Marin County Real Estate BlogRecently posted or modified blog postshttps://www.marincounty.com/blog/Copyright MarinCounty.com2024-01-23T19:24:55-07:00tag:marincounty.com,2012-09-20:32480Experts Project Home Prices Will Increase in 2024<img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240122/20240123-Experts-Project-Home-Prices-Will-Increase-in-2024.png" alt="" class="img-thumbnail mx-auto d-block" />
January 23, 2024
<a href="https://www.mykcm.com/blog?categories=buyers" class="badge bg-light font-size-12 me-2"> For Buyers </a><a href="https://www.mykcm.com/blog?categories=pricing" class="badge bg-light font-size-12 me-2"> Pricing </a><a href="https://www.mykcm.com/blog?categories=first-time-home-buyers" class="badge bg-light font-size-12 me-2"> First Time Home Buyers </a><a href="https://www.mykcm.com/blog?categories=housing-market-updates" class="badge bg-light font-size-12 me-2"> Housing Market Updates </a>
Even though home prices are going up nationally, some people are still worried they might come down. In fact, a recent <a href="https://www.fanniemae.com/research-and-insights/surveys-indices/national-housing-survey/national-housing-survey-archive" rel="noopener noreferrer" target="_blank">survey</a> from Fannie Mae found that 24% of people think home prices will actually decline over the next 12 months. That means almost one out of every four people are dealing with that fear, and you might be, too.
To help ease that concern, here's what experts forecast will happen with prices this year.
Experts Project a Modest Increase
Check out the latest <a href="https://www.mykcm.com/2024/01/12/home-prices-forecast-to-climb-over-the-next-5-years-infographic/" rel="noopener noreferrer" target="_blank">home price</a> forecasts from eight different sources (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240122/20240123-2024-Home-Price-Forecasts.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240122/20240123-2024-Home-Price-Forecasts.png" /></a>
The blue bar on the left means, on average, <a href="https://img03.en25.com/Web/MortgageBankersAssociation/%7Ba8f4bf3d-95ec-42be-9c8d-3eb49e52f553%7D_Mortgage_Finance_Forecast_Jan_2024.pdf" rel="noopener noreferrer" target="_blank">experts</a> think <a href="https://www.zillow.com/research/2024-housing-predictions-33447/" rel="noopener noreferrer" target="_blank">home prices</a> will go up over 2% by the end of this year – not down.
<a href="https://www.freddiemac.com/research/forecast/20231220-us-economy-expanded-in-2023" rel="noopener noreferrer" target="_blank">Prices</a> aren’t likely to depreciate in 2024 because <a href="https://www.mykcm.com/2024/01/16/why-you-may-want-to-seriously-consider-a-newly-built-home/" rel="noopener noreferrer" target="_blank">inventory</a> is still tight and lower <a href="https://www.mykcm.com/2024/01/08/what-lower-mortgage-rates-mean-for-your-purchasing-power/" rel="noopener noreferrer" target="_blank">mortgage rates</a> are leading to strong <a href="https://www.mykcm.com/2024/01/17/2-reasons-why-todays-mortgage-rate-trend-is-good-for-sellers/" rel="noopener noreferrer" target="_blank">buyer demand</a>. Those two factors will keep pushing <a href="https://www.fanniemae.com/newsroom/fannie-mae-news/q4-2023-home-price-expectations-survey" rel="noopener noreferrer" target="_blank">prices</a> up as the year goes on. As Selma Hepp, Chief Economist at CoreLogic, <a href="https://www.cnn.com/2023/12/26/business/us-home-prices-record-high-october/index.html" rel="noopener noreferrer" target="_blank">explains</a>:
“With mortgage rates dropping, demand for homes in early 2024 is likely to be strong and will again put pressure on prices, similar to trends observed in early 2023 . . . Most markets will continue to reach new home price highs over the course of 2024.”
What Does This Mean for You?
Experts are saying <a href="https://twitter.com/NewsLambert/status/1730642488346472787" rel="noopener noreferrer" target="_blank">home prices</a> will go up this year, and that's good news if you're <a href="https://www.mykcm.com/2024/01/03/thinking-about-buying-a-home-ask-yourself-these-questions/" rel="noopener noreferrer" target="_blank">thinking</a> about <a href="https://www.mykcm.com/2024/01/16/why-you-may-want-to-seriously-consider-a-newly-built-home/" rel="noopener noreferrer" target="_blank">buying a home</a>. When you become a <a href="https://www.mykcm.com/2024/01/15/homeownership-is-still-at-the-heart-of-the-american-dream/" rel="noopener noreferrer" target="_blank">homeowner</a>, you want the <a href="https://cdn.nar.realtor/sites/default/files/documents/forecast-q4-2023-us-economic-outlook-10-26-2023.pdf" rel="noopener noreferrer" target="_blank">value</a> of your house to <a href="https://www.mykcm.com/2024/01/11/the-dramatic-impact-of-homeownership-on-net-worth/" rel="noopener noreferrer" target="_blank">go up</a>. That appreciation is what builds <a href="https://www.mykcm.com/2024/01/09/ways-your-home-equity-can-help-you-reach-your-goals/" rel="noopener noreferrer" target="_blank">equity</a> and makes homeownership such a good investment over time.
Beyond that, expected home price appreciation also means if you’re ready, willing, and able to <a href="https://www.mykcm.com/2024/01/05/achieving-your-homebuying-dreams-in-2024-infographic/" rel="noopener noreferrer" target="_blank">buy</a>, waiting just means it will cost more later.
Bottom Line
If you're worried home prices will come down, don’t be. Many experts believe they’ll actually go up this year. If you have questions or worries about what’s happening with prices in our area, let’s connect.
Contact us for experienced representation when buying or selling a <a href="http://www.marincounty.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="16" data-ogsc="">home in Marin County CA</a>.
2024-01-23T19:23:21-07:002024-01-23T19:24:55-07:00Marin Modern Teamtag:marincounty.com,2012-09-20:32105Things To Consider If Your House Didn’t Sell<img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231220/20240102-Things-To-Consider-If-Your-House-Didn-t-Sell.png" alt="" class="img-thumbnail mx-auto d-block" />
If your listing has expired and your house didn’t sell, it's completely normal to feel a mix of frustration and disappointment. Understandably, you're probably wondering what may have gone wrong. Here are three questions to think about as you figure out what to <a href="https://www.mykcm.com/2023/12/05/when-you-sell-your-house-where-do-you-plan-to-go/" rel="noopener noreferrer" target="_blank">do next</a>.
Did You Limit Access to Your House?
One of the biggest mistakes you can make when selling your house is restricting the days and times when potential buyers can tour it. Being flexible with your schedule is important, even though it might feel a bit stressful to drop everything and leave when buyers want to see it. After all, minimal access means minimal exposure to buyers. ShowingTime <a href="https://showingtimeplus.com/resources/blog/6-reasons-your-house-isnt-getting-showings-and-how-to-fix-it" rel="noopener noreferrer" target="_blank">advises</a>:
“. . . do your best to be as flexible as possible when granting access to your house for showings.”
Sometimes, the most <a href="https://www.mykcm.com/2023/11/16/people-are-still-moving-even-with-todays-affordability-challenges/" rel="noopener noreferrer" target="_blank">determined buyers</a> might come from far away. Since they’re traveling to see your house, they may not be able to change their plans easily if you only offer limited times for showings. So, try to make your house available as much as you can to accommodate them. It's simple – if no one’s able to look at it, how will it sell?
Did You Make Your House Stand Out?
When you're selling your house, the old saying matters: you never get a second chance to make a first impression. Putting in the work to make the exterior of your home look nice is just as important as how you stage it inside. Freshen up your landscaping to boost your home’s curb appeal so you can make an impact upfront. As an article from U.S. News <a href="https://realestate.usnews.com/real-estate/articles/how-to-sell-your-home-while-living-in-it" rel="noopener noreferrer" target="_blank">says</a>:
“After all, if people drive by, but aren’t interested enough to walk through the front door, you’ll never sell your house.”
But don’t let that impact stop at the front door. By removing personal items and reducing clutter inside, you give buyers more freedom to picture themselves in the home. Plus, a fresh coat of paint or thorough floor cleaning can work wonders in sprucing up the house for potential buyers.
Did You Price Your House at Market Value?
Setting the right price is key. While it might be tempting to push the price higher to maximize your profit, <a href="https://www.mykcm.com/2023/12/14/if-your-house-hasnt-sold-yet-it-may-be-overpriced/" rel="noopener noreferrer" target="_blank">overpricing your house</a> can actually turn off potential buyers and slow down the selling process. Forbes <a href="https://www.forbes.com/sites/brendarichardson/2023/03/01/recent-home-sellers-are-feeling-remorse-over-pricing-timing-or-marketing-of-their-home-new-survey-finds/?sh=2be46552317d" rel="noopener noreferrer" target="_blank">notes</a>:
“Pricing a home too high could lead to a slower sale or force the seller to drop their price.”
If your house is priced higher than others like it, it may discourage buyers, resulting in increased time on the market. Pay attention to the feedback people give your agent during open houses and showings. If lots of people are saying the same thing, it might be a good idea to think about lowering the price.
For all these insights and more, rely on a trusted <a href="https://www.mykcm.com/2023/12/07/why-you-need-to-use-a-real-estate-agent-when-you-buy-a-home/" rel="noopener noreferrer" target="_blank">real estate agent</a>. A great agent will offer expert advice on relisting your house with effective strategies to get it sold.
Bottom Line
It’s natural to feel disappointed when your listing has expired and your house didn’t sell. Let’s connect to determine what happened, and what changes you should make to get <a href="https://www.mykcm.com/2023/11/20/is-your-house-the-top-thing-on-a-buyers-wish-list-this-holiday-season/" rel="noopener noreferrer" target="_blank">your house</a> back on the market.
Contact us for experienced representation when buying or selling a <a href="http://www.marincounty.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="16" data-ogsc="">home in Marin County CA</a>.
2024-01-02T18:51:33-07:002024-01-02T18:53:10-07:00Marin Modern Teamtag:marincounty.com,2012-09-20:31418People Are Still Moving, Even with Today’s Affordability Challenges<img src="https://files.keepingcurrentmatters.com/content/images/20231113/20231116-People-Are-Still-Moving-Even-With-Todays-Affordability-Challenges.png" alt="" class="img-thumbnail mx-auto d-block" />
If you're thinking about <a href="https://www.mykcm.com/2023/10/25/invest-in-yourself-by-owning-a-home/" rel="noopener noreferrer" target="_blank">buying</a> or <a href="https://www.mykcm.com/2023/11/06/reasons-to-sell-your-house-before-the-new-year/" rel="noopener noreferrer" target="_blank">selling</a> a home, you might have heard that it’s tough right now because <a href="https://www.mykcm.com/2023/10/16/are-higher-mortgage-rates-here-to-stay/" rel="noopener noreferrer" target="_blank">mortgage rates</a> are higher than they’ve been over the past few years, and <a href="https://www.mykcm.com/2023/10/23/why-home-prices-keep-going-up/" rel="noopener noreferrer" target="_blank">home prices</a> are rising. That much is true. Take a look at the graph below. It breaks down how the current affordability situation stacks up to recent years.
<a href="https://www.mykcm.com/content/images/20231113/20231116-Affordability-Historically-Low.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20231113/20231116-Affordability-Historically-Low.png" /></a>
The National Association of Realtors (NAR) <a href="https://www.nar.realtor/research-and-statistics/housing-statistics/housing-affordability-index/methodology" rel="noopener noreferrer" target="_blank">explains</a> how to read the values on the graph:
“To interpret the indices, a value of 100 means that a family with the median income has exactly enough income to qualify for a mortgage on a median-priced home.”
The black dotted line represents that 100 value on the index. Essentially, the higher the bar, the more affordable homes are. As you can see, the orange bar for today shows higher mortgage rates and home prices have created a clear challenge. But, while affordability is definitely tighter right now, that doesn’t mean the housing market is at a standstill.
<a href="https://www.nar.realtor/newsroom/existing-home-sales-retreated-3-3-in-june-monthly-median-sales-price-reached-second-highest-amount" rel="noopener noreferrer" target="_blank">According</a> to NAR, based on the pace of sales right now, just under 4 million homes will sell this year. With some simple math, let’s break down what that really means for you:
3.96 million homes divided by 365 days in a year = 10,849 houses sell each day
10,849 divided by 24 hours in a day = 452 houses sell per hour
452 divided by 60 minutes in an hour = about 8 houses sell each minute
So, on average, over 10,000 homes sell each day in this country. Whether you're a buyer or a seller, this goes to show there are still ways to make your move possible, even at a time when affordability is tight.
An Agent Can Help You Make Your Move a Reality
You may be wondering how other <a href="https://www.mykcm.com/2023/10/25/invest-in-yourself-by-owning-a-home/" rel="noopener noreferrer" target="_blank">homebuyers</a> and <a href="https://www.mykcm.com/2023/10/24/the-perks-of-selling-your-house-when-inventory-is-low/" rel="noopener noreferrer" target="_blank">sellers</a> are making this happen now. One of the biggest game-changers in today’s market is working with a trusted local <a href="https://www.mykcm.com/2023/10/30/a-real-estate-agent-helps-take-the-fear-out-of-the-market/" rel="noopener noreferrer" target="_blank">real estate agent</a>. Great agents are helping other people just like you navigate <a href="https://www.mykcm.com/2023/10/20/home-price-growth-is-returning-to-normal-infographic/" rel="noopener noreferrer" target="_blank">today’s market</a> and the current affordability situation, and their insight is invaluable right now.
True professionals will be able to offer advice tailored to your specific wants, needs, budget, and more. Not to mention, they’ll also be able to draw on their experience of what’s working for other buyers and sellers right now. This could mean <a href="https://www.mykcm.com/2023/09/22/how-remote-work-helps-with-your-house-hunt-infographic/" rel="noopener noreferrer" target="_blank">broadening your search</a>, if needed, to include other housing types like condos, townhouses, or neighborhoods a bit further out to help offset some of the <a href="https://www.mykcm.com/2023/10/17/how-buying-a-multi-generational-home-helps-with-affordability-today/" rel="noopener noreferrer" target="_blank">affordability challenges</a> today.
Bottom Line
You might think there aren’t many people buying or selling homes right now since affordability is tighter than it’s been in quite some time, but that’s not the case. It’s true that buying a home has become more expensive over the past couple of years, but people are still moving.
If you’re hoping to buy or sell a home today, know that other people are still making their goals a reality – and that’s happening in large part because of the help and advice of skilled local real estate agents. Want to talk to a trusted professional about your own move? Let’s connect.
Contact the Marin Modern Team, your <a href="http://www.marincounty.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="14" data-ogsc="">Marin County real estate</a> connection, for assistance buying or selling a home in Marin County California.
2023-11-16T17:46:36-07:002023-11-16T17:48:04-07:00Marin Modern Teamtag:marincounty.com,2012-09-20:31169Don’t Believe Everything You Read About Home Prices<img src="https://files.keepingcurrentmatters.com/content/images/20231030/20231102-Dont-Believe-Everything-You-Read-About-Home-Prices.png" alt="" class="img-thumbnail mx-auto d-block" />
According to the latest data from <a href="https://www.fanniemae.com/research-and-insights/surveys-indices/national-housing-survey/national-housing-survey-archive" rel="noopener noreferrer" target="_blank">Fannie Mae</a>, 23% of Americans still think <a href="https://www.mykcm.com/2023/09/26/the-return-of-normal-seasonality-for-home-price-appreciation/" rel="noopener noreferrer" target="_blank">home prices</a> will go down over the next twelve months. But why do roughly 1 in 4 people feel that way?
It has a lot to do with all the negative talk about home prices over the past year. Since late 2022, the media has created a lot of fear about a <a href="https://www.mykcm.com/2023/09/27/why-todays-housing-inventory-shows-a-crash-isnt-on-the-horizon/" rel="noopener noreferrer" target="_blank">price crash</a> and those concerns are still lingering. You may be hearing people in your own life saying they’re worried about home prices or see on social media that some influencers are saying prices are going to come tumbling down.
