“. . . the national median rent has increased by a staggering 17.8 percent. To put that in context, rent growth from January to November averaged just 2.6 percent in the pre-pandemic years from 2017-2019.”

“In 2022, we expect this trend will continue and fuel rent growth. At a national level, we forecast rent growth of 7.1% in the next 12 months, somewhat ahead of home price growth . . .”

Homeownership Provides an Alternative to Rising Rents

“. . . fast-rising rents and increasing consumer prices, may have some prospective buyers seeking the protection of a fixed, consistent mortgage payment.”

Bottom Line

“The most damaging down payment myth—since it stops the homebuying process before it can start—is the belief that 20% is necessary.”

What Does This Mean for You?

Bottom Line

1. Make the Best First Impression

• Do I need to take down my personal art?
• How much landscaping does my house need?
• What colors should I paint my walls?

2. Maximize Your Buyer Pool – and Your Sale

3. Understand the Documentation, Including the Fine Print

4. Act as Your Expert Negotiator

• 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

5. Price It Right

Bottom Line

1. Know Your Budget

“This pre-approval allows you to look for a home with greater confidence and demonstrates to the seller that you are a serious buyer.”

2. Be Ready To Move Fast

“Eighty-three percent of homes sold in November 2021 were on the market for less than a month.”

3. Lean on a Real Estate Professional

“The success of your homebuying journey largely depends on the company you keep. . . . Be sure to select experienced, trusted professionals who will help you make informed decisions and avoid any pitfalls.”

4. Make a Strong, but Fair Offer

5. Be a Flexible Negotiator

“Resist the temptation to waive the inspection contingency, especially in a hot market or if the home is being sold ‘as-is’, which means the seller won’t pay for repairs. Without an inspection contingency, you could be stuck with a contract on a house you can’t afford to fix.”

Bottom Line

1. Don’t Deposit Cash into Your Bank Accounts Before Speaking with Your Bank or Lender.

2. Don’t Make Any Large Purchases Like a New Car or Furniture for Your Home.

3. Don’t Co-Sign Other Loans for Anyone.

4. Don’t Change Bank Accounts.

5. Don’t Apply for New Credit.

6. Don’t Close Any Credit Accounts.

Bottom Line

1. Owning your home is an accomplishment worth celebrating

2. There’s no place like home

3. You can find more space to meet your needs

4. You have control over renovations, updates, and your style

Bottom Line

1. Your Interest Rate May Be Lower

2. You’ll End Up Paying Less for Your Home

3. Your Offer Will Stand Out in a Competitive Market

4. You Won’t Have To Pay Private Mortgage Insurance (PMI)

“For homeowners who put less than 20% down, Private Mortgage Insurance or PMI is an added insurance policy for homeowners that protects the lender if you are unable to pay your mortgage. It is not the same thing as homeowner's insurance. It's a monthly fee, rolled into your mortgage payment, that’s required if you make a down payment less than 20%. . . . Once you've built equity of 20% in your home, you can cancel your PMI and remove that expense from your monthly payment.”

Bottom Line

“Home price growth is the principal driver of home equity creation. The CoreLogic Home Price Index reported home prices were up 17.7% for the past 12 months ending September, spurring the record gains in home equity wealth.”

How Rising Equity Impacts You

Bottom Line

“Going forward, the conditions buyers face are primarily dependent on two things: mortgage rates and housing supply.”

Mortgage Rates Projected To Rise in 2022

More Homes Are Expected To Be Available This Season

What Does That Mean for You?

“Given the average monthly demand . . . , 3.55 million homes should be on the market to meet a level of inventory equal to six months of demand, implying a shortage of homes for sale of 2.24 million.”

Bottom Line

• What does the coming year hold for the housing market? Here’s what experts project for 2022.
• Mortgage rates are projected to rise and so are home prices. Experts are forecasting buyer demand will remain strong as people try to capitalize on rates and prices before they climb, creating another strong year for home sales.
• Let’s connect so you can make your best move in the new year.

Some Highlights

• What does the coming year hold for the housing market? Here’s what experts project for 2022.
• Mortgage rates are projected to rise and so are home prices. Experts are forecasting buyer demand will remain strong as people try to capitalize on rates and prices before they climb, creating another strong year for home sales.
• Let’s connect so you can make your best move in the new year.

Some Highlights

• What does the coming year hold for the housing market? Here’s what experts project for 2022.
• Mortgage rates are projected to rise and so are home prices. Experts are forecasting buyer demand will remain strong as people try to capitalize on rates and prices before they climb, creating another strong year for home sales.

Buyers Have Warmed Up to the Idea of Purchasing This Winter

“Compared to other past winter seasons, this winter season’s sales activity will be stronger. . . . This winter, there will be more sales compared to pre-pandemic winters going back all the way to 2006.”

“Sellers can expect to see plenty of buyers.”

Bottom Line

“. . . the recent unsustainable rate of home price appreciation will slow sharply. . . . home prices will not decline. . . but they will simply rise at a more sustainable pace.”

“Price growth is expected to move back toward a normal range, but this is on top of recent high prices, . . . So prices will [still] hit new highs. . . . The pace of price growth is going to slow notably . . . ”

What Does This Mean for the Housing Market?

