Facebook
X
Pinterest
Copy Link
Why Pre-Approval Is an Important Step for Today’s Homebuyers
Being intentional and competitive are musts when buying a home this season. That’s why pre-approval is so important today. Pre-approval from a lender is the only way to know your true price range and how much money you can borrow for your loan. Peter Warden, Editor of The Mortgage Reports, explains:
“The lender will check out your personal finances and issue you a letter confirming the amount you’re eligible to borrow. This not only gives you a firm budget for house hunting, but also lets sellers know you’re qualified to make an offer.”
Why does that matter so much today? There are many more buyers looking for homes today than there are homes available for sale, and that’s creating some serious competition. According to the National Association of Realtors (NAR), the average home is getting 4.8 offers per sale. As a result, bidding wars are still common.
Your pre-approval gives you a leg up in these situations. That’s because you know exactly what you’re approved to borrow before you write your offer, and it lets the seller know you’re qualified to buy their home. This helps both you and the seller feel confident in what you’re bringing to the table. And that puts you in a better position to potentially win a bidding war.
As Warden puts it:
“There’s another important reason to get preapproved, too. And that’s because there are way more buyers than homes in today’s market — which means you need to be ultra-prepared if you want to win a bidding war. Most sellers are getting multiple offers right now. And most won’t even entertain an offer without a preapproval letter included.”
Every advantage you can gain as a buyer is crucial in a market that’s constantly changing. Mortgage rates are rising, home prices are going up, and lending institutions are regularly updating their standards. You’re going to need guidance to navigate these waters, so it’s important to have a team of professionals, such as a loan officer and a trusted real estate advisor, on your side. They’ll help make sure you’re ready to put your best foot forward.
Bottom Line
Getting pre-approved for a mortgage helps you better understand what you can afford and signals to sellers you’re serious about purchasing their home. Let’s connect so you have the tools you need to succeed as a homebuyer in today’s market.
Is It Time To Buy a Smaller Home?
Life events can have a major impact on what you need from your home, and retirement is one of the biggest changes many of us face. This period of your life can mean doing more of the things you enjoy, like traveling, visiting with loved ones, or taking on new hobbies. But what does that mean for your home?
If you’re looking for ways to focus more on the important things in your life, the answer could be downsizing. A recent article from The Balance talks about why it could be a great option, saying:
“There are many reasons to buy a smaller home—or to downsize from your present home—but sometimes, the idea that “less is more” is what propels homeowners to buy a smaller home.”
You Can Find the Right Home for Your Needs
The 2022 Home Buyers and Sellers Generational Trends from the National Association of Realtors (NAR) provides more information on why people of retirement age choose to move. It shows the need for a smaller home, the desire to be closer to loved ones, and retirement itself as three of the top reasons homebuyers over the age of 55 make a move.
If you’re in this group, changing priorities may be top of mind for you today, and that could be driving your decision to downsize. After all, as your lifestyle changes, what you need in your home likely changes, too.
Plus, as The Balance notes, moving into a smaller home can open your schedule up even more. When you downsize, you can spend less time maintaining your home and more time with the people you love or exploring newfound hobbies. That’s a recipe that can lead to less stress and increased happiness.
Your Equity Can Make a Big Impact When You Downsize
Home equity plays a big role when you sell your existing house and move. It could be a great tool to use to help you downsize. According to the latest Homeowner Equity Insights report from CoreLogic, the average homeowner gained about $55,300 in equity over the past 12 months. Dr. Frank Nothaft, Chief Economist at CoreLogic, explains how important price appreciation and equity gains are for existing homeowners:
“Home prices rose 18% during 2021 in the CoreLogic Home Price Index, the largest annual gain recorded in its 45-year history, generating a big increase in home equity wealth, . . . For low- and moderate-income homeowners, home equity has historically been a major source of wealth.”
As home prices rise, your equity does, too. So, you may have more equity than you realize because of the record levels of home price appreciation over the past year. Those equity gains could allow you to make a larger down payment on your next home. And putting more money down can lead to a smaller monthly mortgage payment, which can give you greater financial freedom. It can also be a significant help in navigating today’s competitive housing market, since offering more money up front could help your offer stand out.
Whatever your homeownership goals are, a trusted real estate advisor can help you to find the best option for your situation. They’ll help you sell your current home and guide you as you buy your next one and enter this new phase of life.
