — no surprise — a jump up. Rick Sharga, Executive VP of Market Intelligence at ATTOM, <a href="https://www.attomdata.com/news/market-trends/foreclosures/attom-year-end-2022-u-s-foreclosure-market-report/" title="notes" target="_blank" rel="noopener noreferrer">notes</a>:
“Eighteen months after the end of the government’s foreclosure moratorium, and with less than five percent of the 8.4 million borrowers who entered the CARES Act forbearance program remaining, foreclosure activity remains significantly lower than it was prior to the COVID-19 pandemic. It seems clear that government and mortgage industry efforts during the pandemic, coupled with a strong economy, have helped prevent millions of unnecessary foreclosures.”
Clearly, these options meant millions of homeowners could stay in their homes, allowing them to get back on their feet during a very challenging period. With home values rising at the same time, many homeowners who may have found themselves facing foreclosure under other circumstances were able to leverage their equity and sell their houses rather than face foreclosure, and that trend continues today.
And remember, as the graph below shows, foreclosures today are far below the record-high 2.9 million that were reported in 2010 when the housing market crashed.
<a href="https://files.mykcm.com/2023/01/24115339/us-foreclosure-activity-doubles-annually-but-still-below-pre-pandemic-levels-MEM.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-107043" src="https://files.mykcm.com/2023/01/24115339/us-foreclosure-activity-doubles-annually-but-still-below-pre-pandemic-levels-MEM.png" alt="Why You Shouldn’t Fear Today’s Foreclosure Headlines | MyKCM" width="600" height="450" /></a>
So, while foreclosures are rising, keeping perspective in mind is key. As Bill McBride, Founder and Author of Calculated Risk, <a href="https://calculatedrisk.substack.com/p/the-housing-bubble-and-mortgage-debt-76d" title="noted" target="_blank" rel="noopener noreferrer">noted</a> just last week:
“The bottom line is there will be an increase in foreclosures over the next year (from record low levels), but there will not be a huge wave of distressed sales as happened following the housing bubble. The distressed sales during the housing bust led to cascading price declines, and that will not happen this time.”
Bottom Line<br />
Right now, putting the data into context is more important than ever. While the housing market is experiencing an expected rise in foreclosures, it’s nowhere near the crisis levels seen when the housing bubble burst, and that won’t lead to a crash in <a href="https://www.simplifyingthemarket.com/2023/01/20/whats-really-happening-with-home-prices-infographic/?a=256783-97401f3dc4d75220bf95779361521561" title="home prices" target="_blank" rel="noopener noreferrer">home prices</a>.
2023-02-21T08:00:00-07:002023-01-26T12:27:14-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:11601What Does "Clear to Close" Mean In Connecticut?What Does "Clear to Close" Mean In Connecticut?
One of the best things a homebuyer can hear is. "we have 'clear to close.'" It's one of the biggest milestones in the mortgage lending process and means the underwriter has cleared the application to move forward to document signing and close of escrow. While a critical stage for the sale, this is not the final step in closing on a new home. There are several things that can still affect the transfer of title.
After the underwriter clears the file, the buyer will receive the closing disclosure. This is provided at least 3 days before the closing date and provides the final fees and costs. There shouldn't be any surprises in the document, but the buyer must review and make sure the terms are acceptable. The close date will also be finalized at this time. Any discrepancy in the terms of the document and buyer's expectations can still throw a wrench in the closing.
Another step after "clear to close'' is the final property walk-through. The buyers and their agent will walk through the home and make sure that the condition is the same as it was at the time of offer. They will also check for any agreed upon repairs. Finally many lenders perform one more credit check and job verification on the day of close. Any change can prevent the loan from closing.
Typically, after a "clear to close" is issued, you can expect to close 4-7 days later. Understanding the steps to close will prevent misunderstandings and help buyers plan their move accordingly.2023-02-15T08:00:00-07:002023-01-24T11:05:51-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:115896 Side Hustles To Help Save Fpr A Down Payment In Connecticut6 Side Hustles To Help Save For A Down Payment In Connecticut
One of the biggest financial goals for many is to save up enough money for a down payment on a house. For those who don't have access to family wealth or are having trouble scraping together the funds side hustles that can help you quickly and easily save for a down payment.
1. Freelance Writing: If you have a way with words, freelance writing is a great route to go. You can get paid for creating content or copywriting for companies and websites around the world. With some time and effort, you could easily make enough money for your down payment in no time.
2. Tutoring: If you're knowledgeable in a particular subject or schoolwork , tutoring can be an excellent side hustle. Parents are always looking for help when it comes to their kid's education sessions and connect with students all over the world.
3. Pet Sitting: If you love animals then pet sitting can be an ideal side hustle for you. It's a great way to make money while at the same time caring for furry friends. You can charge an hourly rate or choose to do overnight stays and get paid for a flat fee.
4. Rent Out Your Home: If you live in a desirable city or area, you can rent out your home when you're not there and make some serious cash. It's an easy way to make money while also having the security of knowing that you are taking care of your place when you're away.
5. Virtual Assistant: If you have great organizational skills, then virtual assistant jobs can be a great way to make money on the side. Companies and individuals are always looking for help with their administrative tasks and there is no shortage of work available online.
6. Ride Sharing: If you're a safe driver, then ride sharing is a great side hustle for you. You can make money by picking up and dropping off passengers to their destinations and get paid per trip. It's an easy way to make some extra cash with very little effort.