If you’re someone who still thinks prices are going to fall, ask yourself this: Which is a more reliable place to get your information – clickbait headlines and social media or a trusted expert on the housing market?
The answer is simple. Listen to the professionals who specialize in residential real estate.
Here’s the latest data you can actually trust. Housing market experts acknowledge that nationally, prices did dip down slightly late last year, but that was short-lived. <a href="https://www.fanniemae.com/research-and-insights/surveys-indices/fannie-mae-home-price-index" rel="noopener noreferrer" target="_blank">Data</a> shows prices have <a href="https://www.mykcm.com/2023/10/03/home-prices-are-not-falling/" rel="noopener noreferrer" target="_blank">already rebounded</a> this year after that slight decline in 2022 (see graph below):
<a href="https://www.mykcm.com/content/images/20231030/20231102-Percent-Change-in-Home-Prices.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20231030/20231102-Percent-Change-in-Home-Prices.png" /></a>
But it’s not just Fannie Mae that’s reporting this bounce back. Experts from across the industry are showing it in their data too. And that’s why so many forecasts now project <a href="https://www.mykcm.com/2023/09/12/what-experts-project-for-home-prices-over-the-next-5-years/" rel="noopener noreferrer" target="_blank">home prices</a> will net <a href="https://www.mykcm.com/2023/09/08/home-price-forecasts-revised-for-2023-infographic/" rel="noopener noreferrer" target="_blank">positive</a> this year – not negative. The graph below helps prove this point with the latest forecasts from each organization:
<a href="https://www.mykcm.com/content/images/20231030/20231102-2023-Year-End-Home-Price-Forecasts.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20231030/20231102-2023-Year-End-Home-Price-Forecasts.png" /></a>
What’s worth noting is that, just a few short weeks ago, the Fannie Mae <a href="https://www.fanniemae.com/research-and-insights/forecast" rel="noopener noreferrer" target="_blank">forecast</a> was for 3.9% appreciation in 2023. In the forecast that just came out, that projection was updated from 3.9% to 6.7% for the year. This increase goes to show just how confident experts are that home prices will net positive this year.
So, if you believe home prices are falling, it may be time to get your insights from the experts instead – and they’re saying prices aren’t falling, they’re climbing.
Bottom Line
There’s been a lot of misleading information about home prices over the past year. And that’s still having an impact on how people are feeling about the housing market today. But it’s best not to believe everything you hear or read.
If you want information you can trust, turn to the real estate experts. Their data shows home prices are on the way back up and will net positive for the year. If you have questions about what’s happening in our local area, let’s connect.
Contact Marin Modern Real Estate, experienced <a href="http://www.marincounty.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-ogsc="">Marin County Realtors</a>, for help purchasing or selling a home in Marin County.
2023-11-02T11:41:45-07:002023-11-02T11:43:18-07:00Marin Modern Teamtag:marincounty.com,2012-09-20:30214Should Baby Boomers Buy or Rent After Selling Their Houses?<img src="https://files.keepingcurrentmatters.com/content/images/20230912/20230913-Should-Baby-Boomers-Buy-or-Rent-After-Selling-Their-Houses.png" alt="" class="img-thumbnail mx-auto d-block" />
Are you a baby boomer who’s lived in your current house for a long time and you’re ready for a change? If you’re thinking about <a href="https://www.mykcm.com/2023/09/04/why-its-still-a-sellers-market-today/" rel="noopener noreferrer" target="_blank">selling your house</a>, you have a lot to consider. Will you move to a different state or stay nearby? Is it time to <a href="https://www.mykcm.com/2023/09/07/get-ready-for-smaller-more-affordable-homes/" rel="noopener noreferrer" target="_blank">downsize</a> or do you want more space to accommodate your loved ones? But maybe the biggest consideration boils down to this – will you buy your next home or choose to rent instead?
That decision ultimately depends on your current situation and your future plans. Here are two important factors to help you decide what’s right for you.
Expect Rents to Keep Going Up
The graph below uses <a href="https://www.census.gov/housing/hvs/files/currenthvspress.pdf" rel="noopener noreferrer" target="_blank">data</a> from the Census to show how rents have been climbing steadily since 1988:<a href="https://www.mykcm.com/content/images/20230912/20230913-Median-Asking-Rent-Since-1988.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230912/20230913-Median-Asking-Rent-Since-1988.png" /></a>Rents have been going up consistently over the long run. If you choose to rent, there’s a risk your rental payment will go up each time you renew your lease. Having a higher rental expense may not be something you want to deal with every year.
When you buy a home with a fixed-rate mortgage, it helps stabilize your monthly housing payment. This allows you to lock in your monthly payment for the duration of your home loan. That keeps your payments steady and predictable for the long haul. Freddie Mac <a href="https://myhome.freddiemac.com/blog/homebuying/should-inflation-change-your-homebuying-plans" rel="noopener noreferrer" target="_blank">sums</a> it up like this:
“. . . homeowners with fixed-rate loans will see little to no change to their monthly housing cost over the life of their loan. You can be confident in knowing that your mortgage payments won’t change much in the long term, even when life’s other costs do.”
Owning Your Home Comes with Unique Benefits
<a href="https://www.aarp.org/brandamp/anywhere-buy-instead-of-rent.html" rel="noopener noreferrer" target="_blank">According</a> to AARP, buying your next home is a better long-term strategy than renting:
“Though each option has pros and cons, buying provides more pros, with a broader range of benefits.”
To help you choose what you’ll do after you sell, here are just a few of the benefits of homeownership that article covers:
Owning your home can help you <a href="https://www.mykcm.com/2023/08/15/equity-is-a-game-changer-for-homeowners-looking-to-sell/" rel="noopener noreferrer" target="_blank">save money</a> for the future. Your home, and the <a href="https://www.mykcm.com/2023/09/11/planning-to-retire-your-equity-can-help-you-make-a-move/" rel="noopener noreferrer" target="_blank">equity</a> you build as a homeowner, can provide generational wealth that could be passed on to loved ones, giving them a better life.
You might not have to pay a monthly mortgage payment at all. If you have enough equity to <a href="https://www.mykcm.com/2023/09/01/homeowners-have-a-lot-of-equity-right-now-infographic/" rel="noopener noreferrer" target="_blank">buy</a> your next home outright, you wouldn’t have a monthly mortgage payment. While you might still need to cover property taxes or maintenance fees, not having to worry about a monthly mortgage payment could be a big relief.
Aging in place can be simpler. If your needs change, owning your home gives you the freedom to make renovations and updates that can make everyday life easier.
Bottom Line
If you're a baby boomer who’s wondering whether you should buy or rent your next home, let’s <a href="https://www.mykcm.com/2023/08/23/why-you-need-a-true-expert-in-todays-housing-market/" rel="noopener noreferrer" target="_blank">connect</a>. With rents going up and homeownership providing so many benefits, it may make sense to consider buying your next home.
Contact the Marin Modern Team, your <a href="http://www.marincounty.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-ogsc="">Marin County real estate</a> connection, for assistance buying or selling a home in Marin County California.
2023-09-13T11:40:11-07:002023-09-13T11:52:03-07:00Marin Modern Teamtag:marincounty.com,2012-09-20:30082Mortgage Rates: Past, Present, and Possible Future<img src="https://files.keepingcurrentmatters.com/content/images/20230905/20230906-Mortgage-Rates-Past-Present-and-Possible-Future.png" alt="" class="img-thumbnail mx-auto d-block" />
If you’re hoping to <a href="https://www.mykcm.com/2023/08/17/people-want-less-expensive-homes-and-builders-are-responding/" rel="noopener noreferrer" target="_blank">buy a home</a> this year, you’re probably paying close attention to <a href="https://www.mykcm.com/2023/08/04/housing-market-forecast-for-the-rest-of-2023-infographic-1/" rel="noopener noreferrer" target="_blank">mortgage rates</a>. Since mortgage rates impact what you can afford when you take out a home loan – and affordability is a challenge today – it’s a good time to look at the big picture of where mortgage rates have been historically compared to where they are now. Beyond that, it’s important to understand their relationship with <a href="https://www.mykcm.com/2023/08/31/how-inflation-affects-the-housing-market/" rel="noopener noreferrer" target="_blank">inflation</a> for insights into where <a href="https://www.mykcm.com/2023/07/19/explaining-todays-mortgage-rates/" rel="noopener noreferrer" target="_blank">mortgage rates</a> might go in the near future.
Giving Context to the Sticker Shock
Freddie Mac has been tracking the 30-year fixed mortgage rate since April of 1971. Every week, they release the <a href="http://www.freddiemac.com/pmms/pmms_archives.html" rel="noopener noreferrer" target="_blank">results</a> of their Primary Mortgage Market Survey, which averages mortgage application data from lenders across the country (see graph below):
<a href="https://www.mykcm.com/content/images/20230905/20230906-Mortgage-Rates.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230905/20230906-Mortgage-Rates.png" /></a>Looking at the right side of the graph, mortgage rates have increased significantly since the start of last year. But even with that rise, today’s rates are still below the 52-year average. While that historical perspective is good context, buyers have gotten used to mortgage rates between 3% and 5%, which is where they’ve been over the past 15 years.
That’s important because it explains why the recent jump in rates might have you feeling sticker shock even though they’re close to their long-term average. While many buyers have <a href="https://www.mykcm.com/2023/08/30/buyer-traffic-is-still-stronger-than-the-norm/" rel="noopener noreferrer" target="_blank">adjusted</a> to the elevated rates over the past year, a slightly lower rate would be a welcome sight. To determine if that’s a realistic possibility, it’s important to look at <a href="https://www.mykcm.com/2023/08/31/how-inflation-affects-the-housing-market/" rel="noopener noreferrer" target="_blank">inflation</a>.
Where Could Mortgage Rates Go in the Future?
The Federal Reserve has been working hard to lower inflation since early 2022. That’s significant because, historically, there’s been a <a href="https://www.mykcm.com/2023/08/03/how-inflation-affects-mortgage-rates/" rel="noopener noreferrer" target="_blank">connection</a> between inflation and mortgage rates (see graph below):
<a href="https://www.mykcm.com/content/images/20230905/20230906-Inflation-and-30-year-fixed-rate-mortgage.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230905/20230906-Inflation-and-30-year-fixed-rate-mortgage.png" /></a>This graph shows a pretty reliable relationship between <a href="https://www.bls.gov/cpi/" rel="noopener noreferrer" target="_blank">inflation</a> and <a href="https://www.freddiemac.com/pmms" rel="noopener noreferrer" target="_blank">mortgage rates</a>. Looking at the left side of the graph, each time inflation moves significantly (shown in blue), mortgage rates follow suit shortly after (shown in green).
The circled portion of the graph points out the most recent spike in inflation, with mortgage rates following closely behind. As inflation has moderated a bit this year, mortgage rates haven’t yet made a similar move.
That means, if history is any guide, the market is <a href="https://www.mykcm.com/2023/08/04/housing-market-forecast-for-the-rest-of-2023-infographic-1/" rel="noopener noreferrer" target="_blank">waiting</a> for mortgage rates to follow inflation and head back down. It’s impossible to accurately predict where mortgage rates will go for sure, but moderating inflation means mortgage rates going down in the near future would fit a well-established trend.
Bottom Line
To understand where mortgage rates may be going, it’s helpful to look at where they’ve been in the past. There’s a clear connection between inflation and mortgage rates, and if that historical relationship holds true, the recent decline in inflation may mean good news for the future of mortgage rates and your homeownership goals.
Contact us for experienced representation when buying or selling a <a href="http://www.marincounty.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-ogsc="" data-linkindex="16">home in Marin County CA</a>.
2023-09-06T17:45:38-07:002023-09-06T17:47:42-07:00Marin Modern Teamtag:marincounty.com,2012-09-20:29282Four Ways You Can Use Your Home Equity<img src="https://files.keepingcurrentmatters.com/content/images/20230804/20230807-Four-Ways-You-Can-Use-Your-Home-Equity.jpg" alt="" class="img-thumbnail mx-auto d-block" />
If you’re a homeowner, odds are your <a href="https://www.mykcm.com/2023/06/16/how-owning-a-home-grows-your-wealth-with-time-infographic/" rel="noopener noreferrer" target="_blank">equity</a> has grown significantly over the last few years. <a href="https://www.mykcm.com/2023/07/20/owning-your-home-helps-you-build-wealth/" rel="noopener noreferrer" target="_blank">Equity</a> builds over time as home values grow and as you pay down your home loan. And, since home prices skyrocketed during the <a href="https://www.mykcm.com/2023/05/30/todays-real-estate-market-the-unicorns-have-galloped-off/" rel="noopener noreferrer" target="_blank">‘unicorn’ years</a>, you’ve likely gained more than you think.
According to the latest <a href="https://www.corelogic.com/press-releases/corelogic-us-home-borrowers-see-first-annual-home-equity-losses-since-2012-in-q1-2023-but-overall-mortgage-performance-remains-strong/" rel="noopener noreferrer" target="_blank">Equity Insights Report</a> from CoreLogic, the average homeowner has more than $274,000 in equity right now. That much equity can help you achieve certain goals. In a recent article, Bankrate <a href="https://www.bankrate.com/home-equity/homeowner-equity-data-and-statistics/#negative-equity" rel="noopener noreferrer" target="_blank">elaborates:</a>
“While the pandemic created serious challenges, the silver lining for anyone who owned a home was the sizable equity gain. Understanding how home equity works, and how to leverage it, is important for any homeowner.”
Here are a few examples of how you can put your home equity to work for you.
1. Buy a Home That Fits Your Needs
If your current space no longer meets your needs, it might be time to think about moving to a bigger home. And if you've got too much space, <a href="https://www.mykcm.com/2023/07/07/the-benefits-of-downsizing-for-homeowners-infographic/" rel="noopener noreferrer" target="_blank">downsizing</a> to a smaller home could be just right. Either way, you can put your equity toward a down payment on a home that fits your changing lifestyle. A real estate agent can help you figure out how much equity you've got and how to use it when buying your next home.
2. Reinvest in Your Current Home
Renovations are a great option if you want to change your living space, but you aren’t yet ready to make a move. Home improvement projects give you the freedom to tailor your home to match your needs and personal style. But it's important to consider the long-term benefits certain upgrades can bring to your home’s value. Lean on a real estate professional for the best advice on which improvement projects to prioritize in order to get the greatest return on your investment when you sell later on.
3. Pursue Personal Ambitions
Home equity can also serve as a catalyst for realizing your life-long dreams. That could mean investing in a new business venture, retirement, or funding an education. While you shouldn’t use your equity for unnecessary spending, using it responsibly for something meaningful and impactful can really make a difference in your life.
4. Understand Your Options to Avoid Foreclosure
Today the number of <a href="https://www.mykcm.com/2023/07/24/foreclosure-numbers-today-arent-like-2008/" rel="noopener noreferrer" target="_blank">foreclosure filings</a> remains below the norm, so there’s no need to fear a wave of foreclosed homes flooding the market. But unfortunately, there are still some homeowners who experience the foreclosure process each year. If you’re facing financial difficulties, having a clear understanding of your options and how your equity can help is crucial. Equity can act as a financial cushion that can be used in times of unexpected challenges or unforeseen circumstances that may disrupt your ability to make mortgage payments on time.
In an article, Freddie Mac <a href="https://myhome.freddiemac.com/blog/homeownership/how-selling-equity-can-help-you-avoid-foreclosure" rel="noopener noreferrer" target="_blank">explains</a> it this way:
“If exiting your home is the best option for you, selling with equity may be a good option. When selling with equity, you are using the proceeds from selling your home at a higher price than the amount you owe on your mortgage to pay off your remaining mortgage debt.”
Bottom Line
Your equity can be a game changer in reinvesting in your needs, pursuing your goals, and even helping you avoid foreclosure during difficult times. If you’re unsure how much equity you have in your home, let’s connect so you can start planning your next move.