Bottom Line
If you’ve recently retired or plan to soon, your needs are likely changing. That means now may be the perfect time to downsize. Let’s connect so we can work together to find a home that matches your situation.
What Is Multigenerational Housing? [INFOGRAPHIC]
![What Is Multigenerational Housing? [INFOGRAPHIC] | MyKCM](https://files.mykcm.com/2022/04/14144240/20220415-MEM-1046x2456.png)
Some Highlights
- If you have additional loved ones coming to live with you but don’t have enough space, it may be time to consider a larger, multigenerational home.
- Some key benefits of multigenerational living include a combined homebuying budget, shared caregiving duties, enhanced relationships, and more. These benefits might be why more people are choosing to live in multigenerational homes today.
- Let’s connect so you can find a house that meets your changing needs and has plenty of space for you and your loved ones.
On the Fence of Whether or Not To Move This Spring? Consider This.
If you’re thinking of selling your house, it may be because you’ve heard prices are rising, listings are going fast, and sellers are getting multiple offers on their homes. But why are conditions so good for sellers today? And what can you expect when you move? To help answer both of those questions, let’s turn to the data.
Today, there are far more buyers looking for homes than sellers listing their houses. Here are the maps of the latest buyer and seller traffic from the National Association of Realtors (NAR) to help paint the picture of what this looks like:
Notice how much darker the blues are on the left. This shows buyer traffic is strong today. In contrast, the much lighter blues on the right indicate weak or very weak seller traffic. In a nutshell, the demand for homes is significantly greater than what’s available to purchase.
What That Means for You
You have an incredible advantage when you sell your house under these conditions. Since buyer demand is so high at a time when seller traffic is so low, there’s a good chance buyers will be competing for your house.
According to NAR, in February, the average home sold got 4.8 offers. When buyers have to compete with one another like this, they’ll do everything they can to make their offer stand out. This could play to your favor and mean you’ll see things like waived contingencies, offers over asking price, earnest money deposits, and more. Selling when demand is high and supply is low sets you up for a big win.
If you’re also looking to buy a house, you may be tempted to focus more on just the seller traffic map and wonder if it means you’ll have trouble finding your next home. But remember this: perspective is key. As Danielle Hale, Chief Economist at realtor.com, says:
“The limited number of homes for sale is a lesson in perspective. This same stat that frustrates would-be homebuyers also means that today’s home sellers enjoy more limited competition than last year’s home sellers.”
If you look at the big picture, the opportunity you have as a seller today is unprecedented. Last year was a hot sellers’ market. This year, inventory is even lower, and that means an even bigger opportunity for you. Even though finding your next home in a market with low inventory can be challenging, is that concern worth passing on some of the best conditions sellers have ever seen?
As added peace of mind, remember real estate professionals have been juggling this imbalance of supply and demand for nearly two years, and they know how to help both buyers and sellers find success when they move. A skilled agent can help you capitalize on the great opportunity you have as a seller today and guide you through the buying process until you find the perfect place to call your next home.
Bottom Line
If you’re ready to move, you have an incredible opportunity in front of you today. Trust the experts. Let’s connect so you have expertise on your side that can help you win when you sell and when you buy.
Where Are Mortgage Rates Headed?
There’s never been a truer statement regarding forecasting mortgage rates than the one offered last year by Mark Fleming, Chief Economist at First American:
“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.”
Coming into this year, most experts projected mortgage rates would gradually increase and end 2022 in the high three-percent range. It’s only April, and rates have already blown past those numbers. Freddie Mac announced last week that the 30-year fixed-rate mortgage is already at 4.72%.
Danielle Hale, Chief Economist at realtor.com, tweeted on March 31:
“Continuing on the recent trajectory, would have mortgage rates hitting 5% within a matter of weeks. . . .”
Just five days later, on April 5, the Mortgage News Daily quoted a rate of 5.02%.
No one knows how swiftly mortgage rates will rise moving forward. However, at least to this point, they haven’t significantly impacted purchaser demand. Ali Wolf, Chief Economist at Zonda, explains:
“Mortgage rates jumped much quicker and much higher than even the most aggressive forecasts called for at the end of last year, and yet housing demand appears to be holding steady.”
Through February, home prices, the number of showings, and the number of homes receiving multiple offers all saw a substantial increase. However, much of the spike in mortgage rates occurred in March. We will not know the true impact of the increase in mortgage rates until the March housing numbers become available in early May.
