“28% of new home inventory consists of homes that have not started construction, compared to 21% a year ago.”

Bottom Line

• Appreciation is an increase in the value of an asset.
• Depreciation is a decrease in the value of an asset.
• Deceleration is when something happens at a slower pace.

“My sense is the Case-Shiller National annual growth rate of 19.7% is probably close to a peak, and that year-over-year price increases will slow later this year.”

“. . . home price appreciation is on the cusp of flipping to a decelerating trend.”

“. . . annual price increases will slow to a more normal level, . . .”

What Does This Deceleration Mean for You?

Bottom Line

Bottom Line

• The best advice carries across multiple areas of life. When it comes to homebuying, a few simple tips can help you stay on track.
• Because of increased demand, you’ll need to be patient and embrace compromises during your search. Then, once you’ve fallen in love, commit by putting your best offer forward.
• If you’re looking to buy a home this year, let’s connect so you have a dedicated partner and teammate to help you find the one.

Some Highlights

• The best advice carries across multiple areas of life. When it comes to homebuying, a few simple tips can help you stay on track.
• Because of increased demand, you’ll need to be patient and embrace compromises during your search. Then, once you’ve fallen in love, commit by putting your best offer forward.
• If you’re looking to buy a home this year, let’s connect so you have a dedicated partner and teammate to help you find the one.

Some Highlights

• The best advice carries across multiple areas of life. When it comes to homebuying, a few simple tips can help you stay on track.
• Because of increased demand, you’ll need to be patient and embrace compromises during your search. Then, once you’ve fallen in love, commit by putting your best offer forward.

We’re Still Seeing an Above Average Number of Sales

Houses Are Selling Faster Than Usual

Bidding Wars Are Still the Norm

So, Is the Market Slowing Down?

“It's not the white-hot market from earlier in the year & it's not the 2020 market benefiting from a wave of pent-up demand but make no mistake this is still a hot housing market.”

Bottom Line

• 70% of respondents want more outdoor living space
• 69% of respondents want a home office (48% wanted multiple offices)
• 46% of respondents want a multi-function room/flexible space
• 42% of respondents want an au pair/in-law suite
• 39% of respondents want an exercise room/yoga space

1. A possible desire to relocate
2. The difference in the cost of a renovation versus a purchase
3. Finding an existing home or designing a new home that has exactly what you want (versus trying to restructure the layout of your current house)

Home Equity Is Skyrocketing

“Remember U.S. households own nearly $35 trillion in owner-occupied real estate, just over $11 trillion in debt, and the remaining ~$24 trillion in equity. In inflation adjusted terms, homeowners in Q2 had an average of $280,000 in equity- a historic high.”

First Step: Determine the Amount of Equity in Your Home

1. The current mortgage balance on your home
2. The current value of your home

Bottom Line

Bottom Line

• The flexibility to make the space your own
• The pride homeownership offers
• The sense of stability

“Homeowners who purchased a typical single-family existing-home 30 years ago at the median sales price of $103,333 with a 10% down payment loan and who sold the property at the median sales price of $357,700 in 2021 Q2 accumulated housing wealth of $349,258, . . .”

“The major financial advantage of homeownership is the accumulation of equity in the form of house price appreciation. . . . We won’t always have 17% house price appreciation, but we have to take into account the fact that the shelter that you're owning is an equity-generating or wealth-generating asset.”

“. . . by paying down mortgage principal each month and participating in the long-term appreciation of home values, a family can build wealth that can be used for retirement or other needs, including helping the next generation.”

Bottom Line

• Today’s strong sellers’ market is the direct result of high demand and low supply.
• Low mortgage rates and generational trends have created an increased demand for homes. Meanwhile, the slower pace of new home construction and homeowners staying in their homes longer have both led to today’s low supply.
• If you’re thinking of selling, let’s connect to talk about our local area and how you can take advantage of today’s housing market.

Some Highlights

• Today’s strong sellers’ market is the direct result of high demand and low supply.
• Low mortgage rates and generational trends have created an increased demand for homes. Meanwhile, the slower pace of new home construction and homeowners staying in their homes longer have both led to today’s low supply.
• If you’re thinking of selling, let’s connect to talk about our local area and how you can take advantage of today’s housing market.

Some Highlights

• Today’s strong sellers’ market is the direct result of high demand and low supply.
• Low mortgage rates and generational trends have created an increased demand for homes. Meanwhile, the slower pace of new home construction and homeowners staying in their homes longer have both led to today’s low supply.

“Homeownership is a key pathway to building wealth and narrowing the racial income and wealth inequality gap. Housing wealth (equity) accumulation takes time and is built up by price appreciation and paying off the mortgage.”

