Rents have increased significantly this year. The latest National Rent Report from Apartmentlist.com shows rents are rising at a rate much higher than the three years leading up to the pandemic:
“Since January of this year, the national median rent has increased by a staggering 16.4 percent. To put that in context, rent growth from January to September averaged just 3.4 percent in the pre-pandemic years from 2017-2019.”
Looking back, we can see rents rising isn’t new. The median rental price has increased consistently over the past 33 years (see graph below):If you’re thinking of renting for another year, consider that rents will likely be even higher next year. But that alone doesn’t paint the picture of the true cost of renting.
The Money Renters Stand To Lose This Year
A homeowner’s monthly mortgage payment pays for their shelter, but it also acts as an investment. That investment grows in the form of equity as a homeowner makes their mortgage payment each month to pay down what they owe on their home loan. Their equity gets an additional boost from home price appreciation, which is at near-record levels this year.
The latest Homeowner Equity Insights report from CoreLogic found homeowners gained significant wealth through their home equity this past year. The research shows:
“. . . the average homeowner gained approximately $51,500 in equity during the past year.”
As a renter, you don’t get the same benefit. Your rent payment only covers the cost of shelter and any included amenities. None of your monthly rent payments come back to you as an investment. That means, by renting this year, you likely paid more in rent than you did in the previous year, and you also missed out on the potential wealth gain of $51,500 you could have had by owning your own home.
Bottom Line
When deciding whether you should rent or buy in the future, keep in mind how much renting can cost you. Another year of renting is another year you’ll pay rising rents and miss out on building your wealth through home equity. Let’s connect today to talk more about the benefits of buying over renting.
Put an experts eye on your home search! You’ll receive personalized matches of results delivered directly to you. We’ll take into account your goals, criteria, and preferences to find properties that are exactly what you were always dreaming of. Start Here!
Applying for a mortgage is a big step towards homeownership, but it doesn’t need to be one you fear. Here are some tips to help you prepare.
Know your credit score and work to build strong credit. When you’re ready, lean on your agent to connect you with a lender so you can get pre-approved and begin your home search.
Any major life change can be scary, and buying a home is no different. Let’s connect so you have an advisor by your side to take the fear out of the equation.
Put an experts eye on your home search! You’ll receive personalized matches of results delivered directly to you. We’ll take into account your goals, criteria, and preferences to find properties that are exactly what you were always dreaming of. Start Here!
The rise in remote work is changing what many Americans want in their homes. Many companies are choosing to delay reopening or go remote full-time, and today’s buyers are looking for homes with more space to support their work needs.
As a seller, if you no longer need the extra room you have in your home, rest assured there are buyers who do.
Remote Work Is Here To Stay
Remote work remains a reality for many Americans. A recent poll from Garter, Inc. shows many organizations have not yet returned their offices:
“. . . 66% of organizations are delaying reopening their offices due to new COVID-19 variants.”
And it’s not just companies that are choosing to remain remote for the time being – workers are seeking more flexibility. According to research from PricewaterhouseCoopers, nearly one-fifth of employees want to be fully remote in the future. The study also finds that many people are leaving jobs to seek out remote work opportunities:
“Among employees looking for new jobs, almost one in ten say it’s because they moved away from the office while working remotely and don’t want to go back on-site.”
More Remote Work Means a Greater Need for Home Offices
That’s leading today’s buyers to prioritize finding homes with more space so they can comfortably work from home. The 2021 Home Design Trends Survey from the American Institute of Architects finds that 69% of surveyed individuals still want at least one office at home. However, it also shows that more people are looking for multiplespaces in their home for remote work and virtual meetings (see graph below):
What Does This Mean for You?
If your house has extra space that you no longer need, buyers are interested, and now may be the perfect time to sell.
Your trusted real estate advisor can help you highlight many of the most sought-after features in your listing, including home offices. On the other hand, if you have extra room without a purpose, consider staging it as an area where remote work can happen. Your agent can help you with this as well by evaluating and preparing your space for potential buyers. They’ll make recommendations for how to stage the room, where to draw the eye, and what other sellers are doing to make their houses stand out.
Bottom Line
With the continued rise in remote work, more buyers are looking for homes that can support multiple home offices. If you have extra room you’re no longer using, consider selling. Let’s connect today to discuss the unique features in your house and how you can capitalize on any extra space to appeal to today’s buyers.
Put an experts eye on your home search! You’ll receive personalized matches of results delivered directly to you. We’ll take into account your goals, criteria, and preferences to find properties that are exactly what you were always dreaming of. Start Here!
Maybe with the leverage you currently have, you can negotiate a deal that will allow you to make the move of your dreams. What’s your home’s value?