Rick Sharga, EVP of Market Intelligence at ATTOM Data, recently put rising rates into context:
“Historically low mortgage rates and higher wages helped offset rising home prices over the past few years, but as home prices continue to soar and interest rates approach five percent on a 30-year fixed rate loan, more consumers are going to struggle to find a property they can comfortably afford.”
While no one knows exactly where rates are headed, experts do think they’ll continue to rise in the months ahead. In the meantime, if you’re looking to buy a home, know that rising rates do have an impact. As rates rise, it’ll cost you more when you purchase a house. If you’re ready to buy, it may make sense to do so sooner rather than later.
Bottom Line
Mark Fleming got it right. Forecasting mortgage rates is an impossible task. However, it’s probably safe to assume the days of attaining a 3% mortgage rate are over. The question is whether that will soon be true for 4% rates as well.
Using Your Tax Refund To Achieve Your Homeownership Goals This Year
If you’re buying or selling a home this year, you’re likely saving up for a variety of expenses. For buyers, that might include things like your down payment and closing costs. And for sellers, you’re probably working on a bit of spring cleaning and maintenance to spruce up your house before you list it.
Either way, any money you get back from your taxes can help you achieve your goals. Using a tax refund is a common tactic for buyers and sellers. SmartAsset estimates the average American will receive a $2,897 tax refund this year. The map below provides a more detailed estimate by state:
If you’re getting a refund this year, here are a few tips to help with your home purchase or sale this season.
How Buyers Can Use Their Tax Refund
According to American Financing, there are multiple ways your refund check can help you as a homebuyer. A few include:
- Growing your down payment fund – If you haven’t started saving for your down payment, let your tax refund kick off the process. And if you have a fund already, the money you get back could put you closer to your goal.
- Paying for your home inspection – Your home inspection can save you a lot of headaches down the road by helping you determine the condition of the house. As a buyer, you’ll typically be responsible for paying for your inspection, and it’s definitely worth the investment.
- Saving for closing costs – Closing costs are additional expenses you’ll need to pay once it’s time to close. They average anywhere between 2-5% of the purchase price of your home.
This list is a great start, but it isn’t exhaustive of all the costs you may encounter as you set out on your homebuying journey. The best way to prepare is to work with a trusted real estate professional to make sure you understand what’s to come in the process.
How Sellers Can Use Their Tax Refund
If you own a home and are planning to sell this spring, your tax refund can help you make sure your home is ready to list. Here are a few ways current homeowners can put their tax refund to good use:
- Making small upgrades – NerdWallet provides a list of great ways to use your tax refund, including tackling small projects or boosting your curb appeal to help your home stand out.
- Making repairs – If there’s anything in your house that needs to be fixed, American Financing notes that completing repairs is another great use of that money.
- Buying your next home – Whether you’re selling to move up or downsize, you can use your tax refund to help pay for any costs on the purchase of your next home.
Of course, it’s important to talk with your trusted real estate advisor before taking on any projects. They’ll make sure you can focus on areas that’ll help you receive the best possible price when you sell.
Bottom Line
Funding your home purchase or sale can feel like a daunting task, but it doesn’t have to be. Your tax refund can help you reach your goals. Let’s connect to discuss how you can start on your journey.
Why a Real Estate Professional Is Key When Selling Your House
With today’s real estate market moving as fast as it is, working with a real estate professional is more essential than ever. They have the skills, experience, and expertise it takes to navigate the highly detailed and involved process of selling a home. That may be why the percentage of people who list their houses on their own, known as a FSBO or For Sale By Owner, has reached its lowest point since 1985 (see graph below):
Here are five reasons why selling with a real estate professional makes more sense, even in today’s hot market:
1. They Know What Buyers Want To See
Before you decide which projects and repairs to take on, connect with a real estate professional. They have first-hand experience with today’s buyers, what they expect, and what you need to do to make sure your house shows well.
If you don’t lean on their expertise, you may spend your time and money on something that isn’t essential. That’s because, in today’s low-inventory market, buyers are willing to take on more of the renovation work themselves. A survey from Freddie Mac finds that:
“. . . nearly two-in-five potential homebuyers would consider purchasing a home requiring renovations.”
A professional can help you decide what you need to tackle. It’s not canned advice you could find online – it’s recommendations specific to your house and your area.
2. They Help Maximize Your Buyer Pool
Today, the average home is getting 4.8 offers per sale according to recent data from the National Association of Realtors (NAR), and that competition is pushing prices up. While that’s promising for you as a seller, it’s important to understand your agent’s role in bringing buyers in.