These are just six of the many side hustles that you can use to save for a down payment. With so many options available, you can easily find the one that works best for you and start earning money towards your goal of owning your own home. With some dedication and hard work, you'll be able to make your dream of homeownership come true in no time.2023-02-14T08:00:00-07:002023-01-23T12:17:37-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:11571Pre-Approval in 2023: What You Need To Know In ConnecticutPre-Approval in 2023: What You Need To Know In Connecticut
<img width="750" height="410" src="https://files.mykcm.com/2023/01/18114845/pre-approval-in-2023-what-you-need-to-know-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="Pre-Approval in 2023: What You Need To Know | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2023/01/18114845/pre-approval-in-2023-what-you-need-to-know-KCM.jpg 750w, https://files.mykcm.com/2023/01/18114845/pre-approval-in-2023-what-you-need-to-know-KCM-600x328.jpg 600w, https://files.mykcm.com/2023/01/18114845/pre-approval-in-2023-what-you-need-to-know-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
One of the first steps in your <a href="https://www.simplifyingthemarket.com/2023/01/06/tips-to-reach-your-homebuying-goals-in-2023-infographic/?a=256783-97401f3dc4d75220bf95779361521561" title="homebuying journey" target="_blank" rel="noopener noreferrer">homebuying journey</a> is getting pre-approved. To understand why it’s such an important step, you need to understand what <a href="https://www.simplifyingthemarket.com/2022/12/26/financial-fundamentals-for-first-time-homebuyers/?a=256783-97401f3dc4d75220bf95779361521561" title="pre-approval" target="_blank" rel="noopener noreferrer">pre-approval</a> is and what it does for you. Business Insider <a href="https://www.businessinsider.com/personal-finance/mortgage-preapproval" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“In a preapproval [sic], the lender tells you which types of loans you may be eligible to take out, how much you may be approved to borrow, and what your rate could be.”
Basically, pre-approval gives you critical information about the homebuying process that’ll help you understand your options and what you may be able to borrow.
How does it work? As part of the pre-approval process, a lender will look 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. That can make it easier when you set out to search for homes because you’ll know your overall numbers. And with higher <a href="https://www.simplifyingthemarket.com/2023/01/17/think-twice-before-waiting-for-3-mortgage-rates/?a=256783-97401f3dc4d75220bf95779361521561" title="mortgage rates" target="_blank" rel="noopener noreferrer">mortgage rates</a> 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
Another added benefit is pre-approval can help a seller feel more confident in your offer because it shows you’re serious about buying their house. A recent article from Forbes <a href="https://www.forbes.com/advisor/mortgages/what-it-takes-to-be-preapproved-for-a-mortgage-and-why-it-matters/" title="notes" target="_blank" rel="noopener noreferrer">notes</a>:
“From the seller’s perspective, a preapproval [sic] letter from a reputable local lender often can make the difference between accepting and rejecting an offer.”
This goes to show, even though you may not face the intense bidding wars you saw if you tried to buy during the pandemic, pre-approval is still an important part of making a strong offer. In fact, Christy Bieber, Personal Finance Writer at The Motley Fool <a href="https://www.nasdaq.com/articles/this-is-the-most-important-reason-to-get-pre-approved-according-to-dave-ramsey.-but-is-he" title="explains" target="_blank" rel="noopener noreferrer">explains</a> it may be the most important part of making an offer:
“Pre-approval maximizes the chances you’ll be able to actually close the deal – and sellers want to see that.
The fact that a pre-approval gives you a better chance of getting your offer accepted is undoubtedly the most important reason to complete this step . . .”
Bottom Line
Getting pre-approved is an important first step towards buying a home. It lets you know what you can borrow and shows sellers you’re serious about purchasing their home. 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.
2023-02-13T08:00:00-07:002023-01-19T10:59:45-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:11918Why It's Easy To Fall In Love With Homeownership In ConnecticutWhy It’s Easy To Fall in Love with Homeownership In Connecticut
<img width="750" height="410" src="https://files.mykcm.com/2023/02/13103950/why-its-easy-to-fall-in-love-with-homeownership-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="Why It’s Easy To Fall in Love with Homeownership | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2023/02/13103950/why-its-easy-to-fall-in-love-with-homeownership-KCM.jpg 750w, https://files.mykcm.com/2023/02/13103950/why-its-easy-to-fall-in-love-with-homeownership-KCM-600x328.jpg 600w, https://files.mykcm.com/2023/02/13103950/why-its-easy-to-fall-in-love-with-homeownership-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
No matter how the housing market changes, there are some things about <a href="https://www.simplifyingthemarket.com/2023/01/24/the-3-factors-that-affect-home-affordability/?a=256783-97401f3dc4d75220bf95779361521561" title="owning a home" target="_blank" rel="noopener noreferrer">owning a home</a> that never change—like the personal benefits it can provide. When you own your home, you likely feel a sense of attachment because of the comfort it gives and also because it’s a space that’s truly yours.
Over the last few years, we’ve fully embraced the meaning of our homes as we spent more time than ever in them. As a result, the emotional benefits our homes provide have become even more important to us.
As the most recent <a href="https://contentimages.o-prod.unison.com/images/press/2021-Unison-SOTAH-Report.pdf" title="State of the American Homeowner" target="_blank" rel="noopener noreferrer">State of the American Homeowner</a> from Unison puts it:
“. . . one thing has stayed the same: the home continues to be of the utmost importance and a place of security and comfort.”
The same study from Unison notes:
91% of homeowners say they feel secure, stable, or successful owning a home
64% of American homeowners say living through a pandemic has made their home more important to them than ever
It’s no surprise this study also reveals that homeowners now love their homes even more as our attachments to them have grown:
<a href="https://files.mykcm.com/2023/02/13103952/more-homeowners-are-falling-in-love-MEM.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-107429" src="https://files.mykcm.com/2023/02/13103952/more-homeowners-are-falling-in-love-MEM.png" /></a>
The National Association of Realtors (NAR) also <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-snapshot-of-race-and-home-buying-in-the-us-04-26-2022.pdf" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“In addition to tangible financial benefits, homeownership brings substantial social benefits for [households], communities, and the country as a whole.”
In other words, not only does owning a home build your <a href="https://www.simplifyingthemarket.com/2023/01/27/homeownership-builds-your-wealth-over-time-infographic/?a=256783-97401f3dc4d75220bf95779361521561" title="net worth" target="_blank" rel="noopener noreferrer">net worth</a> over time, but it also gives you and your loved ones a place to <a href="https://www.simplifyingthemarket.com/2023/02/07/how-experts-can-help-close-the-gap-in-todays-homeownership-rate/?a=256783-97401f3dc4d75220bf95779361521561" title="thrive" target="_blank" rel="noopener noreferrer">thrive</a>. And by living near people with shared experiences, homeownership helps you connect with your community and contribute meaningfully.
