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How Homeownership Impacts You
June is National Homeownership Month, and it’s the perfect time to reflect on how impactful owning a home can truly be. When you purchase a house, it becomes more than just a space you occupy. It’s your stake in the community, an investment, and a place you can put your stamp on.
If you’re thinking about buying a home this year, here are some of the benefits you’ll experience when you do.
The Emotional Benefits of Homeownership
Because it’s a place that’s uniquely yours, owning a home can give you a sense of pride and happiness in several ways.
Your Home Can Reflect Your Tastes and Personality
Investopedia puts it like this:
“One often-cited benefit of homeownership is the knowledge that you own your little corner of the world.”
That knowledge can lead to a powerful, emotional connection to the place where you live. But so can the realization that your home will grow with you. Because it’s yours, you have the freedom to make updates to it as your needs and tastes change. As Logan Mohtashami, Lead Analyst for HousingWire, says:
“The psychology is that this is yours and you’re going to make it as good as possible because you’re in for a long time, . . . “
And that can create a greater sense of ownership, pride, and connection with your home and your community.
It Can Enhance Your Neighborhood and Civic Engagement
Homeownership can lead you to get even more involved with your local area. After all, you’re putting your roots down in a location and will want to do what you can to help improve it, much like your home. In a recent report, the National Association of Realtors (NAR) says:
“Living in one place for a longer amount of time creates and [sic] obvious sense of community pride, which may lead to more investment in said community.”
The Financial Benefits of Homeownership
When you choose to become a homeowner, you’re making a financial decision as well. That’s because your home is also an investment.
It Can Help You Feel Financially Stable
Homeownership is truly one of the best ways to improve your long-term financial position. Not only will you have a predictable monthly housing expense that can benefit your budget in the short term, but you’ll also gain equity as your home appreciates in value and you make your monthly mortgage payment. As Freddie Mac says:
“Building equity through your monthly principal payments and appreciation is a critical part of homeownership that can help you create financial stability.”
It Can Grow Your Wealth
Because of your growing equity, you can build your net worth as a homeowner. And when you compare the difference in net worth between a renter and a homeowner, it’s clear that owning a home truly offers a great way to build your long-term financial position.
According to the latest data from NAR, the median household net worth of a homeowner is roughly $300,000, while the median net worth of renters is only about $8,000. That means a homeowner’s net worth is nearly 40 times that of a renter.
Bottom Line
Homeownership is truly a way to find greater satisfaction and happiness and to build financial freedom. If National Homeownership Month has you dreaming about purchasing a home, then let’s connect to begin the process today.
What Does the Rest of the Year Hold for the Housing Market?
If you’re thinking of buying or selling a house, you’re at an exciting decision point. And anytime you make a big decision like that, one thing you should always consider is timing. So, what does the rest of the year hold for the housing market? Here’s what experts have to say.
The Number of Homes Available for Sale Is Likely To Grow
There are early signs housing inventory is starting to grow and experts say that should continue in the months ahead. According to Danielle Hale, Chief Economist at realtor.com:
“The gap between this year’s homes for sale and last year’s is one-fifth the size that it was at the beginning of the year. The catch up is likely to continue, . . . This growth will mean more options for shoppers than they’ve had in a while, even though inventory continues to lag pre-pandemic normal.”
- As a buyer, having more options is welcome news. Just remember, housing supply is still low, so be ready to act fast and put in your best offer up front.
- As a seller, your house may soon face more competition when other sellers list their homes. But the good news is, if you’re also buying your next home, having more options to choose from should make that move-up process easier.
Mortgage Rates Will Likely Continue To Respond to Inflationary Pressures
Experts also agree inflation should continue to drive up mortgage rates, albeit more moderately. Odeta Kushi, Deputy Chief Economist at First American, says:
“… ongoing inflationary pressure remains likely to push mortgage rates even higher in the months to come.”
- As a buyer, work with trusted real estate professionals, including your lender, so you can learn how rising mortgage rate environments impact your purchasing power. It may make sense to buy now before it costs more to do so, if you’re ready.
- As a seller, rising mortgage rates are motivating some homeowners to make a move up sooner rather than later. If you’re planning to buy your next home, talk to a trusted real estate advisor to decide how to time your move.
Home Prices Are Projected To Continue To Climb
Home prices are forecast to keep appreciating because there are still fewer homes for sale than there are buyers in the market. That said, experts agree the pace of that appreciation should moderate – but home prices won’t fall. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains:
“Prices throughout the country have surged for the better part of two years, including in the first quarter of 2022. . . Given the extremely low inventory, we’re unlikely to see price declines, but appreciation should slow in the coming months.”
- As a buyer, continued home price appreciation means it’ll cost you more to buy the longer you wait. But it also gives you peace of mind that, once you do buy a home, it will likely grow in value. That makes it historically a good investment and a strong hedge against inflation.