The biggest challenge in real estate today is the lack of available homes for sale. The low housing supply has caused homes throughout the country to appreciate at a much faster rate than what we’ve experienced historically.
There are many reasons for the limited number of homes on the market, but as you can see in the graph below, we’re well below where we’ve been for most of the past 10 years. Today, across the country, there is only a 2.4-month supply of homes available for sale.
The Opportunity
This lack of homes for sale is creating a challenge for many buyers who are growing frustrated in their search. On the other hand, this is a huge opportunity for sellers as low supply is driving up home values. According to CoreLogic, the average home has appreciated by more than $50,000 over the past year. And for many homeowners, that’s opening new doors as they re-think their needs and use their equity to move up or downsize.
“The average homeowner with a mortgage has more than $200,000 in home equity as of mid-2021.”
Today, many sellers are taking advantage of low interest rates and the equity they have in their homes to make a move.
Bottom Line
The biggest challenge in real estate is the lack of homes for sale, but this challenge is also an opportunity for sellers. If you’re thinking about selling your house, let’s connect to start the process.
Put an experts eye on your home search! You’ll receive personalized matches of results delivered directly to you. We’ll take into account your goals, criteria, and preferences to find properties that are exactly what you were always dreaming of. Start Here!
Congratulations From Geoffrey Green, President Of Green Team Realty, To “Pip” Julie Kleinfor reaching the commission cap for Company Dollar Contribution in 2021!
Geoff’s thought on hitting the cap:
“Pip is an excellent example of someone who always keeps her work life in balance with her personal life. She loves to travel and does so frequently, but she also works hard and delivers exceptional service to her clients. Pip has been with us as a Realtor for 10 years now and we certainly hope she continues this profession for at least another 10! Congrats on reaching the cap Pip!”
“Pip” Julie Klein dedication to her clients and hard work has allowed her to reach the cap on her commission with Green Team Realty. This is an outstanding accomplishment and means “Pip” Julie Klein will now receive a 100% commission split on any of her own client transactions that she close’s during 2021.
“2021 was a banner year for me — celebrating my ten year anniversary with the Green Team, getting quoted in the NY Times and now achieving CAP status!
Truly, I could not have achieved these milestones without the enthusiastic encouragement and support of my many clients and friends over the years who continue to help my career grow. I sincerely appreciate their contribution to my success and I also want to thank our Broker Geoff Green for offering this generous agent commission incentive. It is just one reason that I have enjoyed my decade at this wonderful local brokerage where we truly feel like family.”
Green Team Realty’s commission structure is, no doubt, one of the finest in the industry, but it doesn’t end there. Our lead generation platform, certified sales assistant program, and dynamic training systems are just a few other things worth mentioning.
To learn more about Green Team Realty and why you should join our team click here.
There’s a lot of talk lately about how challenging it can be to find a home to buy. While housing inventory is still low, there are a few important things to understand about the supply of homes for sale as we move into the end of the year.
The Number of Homes for Sale Usually Peaks in the Fall
In the residential real estate market, trends generally follow a predictable and seasonal pattern. Typically, the number of homes available for sale (or active monthly listings) peaks in the fall. But in a chapter where so little feels normal, the question becomes: should we expect a fall peak this year?
If we look at the active monthly listings for 2021 (shown in the chart below), we’ll see that the number of homes on the market has increased fairly steadily since spring this year. The realtor.comdata shows we’re still seeing an increase in active inventory month-over-month. While that gain is a bit smaller month-to-month (see August to Septemberin the chart), September numbers are still up from the month prior.The important takeaway here is the latest monthly numbers show growth. At the end of September, buyers had more options to pick from than they did this spring. That’s encouraging for buyers who may have paused their search months ago because they had trouble finding a home. Danielle Hale, Chief Economist at realtor.com, sums this up nicely:
“Put simply, this September buyers had more optionsthan they’ve had all year and while that’s typical of early fall, that’s not what happened in 2020. Still, it’s important to remember that while buyers may have an easier time this fall than they did in the spring, the market remains more competitive than it has been historically at this time of year.”
As Hale says, a fall peak in inventory is in line with typical seasonal trends. While it’s impossible to say for certain what the future holds for housing inventory, we do know both buyers and sellers have opportunities this season based on the latest data.
What Does That Mean for You?
If you’re thinking of buying a home, rest assured you do have more options now than you did earlier this year – and that’s a welcome relief. That said, today’s market is still highly competitive. This isn’t the time to slow your search. It’s actually the season when the number of homes available for sale tends to peak. Focus on the additional options with renewed energy this season and be prepared for ongoing competition from other buyers.