Bottom Line
Whether you’re thinking of buying your first home, moving up to your dream home, or downsizing to something that better fits your changing lifestyle, let me be the key to unlocking a home you can truly fall in love with.
2023-02-10T08:00:00-07:002023-02-17T10:01:05-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:11552Have Home Values Hit Bottom In ConnecticutHave Home Values Hit Bottom In Connecticut?
<img width="750" height="410" src="https://files.mykcm.com/2023/01/17142553/have-home-values-hit-bottom-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="Have Home Values Hit Bottom? | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2023/01/17142553/have-home-values-hit-bottom-KCM.jpg 750w, https://files.mykcm.com/2023/01/17142553/have-home-values-hit-bottom-KCM-600x328.jpg 600w, https://files.mykcm.com/2023/01/17142553/have-home-values-hit-bottom-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
Whether you’re already a homeowner or you’re looking to become one, the recent headlines about <a href="https://www.simplifyingthemarket.com/2022/12/12/what-every-seller-should-know-about-home-prices/?a=256783-97401f3dc4d75220bf95779361521561" title="home prices" target="_blank" rel="noopener noreferrer">home prices</a> may leave you with more questions than answers. <a href="https://www.simplifyingthemarket.com/2022/12/27/confused-about-whats-going-on-in-the-housing-market-lean-on-a-professional/?a=256783-97401f3dc4d75220bf95779361521561" title="News stories" target="_blank" rel="noopener noreferrer">News stories</a> are talking about home prices falling, and that’s raising concerns about a repeat of what happened to prices in the <a href="https://www.simplifyingthemarket.com/2023/01/11/todays-housing-market-is-nothing-like-15-years-ago/?a=256783-97401f3dc4d75220bf95779361521561" title="crash in 2008" target="_blank" rel="noopener noreferrer">crash in 2008</a>.
One of the questions that’s on many minds, based on those headlines, is: how much will home prices decline? But what you may not realize is expert <a href="https://www.simplifyingthemarket.com/2022/12/21/what-to-expect-from-the-housing-market-in-2023/?a=256783-97401f3dc4d75220bf95779361521561" title="forecasters" target="_blank" rel="noopener noreferrer">forecasters</a> aren’t calling for a free fall in prices. In fact, if you look at the latest data, there’s a case to be made that the biggest portion of month-over-month price depreciation nationally may already behind us – and even those numbers weren’t significant declines on the national level. Instead of how far will they drop, the question becomes: have home values hit bottom?
Let’s take a look at the latest data from several reputable industry sources (see chart below):
<a href="https://files.mykcm.com/2023/01/17142555/have-home-values-hit-bottom-MEM.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-106922" src="https://files.mykcm.com/2023/01/17142555/have-home-values-hit-bottom-MEM.png" alt="Have Home Values Hit Bottom? | MyKCM" width="600" height="450" /></a>
The chart above provides a look at the most recent reports from <a href="https://www.spglobal.com/spdji/en/indices/indicators/sp-corelogic-case-shiller-us-national-home-price-nsa-index/#news-research" title="Case-Shiller" target="_blank" rel="noopener noreferrer">Case-Shiller</a>, the <a href="https://www.fhfa.gov/DataTools/Downloads/Pages/House-Price-Index.aspx" title="Federal Housing Finance Agency" target="_blank" rel="noopener noreferrer">Federal Housing Finance Agency</a> (FHFA), <a href="https://www.blackknightinc.com/data-reports/" title="Black Knight" target="_blank" rel="noopener noreferrer">Black Knight</a>, and <a href="https://www.corelogic.com/intelligence/u-s-home-price-insights-december-2022/" title="CoreLogic" target="_blank" rel="noopener noreferrer">CoreLogic</a>. It shows how, on a national scale, home values have changed month-over-month since January 2022. November and December numbers have yet to come out.
Let’s focus in on what the red numbers tell us. The red numbers are the change in home values over the last four months that have been published. And if we isolate the last four months, what the data shows is, in each case, home price depreciation peaked in August.
While that doesn’t guarantee home price depreciation has hit bottom, it confirms prices aren’t in a free fall, and it may be an early signal that the worst is already behind us. As the numbers for November and December are released, data will be able to further validate this national trend.
Bottom Line
Home prices month-over-month have depreciated for the past four months on record, but there’s a strong case to be made that the worst may be behind us. If you have questions about what’s happening with home prices in our local market, let’s connect.
2023-02-10T08:00:00-07:002023-01-18T12:23:42-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:11546Think Twice Before Waiting for 3% Mortgage Rates In Connecticut Think Twice Before Waiting for 3% Mortgage Rates In Connecticut
<img width="750" height="410" src="https://files.mykcm.com/2023/01/12145408/think-twice-about-waiting-for-3-percent-mortgage-rates-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="Think Twice Before Waiting for 3% Mortgage Rates | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2023/01/12145408/think-twice-about-waiting-for-3-percent-mortgage-rates-KCM.jpg 750w, https://files.mykcm.com/2023/01/12145408/think-twice-about-waiting-for-3-percent-mortgage-rates-KCM-600x328.jpg 600w, https://files.mykcm.com/2023/01/12145408/think-twice-about-waiting-for-3-percent-mortgage-rates-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
Last year, the Federal Reserve took action to try to bring down inflation. In response to those efforts, <a href="https://www.simplifyingthemarket.com/2022/12/21/what-to-expect-from-the-housing-market-in-2023/?a=256783-97401f3dc4d75220bf95779361521561" title="mortgage rates" target="_blank" rel="noopener noreferrer">mortgage rates</a> jumped up rapidly from the record lows we saw in 2021, peaking at just over 7% <a href="https://www.freddiemac.com/pmms/archive" title="last October" target="_blank" rel="noopener noreferrer">last October</a>. Hopeful <a href="https://www.simplifyingthemarket.com/2023/01/04/avoid-the-rental-trap-in-2023/?a=256783-97401f3dc4d75220bf95779361521561" title="buyers" target="_blank" rel="noopener noreferrer">buyers</a> experienced a hit to their purchasing power as a result, and some decided to press pause on their plans.