“There are numerous ways families can transmit wealth and resources across generations. Families can directly transfer their wealth to the next generation in the form of a bequest. They can also provide the next generation with inter vivos transfers (gifts), for example, providing down payment support to enable a home purchase or a substantial wedding gift.”

“In addition to direct transfers or gifts, families can make investments in their children that indirectly increase their wealth. For example, families can invest in their children's educational success by paying for college or private schools, which can in turn increase their children's ability to accumulate wealth.”

Equity over the Last 30 Years

“Homeowners who purchased a typical single-family existing-home 30 years ago at the median sales price of $103,333 with a 10% down payment loan and who sold the property at the median sales price of $357,700 in 2021 Q2 accumulated housing wealth of $349,258.”

“As homeowners gain equity in their homes, they are more likely to consider using that equity to purchase a larger or more attractive home – the wealth effect of rising equity.”

Looking Forward at the Equity To Come

• 2021: 11.74%
• 2022: 5.82%
• 2023: 3.94%
• 2024: 3.56%
• 2025: 3.55%

Bottom Line

• Why are prices rising?
• Where are prices headed?
• What does this mean for homebuyers?

Why Are Prices Rising?

“By some measures, house prices seem high, but the recent price increases make sense from a supply and demand perspective.”

Where Are Prices Headed?

What Does This Mean for Homebuyers?

Bottom Line

“You know, the fallacy of economic forecasting is don't ever try and forecast interest rates and or, more specifically, if you're a real estate economist mortgage rates, because you will always invariably be wrong.”

“Mortgage rates rose across all loan types this week as the 10-year U.S. Treasury yield reached its highest point since June.”

So, What Impacts the Yield Rate?

“There are a number of economic factors that impact Treasury yields, such as interest rates, inflation, and economic growth.”

What Does This Mean for You?

“We expect mortgage rates to continue to rise modestly which will likely have an impact on home prices, causing them to moderate slightly after increasing over the last year.”

“Consumers shouldn't panic. Keep in mind that even though rates will increase in the following months, these rates will still be historically low. The National Association of REALTORS forecasts the 30-year fixed mortgage rate to reach 3.5% by mid-2022.”

Bottom Line

“You know, the fallacy of economic forecasting is don't ever try and forecast interest rates and or, more specifically, if you're a real estate economist mortgage rates, because you will always invariably be wrong.”

1. Price It Right

2. Keep It Clean

“When selling your home, it’s important to keep everything tidy for buyers. . . . Remember to take special care with the bathroom, making sure the tile, counters, shower, and floors shine.”

3. Make It Easy To Visit

4. Help Buyers Feel at Home

“The goal is to create a blank canvas on which buyers can project their own visions of living there, and loving it.”

“Eighteen percent of sellers’ agents said home staging increased the dollar value of a residence between 6% and 10%.”

Bottom Line

• When deciding whether you should rent or buy, make sure you’re considering these factors.
• Buying a home means consistent monthly payments. Homeownership also helps to build your wealth. And owning a home gives you greater flexibility than renting.
• If you’re ready to take advantage of the perks of homeownership, let’s connect to explore your options.

Some Highlights

• When deciding whether you should rent or buy, make sure you’re considering these factors.
• Buying a home means consistent monthly payments. Homeownership also helps to build your wealth. And owning a home gives you greater flexibility than renting.
• If you’re ready to take advantage of the perks of homeownership, let’s connect to explore your options.

Some Highlights

• When deciding whether you should rent or buy, make sure you’re considering these factors.
• Buying a home means consistent monthly payments. Homeownership also helps to build your wealth. And owning a home gives you greater flexibility than renting.

• The average homeowner gained $51,500 in equity over the past year
• There was a 29.3% increase in national homeowner equity year over year

What does all of that mean for you?

Bottom Line

1. First impressions are everything – and an agent knows how to make a great one.

• Should you take down any personal art or pictures?
• How much landscaping should you invest in to boost your house’s curb appeal?
• What wall colors are most appealing to buyers?

2. Agents have tools to maximize the number of views your home gets.

3. An agent won’t miss anything in the fine print.

4. Expert advisors know the market and how to price your home.

5. Your agent will be an 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.

Bottom Line

“Nationally, the best time to buy in 2021 is the week of October 3-9. This week historically has shown the best balance of market conditions that favor buyers.”