Contact us for experienced representation when buying or selling a <a href="http://www.marincounty.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-ogsc="" data-linkindex="16">home in Marin County CA</a>.
2023-08-07T18:12:55-07:002023-08-07T18:15:03-07:00Marin Modern Teamtag:marincounty.com,2012-09-20:28396Two Questions To Ask Yourself if You’re Considering Buying a Home<img src="https://files.keepingcurrentmatters.com/content/images/20230703/20230705-two-questions-to-ask-yourself-if-youre-considering-buying-a-home.jpg" alt="" class="img-thumbnail mx-auto d-block" />
If you’re thinking of <a href="https://www.mykcm.com/2023/06/19/saving-for-a-down-payment-heres-what-you-need-to-know/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">buying a home</a>, chances are you’re paying attention to just about everything you hear about the housing market. And you’re getting your information from a variety of channels: the news, social media, your real estate agent, conversations with friends and loved ones, overhearing someone chatting at the local supermarket, the list goes on and on. Most likely, home prices and mortgage rates are coming up a lot.
To help cut through the noise and give you the information you need most, take a look at what the data says. Here are the top two questions you need to ask yourself about home prices and mortgage rates as you make your decision:
1. Where Do I Think Home Prices Are Heading?
One reliable place you can turn to for that information is the <a href="https://pulsenomics.com/surveys/#home-price-expectations" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">Home Price Expectation Survey</a> from Pulsenomics – a survey of a national panel of over one hundred economists, real estate experts, and investment and market strategists.
According to the latest release, the experts surveyed are projecting slight depreciation this year (see the red in the graph below). But here’s the context you need most. The worst home price declines are already behind us, and prices are actually <a href="https://www.mykcm.com/2023/05/16/the-worst-home-price-declines-are-behind-us/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">appreciating again</a> in many markets. Not to mention, the small 0.37% depreciation HPES is showing for 2023 is far from <a href="https://www.mykcm.com/2023/06/05/oops-home-prices-didnt-crash-after-all/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">the crash</a> some people originally said would happen.
Now, let’s look to the future. The green in the graph below shows prices have turned a corner and are expected to appreciate in 2024 and beyond. After this year, the HPES is forecasting home price appreciation returning to more normal levels for the next several years.
<a href="https://www.mykcm.com/content/images/20230703/20230705-extimated-home-price-performance.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230703/20230705-extimated-home-price-performance.png" /></a>
So, why does this matter to you? It means your home will likely <a href="https://www.mykcm.com/2023/06/16/how-owning-a-home-grows-your-wealth-with-time-infographic/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">grow in value</a> and you should gain <a href="https://www.mykcm.com/2023/06/14/a-drop-in-equity-doesnt-mean-low-equity/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">home equity</a> in the years ahead, but only if you buy now. If you wait, based on these forecasts, the home will only cost you more later on.
2. Where Do I Think Mortgage Rates Are Heading?
Over the past year, <a href="https://www.mykcm.com/2023/06/07/the-main-reason-mortgage-rates-are-so-high/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">mortgage rates</a> have risen in response to economic uncertainty, <a href="https://www.mykcm.com/2023/05/24/owning-a-home-helps-protect-against-inflation/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">inflation</a>, and more. We know based on the latest reports that inflation, while still high, has moderated from its peak. This is an encouraging sign for the market and for mortgage rates. Here’s why.
When inflation cools, mortgage rates generally fall in response. This may be why some <a href="https://www.fanniemae.com/media/47986/display" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">experts</a> are saying <a href="https://www.mba.org/docs/default-source/research-and-forecasts/forecasts/2023/mortgage-finance-forecast-jun-2023.pdf" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">mortgage rates</a> will pull back slightly over the <a href="https://cdn.nar.realtor/sites/default/files/documents/forecast-q3-2023-us-economic-outlook-04-27-2023.pdf" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">next few quarters</a> and settle somewhere around roughly 5.5 and 6% on average.
<a href="https://www.mykcm.com/content/images/20230703/20230705-mortgage-rate-projections.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230703/20230705-mortgage-rate-projections.png" /></a>
But, not even the experts can say with absolute certainty where <a href="https://www.mykcm.com/2023/06/13/your-needs-matter-more-than-todays-mortgage-rates/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">mortgage rates</a> will be next year, or even next month. That’s because there are so many factors that can impact what happens. So, to give you a lens into the various possible outcomes, here’s what you should consider:
If you buy now and mortgage rates don’t change: You made a good move since home prices are projected to grow with time, so at least you beat rising prices.
If you buy now and mortgage rates fall (as projected): You probably still made a good decision because you got the house before home prices appreciated more. And, you can always refinance your home later on if rates are lower.
If you buy now and mortgage rates rise: If this happens, you made a great decision because you bought before both the price of the home and the mortgage rate went up.
Bottom Line
If you’re thinking about buying a home, you need to know the facts on what’s happening with home prices and mortgage rates. While no one can say for certain where they’ll go, expert projections can give you powerful information to keep you informed. Let’s connect so you have a professional to add in an expert opinion on our local market.
Contact us for experienced representation when buying or selling a <a href="http://www.marincounty.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-ogsc="">home in Marin County CA</a>.
2023-07-05T13:08:40-07:002023-07-05T13:12:06-07:00Marin Modern Teamtag:marincounty.com,2012-09-20:27582Why Buying or Selling a Home Helps the Economy and Your Community<img src="https://files.keepingcurrentmatters.com/content/images/20230614/20230615-why-buying-or-selling-a-home-helps-the-economy-and-your-community.jpg" alt="" class="img-thumbnail mx-auto d-block" />
If you're thinking about <a href="https://www.mykcm.com/2023/06/06/real-estate-is-still-considered-the-best-long-term-investment-1/" rel="noopener noreferrer" target="_blank" style="color: blue;">buying</a> or <a href="https://www.mykcm.com/2023/05/26/moving-now-can-give-your-house-its-day-in-the-sun-infographic/" rel="noopener noreferrer" target="_blank" style="color: blue;">selling</a> a house, it's important to know that it doesn't just affect your life, but also your community.
The National Association of Realtors (NAR) releases a <a href="https://cdn.nar.realtor/sites/default/files/documents/2023-state-by-state-economic-impact-of-real-estate-activity-report-us-05-01-2023.pdf?_gl=1*13hskvj*_gcl_au*NTQ4NDc1ODEzLjE2Nzg5MTgyNzk" rel="noopener noreferrer" target="_blank" style="color: blue;">report</a> every year to show how much economic activity is generated by <a href="https://www.mykcm.com/2023/05/25/the-benefits-of-selling-now-according-to-experts/" rel="noopener noreferrer" target="_blank" style="color: blue;">home sales</a>. The chart below illustrates that impact:
<a href="https://www.mykcm.com/content/images/20230614/20230615-economic-impact-of-a-typical-home-sale.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230614/20230615-economic-impact-of-a-typical-home-sale.png" /></a>
As the visual shows, when a house is sold, it can make a big difference in the local economy. The impact comes largely from the workers required to build, update, and buy and sell homes. Robert Dietz, Chief Economist at the National Association of Home Builders (NAHB), <a href="https://chicagoagentmagazine.com/2023/01/02/nahb-robert-dietz-new-construction/" rel="noopener noreferrer" target="_blank" style="color: blue;">explains</a> how the housing industry <a href="https://www.mykcm.com/2023/05/18/powerful-job-market-fuels-homebuyer-demand/" rel="noopener noreferrer" target="_blank" style="color: blue;">adds jobs</a> to a community:
“The economic impact means housing is a significant job creator. In fact, for every single-family home built, enough economic activity is generated to sustain three full-time jobs for a year, per NAHB research. . . . And one job for every $100,000 in remodeling spending.”
Housing being a major job creator makes sense when you consider there are many different industries involved in the process. A recent article from Fortune <a href="https://fortune.com/2022/08/09/real-estate-housing-market-falling-prices-economic-risk/" rel="noopener noreferrer" target="_blank" style="color: blue;">notes</a> housing activity could have a more robust impact than you think due to the many ways it’s tied to the economy:
“Housing has three direct linkages to economic activity (GDP): the construction of new homes, the remodeling of existing homes, and that of housing transactions. . . . consider the activity associated with home sales – think broker fees, lawyers, etc. – which are a sizable contributor to housing’s GDP footprint.”
When you <a href="https://www.mykcm.com/2023/05/24/owning-a-home-helps-protect-against-inflation/" rel="noopener noreferrer" target="_blank" style="color: blue;">buy</a> or sell a home, you work with a <a href="https://www.mykcm.com/2023/05/22/why-buyers-need-an-expert-agent-by-their-side/" rel="noopener noreferrer" target="_blank" style="color: blue;">team of professionals</a>, including contractors, specialists, lawyers, and city officials. Each person plays a role in making the transaction happen.
So, when you <a href="https://www.mykcm.com/2023/06/13/your-needs-matter-more-than-todays-mortgage-rates/" rel="noopener noreferrer" target="_blank" style="color: blue;">make a move</a> in the housing market, you're not just <a href="https://www.mykcm.com/2023/05/23/why-buying-a-vacation-home-beats-renting-one-this-summer/" rel="noopener noreferrer" target="_blank" style="color: blue;">meeting</a> your own needs, you're also making a positive impact on the community. Knowing this can give you a sense of empowerment as you make your decision this year.
Bottom Line
Each and every home sale is important for the local economy. If you’re ready to <a href="https://www.mykcm.com/2023/06/01/the-true-value-of-homeownership/" rel="noopener noreferrer" target="_blank" style="color: blue;">move</a>, let’s connect. It won’t just change your life – it’ll also have a strong positive effect on the whole community.
Contact the Marin Modern Team, your <a href="http://www.marincounty.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-ogsc="" data-linkindex="14">Marin County real estate</a> connection, for assistance buying or selling a home in Marin County California.
2023-06-15T14:02:07-07:002023-06-15T14:05:45-07:00Marin Modern Teamtag:marincounty.com,2012-09-20:27356Real Estate Is Still Considered the Best Long-Term Investment<img src="https://files.keepingcurrentmatters.com/content/images/20230605/20230606-real-estate-is-still-considered-the-best-long-term-investment.jpg" alt="" class="img-thumbnail mx-auto d-block" />
With all the headlines circulating about <a href="https://www.mykcm.com/2023/05/16/the-worst-home-price-declines-are-behind-us/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">home prices</a> and rising <a href="https://www.mykcm.com/2023/05/19/the-impact-of-changing-mortgage-rates-infographic/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">mortgage rates</a>, you may wonder if it still makes sense to invest in homeownership right now. A <a href="https://news.gallup.com/poll/505592/real-estate-lead-best-investment-shrinks-gold-rises.aspx" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">recent poll</a> from Gallup shows the answer is yes. In fact, real estate was voted the best long-term investment for the 11th consecutive year, consistently beating other investment types like gold, stocks, and bonds (see graph below):
<a href="https://files.keepingcurrentmatters.com/content/images/20230605/20230606-americas-opinion-of-best-long-term-investment-in-2023.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230605/20230606-americas-opinion-of-best-long-term-investment-in-2023.png" /></a>
If you’re thinking about <a href="https://www.mykcm.com/2023/05/24/owning-a-home-helps-protect-against-inflation/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">purchasing a home</a>, let this poll reassure you. Even with everything happening today, Americans recognize owning a home is a powerful financial decision.
Why Do Americans Still Feel So Positive About the Value of Investing in a Home?
Purchasing real estate has typically been a solid long-term strategy for building wealth in America. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), <a href="https://www.nar.realtor/magazine/real-estate-news/study-homeowner-wealth-is-40-times-higher-than-renters" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">notes</a>:
“. . . homeownership is a catalyst for building wealth for people from all walks of life. A monthly mortgage payment is often considered a forced savings account that helps homeowners build a net worth about 40 times higher than that of a renter.”
That’s because owning a home grows your <a href="https://www.mykcm.com/2023/05/15/homeowners-have-incredible-equity-to-leverage-right-now/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">net worth</a> over time as your home appreciates in value and as you pay down your mortgage. And, since building that wealth takes time, it may make sense to start as soon as you can. If you wait to buy and keep <a href="https://www.mykcm.com/2023/05/01/why-buying-a-home-makes-more-sense-than-renting-today/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">renting</a>, you’ll miss out on those monthly housing payments going toward your home equity.
Bottom Line
Buying a home is a powerful decision. So, it’s no wonder so many people view real estate as the best long-term investment. If you’re ready to start on your own journey toward homeownership, let’s connect today.
Contact the Marin Modern Team, your <a href="http://www.marincounty.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-ogsc="">Marin County real estate</a> connection, for assistance buying or selling a home in Marin County California.
2023-06-07T13:59:30-07:002023-06-07T14:01:24-07:00Marin Modern Teamtag:marincounty.com,2012-09-20:26011Why Aren’t Home Prices Crashing?<img src="https://files.keepingcurrentmatters.com/content/images/20230404/20230405-why-arent-home-prices-crashing-KCM.jpg" alt="" class="img-thumbnail mx-auto d-block" />
There have been a lot of shifts in the housing market recently. Mortgage rates rose dramatically last year, impacting many people’s ability to buy a home. And after several years of rapid price appreciation, home prices finally peaked last summer. These changes led to a rise in headlines saying prices would end up crashing.
Even though we’re no longer seeing the buyer frenzy that drove home values up during the pandemic, prices have been relatively flat at the national level. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), doesn’t <a href="https://www.forbes.com/advisor/mortgages/real-estate/housing-market-predictions/" rel="noopener noreferrer" target="_blank">expect</a> that to change:
“[H]ome prices will be steady in most parts of the country with a minor change in the national median home price.”
You might think sellers would have to lower prices to attract buyers in today’s market, and that’s part of why some may have been waiting for prices to come crashing down. But there’s another factor at play – low inventory. And <a href="https://www.bankrate.com/real-estate/is-the-housing-market-about-to-crash/" rel="noopener noreferrer" target="_blank">according</a> to Yun, that’s limiting just how low prices will go:
“We simply don’t have enough inventory. Will some markets see a price decline? Yes. [But] with the supply not being there, the repeat of a 30 percent price decline is highly, highly unlikely.”
As you can see in the graph below, we’ve been at or near record-low inventory levels for a few years now.
<a href="https://files.keepingcurrentmatters.com/content/images/20230404/20230405-months-inventory-of-homes-for-sale-MEM.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230404/20230405-months-inventory-of-homes-for-sale-MEM.png" /></a>
That lack of available homes on the market is putting upward pressure on <a href="https://www.mykcm.com/2023/03/20/whats-ahead-for-home-prices-in-2023/" rel="noopener noreferrer" target="_blank">prices</a>. Bankrate <a href="https://www.bankrate.com/real-estate/is-the-housing-market-about-to-crash/#crash" rel="noopener noreferrer" target="_blank">puts</a> it like this:
“This ongoing lack of inventory explains why many buyers still have little choice but to bid up prices. And it also indicates that the supply-and-demand equation simply won’t allow a price crash in the near future.”
If more homes don’t come to the market, a lack of supply will keep prices from crashing, and, <a href="https://www.forbes.com/advisor/mortgages/real-estate/housing-market-predictions/" rel="noopener noreferrer" target="_blank">according</a> to industry expert Rick Sharga, inventory isn’t likely to rise significantly this year:
“I believe that we’re likely to see low inventory continue to vex the housing market throughout 2023.”
Sellers are under no pressure to move since they have plenty of equity right now. That equity acts as a cushion for homeowners, lowering the chances of distressed sales like foreclosures and short sales. And with many homeowners locked into low mortgage rates, that equity cushion isn’t going anywhere soon.
With so few homes available for sale today, it’s important to work with a trusted real estate agent who <a href="https://www.mykcm.com/2023/03/14/an-expert-gives-you-clarity-in-todays-housing-market/" rel="noopener noreferrer" target="_blank">understands</a> your local area and can navigate the current market volatility.