Today, the rate of inflation is starting to drop. And as a result, mortgage rates have dipped below last year’s peak. Sam Khater, Chief Economist at Freddie Mac, <a href="https://freddiemac.gcs-web.com/news-releases/news-release-details/mortgage-rates-inch-3" title="shares" target="_blank" rel="noopener noreferrer">shares</a>:
“While mortgage market activity has significantly shrunk over the last year, inflationary pressures are easing and should lead to lower mortgage rates in 2023.”
That’s potentially great news if you’re a <a href="https://www.simplifyingthemarket.com/2023/01/02/what-are-your-goals-in-the-housing-market-this-year/?a=256783-97401f3dc4d75220bf95779361521561" title="buyer" target="_blank" rel="noopener noreferrer">buyer</a> aiming to jump back into the housing market. Any drop in mortgage rates helps boost your <a href="https://www.simplifyingthemarket.com/2022/12/19/mortgage-rates-are-dropping-what-does-that-mean-for-you/?a=256783-97401f3dc4d75220bf95779361521561" title="purchasing power" target="_blank" rel="noopener noreferrer">purchasing power</a> by bringing down your expected monthly mortgage payment. This means the lower mortgage rates <a href="https://www.simplifyingthemarket.com/2023/01/09/what-experts-are-saying-about-the-2023-housing-market/?a=256783-97401f3dc4d75220bf95779361521561" title="experts" target="_blank" rel="noopener noreferrer">experts</a> forecast <a href="https://www.simplifyingthemarket.com/2022/12/16/2023-housing-market-forecast-infographic/?a=256783-97401f3dc4d75220bf95779361521561" title="this year" target="_blank" rel="noopener noreferrer">this year</a> could be just what you need to reignite your homebuying goals.
While this opens up a window of opportunity for you, remember: you shouldn’t expect rates to drop back down to record lows like we saw in 2021. Experts agree that’s not the range buyers should bank on. Greg McBride, Chief Financial Analyst at Bankrate, <a href="https://www.bankrate.com/mortgages/mortgage-rate-forecast/#forecast" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“I think we could be surprised at how much mortgage rates pull back this year. But we’re not going back to 3 percent anytime soon, because inflation is not going back to 2 percent anytime soon.”
It’s important to have a realistic vision for what you can expect this year, and that’s where the advice of expert <a href="https://www.simplifyingthemarket.com/2022/12/27/confused-about-whats-going-on-in-the-housing-market-lean-on-a-professional/?a=256783-97401f3dc4d75220bf95779361521561" title="real estate " target="_blank" rel="noopener noreferrer">real estate </a>advisors is critical. You may be surprised by the impact even a mild drop in mortgage rates has on your budget. If you’re ready to <a href="https://www.simplifyingthemarket.com/2023/01/03/wondering-how-much-you-need-to-save-for-a-down-payment/?a=256783-97401f3dc4d75220bf95779361521561" title="buy a home" target="_blank" rel="noopener noreferrer">buy a home</a> now, today’s market presents the opportunity to get a more affordable mortgage rate, find your dream home, and face <a href="https://www.simplifyingthemarket.com/2022/12/14/you-may-have-more-negotiation-power-when-you-buy-a-home-today/?a=256783-97401f3dc4d75220bf95779361521561" title="less competition" target="_blank" rel="noopener noreferrer">less competition</a> from other buyers.
Bottom Line
The recent pullback in mortgage rates is great news – but if you’re ready to buy now, holding out for 3% is a mistake. Work with a local lender to learn how today’s rates impact your goals, and let’s connect to explore your options in our area.
2023-02-09T09:57:00-07:002023-01-18T10:53:46-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:11539What Past Recessions Tell Us About the Housing Market In ConnecticutWhat Past Recessions Tell Us About the Housing Market In Connecticut
<img width="750" height="410" src="https://files.mykcm.com/2023/01/12122450/what-past-recessions-tell-us-about-the-housing-market-in-2023-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="What Past Recessions Tell Us About the Housing Market | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2023/01/12122450/what-past-recessions-tell-us-about-the-housing-market-in-2023-KCM.jpg 750w, https://files.mykcm.com/2023/01/12122450/what-past-recessions-tell-us-about-the-housing-market-in-2023-KCM-600x328.jpg 600w, https://files.mykcm.com/2023/01/12122450/what-past-recessions-tell-us-about-the-housing-market-in-2023-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
It doesn’t matter if you’re someone who closely follows the economy or not, chances are you’ve heard whispers of an upcoming recession. Economic conditions are determined by a broad range of factors, so rather than explaining them each in depth, let’s lean on the experts and what history tells us to see what could lie ahead. As Greg McBride, Chief Financial Analyst at Bankrate, <a href="https://www.bankrate.com/investing/stock-market-outlook-2023/" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“Two-in-three economists are forecasting a recession in 2023 . . .”
As talk about a potential recession grows, you may be wondering what a recession could mean for the housing market. Here’s a look at the historical data to show what happened in real estate during previous recessions to help prove why you shouldn’t be afraid of what a recession could mean for the <a href="https://www.simplifyingthemarket.com/2022/12/27/confused-about-whats-going-on-in-the-housing-market-lean-on-a-professional/?a=256783-97401f3dc4d75220bf95779361521561" title="housing market" target="_blank" rel="noopener noreferrer">housing market</a> today.