What Does That Mean for You?

Bottom Line

“Achieving this goal can create a sense of pride and accomplishment that resonates both for the buyer and those closest to them, including their parents and future generations.”

1. Reach Out to a Real Estate Professional

2. Do Your Research and Know What You Can Afford

“The most damaging down payment myth—since it stops the homebuying process before it can start—is the belief that 20% is necessary.”

3. Don’t Lose Sight of What Home Means to You

• 73% of first-generation homeowners say the safety and security homeownership provides is increasing in importance.
• Nearly two-thirds of first-generation homeowners say the importance of building equity in a home is growing more important as well.

“For many first-generation homeowners and their families, homeownership has a unique importance, given the collective efforts to overcome financial challenges that can often span generations…”

Bottom Line

Lawrence Yun, Chief Economist, National Association of Realtors (NAR)

“This solid buying is a testament to demand still being relatively high, as it is occurring during a time when inventory is still markedly low. The notable gain in October assures that total existing-home sales in 2021 will exceed 6 million, which will shape up to be the best performance in 15 years.” 

Odeta Kushi, Deputy Chief Economist, First American

“So far in November, purchase applications point to another strong month in sales. Still low rates and demographic demand support this strength, even as affordability and inventory headwinds remain.”

The M Report

“The demand for housing in the United States has reached a fever pitch, a trend that opposes the norm of this time of the year when the market cools as the winter months set in.”

Mark Fleming, Chief Economist, First American

“Strong demographic demand will continue to act as the wind in the housing market’s sails.”

What does this mean for the winter housing market?

Bottom Line

• It’s no secret that we love our furry friends - about 70% of U.S. households have pets. What may come as a surprise is how large a role they play in the homebuying process.
• Americans spend $1,163 a year on their pets, and nearly half of pet owners say they would move for better accommodations and amenities for their pets.
• If you’re thinking of adding a furry friend, or if you already have, let’s connect to discuss how you can find a home that meets all your pet’s needs.

Some Highlights

• It’s no secret that we love our furry friends - about 70% of U.S. households have pets. What may come as a surprise is how large a role they play in the homebuying process.
• Americans spend $1,163 a year on their pets, and nearly half of pet owners say they would move for better accommodations and amenities for their pets.
• If you’re thinking of adding a furry friend, or if you already have, let’s connect to discuss how you can find a home that meets all your pet’s needs.

Some Highlights

• It’s no secret that we love our furry friends - about 70% of U.S. households have pets. What may come as a surprise is how large a role they play in the homebuying process.
• Americans spend $1,163 a year on their pets, and nearly half of pet owners say they would move for better accommodations and amenities for their pets.

1. Where will home prices be a year from now?
2. Where will mortgage rates be a year from now?

Where Will Home Prices Be a Year from Now?

• Fannie Mae: 7.4%
• Freddie Mac: 7%
• Mortgage Bankers Association: 5.1%

Where Will Mortgage Rates Be a Year from Now?

• Fannie Mae: 3.4%
• Freddie Mac: 3.7%
• Mortgage Bankers Association: 4%

What Does It Mean for You if Home Values and Mortgage Rates Increase?

Bottom Line

The Pros of Newly Built Homes

1. Create your perfect home.

2. Cash-in on energy efficiency.

3. Minimize the need for repairs.

“Buying a new construction vs. existing home typically means you’ll have fewer repairs to do. It can be a huge relief to know that it’s unlikely you’ll have to repair the roof or replace the furnace.”

4. Have brand new everything.

The Pros of Existing Homes

1. Explore a wider variety of home styles and floorplans.

2. Join an established neighborhood.

3. Enjoy mature trees and landscaping.

“Odds are, too, that the home will have mature landscaping, so you won't have to worry about starting a lawn, planting shrubs, and waiting for trees to grow.”

4. Appreciate that lived-in charm.

“Charm is priceless. Existing homes, especially those built in the 1950’s or before, often offer architectural elements, historic charm and a quality of craftsmanship not available in new homes.”

Bottom Line

Resources:

1. To get more information on the new FHFA Conforming Loan Limits, click here.
2. To get more information on the new FHA Conforming Loan Limits, click here.

• The ability to save for a down payment
• The ability to qualify for a mortgage at the current lending standards

What Is the Difference Between a Conforming Loan and a Non-Conforming Loan?

“Conforming loans are the only loans that meet the requirements to be acquired by Fannie Mae and Freddie Mac. Jumbo loans, which exceed the conforming limit, are the most common type of nonconforming loan.”

What Difference Does It Make to Me as a Home Buyer?

“Since lenders can’t sell non-conforming loans to Fannie Mae or Freddie Mac to free up their cash, they’re a bit riskier for the lender. This is especially true for jumbo loans, which aren’t backed by any government guarantees. If you default on a jumbo loan, it’s a huge blow to the lender. Thus, lenders generally charge higher interest rates to compensate, and they can have even more requirements. For example, lenders who give out jumbo loans often require that you make a down payment of at least 20% and show that you have at least six months’ worth of cash in reserve, if not more.”