Bottom Line
A lot of people expected prices would crash this year thanks to low buyer demand, but that isn’t happening. Why? There aren’t enough homes for sale. If you’re thinking about moving this spring, let’s connect.
Contact the Marin Modern Team, your <a href="http://www.marincounty.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-safelink="true" data-ogsc="" data-linkindex="14">Marin County real estate</a> connection, for assistance buying or selling a home in Marin County California.
2023-04-05T16:19:30-07:002023-04-05T16:23:47-07:00Marin Modern Teamtag:marincounty.com,2012-09-20:25667Reasons To Consider Condos in Your Home Search<img src="https://files.keepingcurrentmatters.com/content/images/20230321/20230323-reasons-to-consider-a-condo-in-your-home-search-KCM.jpg" alt="" class="img-thumbnail mx-auto d-block" />
Are you having trouble <a href="https://www.mykcm.com/2023/03/15/balancing-your-wants-and-needs-as-a-homebuyer-this-spring/" rel="noopener noreferrer" target="_blank">finding</a> a home that <a href="https://www.mykcm.com/2023/03/07/could-a-multigenerational-home-be-the-right-fit-for-you/" rel="noopener noreferrer" target="_blank">fits</a> your needs and your budget? If so, you should know there’s an option worth considering – condominiums, also known as condos. According to <a href="https://www.bankrate.com/real-estate/condo-vs-apartment/#what-to-consider" rel="noopener noreferrer" target="_blank">Bankrate</a>:
“A condo can be a more affordable entry point to homeownership than a single-family home. And as a homeowner, you’ll build equity over time and have access to tax benefits that a renter wouldn’t.”
That’s why expanding your search to include additional housing types, like condominiums, could help you <a href="https://www.mykcm.com/2023/02/23/how-to-make-your-dream-of-homeownership-a-reality/" rel="noopener noreferrer" target="_blank">accomplish</a> your homeownership goals this spring, especially if you can be flexible about the space you need. Condos are typically smaller than a single-family home, but that’s part of what can make them more <a href="https://cdn.nar.realtor/sites/default/files/documents/ehs-02-2023-breakouts-of-single-family-condo-and-co-op-2023-03-21.pdf" rel="noopener noreferrer" target="_blank">budget-friendly</a> (see graph below):
<a href="https://files.keepingcurrentmatters.com/content/images/20230321/20230322-condo-price-vs-single-family-home-MEM.PNG" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230321/20230322-condo-price-vs-single-family-home-MEM.PNG" /></a>
In addition to providing more options in your home search and possibly your price point, there are several other benefits to condo living. They tend to require less upkeep and lower maintenance – and that can give you more time to spend doing the things you enjoy. Plus, since many condos are in or near city centers, they offer the added benefit of being in close proximity to work and leisure.
Remember, your first home doesn’t have to be your forever home. The important thing is to get your foot in the door as a <a href="https://www.mykcm.com/2023/03/10/buying-a-home-may-make-more-sense-than-renting-infographic/" rel="noopener noreferrer" target="_blank">homeowner</a> so you can start <a href="https://www.mykcm.com/2023/03/06/is-it-really-better-to-rent-than-to-own-a-home-right-now/" rel="noopener noreferrer" target="_blank">building</a> wealth in the form of home <a href="https://www.mykcm.com/2023/02/27/one-major-benefit-of-investing-in-a-home/" rel="noopener noreferrer" target="_blank">equity</a>. In time, the equity you develop can fuel a future purchase if your needs change.
Ultimately, owning and living in a condo can be a lifestyle choice. And if that appeals to you, they could provide the added options you need in <a href="https://www.mykcm.com/2023/02/28/what-you-should-know-about-rising-mortgage-rates/" rel="noopener noreferrer" target="_blank">today’s market</a>.
Bottom Line
It could make a lot of sense to add condos to your home search. <a href="https://www.mykcm.com/2023/03/14/an-expert-gives-you-clarity-in-todays-housing-market/" rel="noopener noreferrer" target="_blank">Connect</a> with a real estate professional today if you’re ready to check out the options in your area.
Contact Marin Modern Real Estate, experienced <a href="http://www.marincounty.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-safelink="true" data-ogsc="">Marin County Realtors</a>, for help purchasing or selling a home in Marin County.
2023-03-22T10:31:17-07:002023-03-22T10:34:02-07:00Marin Modern Teamtag:marincounty.com,2012-09-20:25072A Smaller Home Could Be Your Best Option
<img src="https://files.mykcm.com/2023/02/21124855/a-smaller-home-could-be-your-best-option-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="A Smaller Home Could Be Your Best Option | MyKCM" width="750" height="410" />
Many people are reaching the point in their lives when they need to decide where they want to live when they retire. If you’re a homeowner approaching this stage, you have several options to explore. Jessica Lautz, Deputy Chief Economist and Vice President of Research at the National Association of Realtors (NAR), <a href="https://www.nar.realtor/blogs/economists-outlook/all-in-the-family-multi-generational-home-buying" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“As we see the transition of the large Baby Boomer generation age into retirement, it will be interesting to see if they move in with their Millennial and Gen Z children or if they stay put in their own homes.”
Lautz lists two options: move into a <a href="https://www.mykcm.com/2022/04/15/what-is-multigenerational-housing-infographic/" title="multigenerational">multigenerational</a> home with loved ones, or stay in your current house. Multigenerational living is rising in popularity, but it isn’t an option for everyone. And staying put may fit fewer and fewer of your needs. There’s a third option though, and for some, it’s the best one: downsizing.
When you <a href="https://www.mykcm.com/2023/02/17/the-spring-housing-market-could-be-a-sweet-spot-for-sellers-infographic/" title="sell your house">sell your house</a> and <a href="https://www.mykcm.com/2023/02/15/should-you-consider-buying-a-newly-built-home/" title="purchase">purchase</a> a smaller one, it’s known as downsizing. Sometimes smaller homes are more suited to your changing needs, and moving means you can also land in your ideal location.
In addition to the personal benefits, downsizing might be more cost effective, too. The New York Times (NYT) <a href="https://www.nytimes.com/2022/09/09/business/retirement/retirement-downsizing-real-estate.html" title="shares" target="_blank" rel="noopener noreferrer">shares</a>:
“Many downsizers expect to improve their retirement income stream if their new home costs less than what their old house sells for. Lower utility costs, insurance and property taxes — as well as investment returns on the proceeds — can also improve the bottom line.”
Being in a strong financial position is one of the most important parts of retirement, and downsizing can make a big difference.
A key part of why downsizing is still cost effective today, even when mortgage rates are higher than they were a year ago, is the <a href="https://themreport.com/news/data/01-18-2023/senior-home-equity-11t" title="record-high" target="_blank" rel="noopener noreferrer">record-high</a> level of equity homeowners have. Leveraging your equity when you downsize can lower or maybe even eliminate the mortgage payment on your next home.
So, not only is the upkeep of a smaller home likely more affordable, but leveraging your home equity could make a big difference too. Your local real estate advisor is the best resource to help you understand how much equity you may have in your current home and what options it can provide for your next move.
Bottom Line
If you’re a homeowner getting ready for retirement, part of that transition likely includes deciding where you’ll live. Let’s connect so you can understand your options and explore your downsizing opportunities.
Contact the Marin Modern Team, your <a href="http://www.marincounty.com/">Marin County real estate</a> connection, for assistance buying or selling a home in Marin County California.
2023-02-22T11:27:28-07:002023-02-22T11:30:53-07:00Marin Modern Teamtag:marincounty.com,2012-09-20:24479Should You Rent Your House or Sell It?<img data-imagetype="External" src="https://files.mykcm.com/2023/01/31112703/should-you-rent-your-house-or-sell-it-KCM-600x328.jpg" id="x__x0000_i1037" alt="Should You Rent Your House
or Sell It? | MyKCM" style="width: 6.25in; height: 3.4166in;" width="600" height="328" border="0" />
If you're a homeowner ready to make a move, you may be thinking about using your current house as a short-term rental property instead of selling it. A short-term rental (STR) is typically offered as an alternative to a hotel, and they're an investment that's gained popularity in recent years. According to a Harris Poll survey, 28% of homeowners have considered using a rental service to temporarily rent out their home for additional income.
Owning a short-term rental can be a tempting idea, but you may find the reality of being responsible for one difficult to take on. Here are some of the challenges you could face if you rent out your house instead of selling it.
A Short-Term Rental Comes with Responsibilities
Successfully owning and renting a house takes work. Think through your ability to make that commitment, especially if you plan to use a platform that advertises your rental listing. Most of them have specific requirements hosts have to meet, and it takes a lot of work. A recent article from Bankrate explains:
Managing a rental property can be time-consuming and challenging. Are you handy and able to make some repairs yourself? If not, do you have a network of affordable contractors you can reach out to in a pinch? Consider whether you want to take on the added responsibility of being a landlord, which means screening tenants and fielding issues, among other responsibilities, or paying for a third party to take care of things instead.
Not only is there the upfront time and cost of owning a short-term rental, but there are also risks that could come up for you down the road. Investopedia warns:
Risks of hosting include renting your place to rude guests, theft or damaged property, complaints from neighbors, and potential regulatory violations depending on your location.
There's a lot to consider before taking the leap and converting your house into a short-term rental. If you aren't ready for the work it takes, it could be wiser to sell instead.
Your House May Not Be Ideal for Your Rental Goals
Not every house ends up being a profitable short-term rental either. One of the biggest factors is where your home is located. The less likely your neighborhood is to be a travel destination, the fewer requests you should expect from potential renters—and that impacts your bottom line. An article from the National Association of Realtors (NAR) advises:
When it comes to the viability of profitable STRs . . . consider factors like location, amenities, and whether the property is appealing. Most people seek STRs in locations where they vacation, so proximity to attractions is important. Likewise, the property should cater to a variety of travelers.
It's smart to do your homework and learn how much rentals in your area go for, how much business they get throughout the year, and how this compares to your goals.
Bottom Line
Converting your home into a short-term rental isn't a decision you should make without doing your research. To decide if selling your house is a better alternative, let's connect today.
Contact Marin Modern Real Estate, experienced <a href="http://www.marincounty.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-safelink="true" data-ogsc="" data-linkindex="15">Marin County Realtors</a>, for help purchasing or selling a home in Marin County.2023-02-01T13:52:49-07:002023-02-01T13:54:31-07:00Marin Modern Teamtag:marincounty.com,2012-09-20:24239Have Home Values Hit Bottom?<img data-imagetype="External" src="https://files.mykcm.com/2023/01/17142553/have-home-values-hit-bottom-KCM-600x328.jpg" class="x_webfeedsFeaturedVisual x_wp-post-image" alt="Have Home Values Hit
Bottom? | MyKCM" data-unique-identifier="" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width="600" height="328" />
Whether you're already a homeowner or you're looking to become one, the recent headlines about home prices may leave you with more questions than answers. News stories are talking about home prices falling, and that's raising concerns about a repeat of what happened to prices in the crash in 2008.
One of the questions that's on many minds, based on those headlines, is: how much will home prices decline? But what you may not realize is expert forecasters aren't calling for a free fall in prices. In fact, if you look at the latest data, there's a case to be made that the biggest portion of month-over-month price depreciation nationally may already behind us – and even those numbers weren't significant declines on the national level. Instead of how far will they drop, the question becomes: have home values hit bottom?
Let's take a look at the latest data from several reputable industry sources (see chart below):
<img data-imagetype="External" src="https://files.mykcm.com/2023/01/17142555/have-home-values-hit-bottom-MEM.png" class="x_aligncenter x_wp-image-106922" alt="Have Home Values Hit Bottom? | MyKCM" data-unique-identifier="" width="600" height="450" />
The chart above provides a look at the most recent reports from Case-Shiller, the Federal Housing Finance Agency (FHFA), Black Knight, and CoreLogic. It shows how, on a national scale, home values have changed month-over-month since January 2022. November and December numbers have yet to come out.
Let's focus in on what the red numbers tell us. The red numbers are the change in home values over the last four months that have been published. And if we isolate the last four months, what the data shows is, in each case, home price depreciation peaked in August.
While that doesn't guarantee home price depreciation has hit bottom, it confirms prices aren't in a free fall, and it may be an early signal that the worst is already behind us. As the numbers for November and December are released, data will be able to further validate this national trend.
Bottom Line
Home prices month-over-month have depreciated for the past four months on record, but there's a strong case to be made that the worst may be behind us. If you have questions about what's happening with home prices in our local market, let's connect.
Contact the Marin Modern Team, your <a href="http://www.marincounty.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-safelink="true" data-ogsc="" data-linkindex="14">Marin County real estate</a> connection, for assistance buying or selling a home in Marin County California.2023-01-18T11:14:02-07:002023-01-18T11:16:00-07:00Marin Modern Teamtag:marincounty.com,2012-09-20:23522Ready To Sell? Today's Housing Supply Gives You Two Opportunities.<img data-imagetype="External" src="https://files.mykcm.com/2022/12/12132707/ready-to-sell-todays-housing-supply-gives-you-two-opportunities-KCM-600x328.jpg" class="x_webfeedsFeaturedVisual x_wp-post-image" alt="Ready To Sell? Today's
Housing Supply Gives You Two Opportunities. | MyKCM" data-unique-identifier="" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width="600" height="328" />
At first glance, the increase in housing supply compared to last year may not sound like good news for prospective <a href="https://www.mykcm.com/2022/11/16/top-questions-about-selling-your-home-this-winter/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-safelink="true" data-ogsc="" data-linkindex="10">sellers</a>, but it actually gives you two key opportunities in <a href="https://www.mykcm.com/2022/11/22/what-homeowners-want-to-know-about-selling-in-todays-market/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-safelink="true" data-ogsc="" data-linkindex="11">today's housing market</a>.
An <a href="https://www.calculatedriskblog.com/2022/12/housing-december-12th-weekly-update.html" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-safelink="true" data-ogsc="" data-linkindex="12">article</a> from Calculated Risk helps put the inventory gains the market has seen in 2022 into perspective by comparing it to recent years (see graph below). It shows supply has surpassed 2021 levels by 58%. But the further back you look, the more you'll understand the bigger picture. And if you go all the way back to 2019, the last normal year in real estate, we're roughly 35% below the <a href="https://www.mykcm.com/2022/10/18/the-latest-on-supply-and-demand-in-housing/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-safelink="true" data-ogsc="" data-linkindex="13">housing supply</a> we had at that time.
<a href="https://files.mykcm.com/2022/12/12132708/housing-supply-is-still-historically-low-MEM.png" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-safelink="true" data-ogsc="" data-linkindex="14"><img data-imagetype="External" src="https://files.mykcm.com/2022/12/12132708/housing-supply-is-still-historically-low-MEM.png" class="x_aligncenter x_wp-image-106340" alt="Ready To Sell? Today's Housing Supply Gives You Two Opportunities. |
MyKCM" data-unique-identifier="" width="600" height="450" /></a>
Opportunity #1: Take Advantage of More Options for Your Move
If your current house no longer <a href="https://www.mykcm.com/2022/12/05/prioritizing-your-wants-and-needs-as-a-homebuyer-in-todays-market/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-safelink="true" data-ogsc="" data-linkindex="15">meets your needs</a> or lacks the space and features you want, this inventory growth gives you even more <a href="https://www.mykcm.com/2022/11/28/your-house-could-be-the-1-item-on-a-homebuyers-wish-list-during-the-holidays/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-safelink="true" data-ogsc="" data-linkindex="16">opportunity to sell</a> and move into the home of your dreams. With more houses on the market, you'll have more to choose from when you search for your next home.
Partnering with a local real estate professional can help you make sure you're up to date on the homes available in your area. And when you do find the one, a professional can advise you on how to write a winning offer.
Opportunity #2: Sell While Inventory Is Still Low Overall
But again, despite the growth, inventory is still low compared to more normal years, and that isn't going to change overnight. For you, that means your house should still be in demand among potential buyers if you price it right.