If you’re considering selling your house, realize that while growing, inventory is still low. Selling now means you’ll be in a great position to negotiate with buyers – and competition among buyers is good news for your bottom line. Eager buyers will likely be motivated to act before the holidays, giving you the benefit of a fast sale.
Bottom Line
Whether you’re buying or selling, there’s still a chance to make your goals a reality this season. Let’s connect so we can discuss what’s going on with the local market and current trends and what they mean for you.
Put an experts eye on your home search! You’ll receive personalized matches of results delivered directly to you. We’ll take into account your goals, criteria, and preferences to find properties that are exactly what you were always dreaming of. Start Here!
Maybe with the leverage you currently have, you can negotiate a deal that will allow you to make the move of your dreams. What’s your home’s value?
The October 2021 Housing Market Update was held on October 19 at 12 p.m. If you missed the live webinar or would like to watch it again, it is available below.
Home Price Appreciation
Geoff Green, the host of the event, jumped right into the stats. First, there has been an amazing amount of appreciation taking place in the U.S. housing market. For example, the year-over-year average appreciation as of July 2021 was +19.2%. Of course, the pandemic has greatly impacted the market. In other words, many people decided to leave metropolitan areas and move to suburban and rural areas. Consequently, the lack of inventory, low mortgage rates, and a robust economy created a “feeding frenzy” of potential buyers.
The map below shows price appreciation by states and regions.
However, according to Ivy Zelman of Zelman & Associates,
“Closings are set to decline roughly 10% year over year in the 2nd half of 2021 and home price appreciation is on the cusp of flipping to a decelerating trend.”
Geoff stressed that decelerating means a slower amount of appreciation, and not a depreciation of value.
Mortgage rates and the impact on purchasing power
From January of 2020, rates plummeted down and bottomed out at beginning of 2021. They have been rising since. Mortgage rates have now jumped above 3%. Historically, these rates are still very low.
However, the chart below demonstrates how rising rates can impact your buying power.
More factors discussed
Geoff presented data on factors impacting the economy and the housing market. For instance, the rate of inflation, the high price of food, supply chain issues, oil prices, and more may impact the decision to buy or sell a home.
National Housing Market Stats
Existing home sales are starting to come down after last year’s numbers, but they are coming down softly. Average home sale price is appreciating at a lower rate. The months’ supply of inventory is actually starting to come up, but nowhere near the levels it has been or needs to be to meet demand.
Meet our Panel
Panelists for the October 2021 Housing Market Update are Tiffany Megna, Green Team New York Realty, Keren Gonen, Green Team New Jersey Realty, and Jessica Imparato, Cardinal Financial.
They discussed what they are seeing from their perspective, with “boots on the ground,” Despite stats showing the market softening, they have not seen a decline in their businesses. Jessica discussed how prospective buyers can be impacted by an increase in mortgage rates.
To see the entire presentation and panel discussion, click hereTo sign up for Housing Market Updates, click here.
Buyers in today’s market often have questions about the importance of getting a home appraisal and an inspection. That’s because high buyer demand and low housing supply are driving intense competition and leading some buyers to consider waiving those contingencies to stand out in the crowded market.
But is that the best move? Buying a home is one of the most important transactions in your lifetime, and it’s critical to keep your best interests in mind. Here’s a breakdown of what to expect from the appraisal and the inspection, and why each one can potentially save you a lot of time, money, and headaches down the road.
Home Appraisal
The home appraisal is a critical step for securing a mortgage on your home. As Home Light explains:
“. . . lenders typically require an appraisal to ensure that your loan-to-value ratio falls within their underwriting guidelines. Mortgages are secured loans where the lender uses your home as collateral in case you default on the agreed-upon payments.”
Put simply: when you apply for a mortgage, an unbiased appraisal – typically required by your lender – is the best way to verify the value of the home. That appraisal ensures the lender doesn’t loan you more than what the home is worth.
When buyers are competing like they are today, bidding wars and market conditions can push prices up. A buyer’s contract price may end up higher than the value of the home – this is known as an appraisal gap. In today’s market, it’s common for the seller to ask the buyer to make up the difference when an appraisal gap occurs. That means, as a buyer, you may need to be prepared to bring extra money to the table if you really want the home.
Home Inspection
Like the appraisal, the inspection is important because it gives an impartial evaluation of the home. While the appraisal determines the current value of the home, the inspection determines the current condition of the home. As the American Society of Home Inspectors puts it:
“Home inspections are the opportunity to discover major defects that were not apparent at a buyer’s showing. . . . Your home inspection is to help you make an informed decision about the house, including its condition.”
If there are any concerns during the inspection – an aging roof, a malfunctioning HVAC system, or any other questionable items – you have the option to discuss and negotiate any potential issues with the seller. Your real estate advisor can help you navigate this process and negotiate what, if any, repairs need to be made before the sale is finalized.