A Recession Doesn’t Mean Falling Home Prices
To show that home prices don’t fall every time there’s a <a href="https://www.corelogic.com/blog/2019/03/housing-recessions-and-recoveries.aspx" title="recession" target="_blank" rel="noopener noreferrer">recession</a>, it helps to turn to <a href="https://www.thebalance.com/the-history-of-recessions-in-the-united-states-3306011" title="historical data" target="_blank" rel="noopener noreferrer">historical data</a>. As the graph below illustrates, looking at recessions going all the way back to 1980, <a href="https://www.simplifyingthemarket.com/2022/12/12/what-every-seller-should-know-about-home-prices/?a=256783-97401f3dc4d75220bf95779361521561" title="home prices" target="_blank" rel="noopener noreferrer">home prices</a> 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.mykcm.com/2023/01/12122452/a-recession-does-not-mean-falling-prices-MEM.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-106878" src="https://files.mykcm.com/2023/01/12122452/a-recession-does-not-mean-falling-prices-MEM.png" alt="" width="600" height="450" /></a>
Most people remember the <a href="https://www.simplifyingthemarket.com/2023/01/11/todays-housing-market-is-nothing-like-15-years-ago/?a=256783-97401f3dc4d75220bf95779361521561" title="housing crisis" target="_blank" rel="noopener noreferrer">housing crisis</a> in 2008 (the larger of the two red bars in the graph above) and think another recession would be a repeat of what happened to housing then. But today’s housing market <a href="https://www.simplifyingthemarket.com/2022/11/30/why-there-wont-be-a-flood-of-foreclosures-coming-to-the-housing-market/?a=256783-97401f3dc4d75220bf95779361521561" title="isn’t about to crash" target="_blank" rel="noopener noreferrer">isn’t about to crash</a> because the fundamentals of the market are different than they were in 2008. According to <a href="https://www.simplifyingthemarket.com/2023/01/09/what-experts-are-saying-about-the-2023-housing-market/?a=256783-97401f3dc4d75220bf95779361521561" title="experts" target="_blank" rel="noopener noreferrer">experts</a>, home prices will vary by market and may go up or down depending on the local area. But the average of their <a href="https://www.simplifyingthemarket.com/2022/12/21/what-to-expect-from-the-housing-market-in-2023/?a=256783-97401f3dc4d75220bf95779361521561" title="2023 forecasts" target="_blank" rel="noopener noreferrer">2023 forecasts</a> shows prices will net neutral nationwide, not fall drastically like they did in 2008.
A Recession Means Falling Mortgage Rates
<a href="https://mtg-specialists.com/2022/05/11/recession-interest-rates-and-real-estate/" title="Research" target="_blank" rel="noopener noreferrer">Research</a> also helps paint the picture of how a recession could impact the cost of financing a home. As the graph below shows, historically, each time the economy slowed down, <a href="https://www.freddiemac.com/pmms/archive" title="mortgage rates" target="_blank" rel="noopener noreferrer">mortgage rates</a> decreased.
<a href="https://files.mykcm.com/2023/01/12122448/a-recession-means-falling-mortgage-rates-MEM.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-106876" src="https://files.mykcm.com/2023/01/12122448/a-recession-means-falling-mortgage-rates-MEM.png" alt="What Past Recessions Tell Us About the Housing Market in 2023 | MyKCM" width="600" height="450" /></a>
Fortune <a href="https://fortune.com/2019/06/19/next-recession-assets-mortgage-rates/" title="explains" target="_blank" rel="noopener noreferrer">explains</a> mortgage rates typically fall during an economic slowdown:
“Over the past five recessions, mortgage rates have fallen an average of 1.8 percentage points from the peak seen during the recession to the trough. And in many cases, they continued to fall after the fact as it takes some time to turn things around even when the recession is technically over.”
In <a href="https://www.simplifyingthemarket.com/2022/12/16/2023-housing-market-forecast-infographic/?a=256783-97401f3dc4d75220bf95779361521561" title="2023" target="_blank" rel="noopener noreferrer">2023</a>, market experts say mortgage rates will likely stabilize below the peak we saw last year. That’s because <a href="https://www.simplifyingthemarket.com/2022/12/19/mortgage-rates-are-dropping-what-does-that-mean-for-you/?a=256783-97401f3dc4d75220bf95779361521561" title="mortgage rates" target="_blank" rel="noopener noreferrer">mortgage rates</a> tend to respond to inflation. And early signs show inflation is starting to cool. If inflation continues to ease, rates may fall a bit more, but the days of 3% are likely behind us.
The big takeaway is you don’t need to fear the word recession when it comes to housing. In fact, experts say a recession would be mild and housing would play a key role in a quick economic rebound. As the 2022 CEO Outlook from KPMG, <a href="https://home.kpmg/xx/en/home/media/press-releases/2022/09/global-ceo-short-recession-optimistic-global-economy-over-3-years.html" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“Global CEOs see a ‘mild and short’ recession, yet optimistic about global economy over 3-year horizon . . .
More than 8 out of 10 anticipate a recession over the next 12 months, with more than half expecting it to be mild and short.”
Bottom Line
While history doesn’t always repeat itself, we can learn from the past. According to historical data, in most recessions, home values have appreciated and mortgage rates have declined.
If you’re thinking about buying or selling a home this year, let’s connect so you have expert advice on what’s happening in the housing market and what that means for your homeownership goals.
2023-02-08T08:00:00-07:002023-01-17T14:06:12-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:11519Is It Time To Sell Your Second Home In Connecticut?Is It Time To Sell Your Second Home In Connecticut
<img width="750" height="410" src="https://files.mykcm.com/2023/01/11104936/is-it-time-to-sell-your-second-home-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="Is It Time To Sell Your Second Home? | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2023/01/11104936/is-it-time-to-sell-your-second-home-KCM.jpg 750w, https://files.mykcm.com/2023/01/11104936/is-it-time-to-sell-your-second-home-KCM-600x328.jpg 600w, https://files.mykcm.com/2023/01/11104936/is-it-time-to-sell-your-second-home-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
During the pandemic, second homes became popular because of the rise in work-from-home flexibility. That’s because owning a second home, especially in the luxury market, allowed those homeowners to spend more time in their favorite places or with different home features. Keep in mind, a luxury home isn’t only defined by price. In a <a href="https://www.investopedia.com/articles/personal-finance/092414/investing-luxury-real-estate.asp" title="recent article" target="_blank" rel="noopener noreferrer">recent article</a>, Investopedia shares additional factors that push a home into this category: location, such as a home on the water or in a desirable city, and features, the things that make the home itself feel luxurious.
A recent report from the Institute for Luxury Home Marketing (ILHM) <a href="https://issuu.com/realmarketing/docs/_ilhm_-_luxury_report_northamerica_nov2022" title="explains" target="_blank" rel="noopener noreferrer">explains</a> just how much remote work impacted the demand for second and luxury homes:
“The unprecedented ten-fold increase towards remote work since the pandemic is an historic development that will continue to fuel second home demand for many years to come.”