As an article from realtor.com <a href="https://www.realtor.com/research/weekly-housing-trends-view-data-week-sep-17-2022-2/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-safelink="true" data-ogsc="" data-linkindex="17">says</a>:
Today's shoppers generally have more homes to consider than last year's shoppers did, but the market is still not back to pre-pandemic inventory levels.
Bottom Line
If you're a homeowner <a href="https://www.mykcm.com/2022/11/02/sell-your-house-before-the-holidays/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-safelink="true" data-ogsc="" data-linkindex="18">looking to sell</a>, you have more homes to choose from and can still sell your house while inventory is low overall. Let's connect to get started, so you can have the best of both worlds.
Contact the Marin Modern Team, your <a href="http://www.marincounty.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-safelink="true" data-ogsc="" data-linkindex="14">Marin County real estate</a> connection, for assistance buying or selling a home in Marin County California.2022-12-13T15:56:53-07:002022-12-13T15:58:47-07:00Marin Modern Teamtag:marincounty.com,2012-09-20:23365Prioritizing Your Wants and Needs as a Homebuyer in Today's Market<img data-imagetype="External" src="https://files.mykcm.com/2022/12/01164657/prioritizing-your-wants-and-needs-as-a-homebuyer-in-todays-market-KCM-600x328.jpg" class="x_webfeedsFeaturedVisual x_wp-post-image" alt="Prioritizing Your Wants and
Needs as a Homebuyer in Today's Market | MyKCM" data-unique-identifier="" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width="600" height="328" />
There's no denying mortgage rates are higher now than they were last year. And if you're thinking about buying a home, this may be top of mind for you. That's because those higher rates impact how much it costs to borrow money for your home loan. As you set out to make a purchase this winter, you'll need to be strategic so you can find a home that meets your needs and budget.
Danielle Hale, Chief Economist at realtor.com, explains:
The key to making a good decision in this challenging housing market is to be laser focused on what you need now and in the years ahead, . . . Another key point is to avoid stretching your budget, as tempting as it may be given the diminished purchasing power.
In other words, it's important to be mindful of what's a necessity and what's a nice-to-have when searching for a home. And the best way to understand this is to put together a list of desired features for your home search.
The first step? Get pre-approved for a mortgage. Pre-approval helps you better understand what you can borrow for your home loan, and that plays an important role in how you'll craft your list. After all, you don't want to fall in love with a home that's out of reach. Once you have a good grasp of your budget, you can begin to list (and prioritize) all the features of a home you would like.
Here's a great way to think about them before you begin:
Must-Haves – If a house doesn't have these features, it won't work for you and your lifestyle (examples: distance from work or loved ones, number of bedrooms/bathrooms, etc.).
Nice-To-Haves – These are features that you'd love to have but can live without. Nice-To-Haves aren't dealbreakers, but if you find a home that hits all the must-haves and some of the these, it's a contender (examples: a second home office, a garage, etc.).
Dream State – This is where you can really think big. Again, these aren't features you'll need, but if you find a home in your budget that has all the must-haves, most of the nice-to-haves, and any of these, it's a clear winner (examples: farmhouse sink, multiple walk-in closets, etc.).
Finally, once you've created your list and categorized it in a way that works for you, discuss it with your real estate advisor. They'll be able to help you refine the list further, coach you through the best way to stick to it, and find a home in your area that meets your needs.
Bottom Line
Putting together your list of necessary features for your next home might seem like a small task, but it's a crucial first step on your homebuying journey today. If you're ready to find a home that fits your needs, let's connect.
Contact the Marin Modern Team, your <a href="http://www.marincounty.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-safelink="true" data-linkindex="14" data-ogsc="">Marin County real estate</a> connection, for assistance buying or selling a home in Marin County California.2022-12-05T17:28:01-07:002022-12-05T17:30:47-07:00Marin Modern Teamtag:marincounty.com,2012-09-20:21944Buyers Are Regaining Some of Their Negotiation Power in Today's Housing Market<img data-imagetype="External" src="https://files.mykcm.com/2022/09/13143439/20220915-KCM-Share-600x328.jpg" class="x_webfeedsFeaturedVisual x_wp-post-image" alt="Buyers Are Regaining Some of
Their Negotiation Power in Today's Housing Market | MyKCM" data-unique-identifier="" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width="600" height="328" />
If you’re thinking about buying a home today, there’s welcome news. Even though it's still a <a href="https://www.mykcm.com/2022/08/04/why-its-still-a-sellers-market/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="10" data-ogsc="">sellers' market</a>, it's a more moderate sellers' market than last year. And the days of feeling like you may need to waive contingencies or pay drastically over asking price to get your offer considered may be coming to a close.
Today, you should have less competition and more negotiating power as a buyer. That's because the intensity of buyer demand and <a href="https://www.mykcm.com/2022/08/31/buyers-you-may-face-less-competition-as-bidding-wars-ease/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="11" data-ogsc="">bidding wars</a> is easing this year. So, if bidding wars were the biggest factor that had you sitting on the sidelines, here are two trends that may be just what you need to re-enter the market.
1. The Return of Contingencies
Over the last two years, more buyers were willing to skip important steps in the homebuying process, like the appraisal or inspection, to try to win a bidding war. But now, fewer people are waiving the <a href="https://www.mykcm.com/2022/08/19/why-a-home-inspection-is-important-infographic/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="12" data-ogsc="">inspection</a> and appraisal.
The <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-07-realtors-confidence-index-08-18-2022.pdf" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="13" data-ogsc="">latest data</a> from the National Association of Realtors (NAR) shows the percentage of buyers waiving their home inspection and appraisal is declining. And a <a href="https://www.realtor.com/research/2022-summer-sellers-survey/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="14" data-ogsc="">recent survey</a> from realtor.com confirms more sellers are accepting offers that include these conditions today. According to their August study:
95% of sellers reported buyers requested a home inspection
67% of sellers negotiated with buyers on repairs as a result of the inspection findings
This goes to show buyers are more able to include these conditions in their offers today and negotiate as needed based on the outcome of the inspection.
2. Sellers Are More Willing To Help with Closing Costs
Generally, closing costs range between <a href="https://www.mykcm.com/2022/03/15/dont-get-caught-off-guard-by-closing-costs/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="15" data-ogsc="">2% and 5%</a> of the purchase price for the home. Before the pandemic, it was a common negotiation tactic for sellers to cover some of the buyer's closing costs to sweeten the deal. This didn’t happen as much during the peak buyer frenzy over the past two years.
Today, as the market shifts and demand slows, data from realtor.com suggests this is making a comeback. A <a href="https://news.move.com/2022-08-30-Realtor-com-R-Survey-Bargaining-Power-is-Back-92-of-Recent-Sellers-Accepted-Buyer-Friendly-Terms" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="16" data-ogsc="">recent article</a> shows 32% of sellers paid some or all of their buyer's closing costs. This may be a negotiation tool you'll see as you go to purchase a home. Just keep in mind, limits on closing cost credits are set by your lender and can vary by state and loan type. Work closely with your loan advisor to understand how much a seller can contribute to closing costs in your area.
Bottom Line
Regardless of the extremely competitive housing market of the past several years, today's data suggests negotiations are starting to come back on the table. This is good news if you’re planning to enter the housing market. To find out how the market is shifting in our area, let’s connect.
Contact the Marin Modern Team, your <a href="http://www.marincounty.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="14" data-ogsc="">Marin County real estate</a> connection, for assistance buying or selling a home in Marin County California.2022-09-15T09:00:00-07:002022-09-15T09:36:04-07:00Marin Modern Teamtag:marincounty.com,2012-09-20:21476Experts Increase 2022 Home Price Projections<img data-imagetype="External" src="https://files.mykcm.com/2022/08/16093014/20220817-KCM-Share-600x328.jpg" class="x_webfeedsFeaturedVisual x_wp-post-image" alt="Experts Increase 2022 Home
Price Projections | MyKCM" data-unique-identifier="" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width="600" height="328" />
If you're wondering if home prices are going to come down due to the cooldown in the housing market or a potential recession, here's what you need to know. Not only are experts forecasting home prices will continue to appreciate nationwide this year, but most of them also actually increased their projections for home price appreciation from their original 2022 forecasts (shown in green in the chart below):
<img data-imagetype="External" src="https://files.mykcm.com/2022/08/16162453/20220817-MEM-Eng-.png" class="x_aligncenter x_wp-image-104054" alt="Experts Increase 2022 Home Price Projections | MyKCM" data-unique-identifier="" width="600" height="450" />As the chart shows, most sources adjusted up, and now call for more appreciation in 2022 than they originally projected this January. But why are experts so confident the housing market will see ongoing appreciation? It's because of supply and demand in most markets. As Bankrate says:
After all, supplies of homes for sale remain near record lows. And while a jump in mortgage rates has dampened demand somewhat, demand still outpaces supply, thanks to a combination of little new construction and strong household formation by large numbers of millennials.
Knowing that experts forecast home prices will continue to appreciate in most markets and that they've actually increased their original projections for this year should help you answer the question: will home prices fall? According to the latest forecasts, experts are confident prices will continue to appreciate this year, although at a more moderate rate than they did in 2021.
Bottom Line
If you're worried home prices are going to decline, rest assured many experts raised their forecasts to say they'll continue to appreciate in most markets this year. If you have questions about what's happening with home prices in our local area, let’s connect.
Contact the Marin Modern Team, your <a href="http://www.marincounty.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="14" data-ogsc="">Marin County real estate</a> connection, for assistance buying or selling a home in Marin County California.2022-08-17T09:00:00-07:002022-08-17T12:10:09-07:00Marin Modern Teamtag:marincounty.com,2012-09-20:21163Why Are People Moving Today?<img data-imagetype="External" src="https://files.mykcm.com/2022/07/28164920/20220801-KCM-Share-600x328.jpg" class="x_webfeedsFeaturedVisual x_wp-post-image" alt="Why Are People Moving Today?
| MyKCM" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width="600" height="328" />
Buying a home is a major life <a href="https://www.mykcm.com/2022/07/13/should-i-buy-a-home-right-now/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="10" data-ogsc="">decision</a>. That's true whether you're purchasing for the first time or selling your house to fuel a move. And if you're planning to buy a home, you might be hearing about today's <a href="https://www.mykcm.com/2022/07/07/what-does-an-economic-slowdown-mean-for-the-housing-market/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="11" data-ogsc="">shifting market</a> and wondering what it means for you.
While <a href="https://www.mykcm.com/2022/07/12/expert-housing-market-forecasts-for-the-second-half-of-the-year/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="12" data-ogsc="">mortgage rates</a> are higher than they were at the start of the year and <a href="https://www.mykcm.com/2022/06/16/home-price-deceleration-doesnt-mean-home-price-depreciation/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="13" data-ogsc="">home prices</a> are rising, you shouldn't put your plans on hold based solely on market factors. Instead, it's necessary to consider why you want to move and how important those reasons are to you. Here are two of the biggest personal motivators driving people to buy homes today.
A Need for More Space
Moving.com looked at <a href="https://www.moving.com/tips/where-are-people-moving-to-top-trends-2022/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="14" data-ogsc="">migration patterns</a> to determine why people moved to specific areas. One trend that emerged was the need for additional space, both indoors and outdoors.
Outgrowing your home isn't new. If you're craving a large yard, more entertaining room, or just need more storage areas or bedrooms overall, having the physical space you need for your desired lifestyle may be reason enough to make a change.
A Desire To Be Closer to Loved Ones
Moving and storage company United Van Lines <a href="https://www.unitedvanlines.com/newsroom/movers-study-2021" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="15" data-ogsc="">surveys</a> customers each year to get a better sense of why people move. The latest survey finds nearly 32% of people moved to be closer to loved ones.
Another moving and storage company, Pods, also <a href="https://www.pods.com/blog/2022/04/moving-trends/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="16" data-ogsc="">highlights</a> this as a top motivator for why people move. They note that an increase in flexible work options has helped many homeowners make a move closer to the people they care about most:
. . . a shifting of priorities has also affected why people are moving. Many companies have moved to permanent remote working policies, giving employees the option to move freely around the country, and people are taking advantage of the perk.
If you can move to another location because of remote work, retirement, or for any other reason, you could leverage that flexibility to be closer to the most important people in your life. Being nearby for caregiving and being able to attend get-togethers and life milestones could be exactly what you're looking for.
What Does That Mean for You?
If you're thinking about moving, one of these reasons might be a top motivator for you. And while what's happening with mortgage rates and <a href="https://www.mykcm.com/2022/07/25/whats-causing-ongoing-home-price-appreciation/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="17" data-ogsc="">home prices</a> in the <a href="https://www.mykcm.com/2022/07/14/housing-experts-say-this-isnt-a-bubble/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="18" data-ogsc="">housing market</a> today will likely play a role in your decision, it's equally important to make sure your home meets your needs. Like Charlie Bilello, Founder and CEO of Compound Capital Advisors, <a href="https://compoundadvisors.com/2020/homes-castles-and-price-expectations" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="19" data-ogsc="">says</a>:
Your home is your castle and should confer benefits beyond just the numbers.
Bottom Line
There are many reasons why people decide to move. No matter what the reason may be, if your needs have changed, let's connect to discuss your options in today's housing market.
Contact the Marin Modern Team, your <a href="http://www.marincounty.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="14" data-ogsc="">Marin County real estate</a> connection, for assistance buying or selling a home in Marin County California.2022-08-01T09:00:00-07:002022-08-01T16:26:03-07:00Marin Modern Teamtag:marincounty.com,2012-09-20:20347Homeownership Is a Great Hedge Against the Impact of Rising Inflation<img data-imagetype="External" src="https://files.mykcm.com/2022/06/22164521/20220623-KCM-Share-600x328.jpg" class="x_webfeedsFeaturedVisual x_wp-post-image" alt="Homeownership Is a Great
Hedge Against the Impact of Rising Inflation | MyKCM" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width="600" height="328" />
If you're following along with the news today, you've heard about rising inflation. Today, <a href="https://www.mykcm.com/2022/05/20/dont-let-rising-inflation-delay-your-homeownership-plans-infographic/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="10" data-ogsc="">inflation</a> is at a <a href="https://www.cnbc.com/2022/06/10/consumer-price-index-may-2022.html" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="11" data-ogsc="">40-year high</a>. According to the <a href="https://eyeonhousing.org/2022/06/inflation-hits-a-fresh-40-year-high-in-may/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="12" data-ogsc="">National Association of Home Builders</a> (NAHB):
Consumer prices accelerated again in May as shelter, energy and food prices continued to surge at the fastest pace in decades. This marked the third straight month for inflation above an 8% rate and was the largest year-over-year gain since December 1981.
With inflation rising, you're likely feeling it impact your day-to-day life as prices go up for gas, groceries, and more. These climbing consumer costs can put a pinch on your wallet and make you re-evaluate any big purchases you have planned to ensure they're still worthwhile.
If you've been thinking about purchasing a home this year, you're probably wondering if you should continue down that path or if it makes more sense to wait. While the answer depends on your situation, here's how homeownership can help you combat the rising costs that come with inflation.
Homeownership Helps You Stabilize One of Your Biggest Monthly Expenses
Investopedia <a href="https://www.investopedia.com/terms/i/inflation.asp" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="13" data-ogsc="">explains</a> that during a period of high inflation, prices rise across the board. That's true for things like food, entertainment, and other goods and services, even housing. Both rental prices and <a href="https://www.mykcm.com/2022/06/16/home-price-deceleration-doesnt-mean-home-price-depreciation/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="14" data-ogsc="">home prices</a> are on the rise. So, as a buyer, how can you protect yourself from increasing costs? The answer lies in <a href="https://www.mykcm.com/2022/06/10/the-top-reasons-to-own-your-home-infographic/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="15" data-ogsc="">homeownership</a>.
Buying a home allows you to stabilize what's typically your biggest monthly expense: your housing cost. When you have a fixed-rate mortgage on your home, you lock in your monthly payment for the duration of your loan, often 15 to 30 years. James Royal, Senior Wealth Management Reporter at Bankrate, <a href="https://www.bankrate.com/investing/inflation-hedges-to-protect-against-rising-prices/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="16" data-ogsc="">says</a>:
A fixed-rate mortgage allows you to maintain the biggest portion of housing expenses at the same payment. Sure, property taxes will rise and other expenses may creep up, but your monthly housing payment remains the same. That's certainly not the case if you're renting.