Real estate professionals have an assortment of tools at their disposal, such as social media followers, agency resources, and the MLS to ensure your house is viewed by the most buyers. According to realtor.com:
“Only licensed real estate agents can list homes on the MLS, which is a one-stop online shop of sorts for getting a house seen by thousands of agents and home buyers. . . . This is certainly one of many good reasons why the majority of home sellers decide to employ the services of a listing agent rather than going it alone.”
Without access to these tools, your buyer pool is limited. And you want more buyers to view your house since buyer competition can drive your final sales price higher.
3. They 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. That’s why Investopedia says:
“One of the biggest risks of FSBO is not having the experience or expertise to navigate all of the legal and regulatory requirements that come with selling a home.”
A real estate professional knows exactly what needs to happen, what all the paperwork 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.
4. They’re Trained Negotiators
If you sell without a professional, you’ll also be solely responsible for all the negotiations. 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 these 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.
5. They Know How To Set the Right Price for Your House
If you sell your house on your own, you may over or undershoot your asking price. That could mean you’ll leave money on the table because you priced it too low or your house will sit on the market because you priced it too high. Pricing a house requires expertise. Investopedia explains it like this:
“. . . There is no easy or universal way to determine market value for real estate.”
Real estate professionals know the ins and outs of how to price your house accurately and competitively. To do so, they compare your house to recently sold homes in your area and factor in the current condition of your house. These factors are key to making sure it’s priced to move quickly while still getting you the highest possible final sale price.
Bottom Line
There’s a lot that goes into selling your house. Instead of tackling it alone, let’s connect so you have an expert on your side throughout the entire process.
Do You Know How Much Equity You Have in Your Home? [INFOGRAPHIC]
![Do You Know How Much Equity You Have in Your Home? [INFOGRAPHIC] | MyKCM](https://files.mykcm.com/2022/04/05162315/20220408-MEM-1046x2334.png)
Some Highlights
- If you’re a homeowner, your net worth has gotten a big boost. That’s because recent home price appreciation has increased your equity.
- Your equity grows as you pay down your loan and as your home increases in value. Over the past year, the average homeowner’s equity grew by $55,300.
- Ready to sell? Let’s connect to talk about how you can use that equity to fuel your next move.
Green Team’s 2021 Awards Ceremony
A night to remember after a year we won’t forget!
Green Team’s 2021 Awards Ceremony was held on Friday evening, April 1, at Crystal Springs Resort in Vernon. Celebrating together was especially meaningful, after two years of virtual events. COVID-19 created challenges, however, it also created opportunities. Green Team Sales Associates worked non-stop throughout the pandemic. Furthermore, they had to adhere and adjust to ever-changing COVID regulations while meeting the demands of the market; in so doing, many Green Team Associates achieved their personal best in sales. Thus, new categories of Sales Volume Levels were created. For all categories, Green Team New York/ New Jersey Realty recognizes the dedication, determination, and excellent client service that resulted in these sales volumes. These sales volumes resulted in Green Team New York Realty being #1 In Warwick NY. And Green Team New Jersey Realty #1 in Vernon NJ.
Geoff Green, President, Green Team Realty, with the Top Three Producers of 2021: (From l to r) Jennifer DiCostanzo, Keren Gonen, and Tiffany Megna.
And the Sapphire and GTNJR Yearly Sales Leader Awards go to… Keren Gonen
The Green Team New Jersey Realty 2021 Yearly Sales Leader has been in this category several times before. Not only is Keren Gonen the 2021 Yearly Sales Leader, but with over $22 Million in sales, Keren is the first Sales Associate to reach the Sapphire level. This new level was created to recognize those with a sales volume of $20 to 30 Million. It is no surprise that Keren has earned this recognition.
Keren works hard, and it shows. She has been the sales leader at GTNJR for the past 8 quarters. In fact, Keren was the Yearly Sales Leader when she joined Green Team New Jersey Realty in 2017. Then, in 2020 she joined the MVP Circle with over $10 Million in sales volume. In addition, Keren received the 2021 NJ Realtors® Gold Circle of Excellence Award. Not surprisingly, she is in the top 20 agents in Sussex County.
Keren has been featured in Top Agent Magazine and recognized in a National Honors Program by Broker★Agent Advisor.