But what if you bought a second home that you no longer use? If you’re now shifting back into the office or are seeing your priorities and needs change, you may find you’re not utilizing your second home as much. If so, it may be time to <a href="https://www.simplifyingthemarket.com/2023/01/05/3-best-practices-for-selling-your-house-this-year/?a=256783-97401f3dc4d75220bf95779361521561" title="sell it" target="_blank" rel="noopener noreferrer">sell it</a>.
And if you own what’s considered a luxury home, buyer demand for it may be even greater. In another report, the Institute for Luxury Home Marketing <a href="https://issuu.com/realmarketing/docs/_ilhm_-_luxury_report_northamerica_dd23a270bcdf6f" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“. . . the last few years have left their legacy for the luxury market. While it might only represent a small percentage of the overall real estate market, luxury homeownership’s influence is growing. Not only has the purchase of homes valued over $1 million (a figure considered by the National Association of Realtors to be a benchmark for luxury) tripled from 2.6% to 6.5% since 2018, but demand for multiple luxury properties has soared over the last two years.
This phenomenal increase has been driven by a growing affluent demographic who consider owning a luxury property a necessity in their asset portfolio. All indications are that this trend is here to stay, albeit that demand is set to return to a more sustainable level.”
If you own a luxury second home that isn’t being used as much anymore, now’s the time to sell. There are still buyers in the market who are looking for a home like yours today.
Bottom Line
Let’s connect to explore the benefits of selling your second home this year.
2023-02-07T08:00:00-07:002023-01-13T13:54:25-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:11420Buying a New Constrction Home? A Few Tips To Avoid Panic In ConnecticutBuying a New Construction Home? A Few Tips To Avoid Panic In Connecticut
A brand-new home! Who hasn't dreamed of creating the perfect home from scratch and moving into a space that no one has ever lived in before. There's something special about a fresh home, but remember, new doesn't mean perfect. And it certainly does not mean that there won't be imperfections small or large to contend with.
One of the most important things to understand up front is what does your warranty cover? A builders warranty covers typical defects and other problems but the fine print outlines timelines, procedures and limitations. A thorough reading prior to closing will clarify how to handle any issues that arise when you move in.
When you are ready to move in your checklist will differ from a typical resale home. First always have an independent home inspection, just as you would if you purchased a used home. Alert the builder immediately of anything that the inspection uncovers. During the final walk-through, you will also want to make sure the home was completed correctly: are the light switches level, are the floors even, is the paint free from the nicks and scratches? You are buying a new home and it should look new.
Buying a new home is exciting. The good news is that most issues are minor and can be quickly corrected by the builder or home warranty company when discoverd. No need to panic when imperfections show up.2023-01-27T10:28:00-07:002023-01-04T12:22:15-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:11414Wondering How Much You Need To Save for a Down Payment In ConnecticutWondering How Much You Need To Save for a Down Payment In Connecticut
<img width="750" height="410" src="https://files.mykcm.com/2022/12/22134046/wondering-how-much-you-need-to-save-for-a-down-payment-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="Wondering How Much You Need To Save for a Down Payment? | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/12/22134046/wondering-how-much-you-need-to-save-for-a-down-payment-KCM.jpg 750w, https://files.mykcm.com/2022/12/22134046/wondering-how-much-you-need-to-save-for-a-down-payment-KCM-600x328.jpg 600w, https://files.mykcm.com/2022/12/22134046/wondering-how-much-you-need-to-save-for-a-down-payment-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
If you’re getting ready to buy your first home, you’re likely focused on saving up for everything that purchase involves. One cost that’s likely top of mind is your down payment. But don't let a common misconception about how much you need to save make the process harder than it could be.
Understand 20% Isn’t Always the Typical Down Payment
Freddie Mac <a href="https://myhome.freddiemac.com/buying/down-payments-and-pmi" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“. . . nearly a third of prospective homebuyers think they need a down payment of 20% or more to buy a home. This myth remains one of the largest perceived barriers to achieving homeownership.”
Unless specified by your loan type or lender, it’s typically not required to put 20% down. This means you could be closer to your homebuying dream than you realize. According to the <a href="https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers" title="National Association of Realtors" target="_blank" rel="noopener noreferrer">National Association of Realtors</a> (NAR), the median down payment hasn’t been over 20% since 2005. In fact, the median down payment today is only 14%. And it’s even lower for first-time homebuyers at just 6% (see graph below):
<a href="https://files.mykcm.com/2022/12/22134044/todays-median-down-payment-is-less-than-20-percent-MEM.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-106555" src="https://files.mykcm.com/2022/12/22134044/todays-median-down-payment-is-less-than-20-percent-MEM.png" alt="Wondering How Much You Need To Save for a Down Payment? | MyKCM" width="600" height="450" /></a>
Learn About Options That Can Help You Toward Your Goal
If saving for a down payment still feels like a challenge, know that there’s help available. A real estate professional and trusted lender can show you options that could help you get closer to your down payment goal. According to latest <a href="https://downpaymentresource.com/professional-resource/homebuyer-assistance-programs-proliferate-in-q3-as-median-u-s-down-payment-skyrockets/" title="Homeownership Program Index" target="_blank" rel="noopener noreferrer">Homeownership Program Index</a> from Down Payment Resource, there are over 2,000 homebuyer assistance programs in the U.S., and the majority are intended to help with down payments.
Plus there are even loan types, like <a href="https://www.hud.gov/buying/loans" title="FHA loans" target="_blank" rel="noopener noreferrer">FHA loans</a>, with down payments as low as 3.5%, as well as options like <a href="https://www.simplifyingthemarket.com/2022/11/10/va-loans-can-help-veterans-achieve-their-dream-of-homeownership/?a=256783-97401f3dc4d75220bf95779361521561" title="VA loans" target="_blank" rel="noopener noreferrer">VA loans</a> and USDA loans with no down payment requirements for qualified applicants.
To understand your options, be sure to do your homework. If you’re interested in learning more about down payment assistance programs, information is available through sites like <a href="http://www.downpaymentresource.com/" title="Down Payment Resource" target="_blank" rel="noopener noreferrer">Down Payment Resource</a>. Then, partner with a trusted lender to learn what you qualify for on your homebuying journey.