So even if other prices increase, your housing payment will be a reliable amount that can help keep your budget in check. If you rent, you don't have that same benefit, and you won't be protected from rising housing costs.
Investing in an Asset That Historically Outperforms Inflation
While it's true rising home prices and higher mortgage rates mean that buying a house today costs more than it did even a few months ago, you still have an opportunity to set yourself up for a long-term win. That's because, in inflationary times, you want to be invested in an asset that outperforms inflation and typically holds or grows in value.
The graph below shows how the average home price appreciation outperformed the average inflation rate in most decades going all the way back to the seventies – making homeownership a historically strong hedge against inflation (see graph below):
<a href="https://files.mykcm.com/2022/06/22164524/20220623-MEM-Eng-1.png" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="17" data-ogsc=""><img data-imagetype="External" src="https://files.mykcm.com/2022/06/22164524/20220623-MEM-Eng-1.png" class="x_aligncenter x_wp-image-103042" alt="Homeownership Is a Great Hedge Against the Impact of Rising Inflation |
MyKCM" width="600" height="450" /></a>
So, what does that mean for you? Today, experts <a href="https://www.mykcm.com/2022/05/31/what-does-the-rest-of-the-year-hold-for-the-housing-market/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="18" data-ogsc="">forecast</a> home prices will only go up from here thanks to the ongoing imbalance of supply and demand. Once you buy a house, any home price appreciation that does occur will grow your <a href="https://www.mykcm.com/2022/06/21/the-average-homeowner-gained-64k-in-equity-over-the-past-year/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="19" data-ogsc="">equity</a> and your <a href="https://www.mykcm.com/2022/03/28/a-key-to-building-wealth-is-homeownership/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="20" data-ogsc="">net worth</a>. And since homes are typically assets that grow in value, you have peace of mind that history shows your investment is a strong one.
That means, if you're ready and able, it makes sense to buy today before prices rise further.
Bottom Line
If you've been thinking about buying a home this year, it makes sense to act soon, even with inflation rising. That way you can stabilize your monthly housing cost and invest in an asset that historically outperforms inflation. If you're ready to get started, let's connect so you have expert advice on your specific situation when you're ready to buy a home.
Contact the Marin Modern Team, your <a href="http://www.marincounty.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="14" data-ogsc="">Marin County real estate</a> connection, for assistance buying or selling a home in Marin County California.2022-06-23T09:00:00-07:002022-06-23T15:20:09-07:00Marin Modern Teamtag:marincounty.com,2012-09-20:19138Today's Home Price Appreciation Is Great News for Existing Homeowners<img data-imagetype="External" src="https://files.mykcm.com/2022/04/26123827/20220502-KCM-Share-600x328.jpg" id="x__x0000_i1039" alt="Today's Home Price
Appreciation Is Great News for Existing Homeowners | MyKCM" style="width: 6.25in; height: 3.4166in;" width="600" height="328" border="0" />
If you're planning to <a href="https://www.mykcm.com/2022/03/14/this-spring-presents-sellers-with-a-golden-opportunity/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="2" data-ogsc="">sell your home</a> this season, rising prices are great news for you. But it's important to understand why <a href="https://www.mykcm.com/2022/04/07/the-future-of-home-price-appreciation-and-what-it-means-for-you/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="3" data-ogsc="">prices</a> are rising to begin with. One major factor is <a href="https://www.mykcm.com/2022/03/04/supply-and-demand-in-todays-market-infographic/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="4" data-ogsc="">supply and demand</a>.
In any industry, when there are <a href="https://www.mykcm.com/2022/02/23/how-supply-and-demand-can-impact-your-buying-and-selling-goals/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="5" data-ogsc="">more buyers</a> for an item than there are of that <a href="https://www.mykcm.com/2022/04/14/on-the-fence-of-whether-or-not-to-move-this-spring-consider-this/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="6" data-ogsc="">item available</a>, prices naturally rise. In those situations, buyers are willing to pay more to get the product or service they're looking for when options are scarce. And that's exactly what's happening in the current real estate market.
Selma Hepp, Executive, Research & Insights and Deputy Chief Economist at CoreLogic, puts it like <a href="https://www.corelogic.com/intelligence/us-sp-corelogic-case-shiller-index-picks-up-pace-once-again-up-19-2-in-january/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="7" data-ogsc="">this</a>:
With so few homes, buyers are once again left with fierce competition that's driving the share of homes that sold over the listing price up to 66% . . . With the continued imbalance between supply and demand, home prices are likely to have another year of strong gains and are expected to average about 10% growth for the year.
Because it will take some time for housing supply to increase, experts believe prices will continue rising. The latest <a href="https://pulsenomics.com/surveys/#home-price-expectations" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="8" data-ogsc="">Home Price Expectations Survey</a> forecasts what will happen with home prices over the next 5 years. As the graph below shows, while the rate of appreciation will moderate over the next few years, prices will continue rising through 2026:
<a href="https://files.mykcm.com/2022/04/26123818/20220502-MEM-Eng.png" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="9" data-ogsc=""><img data-imagetype="External" src="https://files.mykcm.com/2022/04/26123818/20220502-MEM-Eng.png" id="x__x0000_i1038" alt="Today's Home Price Appreciation Is Great News for Existing Homeowners |
MyKCM" style="width: 6.25in; height: 4.6875in;" width="600" height="450" border="0" /></a>
What This Means When You Sell Your House
If you're a homeowner, the projection for continued price appreciation this year opens up an opportunity to move. That's because it may give your <a href="https://www.mykcm.com/2022/04/08/do-you-know-how-much-equity-you-have-in-your-home-infographic/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="10" data-ogsc="">equity</a> a major boost. Equity is the difference between what you owe on your house and its market value. The amount of equity you have increases as you make your monthly payments and as rising home prices drive up the market value for your home.
Growing <a href="https://www.mykcm.com/2022/03/21/the-average-homeowner-gained-more-than-55k-in-equity-over-the-past-year/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="11" data-ogsc="">equity</a> is a powerful tool for homeowners. When you sell your house, the equity you've built comes back to you in the sale. That money could be enough to cover some (if not all) of your down payment on your next home.
Of course, if you want to know how much equity you have in your current house, it's crucial to work with a real estate professional. They follow current market trends and can help you understand your home's value when you're ready to sell.
What This Means for Your Next Purchase
But today's rising home values aren't just good news if you're ready to sell. Because price appreciation is forecast to continue in the years ahead, you can rest assured your next home will be an investment that should grow in value with time. That's one of <a href="https://www.mykcm.com/2022/01/11/why-inflation-shouldnt-stop-you-from-buying-a-home-in-2022/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="12" data-ogsc="">several reasons</a> why real estate has been rated the best investment in a recent <a href="https://www.mykcm.com/2022/02/21/real-estate-voted-the-best-investment-eight-years-in-a-row/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="13" data-ogsc="">Gallup poll</a>.
Bottom Line
If you're weighing whether or not you should sell your house this season, know rising home values may be opening up an opportunity to use equity to fuel your move. Let's connect so you can find out how much your home is worth and to learn more about all the benefits you have in today's market.
Contact the Marin Modern Team, your <a href="http://www.marincounty.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="14" data-ogsc="">Marin County real estate</a> connection, for assistance buying or selling a home in Marin County California.2022-05-02T09:00:00-07:002022-05-02T17:56:56-07:00Marin Modern Teamtag:marincounty.com,2012-09-20:19042The Dream of Homeownership Is Worth the Effort<img data-imagetype="External" src="https://files.mykcm.com/2022/04/25135235/20220427-KCM-Share-600x328.jpg" id="x__x0000_i1037" alt="The Dream of Homeownership Is
Worth the Effort | MyKCM" style="width: 6.25in; height: 3.4166in;" width="600" height="328" border="0" />
If you're in the market to buy a home this season, stick with it. Homebuyers face challenges in any market, and today's is no exception. But if you persevere, your decision to purchase a home will be worth the effort in the end. In fact, a <a href="https://www.bankrate.com/mortgages/homeownership-remains-centerpiece-of-american-dream/#homeownership" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="2" data-ogsc="">recent survey</a> from Bankrate shows homeownership is so powerful that:
Nearly three in four homeowners say they would still buy their current home if they had it to do [sic] all over again.
That means the results – owning a home and the <a href="https://www.mykcm.com/2022/03/22/the-many-benefits-of-homeownership/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="3" data-ogsc="">benefits</a> that come with it – outweigh the effort needed to achieve their goal. If you're a homebuyer, let that provide you with the confidence to know the work you're putting in today will pay off for years to come. Here are a few reasons to stick with your search and focus on the outcome.
Homeownership Contributes Significantly to Your Financial Well-Being
The <a href="https://magazine.realtor/sales-and-marketing/handouts-for-customers/for-buyers/7-reasons-to-own-a-home" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="4" data-ogsc="">National Association of Realtors</a> (NAR) lists several motivations to consider if you're thinking about <a href="https://www.mykcm.com/2022/03/16/are-you-wondering-if-this-is-the-year-to-buy-a-home/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="5" data-ogsc="">buying a home</a>. One of the top financial reasons is the <a href="https://www.mykcm.com/2022/03/21/the-average-homeowner-gained-more-than-55k-in-equity-over-the-past-year/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="6" data-ogsc="">equity</a> you build. As NAR says:
Money paid for rent is money that you'll never see again, but mortgage payments let you build equity . . . Building equity in your home is a ready-made savings plan.
Your equity is a powerful tool you can <a href="https://www.mykcm.com/2021/11/22/4-ways-homeowners-can-use-their-equity/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="7" data-ogsc="">leverage</a> in a number of ways. And with recent home <a href="https://www.mykcm.com/2022/04/07/the-future-of-home-price-appreciation-and-what-it-means-for-you/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="8" data-ogsc="">price appreciation</a>, homeowners are seeing record levels of equity today. That may be one reason why so many people view owning a home as a <a href="https://www.mykcm.com/2022/02/21/real-estate-voted-the-best-investment-eight-years-in-a-row/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="9" data-ogsc="">great investment</a> and a top indicator of <a href="https://www.mykcm.com/2022/03/28/a-key-to-building-wealth-is-homeownership/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="10" data-ogsc="">financial well-being</a>. As the survey from Bankrate mentioned above shows:
. . . Americans place a higher value on homeownership than on any other indicator of economic stability, . . .
Owning a home ranks above other major accomplishments like retirement, having a successful career, and getting a college degree. That indicates just how impactful the financial benefits of homeownership truly are.
The Emotional Benefits of Owning a Home Are Powerful
Of course, <a href="https://www.mykcm.com/2022/02/14/are-you-ready-to-fall-in-love-with-homeownership/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="11" data-ogsc="">homeownership</a> is more than an investment. In their list of top reasons to buy a home, NAR also highlights some of the powerful, <a href="https://www.mykcm.com/2022/02/01/why-a-move-could-bring-you-more-happiness-this-year/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="12" data-ogsc="">non-financial</a> aspects of homeownership. Among them is the opportunity to customize your home to reflect your personality and needs. As they say:
The home is yours. You can decorate any way you want and choose the types of upgrades and new amenities that appeal to your lifestyle.
Another benefit homeowners enjoy is the stability it provides. Homeowners typically stay put longer than renters. According to NAR, when you remain in one place longer than a few years, you can grow closer to your community. And that can enhance your sense of pride and lead to better relationships.
What Does That Mean for You?
The benefits of homeownership are powerful, as Leslie Rouda Smith, President of NAR, <a href="https://www.nar.realtor/newsroom/nar-report-shows-share-of-millennial-home-buyers-continues-to-rise" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="13" data-ogsc="">says</a>:
“From building personal wealth and fostering communities, to strengthening social stability and driving the national economy, the value of homeownership is indisputable.
Even if you face challenges in today's market, the payoff when you succeed and purchase a home will be worth it.
Bottom Line
If you're planning to buy a home this year, there are incredible benefits waiting for you at the end of your journey. Let's connect to discuss everything homeownership has to offer.
Contact the Marin Modern Team, your <a href="http://www.marincounty.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="14" data-ogsc="">Marin County real estate</a> connection, for assistance buying or selling a home in Marin County California.2022-04-27T09:00:00-07:002022-04-27T17:10:22-07:00Marin Modern Teamtag:marincounty.com,2012-09-20:18977Why This Housing Market Is Not a Bubble Ready To Pop<img data-imagetype="External" src="https://files.mykcm.com/2022/04/20152833/20220421-KCM-Share-600x328.jpg" class="x_webfeedsFeaturedVisual x_wp-post-image" alt="Why This Housing Market Is
Not a Bubble Ready To Pop | MyKCM" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width="600" height="328" />
Homeownership has become a major element in achieving the American Dream. A recent report from the National Association of Realtors (NAR) finds that over <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-obstacles-to-home-buying-04-12-2022.pdf" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="2" data-ogsc="">86%</a> of buyers agree homeownership is still the American Dream.
Prior to the 1950s, less than <a href="https://www2.census.gov/programs-surveys/decennial/tables/time-series/coh-owner/owner-tab.txt" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="3" data-ogsc="">half of the country</a> owned their own home. However, after World War II, many returning veterans used the benefits afforded by the <a href="https://benefits.va.gov/gibill/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="4" data-ogsc="">GI Bill</a> to purchase a home. Since then, the percentage of homeowners throughout the country has increased to the current rate of <a href="https://fred.stlouisfed.org/series/RHORUSQ156N" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="5" data-ogsc="">65.5%</a>. That strong desire for homeownership has kept home values appreciating ever since. The graph below tracks <a href="http://www.econ.yale.edu/~shiller/data.htm" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="6" data-ogsc="">home price appreciation</a> since the end of World War II:
<a href="https://files.mykcm.com/2022/04/20152835/20220421-MEM-Eng-1.png" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="7" data-ogsc=""><img data-imagetype="External" src="https://files.mykcm.com/2022/04/20152835/20220421-MEM-Eng-1.png" class="x_aligncenter x_wp-image-101888" alt="Why
This Housing Market Is Not a Bubble Ready To Pop | MyKCM" width="600" height="450" /></a>
The graph shows the only time home values dropped significantly was during the housing boom and bust of 2006-2008. If you look at how prices spiked prior to 2006, it looks a bit like the current spike in prices over the past two years. That may lead some people to be concerned we're about to see a similar fall in home values as we did when the bubble burst. To help alleviate those worries, let's look at what happened last time and what's happening today.
What Caused the Housing Crash 15 Years Ago?
Back in 2006, foreclosures flooded the market. That drove down home values dramatically. The two main reasons for the flood of foreclosures were:
1. Many purchasers were not truly qualified for the mortgage they obtained, which led to more homes turning into foreclosures.
2. A number of homeowners cashed in the equity on their homes. When prices dropped, they found themselves in an underwater situation (where the home was worth less than the mortgage on the house). Many of these homeowners walked away from their homes, leading to more foreclosures. This lowered neighboring home values even more.
This cycle continued for years.
Why Today's Real Estate Market Is Different
Here are two reasons today's market is nothing like the one we experienced 15 years ago.
1. Today, Demand for Homeownership Is Real (Not Artificially Generated)
Running up to 2006, banks were creating artificial demand by lowering lending standards and making it easy for just about anyone to qualify for a home loan or refinance their current home. Today, purchasers and those refinancing a home face much higher standards from mortgage companies.
Data from the Urban Institute shows <a href="https://www.urban.org/policy-centers/housing-finance-policy-center/projects/housing-credit-availability-index" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="8" data-ogsc="">the amount of risk</a> banks were willing to take on then as compared to now.