And the Diamond, GTNYR Yearly Sales Leader, and Momentum Builder Awards go to… Jennifer DiCostanzo
Jennifer DiCostanzo has been the yearly sales leader every year since joining Green Team New York Realty in 2016. In addition, she became the first Green Team Sales Associate to receive the MVP award for over $10 million in sales. In fact, Jen has achieved MVP status three times to date. She even surpassed these achievements with a sales volume, for the 3rd Quarter of 2021, of over $10 Million; she is now the first to achieve the Diamond level, for a sales volume of $15 to $20 Million.
Jen is among the top 20 selling agents in Orange County for 2021, which puts her in the top 1%. She is a Sales Representative Specialist and Accredited Buyer’s Representative. In addition, she has achieved Pricing Strategy Advisor and Seniors Real Estate Specialist designations. Jen has been featured in Top Agent Magazine. Furthermore, Jen has been named a Real Estate All-Star by Hudson Valley Magazine for the past two years.
In addition, Jen received the Momentum Builder Award, which reads:
” In recognition of her ability to create the most positive and consistent momentum in her professional career while maintaining the same impetus reflected in many aspects of her personal life.”
Platinum Awards for $10 to $15 Million in Sales were presented to:
Tiffany Megna, Green Team New York Realty, was Green Team Realty’s 3rd Top Producer of 2021. Kristi Anderson, Green Team New Jersey Realty, was the 4th Top Producer. And Nancy Sardo, Green Team New York Realty, was Top Producer #5.
Gold Awards for $5 to $10 Million in Sales were presented to:
Tammy Scotto (GTNYR); Charles Nagy (GTNJR), Theodore Van Laar (GTNJR); Carol Buchanan (GTNYR); Kimberly Lasalandra (GTNYR/GTNJR); Karen Gauvin (GTNYR); Kristine Many (GTNYR); Tom Folino (GTNYR); Vikki Garby (GTNYR); Pip Klein (GTNYR); Pam Zachowski (GTNJR); Angela Murphy (GTNYR); and Barbara Tesa (GTNJR).
Silver Awards for $3 to $5 Million in Sales were presented to:
Lucyann Tinnirello (GTNYR); Toni Vogel (GTNYR); Walter Ross (GTNYR); Toni Kreusch (GTNJR/GNYR), and Kasey Decker (GTNYR)
Bronze Awards for $1.5 to $3 Million in Sales were presented to:
From Green Team New York Realty, Linda Vandeweert; Rebecca Hundley; Cara Dumond; Guillermina “Gidget” Tavares; Chris Kimiecik; Robert Valentine; Ed Sattler; Kim Lesley, and, from Green Team New Jersey Realty, Jaime Dalton.
Team Players, Mentor of the Year, and Citizens of the Year:
Team Players are chosen by their peers, “in recognition of their reliability, positivity, and dependability, while exhibiting dedication and devotion to the agency and team.” The sales associates of Green Team New York Realty selected Britanni Gaucher as their Team Player and Green Team New Jersey Realty sales associates selected Charles Nagy as theirs!
Tammy Scotto earned her award for Mentor of the Year “in recognition of her dedication, dependability, and devotion to Her mentees.”
Finally, Citizens of the Year are selected in recognition of their valuable contributions and outstanding support to our community. This is a very special award, in that each winner will have $500 from Green Team Realty to be donated to the charity of their choice. Green Team New York Realty selected Wayne Patterson as their Citizen of the Year. Kristi Anderson was selected by Green Team New Jersey Realty as their Citizen of the Year.
Thank you to our sponsors!
We could not have held such a fantastic awards event without our wonderful sponsors!
First of all, a special thank you to Amy Green, Guaranteed Rate, our Diamond Sponsor. Next, thanks to our Platinum Sponsors! They are Michael Giannetto, CrossCountry Mortgage; Douglas Stage, Stage Law Firm; Gregory Romaine, Homestead Funding Corp., and Daniel Bounds, Chase Bank. Our thanks go to Gold Sponsors Chad Barris, Family First Funding; William Askin, Askin & Hooker LLC; Gary S. Goldstein, Esq., and Micaela Gandarinho, Seely & Durland Insurance. Finally, we thank our Silver Sponsor, George Tsakanias, VHT Studios.
Wait! There are more acknowledgments…
Inside Sales Associates
The Inside Sales Associates play an integral part in providing leads to sales associates. The Green Team ISA Team is Giovanni Lasalandra, Director of Business Development; Kevin Many, Sandra Medina, and Jimmy Cosenza.