- As a seller, price appreciation is great news for the value of your home. Again, lean on a professional to strike the right balance of the best conditions possible for both selling your house and buying your next one.
Bottom Line
Whether you’re a homebuyer or seller, you need to know what’s happening in the housing market, so you can make the most informed decision possible. Let’s connect to discuss your goals and what lies ahead, so you can pick your best time to make a move.
Bright Days Are Ahead When You Move Up This Summer [INFOGRAPHIC]
![Bright Days Are Ahead When You Move Up This Summer INFOGRAPHIC] | MyKCM](https://files.mykcm.com/2022/05/26132018/20220527-MEM-1046x1913.png)
Some Highlights
- Warmer weather and longer days mean summer is almost here. Celebrate by upgrading to the home of your dreams so you can enjoy all the season has to offer.
- When you list your house, you can capitalize on today’s sellers’ market to fuel your upgrade. Then, you can move to a home with the features you want, like space to entertain or rooms for work and play.
- If you’re ready to upgrade to a home that matches your changing needs, let’s connect.
How Buying or Selling a Home Benefits the Economy and Your Community
If you’re thinking of buying or selling a home, chances are you’re focusing on the many extraordinary ways it’ll change your life. But do you know it has a large impact on your community too?
To measure that impact, the National Association of Realtors (NAR) releases a report each year to highlight just how much economic activity a home sale generates. The chart below shows how the sale of both a newly built home and an existing home impact the economy:
As the visual shows, a single home sale can have a significant effect on the overall economy. To dive a level deeper, NAR also provides a detailed look at how that varies state-by-state for newly built homes (see map below):
You may be wondering: how can a single home sale have such a major effect on the economy?
For starters, there are multiple industries that play a role in the process. Numerous contractors, specialists, lawyers, town and city officials, and so many other professionals are all necessary at various stages during the transaction. Every individual you work with, like your trusted real estate advisor, has a team of professionals involved behind the scenes.
That means when you buy or sell a home, you’re leaving a lasting impression on the community at large. Let the knowledge that you’re contributing to those around you while also meeting your own needs help you feel even more empowered when you decide to make your move this year.
Bottom Line
Homebuyers and sellers are economic drivers in their community and beyond. Let’s connect so you have a trusted real estate advisor on your side if you’re ready to get started. It won’t just change your life; it’ll make a powerful impact on your entire community.
New Agent, Michelle Spina Closes her First Sale!
Michelle Spina is a new agent, not only to Green Team Realty but also to real estate as a whole. With only a couple of months behind her in the profession, Michelle closed on her first sale at 319 South Route 94 in Warwick, NY. This is a commercial property that was available for rent.
Michelle attended college at SUNY New Paltz where she earned her bachelor’s degree in Marketing. She spent the last 6 years working as a TV Media Buyer where she serviced a large variety of clients, some of which include movie studios, grocery stores, and kids’ toys. Michelle excels in sales, advertising, and has great communication skills.
For the past couple of years, Michelle had been interested in starting a profession in real estate. With her history in marketing, she knew it would be a great opportunity for her. In March of 2021, she decided it was time to start her real estate career. She obtained her license and began her new career with Green Team New York Realty.
We look forward to seeing what other great opportunities lie ahead for Michelle and how far she will bring her business in the future. Congratulations Michelle!
If you would like to work with Michelle, contact us!
Green Teams Small Groups
If you’re looking to improve your real estate career, consider joining a brokerage that puts emphasis on teamwork and peer relationships. Even though that might not be something that initially comes to mind as a helpful resource in real estate. Green Team Realty is showing the positive effects that it has on its agents’ work.
“Small Groups” was created by Green Team Realty to give its sales associates the opportunity to connect and learn more from their peers. Each group consists of 1 group leader and no more than 10 group members. These meetings occur monthly with the exception of August and December. Every group is then given activities and discussion topics that cover everything from sales skills to health and wellness.
Carol Buchanan was the first sales associate to lead one of these groups. She has been a real estate professional for nearly 29 years, a member of Green Team New York Realty for four years, and achieved the Gold Award for $5-10 Million in Sales Volume for 2021. . Her group meets on the second Friday of every month and the members have grown exceptionally close since its start. Carol works with Morgan Beattie, New York’s Agent Service Manager (ASM), to make sure that her group has everything they need for the meetings including printouts and snacks.
Carol, as well as the other group leaders, are experienced professionals and great people for their group members to learn from.
Green Team Realty hires agents of all experience levels and Small Groups is a great asset to new and experienced agents alike. If this sounds like a team you would enjoy being part of, consider reaching out to us to learn more about what Green Team offers its agents.
Work With a Real Estate Professional if You Want the Best Advice
Because buying or selling a home is such a big decision in our lives, the need for clear, trustworthy information and guidance is crucial. And while no one can give you perfect advice, when you align yourself with an expert, you’ll get the best advice for your situation.