<a href="https://files.mykcm.com/2022/04/20152838/20220421-MEM-Eng-2.png" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="9" data-ogsc=""><img data-imagetype="External" src="https://files.mykcm.com/2022/04/20152838/20220421-MEM-Eng-2.png" class="x_aligncenter x_wp-image-101889" alt="Why
This Housing Market Is Not a Bubble Ready To Pop | MyKCM" width="600" height="450" /></a>
There's always risk when a bank loans money. However, leading up to the housing crash 15 years ago, lending institutions took on much greater risks in both the person and the mortgage product offered. That led to mass defaults, foreclosures, and falling prices.
Today, the demand for homeownership is real. It's generated by a re-evaluation of the importance of home due to a worldwide pandemic. Additionally, lending standards are much stricter in the current lending environment. Purchasers can afford the mortgage they're taking on, so there's little concern about possible defaults.
And if you're worried about the number of people still in <a href="https://www.mykcm.com/2022/01/06/there-wont-be-a-wave-of-foreclosures-in-the-housing-market/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="10" data-ogsc="">forbearance</a>, you should know there's no risk of that causing an upheaval in the housing market today. There won't be a flood of foreclosures.
2. People Are Not Using Their Homes as ATMs Like They Did in the Early 2000s
As mentioned above, when prices were rapidly escalating in the early 2000s, many thought it would never end. They started to borrow against the equity in their homes to finance new cars, boats, and vacations. When prices started to fall, many of these homeowners were underwater, leading some to abandon their homes. This increased the number of foreclosures.
Homeowners didn't forget the lessons of the crash as prices skyrocketed over the last few years. Black Knight reports that tappable equity (the amount of equity available for homeowners to access before hitting a maximum 80% loan-to-value ratio, or LTV) has <a href="https://www.blackknightinc.com/wp-content/uploads/2022/02/BKI_MM_Dec2021_Report.pdf" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="11" data-ogsc="">more than doubled</a> compared to 2006 ($4.6 trillion to $9.9 trillion).
The latest <a href="https://www.corelogic.com/intelligence/homeowner-equity-insights/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="12" data-ogsc="">Homeowner Equity Insights</a> report from CoreLogic reveals that the average homeowner gained $55,300 in home equity over the past year alone. Odeta Kushi, Deputy Chief Economist at First American, <a href="https://twitter.com/odetakushi/status/1508926031381553164" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="13" data-ogsc="">reports</a>:
Homeowners in Q4 2021 had an average of $307,000 in equity – a historic high.
ATTOM Data Services also reveals that <a href="https://www.attomdata.com/news/market-trends/home-sales-prices/attom-q4-2021-u-s-home-equity-and-underwater-report/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="14" data-ogsc="">41.9%</a> of all mortgaged homes have at least 50% equity. These homeowners will not face an underwater situation even if prices dip slightly. Today, homeowners are much more cautious.
Bottom Line
The major reason for the housing crash 15 years ago was a tsunami of foreclosures. With much stricter mortgage standards and a historic level of homeowner equity, the fear of massive foreclosures impacting today's market is not realistic.
Contact the Marin Modern Team, your <a href="http://www.marincounty.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="14" data-ogsc="">Marin County real estate</a> connection, for assistance buying or selling a home in Marin County California.2022-04-22T09:00:00-07:002022-04-22T17:37:15-07:00Marin Modern Teamtag:marincounty.com,2012-09-20:18824Where Are Mortgage Rates Headed?<img data-imagetype="External" src="https://files.mykcm.com/2022/04/12115333/20220413-KCM-Share-600x328.jpg" id="x__x0000_i1037" alt="Where Are Mortgage Rates
Headed? | MyKCM" style="width: 6.25in; height: 3.4166in;" width="600" height="328" border="0" />
There's never been a truer statement regarding forecasting mortgage rates than the one offered last year by <a href="https://blog.firstam.com/economics/reconomy-podcast-2021-housing-market-outlook" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="9" data-ogsc="">Mark Fleming</a>, 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 <a href="https://www.mykcm.com/2021/11/03/experts-project-mortgage-rates-will-continue-to-rise-in-2022/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="10" data-ogsc="">gradually increase</a> and end 2022 in the high three-percent range. It's only April, and rates have already blown past those numbers. Freddie Mac <a href="https://www.freddiemac.com/pmms/archive" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="11" data-ogsc="">announced</a> last week that the 30-year fixed-rate mortgage is already at 4.72%.
Danielle Hale, Chief Economist at realtor.com, <a href="https://twitter.com/RDC_Economics/status/1509534325234098179" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="12" data-ogsc="">tweeted on March 31</a>:
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 <a href="https://www.mortgagenewsdaily.com/mortgage-rates/30-year-fixed" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="13" data-ogsc="">quoted</a> 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, <a href="https://www.builderonline.com/data-analysis/mortgage-rates-continue-climbing-while-applications-decrease-in-latest-weekly-surveys_o" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="14" data-ogsc="">explains</a>:
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, <a href="https://www.corelogic.com/intelligence/find-stories/record-home-price-appreciation-led-by-sun-belt-states-in-february/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="15" data-ogsc="">home prices</a>, the <a href="https://www.showingtime.com/blog/february-2022-showing-index-results/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="16" data-ogsc="">number of showings</a>, and the number of homes receiving <a href="https://twitter.com/EricFinnigan/status/1508575208738721794" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="17" data-ogsc="">multiple offers</a> 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, <a href="https://www.attomdata.com/news/market-trends/home-sales-prices/attom-q1-2022-u-s-home-affordability-report/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="18" data-ogsc="">recently</a> 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.
Contact the Marin Modern Team, your <a href="http://www.marincounty.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="14" data-ogsc="">Marin County real estate</a> connection, for assistance buying or selling a home in Marin County California.2022-04-13T09:00:00-07:002022-04-13T18:15:05-07:00Marin Modern Teamtag:marincounty.com,2012-09-20:18642Balancing Your Wants and Needs as a Homebuyer Today<img data-imagetype="External" src="https://files.mykcm.com/2022/04/01125715/20220404-KCM-Share-600x328.jpg" class="x_webfeedsFeaturedVisual x_wp-post-image" alt="Balancing Your Wants and
Needs as a Homebuyer Today | MyKCM" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width="600" height="328" />
Since the <a href="https://www.mykcm.com/2022/03/04/supply-and-demand-in-todays-market-infographic/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="10" data-ogsc="">number of homes</a> for sale is low today, it can feel challenging to find one that checks all your boxes. But if you know which features are absolutely essential in your next home and which ones are just nice bonuses, you can land a <a href="https://www.mykcm.com/2022/03/16/are-you-wondering-if-this-is-the-year-to-buy-a-home/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="11" data-ogsc="">home</a> that fits your needs.
Danielle Hale, Chief Economist for realtor.com, explains it like <a href="https://www-cnbc-com.cdn.ampproject.org/c/s/www.cnbc.com/amp/2022/02/26/what-to-do-before-you-buy-a-home.html" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="12" data-ogsc="">this</a>:
Focus on the goal you set out for yourself, like your list of must-haves and nice-to-haves and your budget, . . . Stick to that. Be persistent.
So how do you go about creating your list of desired features? The first step is to get <a href="https://www.mykcm.com/2022/01/24/why-pre-approval-is-key-for-homebuyers-in-2022/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="13" data-ogsc="">pre-approved</a> for your mortgage. Pre-approval helps you better understand your budget, and that plays an important role in how you'll craft your list. After all, you don't want to fall in love with a home that's too far out of reach.
Once you have a good grasp of your budget, you can begin to list all the features of a home you would like. Here's a great way to think about them before you begin:
Must-Haves – If a house doesn't have these features, it won't work for you and your lifestyle (examples: distance from work or loved ones, number of bedrooms/bathrooms, etc.).
Nice-To-Haves – These are features that you'd love to have but can live without. Nice-To-Haves aren't dealbreakers, but if you find a home that hits all the must-haves and some of the these, it's a contender (examples: a second home office, garage, etc.).
Dream State– This is where you can really think big. Again, these aren't features you'll need, but if you find a home in your budget that has all the must-haves, most of the nice-to-haves, and any of these, it's a clear winner (examples: farmhouse sink, multiple walk-in closets, etc.).
Finally, once you've created your list and categorized it in a way that works for you, discuss it with your <a href="https://www.mykcm.com/2022/03/01/an-expert-advisor-will-give-you-the-best-advice-in-todays-market/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="14" data-ogsc="">real estate advisor</a>. They'll be able to help you refine the list further, coach you through the best way to stick to it, and find a home in your area that meets <a href="https://www.mykcm.com/2022/03/22/the-many-benefits-of-homeownership/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="15" data-ogsc="">your needs</a>.
Bottom Line
Crafting your home search checklist may seem like a small task, but it can save you time and money. It's also one of the keys to being successful in today's competitive market. Let's connect so we can work together to find a home that fits your wants and needs.
Contact us for experienced representation when buying or selling a <a href="http://www.marincounty.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="16" data-ogsc="">home in Marin County CA</a>.2022-04-04T09:00:00-07:002022-04-04T16:22:37-07:00Marin Modern Teamtag:marincounty.com,2012-09-20:18581What's Happening with Mortgage Rates, and Where Will They Go from Here?<img data-imagetype="External" src="https://files.mykcm.com/2022/03/29163529/20220330-KCM-Share-600x328.jpg" class="x_webfeedsFeaturedVisual x_wp-post-image" alt="What's Happening with
Mortgage Rates, and Where Will They Go from Here? | MyKCM" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width="600" height="328" />
Based on the <a href="https://www.freddiemac.com/pmms/archive" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="2" data-ogsc="">Primary Mortgage Market Survey</a> from Freddie Mac, the average 30-year fixed-rate mortgage has increased by 1.2% (3.22% to 4.42%) since January of this year. The rate jumped by more than a quarter of a point from just a week ago. Here's a visual to show how mortgage rate movement throughout 2021 was steady compared to the rapid increase in mortgage rates this year:
<a href="https://files.mykcm.com/2022/03/29163526/20220330-MEM-Eng-1.png" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="3" data-ogsc=""><img data-imagetype="External" src="https://files.mykcm.com/2022/03/29163526/20220330-MEM-Eng-1.png" class="x_aligncenter x_wp-image-101659" alt="What's Happening with Mortgage Rates, and Where Will They Go from Here? |
MyKCM" width="600" height="450" /></a>
Just a few months ago, Freddie Mac <a href="https://www.freddiemac.com/research/forecast/20220121-quarterly-economic-forecast" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="4" data-ogsc="">projected</a> mortgage rates would average 3.6% in 2022. Earlier this month, Fannie Mae <a href="https://www.fanniemae.com/media/43141/display" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="5" data-ogsc="">forecast</a> mortgage rates would average 3.8% in 2022. As the chart above shows, rates have already surpassed those projections.
Sam Khater, Chief Economist at Freddie Mac, explained in a <a href="https://freddiemac.gcs-web.com/news-releases/news-release-details/mortgage-rates-continue-move-0?_ga=2.217383318.1602794866.1648323840-1529566666.1576528603" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="6" data-ogsc="">press release</a> last week:
This week, the 30-year fixed-rate mortgage increased by more than a quarter of a percent as mortgage rates across all loan types continued to move up. Rising inflation, escalating geopolitical uncertainty and the Federal Reserve's actions are driving rates higher and weakening consumers' purchasing power.
Where Are Mortgage Rates Going from Here?
In a <a href="https://www.bankrate.com/mortgages/march-2022-mortgage-rate-outlook/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="7" data-ogsc="">recent article</a> by Bankrate, several industry experts weighed in on where rates might be headed going forward. Here are some of their forecasts:
Greg McBride, Chief Financial Analyst, Bankrate:
With inflation figures continuing to surprise to the upside, mortgage rates will remain above 4.0% on the 30-year fixed.
Nadia Evangelou, Senior Economist and Director of Forecasting, National Association of Realtors (NAR):
While higher short-term interest rates will push up mortgage rates, I expect some of this impact to be mitigated eventually through lower inflation. Thus, I expect the 30-year fixed mortgage rate to continue to rise, although we aren't likely to see the big jumps that occurred over the past few weeks.
Len Kiefer, Deputy Chief Economist, Freddie Mac:
Mortgage rates are likely to continue to move higher throughout the balance of 2022, although the pace of rate increases is likely to moderate.
In a recent realtor.com <a href="https://www.realtor.com/research/federal-reserve-mar-2022-meeting/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="8" data-ogsc="">article</a>, another expert adds to the conversation:
Danielle Hale, Chief Economist, realtor.com:
. . . As markets digest the Fed's updated economic projections, I anticipate a continued increase in mortgage rates over the next several months. . . .
What Does This Mean for You if You're Looking To Buy a Home?
With both mortgage rates and <a href="https://www.mykcm.com/2022/03/03/are-home-prices-continuing-to-rise/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="9" data-ogsc="">home values</a> expected to increase throughout the year, it would be better to buy sooner rather than later if you're able. That's because it'll cost you more the longer you wait. But, there is a possible silver lining to buying a home right now. While you'll be paying a higher price and a higher mortgage rate than you would have last year, rising prices do have a long-term benefit once you buy.
If you purchase a home today valued at $400,000 and put 10% down, you would be taking out a $360,000 mortgage. According to <a href="https://www.mortgagecalculator.net/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="10" data-ogsc="">mortgagecalculator.net</a>, at a 4.42% fixed mortgage rate, your mortgage payment would be $1,807 a month (this does not include insurance, taxes, and other fees because those vary by location).
Now, let's put that mortgage payment into a new perspective based on the substantial growth in <a href="https://www.mykcm.com/2022/03/21/the-average-homeowner-gained-more-than-55k-in-equity-over-the-past-year/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="11" data-ogsc="">equity</a> that comes with the escalation in home prices. Every quarter, Pulsenomics surveys a panel of over 100 economists, investment strategists, and housing market analysts about their expectations for future home prices in the United States. Last week, Pulsenomics released their latest <a href="https://pulsenomics.com/surveys/#home-price-expectations" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="12" data-ogsc="">Home Price Expectation Survey</a>. The survey reveals that the average of the experts' forecasts calls for a 9% increase in home values in 2022.
Based on those projections, a $400,000 house you buy today could be valued at $436,000 by this time next year. If you break that down, that means the equity in your home would increase by $3,000 a month over that period. That's greater than the estimated monthly payment above. Granted, the increase in your <a href="https://www.mykcm.com/2022/03/28/a-key-to-building-wealth-is-homeownership/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="13" data-ogsc="">net worth</a> is tied to the home, but it is one way to put the home price appreciation to use in a way that benefits you.
Bottom Line
Paying a higher price for a home and a higher mortgage rate can be a difficult pill to swallow. However, waiting will just cost you more. If you're ready, willing, and able to buy a home, now will be a better time than a year, or even six months from now. Let's connect to begin the process today.
Contact the Marin Modern Team, your <a href="http://www.marincounty.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="14" data-ogsc="">Marin County real estate</a> connection, for assistance buying or selling a home in Marin County California.2022-03-30T09:00:00-07:002022-03-30T18:13:29-07:00Marin Modern Teamtag:marincounty.com,2012-09-20:18155Pink Owl Coffee - featured Bay Area Small BusinessHere in Marin County, we are so lucky to have incredible local businesses that help shape this growing community for the better. One face behind these businesses is deserving of spotlight: Joe Carlo, owner and founder of Pink Owl Coffee. Pink Owl Coffee is more than just your run-of-the-mill coffee shop—they offer far more than just coffee and aim to provide a Zen retreat from the pressures of daily life for the local community. All of their coffees are made from organic fair trade coffee beans sourced worldwide, and roasted in-house.
Funnily enough, roasting coffee beans in-house was how all of this got started. Before Pink Owl had been conceived, Joe and his fiancée, Saandra Bowlus, would commonly make their own home coffee roast.
“And then we’d give them away as Christmas presents,” Joe said. “That’s how we got our hands involved in this. Eventually someone said, ‘You should start a business! You roast really good coffee.’ So we actually took that to heart and started roasting coffee professionally.”