What Happened Last Week?

“Compared to previous years, the 2022 Conforming Loan Limits represent a significant increase due to the historic house price appreciation over the last year. While 95 percent of U.S. countie​s will be subject to the new baseline limit of $647,200, approximately 100 counties will have conforming loan limits approaching $1 million.”

“FHA loans can be very beneficial if you don’t have as much savings, or if your credit score could use some work.”

Bottom Line

Resources:

1. To get more information on the new FHFA Conforming Loan Limits, click here.
2. To get more information on the new FHA Conforming Loan Limits, click here.

Win When You Sell

• Your House Will Stand Out – While recent data shows there are more sellers getting ready to list their homes this winter, there are still more buyers in the market than there are homes for sale. If you sell your house now before more houses are listed, it will get more attention from serious buyers who are eager to find a home.
• Your House Will Likely Get Multiple Offers – When supply is low and demand is high, buyers have to compete with each other for a limited number of homes. The latest Realtors Confidence Index from the National Association of Realtors (NAR) shows sellers are getting an average of 3.6 offers in today’s market.
• Your House Should Sell Quickly – According to the same report from NAR, homes are selling in an average of just 18 days. As a seller, that's great news for you if you’re looking for a quick process.

Win When You Move

“Right now, we forecast mortgage rates to average 3.3 percent in 2022, which, though slightly higher than 2020 and 2021, by historical standards remains extremely low . . .”

Bottom Line

• If you’re planning to sell your house this winter, you’ll want it to look its best inside and out.
• Take the time and focus on tasks that make it inviting, show it’s cared for, and boost your curb appeal.
• Let’s connect so you have an expert opinion on what to focus on, so it shows well and catches a buyer’s eye.

Some Highlights

• If you’re planning to sell your house this winter, you’ll want it to look its best inside and out.
• Take the time and focus on tasks that make it inviting, show it’s cared for, and boost your curb appeal.
• Let’s connect so you have an expert opinion on what to focus on, so it shows well and catches a buyer’s eye.

Some Highlights

• If you’re planning to sell your house this winter, you’ll want it to look its best inside and out.
• Take the time and focus on tasks that make it inviting, show it’s cared for, and boost your curb appeal.

“Our calculation suggests that there will be an additional 5 million sole-person households in the United States by the next decade. This means 42% of the household growth will be contributed by sole-person households, . . .”

1. Know Your Credit Score

“. . . lenders will be looking at just one credit profile: yours. Needless to say, it has to be in great shape. It is always a good idea to review your credit report beforehand, and this is especially true of solo buyers.”

2. Explore Down Payment Options

“Buyers should discuss their program options with their loan officer and real estate agent to make sure they choose the program best suited to their personal needs.”

3. Think About Your Future Home and Your Needs

“Think about your lifestyle, what you want out of your home and your needs. Is being close to work important? Do you need a lot of yard space? Do you want an extra bedroom that you can transform into a home office? Condo or detached home? Lots of space for entertaining? It’s all up to you (and your budget).”

Bottom Line

Pre-Approval: the Best Opening Play To Make as a Homebuyer

“The pre-approval letter from your lender tells you the maximum amount you are qualified to borrow. Getting a pre-approval letter is not a loan guarantee, it simply states how much your lender is willing to lend you. . . .”

“This pre-approval allows you to look for a home with greater confidence and demonstrates to the seller that you are a serious buyer.”

Homebuying: It’s a Team Game, Not a Single-Player Experience

Bottom Line

“Last year, staying home became a necessity and that caused many homeowners to have renewed gratitude for the roof over their head.”

• 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
• 83% of homeowners say their home has kept them safe during the COVID-19 pandemic

“Aside from the financial factors, there are several social benefits of homeownership and stable housing to consider. It has long been thought that buying a home contributes to a sense of accomplishment. Still, most individuals fail to realize that homeownership can benefit your mental health and the community around you.”

“Buying a home is not just a financial decision. It's also a lifestyle decision.”

Bottom Line

"The pandemic has delayed plans for many Americans, and homeowners looking to move on to the next stage of life are no exception. Recent survey data suggests the majority of prospective sellers are actively preparing to enter the market this winter."

Sellers Are Still Firmly in the Driver’s Seat

What Does That Mean for You?

Bottom Line

• Whether you’re buying or selling, there are many perks that come from working with a real estate advisor.
• Real estate professionals are experts at navigating all aspects of the buying and selling process, including negotiating on your behalf. We can also explain today’s market and break down what it means for you.
• Don’t go at it alone. Let’s connect today so you have advice and an expert to count on each step of the way.

Some Highlights

• Whether you’re buying or selling, there are many perks that come from working with a real estate advisor.
• Real estate professionals are experts at navigating all aspects of the buying and selling process, including negotiating on your behalf. We can also explain today’s market and break down what it means for you.
• Don’t go at it alone. Let’s connect today so you have advice and an expert to count on each step of the way.

Some Highlights

• Whether you’re buying or selling, there are many perks that come from working with a real estate advisor.
• Real estate professionals are experts at navigating all aspects of the buying and selling process, including negotiating on your behalf. We can also explain today’s market and break down what it means for you.