An Expert Will Give You the Best Advice Possible
Let’s say you need an attorney, so you seek out an expert in the type of law required for your case. When you go to their office, they won’t immediately tell you how the case is going to end or how the judge or jury will rule. What a good attorney can do, though, is discuss the most effective strategies you can take. They may recommend one or two approaches they believe will work well for your case.
Then, they’ll leave you to make the decision on which option you want to pursue. Once you decide, they can help you put a plan together based on the facts at hand. They’ll use their expert knowledge to work toward the resolution you want and make whatever modifications in the strategy necessary to try and achieve that outcome.
Similarly, the job of a trusted real estate professional is to give you the best advice for your situation. Just like you can’t find a lawyer to give you perfect advice, you won’t find a real estate professional who can either. They can’t because it’s impossible to know exactly what’s going to happen throughout your transaction. They also can’t predict exactly what will happen with conditions in today’s housing market.
But an expert real estate advisor is knowledgeable about market trends and the ins and outs of the homebuying and selling process. With that knowledge, they can anticipate what could happen based on your situation and help you put together a solid plan. And they’ll guide you through the process, helping you make decisions along the way.
That’s the very definition of getting the best – not perfect – advice. And that’s the power of working with an expert real estate advisor.
Bottom Line
If you want trustworthy advice when buying or selling a home, let’s connect so you have an expert real estate advisor on your side.
The One Thing Every Homeowner Needs To Know About a Recession
A recession does not equal a housing crisis. That’s the one thing that every homeowner today needs to know. Everywhere you look, experts are warning we could be heading toward a recession, and if true, an economic slowdown doesn’t mean homes will lose value.
The National Bureau of Economic Research (NBER) defines a recession this way:
“A recession is a significant decline in economic activity spread across the economy, normally visible in production, employment, and other indicators. A recession begins when the economy reaches a peak of economic activity and ends when the economy reaches its trough. Between trough and peak, the economy is in an expansion.”
To help show that home prices don’t fall every time there’s a recession, take a look at the historical data. There have been six recessions in this country over the past four decades. As the graph below shows, looking at the recessions going all the way back to the 1980s, home prices appreciated four times and depreciated only two times. So, historically, there’s proof that when the economy slows down, it doesn’t mean home values will fall or depreciate.
The first occasion on the graph when home values depreciated was in the early 1990s when home prices dropped by less than 2%. It happened again during the housing crisis in 2008 when home values declined by almost 20%. Most people vividly remember the housing crisis in 2008 and think if we were to fall into a recession that we’d repeat what happened then. But this housing market isn’t a bubble that’s about to burst. The fundamentals are very different today than they were in 2008. So, we shouldn’t assume we’re heading down the same path.
Bottom Line
We’re not in a recession in this country, but if one is coming, it doesn’t mean homes will lose value. History proves a recession doesn’t equal a housing crisis.
Why Rising Mortgage Rates Push Buyers off the Fence
If you’re thinking about buying a home, you’ve probably heard mortgage rates are rising and have wondered what that means for you. Since mortgage rates have increased over two percentage points this year, it’s natural to think about how this will impact your homeownership plans.
Today, buyers are reacting in one of two ways: they’re either making the decision to buy now before rates climb higher or they’re waiting it out in hopes rates will fall. Let’s look at some context that can help you understand why so many buyers are jumping off the fence and into action rather than waiting to buy.
A Look Back: How the Current Mortgage Rate Compares to Historical Data
One factor that could help you make your decision to buy now is how today’s mortgage rates compare to historical data. While higher than the average 30-year fixed rate in recent years, the latest rates are still comparatively low when you look at the bigger picture of where rates have been since 1971 (see graph below):
Mark Fleming, Chief Economist at First American, explains it like this:
“. . . historical context is important. An average 30-year, fixed mortgage rate of 5.5 percent is still well below the historical average of nearly 8 percent.”
If you’re deciding whether to buy now or wait, this is important context to have. Today’s mortgage rate still gives you a window of opportunity to lock in a rate that’s comparatively lower than decades past.
A Look Ahead: What Happens if Rates Climb Further
The buyers who are springing into action now are also motivated to make their move because they know rates have risen steadily this year, and they’re eager to get ahead of any further increases.
Why? When mortgage rates climb, they impact the monthly mortgage payment you’ll have on the home you’re buying. Basically, it’ll likely cost you more to buy a home if you wait. Experts say mortgage rates will rise (although more moderately) in the months ahead. Odeta Kushi, Deputy Chief Economist at First American, explains:
“. . . ongoing inflationary pressure remains likely to push mortgage rates even higher in the months to come.”