In addition, Kevin Many received an award in recognition of great achievement for exchange opportunities for the NuOp platform, with over 500 Ops exchanged in 2021.
And where would we be without our phenomenal support staff…
Behind-the-scenes support is essential to providing our sales associates with the resources, training, tools, and services they need to best conduct their businesses. Geoff Green acknowledged the hardworking Green Team HQ support staff: Broker Managers Lucyann Tinnirello, Carol Buchanan, and Kim Lasalandra; Lora Chandra, Director of Operations; Andy Clough, Digital Marketing Support; Diana Clough, Controller; Nicole McCormick, Director of Marketing. In addition, we have Morgan Beattie and Natalee DiMichele, Agent Service Managers; Linda Vandeweert, Sign Installation Manager; Susan Wynn, Copywriter; Jane Tuomala, Marketing Assistant; and Brittani Gaucher, Agent Service Representative.
Team Up for Hope
Geoff asked the Board of Team Up for Hope, a non-profit organization he co-founded and chairs, to talk about what the organization has accomplished. Team Up for Hope is made up of an all-volunteer group of Green Team sales associates and staff. Locally, the organization addresses the challenges of mental health, drug use, and suicide by raising money for non-profit volunteer organizations at the forefront of addressing these issues. Team Up for Hope also produces webinars that bring in experts and advocates to provide knowledge, resources, and answer questions on these issues.
Globally, as the invasion of Ukraine began, Team Up for Hope began raising money for a relief organization in Poland assisting the refugees and will continue to do so. A webinar is planned with that organization so that we can all see the many needs that exist. Please visit the Team Up for Hope website and Facebook page for updates, to learn more about our organization, how you can help, and how to donate.
After the award presentations, the party got started…
DJ Chris Paul got the party started and kept it going as Green Teamers hit the dance floor. After a year of challenges, hard work, and dedication, it was wonderful to be able to celebrate with friends.
The Future of Home Price Appreciation and What It Means for You
Many consumers are wondering what will happen with home values over the next few years. Some are concerned that the recent run-up in home prices will lead to a situation similar to the housing crash 15 years ago.
However, experts say the market is totally different today. For example, Odeta Kushi, Deputy Chief Economist at First American, tweeted just last week on this issue:
“. . . We do need price appreciation to slow today (it’s not sustainable over the long run) but high price growth today is supported by fundamentals- short supply, lower rates & demographic demand. And we are in a much different & safer space: better credit quality, low DTI [Debt-To-Income] & tons of equity. Hence, a crash in prices is very unlikely.”
Price appreciation will slow from the double-digit levels the market has seen over the last two years. However, experts believe home values will not depreciate (where a home would lose value).
To this point, Pulsenomics just released the latest Home Price Expectation Survey – a survey of a national panel of over 100 economists, real estate experts, and investment and market strategists. It forecasts home prices will continue appreciating over the next five years. Below are the expected year-over-year rates of home price appreciation based on the average of all 100+ projections:
- 2022: 9%
- 2023: 4.74%
- 2024: 3.67%
- 2025: 3.41%
- 2026: 3.57%
Those responding to the survey believe home price appreciation will still be relatively high this year (though half of what it was last year), and then return to more normal levels over the next four years.
What Does This Mean for You as a Buyer?
With a limited supply of homes available for sale and both prices and mortgage rates increasing, it can be a challenging market to navigate as a buyer. But buying a home sooner rather than later does have its benefits. If you wait to buy, you’ll pay more in the future. However, if you buy now, you’ll actually be in the position to make future price increases work for you. Once you buy, those rising home prices will help you build your home’s value, and by extension, your own household wealth through home equity.
As an example, let’s assume you purchased a $360,000 home in January of this year (the median price according to the National Association of Realtors rounded up to the nearest $10K). If you factor in the forecast for appreciation from the Home Price Expectation Survey, you could accumulate over $96,000 in household wealth over the next five years (see graph below):
Bottom Line
If you’re trying to decide whether to buy now or wait, the key is knowing what’s expected to happen with home prices. Experts say prices will continue to climb in the years ahead, just at a slower pace. So, if you’re ready to buy, doing so now may be your best bet for your wallet. It’ll also give you the chance to use the future home price appreciation to build your own net worth through rising equity. If you want to get started, let’s connect today.