Bottom Line
Remember, a 20% down payment isn’t always required. If you want to purchase a home this year, let’s connect. You’ll also want to make sure you have a trusted lender so you can explore your down payment options.
2023-01-26T08:00:00-07:002023-01-04T09:14:57-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:11362Planning To Sell Your House? It's Critical To Hire a Pro In ConnecticutPlanning To Sell Your House? It’s Critical To Hire a Pro In Connecticut
<img width="750" height="410" src="https://files.mykcm.com/2022/12/21071208/planning-to-sell-your-house-its-critical-to-hire-a-pro-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="Planning To Sell Your House? It’s Critical To Hire a Pro | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/12/21071208/planning-to-sell-your-house-its-critical-to-hire-a-pro-KCM.jpg 750w, https://files.mykcm.com/2022/12/21071208/planning-to-sell-your-house-its-critical-to-hire-a-pro-KCM-600x328.jpg 600w, https://files.mykcm.com/2022/12/21071208/planning-to-sell-your-house-its-critical-to-hire-a-pro-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
With higher mortgage rates and moderating buyer demand, conditions in the housing market are different <a href="https://www.simplifyingthemarket.com/2022/12/21/what-to-expect-from-the-housing-market-in-2023/?a=256783-97401f3dc4d75220bf95779361521561" title="today" target="_blank" rel="noopener noreferrer">today</a>. And if you’re thinking of <a href="https://www.simplifyingthemarket.com/2022/11/22/what-homeowners-want-to-know-about-selling-in-todays-market/?a=256783-97401f3dc4d75220bf95779361521561" title="selling your house" target="_blank" rel="noopener noreferrer">selling your house</a>, it’s important to understand how the market has changed and what that means for you. The best way to make sure you’re in the know is to work with a trusted housing market expert.
Here are five reasons working with a professional can ensure you’ll get the most out of your sale.
1. A Real Estate Advisor Is an Expert on Market Trends
Leslie Rouda Smith, 2022 President of the National Association of Realtors (NAR), <a href="https://www.nar.realtor/newsroom/nar-finds-share-of-first-time-home-buyers-smaller-older-than-ever-before" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
"During challenging and changing market conditions, one thing that's calming and constant is the assurance that comes from a Realtor® being in your corner through every step of the home transaction. Consumers can rely on Realtors®' unmatched work ethic, trusted guidance and objectivity to help manage the complexities associated with the home buying and selling process.”
An expert real estate advisor has the latest information about national trends and your local area too. More importantly, they’ll know what all of this means for you so they’ll be able to help you make a decision based on trustworthy, data-bound information.
2. A Local Professional Knows How To Set the Right Price for Your House
<a href="https://www.simplifyingthemarket.com/2022/12/06/whats-going-on-with-home-prices-ask-a-professional/?a=256783-97401f3dc4d75220bf95779361521561" title="Home price appreciation" target="_blank" rel="noopener noreferrer">Home price appreciation</a> has moderated this year. If you sell your house on your own, you may be more likely to overshoot your asking price because you’re not as aware of where prices are today. If you do, you run the risk of deterring buyers or seeing your house sit on the market for longer.
Real estate professionals provide an unbiased eye when they help you determine a price for your house. They’ll use a variety of factors, like the condition of your home and any upgrades you’ve made, and compare your house to recently sold homes in your area to find the best price for today’s market. These steps are key to making sure it’s set to move as quickly as possible.
3. A Real Estate Advisor Helps Maximize Your Pool of Buyers
Since buyer demand has cooled this year, you'll want to do what you can to help bring in more buyers. Real estate professionals have a large variety of tools at their disposal, such as social media followers, agency resources, and the Multiple Listing Service (MLS) to ensure your house gets in front of people looking to make a purchase. Investopedia <a href="https://www.investopedia.com/articles/personal-finance/071514/8-reasons-not-sell-your-home-without-agent.asp#toc-4-agents-access-large-networks" title="explains" target="_blank" rel="noopener noreferrer">explains</a> why it’s risky to sell on your own without the network an agent provides:
“You don’t have relationships with clients, other agents, or a real estate agency to bring the largest pool of potential buyers to your home.”
Without access to the tools and your agent’s marketing expertise, your buyer pool – and your home’s selling potential – is limited.
4. A Real Estate Expert Will Read – and Understand – the Fine Print
Today, more disclosures and regulations are mandatory when selling a house. That means the number of legal documents you’ll need to juggle is growing. NAR <a href="https://www.nar.realtor/magazine/tools/client-education/handouts-for-sellers/8-reasons-to-work-with-a-realtor" title="explains" target="_blank" rel="noopener noreferrer">explains</a> it like this:
“Selling a home typically requires a variety of forms, reports, disclosures, and other legal and financial documents. . . . Also, there’s a lot of jargon involved in a real estate transaction; you want to work with a professional who can speak the language.”
A real estate professional knows exactly what all the fine print means and how to work through it efficiently. They’ll help you review the documents and avoid any costly missteps that could occur if you try to handle them on your own.
5. A Trusted Advisor Is a Skilled Negotiator
In today’s market, buyers are also regaining some negotiation power as bidding wars ease. If you sell without a professional, you’ll also be responsible for any back-and-forth. That means you’ll have to coordinate with:
The buyer, who wants the best deal possible
The buyer’s agent, who will use their expertise to advocate for the buyer
The inspection company, which works for the buyer and will almost always find concerns with the house
The appraiser, who assesses the property’s value to protect the lender
Instead of going toe-to-toe with all the above parties alone, lean on an expert. They’ll know what levers to pull, how to address everyone’s concerns, and when you may want to get a second opinion.
Bottom Line
Don’t go at it alone. If you’re planning to sell your house this winter, let’s connect so you have an expert by your side to guide you in today’s market.