Keep in mind – home inspections are critical because they can shed light on challenges you may face as the new homeowner. Without an inspection, serious, sometimes costly issues could come as a surprise later on.
Bottom Line
Both the appraisal and the inspection are important steps in the homebuying process. They protect your best interests as a buyer by providing unbiased information about the home’s value and condition. Let’s connect so you have an expert guiding you throughout the entire process.
Maybe with the leverage you currently have, you can negotiate a deal that will allow you to make the move of your dreams. What’s your home’s value?
Put an experts eye on your home search! You’ll receive personalized matches of results delivered directly to you. We’ll take into account your goals, criteria, and preferences to find properties that are exactly what you were always dreaming of. Start Here!
Jennifer DiCostanzo and Keren Gonen are no strangers to achieving quarterly and yearly sales leader status.
Jennifer DiCostanzo
Jen 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 Agent to receive the MVP award. In fact, Jen has achieved MVP status 3 times to date. However, she surpassed even these achievements, with a sales volume for the 3rd Quarter with over 10 Million dollars Therefore, It’s not surprising that Jen was among the top 1% of selling agents in Orange County for 2020.
“The ability to provide a targeted approach, with strategic planning and pricing in this pandemic-driven market, was essential. To best serve my clients, customizing a comprehensive and intuitive approach yields extraordinary results. While there have been many challenges due to the pandemic, being astute at providing solutions and transparency is a vital key factor, Facilitating a seamless transaction is part of what I love about this business.”
Jen is a Sales Representative Specialist and Accredited Buyer’s Representative. In addition, she has achieved Pricing Strategy Advisor and Seniors Real Estate Specialist designations. Further, Jen has been named a Real Estate All-Star by Hudson Valley Magazine for 2 consecutive years.
According to Geoff Green, President of Green Team Realty,
“Jen does it again! This is the 4th Q3 sales leader award in 6 years by Jen. Additionally, Jen is ranked #12 among all Realtors in Orange County. These are truly amazing accomplishments. That said, It should come as no surprise as to why Jen is so successful. Her work ethic is top-notch, she values client relationships above all else, and consistently follows through. Jen will no doubt be at the top of the production charts for many years to come. Congrats Jen!”
Keren Gonen
Keren Gonen has been working hard, and it shows. She has been the quarterly sales leader for Green Team New Jersey Realty for the first, second, and third quarters of 2021. Keren joined Green Team in 2017 and became Yearly Sales Leader for that year. Subsequently, she earned that title again for 2020. In addition, Keren received the NJ Realtors® Gold Circle of Excellence Award, a Green Team MVP Award, and was in the top 20 of all agents in Sussex County.
According to Geoff Green,
“To say that Keren Gonen is on a tear is an understatement. Not only has Keren won our Quarterly Sales Leader award each quarter of this year, but she is also in the top 20 of all Realtors in Sussex County. I can comfortably state that no one works harder than Keren Gonen. But, perhaps the best news of all is that Keren recently expanded her business with more administrative help so that she can keep pace and deliver exceptional customer service to all of her clients. Congrats once again Keren.”
Keren had this to say:
” As we continue to be in these uncharted waters of The Pandemic, possibly post-pandemic times, I am humbled by all the business and support that I continue to receive from my peers and clients. I am grateful to be able to help so many people in their search for relocation and changing of lifestyle. Thank you to all my clients, buyers and sellers alike, who have allowed me to support them and assist. Wishing us all an easy end of 2021 and let’s see what 2022 has in store for us.”
If you’re a homeowner, today’s rising equity is great news. On average, homeowners have gained $51,500 in equity since this time last year.
Whether it’s funding an education, fueling your next move, or starting a business, your home equity is a great tool you can use to power your dreams.
Ready to sell? Let’s connect to talk about how you can take advantage of your rising equity to reach your goals.
Put an experts eye on your home search! You’ll receive personalized matches of results delivered directly to you. We’ll take into account your goals, criteria, and preferences to find properties that are exactly what you were always dreaming of. Start Here!
Maybe with the leverage you currently have, you can negotiate a deal that will allow you to make the move of your dreams. What’s your home’s value?
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Keren Gonen has been working hard, and it shows. She has been the quarterly sales leader for Green Team New Jersey Realty for the first, second, and third quarters of 2021. Keren joined Green Team in 2017 and became Yearly Sales Leader for that year. Subsequently, she earned that title again for 2020. In addition, Keren received the NJ Realtors® Gold Circle of Excellence Award, a Green Team MVP Award, and was in the top 20 of all agents in Sussex County.
According to Geoff Green,