Increased Housing Supply

Fewer Bidding Wars

Adjusted Homes Prices

Bottom Line

Things Are Different Today

• Receiving an average of  3.8 offers
• Selling in just 17 days

“The imbalance between robust demand and dismal availability of for-sale homes has led to a continual bidding over asking prices, which reached record levels in recent months. Now, almost 6 in 10 homes listed are selling over the asking price.”

You May Need To Rethink How You Look at a Home’s Asking Price

Understand An Appraisal Gap Can Happen

“Beginning in January 2020, nationally, 7% of purchase transactions had a contract price above the appraisal, but by May 2021, the frequency had increased to 19% of purchase transactions.”

Bottom Line

• Due to low supply and high demand, today is one of the strongest sellers’ markets we’ve seen.
• Sellers can benefit from more offers to pick from, higher home values, and a faster sales process. That might be why 73% of people believe it’s a good time to sell.
• Sellers, don’t miss out on this unique opportunity. Let’s connect so you can take advantage of this hot sellers’ market.

Some Highlights

• Due to low supply and high demand, today is one of the strongest sellers’ markets we’ve seen.
• Sellers can benefit from more offers to pick from, higher home values, and a faster sales process. That might be why 73% of people believe it’s a good time to sell.
• Sellers, don’t miss out on this unique opportunity. Let’s connect so you can take advantage of this hot sellers’ market.

Some Highlights

• Due to low supply and high demand, today is one of the strongest sellers’ markets we’ve seen.
• Sellers can benefit from more offers to pick from, higher home values, and a faster sales process. That might be why 73% of people believe it’s a good time to sell.

1. What will home prices be like in 2022?
2. Where will mortgage rates be by the end of 2022?

What will home prices be like in 2022?

• Freddie Mac: 5.3%
• Fannie Mae: 5.1%
• Mortgage Bankers Association: 8.4%

Where will mortgage rates be by the end of 2022?

• Freddie Mac: 3.8%
• Fannie Mae: 3.2%
• Mortgage Bankers Association: 4.2%

What does it mean for you if both home values and mortgage rates rise?

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

"Job ads increasingly offer remote work and surveys indicate that both workers and employers expect work from home to remain much more common than before the pandemic."

“The number of remote workers in the next five years is expected to be nearly double what it was before COVID-19: By 2025, 36.2 million Americans will be remote, an increase of 16.8 million people from pre-pandemic rates.”

How Does This Impact Homeowners?

If you’re one of the nearly 23% of workers who will remain 100% remote: 

If you’re one of the almost 15% of individuals who will have a partially remote or hybrid schedule:

Bottom Line

“People who move for home-related reasons might need a larger home or a house that better fits their needs, . . . Financial reasons for moving include wanting a nicer home, moving to a newer home to avoid making repairs on the old one, or cashing in on existing equity.”

If your needs have changed, it may be time to re-evaluate your home.

It’s often financially beneficial to sell your house and move.

Bottom Line

• Whether you’re buying or selling – today’s housing market has plenty of good news to go around.
• Buyers can take advantage of today's mortgage rates to escape rising rents and keep monthly payments affordable. Sellers can reap the benefits of multiple offers and a fast sale.
• If this sounds like good news to you, let’s connect today so you can capitalize on the unique opportunity you have in today’s market.

Some Highlights

• Whether you’re buying or selling – today’s housing market has plenty of good news to go around.
• Buyers can take advantage of today's mortgage rates to escape rising rents and keep monthly payments affordable. Sellers can reap the benefits of multiple offers and a fast sale.
• If this sounds like good news to you, let’s connect today so you can capitalize on the unique opportunity you have in today’s market.

Some Highlights

• Whether you’re buying or selling – today’s housing market has plenty of good news to go around.
• Buyers can take advantage of today's mortgage rates to escape rising rents and keep monthly payments affordable. Sellers can reap the benefits of multiple offers and a fast sale.

“The active listing count tracks the number of for sale properties on the market, excluding pending listings where a pending status is available. This is a snapshot measure of how many active listings can be expected on any given day of the specified month.”

What normally happens throughout the year?

What happened last year?

What’s happening this year?

1. Pent-up selling demand – Homeowners may be more comfortable putting their homes on the market as more and more Americans get vaccinated.
2. New construction is starting to take off – Though new construction is not included in the realtor.com numbers, as more new homes are built, there will be more options for current homeowners to consider when they sell. The lack of options has slowed many potential sellers in the past.
3. The end of forbearance will create some new listings – Most experts believe the end of the forbearance program will not lead to a wave of foreclosures for several reasons. The main reason is the level of equity homeowners currently have in their homes. Many homeowners will be able to sell their homes instead of going to foreclosure, which will lead to some additional listings on the market.

Bottom Line