2023-01-24T08:00:00-07:002022-12-30T11:16:56-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:11361Applying For a Mortgage Here's What You Should Avoid Applying For a Mortgage? Here’s What You Should Avoid Once You Do In Connecticut
<img width="750" height="410" src="https://files.mykcm.com/2022/12/20165229/applying-for-a-mortgage-heres-what-you-should-avoid-once-you-do-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="Applying For a Mortgage? Here’s What You Should Avoid Once You Do. | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/12/20165229/applying-for-a-mortgage-heres-what-you-should-avoid-once-you-do-KCM.jpg 750w, https://files.mykcm.com/2022/12/20165229/applying-for-a-mortgage-heres-what-you-should-avoid-once-you-do-KCM-600x328.jpg 600w, https://files.mykcm.com/2022/12/20165229/applying-for-a-mortgage-heres-what-you-should-avoid-once-you-do-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
While it’s exciting to start thinking about <a href="https://www.simplifyingthemarket.com/2022/12/05/prioritizing-your-wants-and-needs-as-a-homebuyer-in-todays-market/?a=256783-97401f3dc4d75220bf95779361521561" title="moving in" target="_blank" rel="noopener noreferrer">moving in</a> and <a href="https://www.simplifyingthemarket.com/2022/11/25/home-sweet-home-the-emotional-benefits-of-homeownership-infographic/?a=256783-97401f3dc4d75220bf95779361521561" title="decorating" target="_blank" rel="noopener noreferrer">decorating</a> after you’ve <a href="https://www.simplifyingthemarket.com/2022/10/28/applying-for-a-mortgage-doesnt-have-to-be-scary-infographic/?a=256783-97401f3dc4d75220bf95779361521561" title="applied for your mortgage" target="_blank" rel="noopener noreferrer">applied for your mortgage</a>, there are some key things to keep in mind before you close. Here’s a list of things you may not realize you need to avoid after applying for your home loan.
Don’t Deposit Large Sums of Cash
Lenders need to source your money, and cash isn’t easily traceable. Before you deposit any amount of cash into your accounts, discuss the proper way to document your transactions with your loan officer.
Don’t Make Any Large Purchases
It’s not just home-related purchases that could disqualify you from your loan. Any large purchases can be red flags for lenders. People with new debt have higher debt-to-income ratios (how much debt you have compared to your monthly income). Since higher ratios make for riskier loans, borrowers may no longer qualify for their mortgage. Resist the temptation to make any large purchases, even for furniture or appliances.
Don’t Cosign Loans for Anyone
When you cosign for a loan, you’re making yourself accountable for that loan’s success and repayment. With that obligation comes higher debt-to-income ratios as well. Even if you promise you won’t be the one making the payments, your lender will have to count the payments against you.
Don’t Switch Bank Accounts
Lenders need to source and track your assets. That task is much easier when there’s consistency among your accounts. Before you transfer any money, speak with your loan officer.
Don’t Apply for New Credit
It doesn’t matter whether it’s a new credit card or a new car, when you have your credit report run by organizations in multiple financial channels (mortgage, credit card, auto, etc.), it will have an impact on your FICO® score. Lower credit scores can determine your interest rate and possibly even your eligibility for approval.
Don’t Close Any Accounts
Many buyers believe having less available credit makes them less risky and more likely to be approved. This isn’t true. A major component of your score is your length and depth of credit history (as opposed to just your payment history) and your total usage of credit as a percentage of available credit. Closing accounts has a negative impact on both of those aspects of your score.
Do Discuss Changes with Your Lender
Be upfront about any changes that occur or you’re expecting to occur when talking with your lender. Blips in income, assets or credit should be reviewed and executed in a way that ensures your home loan can still be approved. If your job or employment status has changed recently, share that with your lender as well. Ultimately, it’s best to fully disclose and discuss your intentions with your loan officer before you do anything financial in nature.
Bottom Line
You want your home purchase to go as smoothly as possible. Remember, before you make any large purchases, move your money around, or make major life changes, be sure to consult your lender – someone who’s qualified to explain how your financial decisions may impact your home loan.
2023-01-23T08:00:00-07:002022-12-30T10:42:35-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:11342Can You Buy a Home with IRS Debt In ConnecticutCan You Buy a Home with IRS Debt In Connecticut?
Owing money to the IRS is unsettling for anyone. It's also very easy to find oneself in that position. Many people are shocked to discover that they inadvertently miscalculated the amount of taxes owed either at the end of the year or from a previous year. There are also unexpected events that can cause a tax event such as a windfall profit or inheritance.
Regardless of the cause, owing money to the IRS is no fun. If you are considering a home purchase, you may be wondering how this will affect our ability to do so.
If you owe back taxes to the IRS, most likely there is a tax lien. A tax lien is a personal lien that is attached to the person and any property they own. A tax lien takes priority over all other financial obligations including a mortgage. This puts the lender at greater risk since in the event of a default, they would only be paid after the IRS that will allow you to finance a new home. There are options but being honest with your lender is the first step so you understand your options.2023-01-20T08:00:00-07:002022-12-29T12:08:04-07:00Dave Jonestag:searchallcthomes.com,2012-09-20:11341Design Trends for 2023 - More is Everything in ConnecticutDesign Trends for 2023 - More is Everything In Connecticut
A common regret around taking down the holiday decorations is how bare the home looks suddenly. Fortunately for anyone ready to upgrade their design in 2023. new trends are offering more comfort and coziness than we've seen lately.
For the past few years home designers have created a blend of minimalism and simplicity in their home styles. This style involves removing anything from the space that is not necessary for function or lifestyle. The common phrase "does it spark joy" is a new mantra for homeowners hoping to eliminate clutter from their homes.
As the new year pproaches, this mindset has been thrown out the window. Maximalism is the new theme. Color and patterns textures, and the excess have replaced the sleek lines and neutral colors of minimalist design. Home décor trends now invite the consumer to play with bold colors and contrasting patterns and shapes. Almost anything goes.
It's important to note that this is not an invitation for clutter. A perusal of home magazines and design books emphasizing the latest "boho" style, clearly shows a method to design. The furnishings are functional and comfortable. Color palettes are curated for harmony and mood. While this is a great time to experiment to avoid creating a hodge-podge of design, thought is more important than ever.
2023 is almost here and with it a fresh approach to décor. Forget the minimalist style of the past and embrace maximalism; with all the print. color. and excitement it brings to the home. 2023-01-19T08:00:00-07:002022-12-28T13:01:24-07:00Dave Jones