So, if you’re ready and financially able to buy now, it may make more sense to get off the fence and make your purchase sooner rather than later. As Nadia Evangelou, Senior Economist at the National Association of Realtors (NAR), says:
“With even higher interest rates on the horizon, I don’t see any reason to hold off from purchasing a home right now. If you feel financially secure, you should start looking for a home.”
At the end of the day, there is no perfect advice on when to buy a home. What you should do depends on your goals, your finances, and your personal situation. Use this information with the help of local real estate professionals to make an informed decision on what’s best for you. The Mortgage Reports sums it up best:
“. . . if you’re on the fence about whether to buy now or wait for a better deal, buying sooner rather than later might be wise. That said, home buying is always a personal decision. Whether you should buy in 2022 depends on your financial situation and the local housing market where you live.”
Bottom Line
For many buyers, rising mortgage rates are motivating them to act now and make a purchase before rates rise higher. To decide what move is best for you, let’s connect so you have expert advice on your side.
Green Team Realty is Proud to Announce the Promotion of Vikki Garby to President
Established in 2005 by Warwick-native, Geoffrey Green, Green Team Realty began as a locally owned and operated full-service agency. Since opening, Geoff and his team have developed revolutionary operations for Realtors and their buyers and/or sellers from across the region allowing it to soar the ranks; currently in the top 1% of all Real Estate offices in both Sussex County, NJ and Orange County, NY.
“It is time for us to take the next step in terms of growing our organization” says Green. “We have proven over the course of time that we can deliver a great environment for Real Estate Agents to thrive, and for them to, in turn, deliver an exceptional experience to all of their clients. Promoting Vikki Garby to President of Green Team Realty will allow us to seek out new opportunities for more Sales Associates in new locations. Vikki is definitely the right person to help us achieve the intended growth we are seeking.”
Geoff Green has dedicated his professional career to building great businesses; he is also the co-Founder and CEO of Nuop, Inc. NuOp is a digital marketplace where Members make money by exchanging business opportunities with one another. With more growth for NuOp on the horizon, Geoff is appointing Vikki Garby as President of Green Team Realty which will provide him with more time and energy to focus on building a second business. Vikki Garby will not only continue what has been created with Green Team Realty, but will focus on enhancement and grow its influence in the region. Geoff will remain as the Real Estate Broker of record for all Green Team agencies and continue to oversee all related operations.
“I am extremely excited to take on this new and challenging role. Geoff has big shoes to fill. I have learned so much from him since joining his brokerage and I intend to exceed his expectations with this incredible opportunity.” Garby stated.
Vikki Garby is a successful career woman, happily married and a mother of two, thriving children. She graduated from Cornell University in 1997 with a focus on Finance. After graduation, she began her career in Investment Banking as an Analyst with Deutsche Bank. With a drive for success, she worked up the ranks to Associate and soon after, Vice President of the Structured Capital Markets division. In 2007, still with Deutsche Bank, she shifted over to their Longevity Derivatives Group where she joined as a Vice President and was soon promoted to Director. Here she structured, negotiated and executed multi-dimensional programs for the origination of premium finance loans and annuities which led the team in obtaining approval to sell longevity/mortality products in over a dozen countries.
The financial crisis of 2008, left many companies with no other option than to downsize; Deutsche Bank was no exception. Upon closing the Longevity Derivatives Group, Vikki was laid off. She didn’t allow that to stop the path she was on. With connections from her previous employer, Vikki began her own consulting firm called VAG Consulting acting as CEO/Founder.
In the meantime, Vikki and her husband pursued Real Estate Investments. With multiple properties purchased and subsequently rented, they decided it would make the most financial sense for Vikki to obtain her real estate license. With that, Vikki entered the Real Estate world.
Since joining Green Team Realty, Vikki has become a top salesperson, developed a desired reputation and is the recipient of many sales awards. She has been a top 10 finisher for the past 6 years at Green Team New York Realty. She is also the most prolific commercial real estate producer in the history of Green Team Realty.
In addition to her career success, Vikki has dedicated her free time to the community. Her volunteer experience is extensive and includes acting roles as: a board member of the Warwick Foundation for Excellence in Learning, First Lego League Coach, Cub Scout Den Leader, Sunday School Teacher, Treasurer of Kings Elementary PTA, and Treasurer then President of the Warwick Crew Booster Club.
Upon her transition into presidency, Vikki will continue to work with current and past clients to ensure their real estate needs are met.
“She is clearly a rising star in this industry and she is ready to take on the role of President at Green Team Realty. We are just thrilled to see how far Vikki can lead our organization.”, said Green.
“My goals are to make sure our agents continue to be well supported as they work towards their career goals. I will also seek new tools and opportunities to keep our agency one step ahead so we can continue to provide the very best service to our clients. Growing Green Team Realty will occur strategically and in a controlled manner such that our level of service and the quality of our agents shall not waver.” said Garby.