Saandra is a breast cancer survivor and Pink Owl Coffee derives its name partly from the desire to support women in this important endeavor. Now that the two of them co-own and operate the business, that desire is a reality. From the beginning, Joe and Saandra planned to contribute annual revenue to breast cancer research and support for women.
“Saandra, is in remission—she’s good,” Joe said. “When we started this, we wanted to give back to the community. So 10% of what Pink Owl makes goes toward breast cancer research.”
In addition to their <a href="https://www.marincounty.com/san-rafael/">San Rafael</a> location (1816 Second St, San Rafael, CA 94901), Pink Owl has a second location in <a href="https://www.bayareamodern.com/petaluma-real-estate/" target="_blank">Petaluma </a>(617 E Washington St, Petaluma, CA 94952) and a third in the works. With so much support given to this business across communities, it’s more than obvious that Pink Owl has a knack for listening to their customers, and then delivering!
This community support was a necessary backbone during the early stages of the pandemic, when Pink Owl was still a new company. “It’s been very challenging, but we’ve made it,” Joe said. “It helps that this is one of the strongest communities I’ve ever been in. We had to pivot when everything shut down. So we reached out to our community to see what they wanted, and tried to gauge what everyone was looking for. It shaped our business model in a way that worked out for the best.”
Let’s recircle to something that can’t be glossed over—Pink Owl is a craft roaster, and that means quality matters to them.
“We’ve been working very hard for the last two years to perfect our house roast,” Joe said. “When you over-roast like major chains, you have that burnt coffee taste. That’s why sweet, sugary artificial drinks are made with that kind of coffee. They’re not real and they’re not well-crafted.”
<img src="https://assets.site-static.com/userfiles/551/image/Pink%20owl%20coffee%20and%20pastries.jpg" width="400" height="400" alt="pink owl coffee and pastries" style="float: right; border: 4px solid black;" />Meanwhile, Pink Owl styles itself after a classic Italian café. “One of our signature drinks is a vanilla lavender oat milk latte,” Joe said. “But we also offer signature pastries baked in-house, like the blueberry cinnamon coffee cake and a vegan banana chocolate chip walnut bread. And one of our biggest sellers is mochi.”
That’s right, Pink Owl has mochi donuts and muffins. For those that don’t know, mochi are usually found as cute, round buns made of soft and chewy rice.
“They’re from a company called Third Culture in Berkley,” Joe explained. It takes Third Culture three days just to make the dough for these delicious mochi products. “They’re gluten-free and amazing.” Pink Owl sells probably ten to twelve-thousand mochi products a day. “People love them and we sell out all the time,” Joe said. Besides coffee, Pink Owl also has chai and a lot of different teas and matcha.
And you can order it all from their app! Search for Pink Owl Coffee in the Apple App Store to start collecting your loyalty points. It also makes ordering a breeze; simply go on the app, place an order, then walk in and pick up your order without waiting in line. Or even have your order delivered straight to your door! And of course be sure to stay plugged in with Pink Owl on Instagram, Facebook and Tiktok @pinkowlcoffee or visit their website at pinkowlcoffee.com.
“To all of our loyal customers, thank you for your support,” Joe said. “Pink Owl is here for the long run, we’re not leaving. We love to give back to the community and we love the support that our community has given us. Let’s continue to grow as a strong, loving community!”
And thank you Joe and the Pink Owl team, for all you are doing for the lovely San Rafael area!
<img src="https://assets.site-static.com/userfiles/551/image/PinkOwl_2.jpg" width="735" height="735" alt="Saandra Bowlus and Joe Carlo, owners of Pink Owl Coffee" />2022-03-07T07:40:00-07:002022-03-07T08:20:29-07:00Renee Adelmann, Bay Area Moderntag:marincounty.com,2012-09-20:18020Should I Wait Until Spring to Sell My Home?
question:
Should I wait until Spring (or later) to list my San Rafael home for sale?
We want to capture the highest sale price possible and I’ve always heard that Spring is the best time to list a home. Does this advice still hold true today?
This is an excellent question that local homeowners have been asking me with increased frequency. There has always been a seasonality to our local real estate market and Spring has typically been the best time to list a home for sale—at least in the years before the pandemic-fueled housing boom.
Historically, Spring has been a popular time to sell since buyers tend to come out of winter hibernation and hit the market in droves. Improved weather, combined with school schedules and the absence of major holidays (which inhibit most people from moving due to family obligations), generally means a strong buyer pool which can be advantageous to sellers.
That said, the pandemic has thrown a wrench into the traditional seasonality of the market and the bigger factor we see playing into timing the market right now is inventory. The reason why inventory should play a factor into your consideration of when to list your home for sale is simply a matter of economics. When there are too many qualified buyers chasing too few homes available for sale, it means home prices will continue to rise as long as interest rates (or inventory) don’t get too high.
Interest Rates & Buyer Demand
Mortgage rates remain at historic lows and buyers benefit from these low rates since it gives them more buying power and keeps their monthly housing payment lower. The opposite is also true—the higher a buyer’s mortgage interest rate, the higher their monthly payments are going to be. A general rule of thumb in the mortgage industry is that a 1% increase in mortgage interest rates will result in a 10-11% decrease in a buyer’s purchasing power.
Leading economists believe that signals from the Fed and signs that inflation remains pervasive set the stage for mortgage rates to move even higher in coming months. As rates climb, the potential buyer pool for your home is likely to decline.
San Rafael Inventory
<img src="https://assets.site-static.com/userfiles/551/image/san_rafael_homes_for_sale.png" width="1319" height="536" alt="san rafael inventory of homes" />
When inventory is low, you generally have more potential buyers seeing (and competing for) your home. This results in a premium price for your home, especially if your home has been well prepared for sale and aggressively marketed.
As a seller, the ideal scenario is having your home looking great and then having it hitting the market when:
• Fewer similar homes in the area are for sale (which means more eyes on your home and less competition), and
• Interest rates are low (which means a larger buyer pool)
Right now we appear to be in that ideal scenario. Interest Rate are low but expected to increase and the number of homes currently for sale in San Rafael is at an all time low.
So, to answer your original question, Spring 2022 should be an excellent time to sell however right now appears to be an ideal time to take advantage of the current market dynamics and list your home for sale.
Whether you are contem-plating the sale of your home now or in the future, I’d welcome the opportunity to assist. My team and I can work quickly to help you prepare, list and sell your home for maximum profit. Contact me at 415-342-4537 to discuss the profit potential of listing and selling your home in today's market.2022-02-26T22:18:00-07:002022-02-26T22:35:07-07:00Renee Adelmann, Bay Area Moderntag:marincounty.com,2012-09-20:18010The #1 Reason To Sell Your House Today<img data-imagetype="External" src="https://files.mykcm.com/2022/02/23123145/20220224-KCM-Share-600x328.jpg" class="x_webfeedsFeaturedVisual x_wp-post-image" alt="The #1 Reason To Sell Your
House Today | MyKCM" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width="600" height="328" />
Almost every industry is currently struggling with supply chain disruptions. This also applies to the current U.S. housing market, where buyer demand far exceeds housing supply.
Purchaser demand is very strong right now. The National Association of Realtors (NAR) just released their latest <a href="https://www.nar.realtor/newsroom/existing-home-sales-surge-6-7-in-january" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="10" data-ogsc="">Existing Home Sales Report</a> which reveals that sales surged in January. Existing home sales rose to a seasonally adjusted annual rate of 6.5 million – an increase of 6.7% from the prior month, with sales up in all regions. However, there's one big challenge.
Inventory Is at an All-Time Low
Because purchaser demand is so high, the market is running out of available homes for sale. The above-mentioned report states that the current months' supply of inventory of homes for sale has fallen to 1.6 months. This prompts Lawrence Yun, Chief Economist at NAR, to say:
The inventory of homes on the market remains woefully depleted, and in fact is currently at an all-time low.
Earlier this month, realtor.com released their <a href="https://www.realtor.com/research/data/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="11" data-ogsc="">inventory data</a> for January. It helps confirm this point. Here's a graph comparing inventory levels for January over the last six years:
<a href="https://files.mykcm.com/2022/02/23123141/20220224-MEM-Eng-1.png" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="12" data-ogsc=""><img data-imagetype="External" src="https://files.mykcm.com/2022/02/23123141/20220224-MEM-Eng-1.png" class="x_aligncenter x_wp-image-101263" alt="The
#1 Reason To Sell Your House Today | MyKCM" width="600" height="450" /></a>
As the graph shows, new listings coming on the market have decreased over the last four years (shown in blue in the graph). The graph also reveals that carry-over inventory has plummeted in recent years. This is because listings are now sold so quickly, they don't stay on the market long enough to carry over month-to-month (shown in green in the graph). In other words, homes are not staying on the market for months as they had prior to the pandemic. In the report mentioned above, NAR reveals that:
Seventy-nine percent of homes sold in January 2022 were on the market for less than a month.
Odeta Kushi, Deputy Chief Economist at First American, <a href="https://twitter.com/odetakushi/status/1494695509486936067" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="13" data-ogsc="">explains</a> it like this:
A higher velocity of sales (lower [Days on Market]) helps to explain a housing market characterized by both higher sales & lower inventory. Many resale transactions are happening so quickly that they ‘flow' in & then out of the ‘stock' between the fixed monthly measurement of inventory.
What Does This Mean for Sellers?
Anyone thinking of putting their home on the market shouldn't wait. A seller will always negotiate the best deal when demand is high and supply is limited. That's exactly the situation in the real estate market today.
Later this year, inventory (and by extension, your competition) will increase as many homeowners are waiting to put their homes on the market in the spring and early summer.
In addition, Len Kiefer, Deputy Chief Economist at Freddie Mac, <a href="https://twitter.com/lenkiefer/status/1494423003224059914" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="14" data-ogsc="">says</a>:
Housing starts start off 2022 strong, just edging out 2021 for most in January since 2006.
As these newly built homes are completed, they will also become competition for your house. This gives you a tremendous opportunity right now. Don't wait for that increase in competition in your area. If you want to sell in 2022 and are ready to start the process, today is the day to list your house.
Bottom Line
If you're ready to sell, let's connect to get your house on the market while today's inventory situation is in your favor.
Contact the Marin Modern Team, your <a href="http://www.marincounty.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="14" data-ogsc="">Marin County real estate</a> connection, for assistance buying or selling a home in Marin County California.2022-02-25T10:00:00-07:002022-02-25T17:19:18-07:00Marin Modern Teamtag:marincounty.com,2012-09-20:17835Are San Rafael Home Prices Cooling?The buzz is everywhere, the headlines abound: the housing market is poised to cool. But is it? And what does that mean? What trends or factors point to this? We’ll try to answer these questions, and then take a deep dive into the data.
What do experts mean by a “cooling” real estate market?<br />Simply put, it means a decline in housing demand, transactions, and ultimately, prices. And it’s certainly fair to predict cooling when the market’s been heating up for so long; real estate is cyclical after all. But it’s important to keep in mind that even the savviest expert wouldn’t place a high bet on any specific set of metrics, especially these days.
Why? We’re dealing with unprecedented circumstances like the pandemic, federal stimulus, work-from-home, and other dynamics that don’t factor in to normal housing market prediction models. In fact, if you look back to the predictions real estate experts made in March or April of 2020, right when Covid happened, you’ll notice that almost nothing that they predicted materialized. With many market dynamics in the Freakanomics category still very much at play, it’s difficult to predict future prices with reliable accuracy.
So, to say things will cool off is ambiguous at best, and anxiety-producing at worst. It’s a loose term to describe a wide range of guesses. Instead, let’s look closer at the numbers, and try to get a sense for what they really tell us.
What would cause this to occur?<br />It’s true that in <a href="https://www.marincounty.com/san-rafael/">San Rafael</a> (and almost everywhere in the US) home prices have been rising for years, and then unexpectedly surged during—of all times—a global pandemic. We know inventory shortages and rock-bottom interest rates, coupled with stimulus programs and newfound work-at-home flexibility, all played a role. But no one predicted so much demand and appreciation, or that markets like ours would see record-breaking highs.
So, it’s tough to know how or when the important peripheral dynamics (mostly related to Covid) will affect the supply and demand of homes, but what we can do is look at the housing market fundamentals. At the very least, this shows us what the data would indicate under normal circumstances with normal market forces.
One of these important factors is interest rates. The crazy-low-rate party is over; rates are already higher compared to last year, and the Fed plans to raise the discount rate more in 2022. Rates will still be low, but not as low. For San Rafael and other high-price markets, these incremental changes in rates have a bigger impact on payments and home affordability than in lower priced markets. However, rising rates will not force large enough monthly payment increases to screech buyer activity to a halt, especially when demand is still strong. Instead, it will reduce buyer competition and position buyers with a little more negotiation power, driving down prices perhaps by roughly the increased cost of borrowing. Albeit a subjective approximation, this is a fair one and typical of what we see under normal conditions.
The other major factors that affect real estate transactions, such as employment and income, are not just stable but surprisingly strong. The national unemployment rate is trending around 3.9% (a near-historic low), and is doing even better here locally. In December, Marin County’s unemployment rate was just 2.7%, the lowest of the 58 counties in California. In San Rafael, the unemployment rate was just 2.5%, indicating one of the most secure job markets in the U.S. Median household income also remained strong in <a href="https://www.marincounty.com/">Marin County</a>, trending significantly higher than virtually anywhere else in the country. We know that these dynamics can change, but our current national and local data underscores strength in the housing market.
"In San Rafael, the unemployment rate was just 2.5%, indicating one of the most secure job markets in the U.S."
Finally, new construction is an important contributing factor to the state of resales. Beyond the inherent challenges of building a new home in San Rafael or Marin County, the supply chain and COVID concerns for workers has put additional constraints on building homes. This, of course, limits the market’s supply side to homes that already exist, increasing competition for them and thus prices.
the Bottom Line<br />We don’t know how all the repercussions of Covid will affect the foundational economic factors which in turn affect housing. There are too many variables and unknowns. But we do know what those fundamental metrics look like today, and how the market normally reacts to them. Today, those factors indicate price stability and perhaps further growth, with the chance of a slight price decline later in the year as interest rates rise.
Zooming in on San Rafael’s Housing Market
<img src="https://assets.site-static.com/userfiles/551/image/san%20rafael%20real%20estate%202021%20v%202020.jpg" width="2190" height="900" alt="san rafael real estate 2021 vs 2020" />
SAN RAFAEL HOME SALES
In 2021, a total of 786 homes sold in San Rafael, with 552 Single Family Homes (SFHs) and 234 Condominiums and Townhomes (Condos) changing hands. While SFH sales remained stable throughout much of 2021, there was a dramatic 59% increase in condo sales throughout the year.
While the year-over-year jump in condo sales was startling, it’s important to remember that we experienced a significant slowdown in Condo demand during the early stages of the pandemic. Buyers were seeking properties with more space for living and working from home, while also providing more separation from neighbors. But by 2021, prices for SFHs had increased dramatically, suddenly becoming out of reach for buyers who held off on purchasing in 2020. Condos became an attractive alternative, and as Covid vaccines became available, buyers had less discomfort with Condo living than in 2020. These factors led to a spike in demand for San Rafael Condos, creating a sharp rebound in sales.
The average sale price of Single Family Homes (SFHs) in San Rafael increased by 16% from 2020 to 2021, to $1,669,068 (from $1,437,679 in 2020). Condo prices increased 10% to $738,290 in 2021, compared to just $669,547 the prior year. On average, SFHs took 25 days to sell (22% faster than in 2020) while Condos took an average of 51 days to sell (about 2% slower than the year before).
ZIP CODE 94903 REAL ESTATE
395 homes sold in San Rafael’s 94903 zip code in 2021, at an average price of $1,187,747. The average price for a SFH increased 15%, to $1,482,671. The volume of SFHs sold declined 5% year-over-year (242 sold in 2021 compared to 255 in 2020). On average, SFHs took 21 days to sell, selling 30% faster than in 2020 (a 30% reduction in Days on Market).
The volume of Condo sales increased 47% (153 sold in 2021, 104 sold in 2020), and the average sale price increased 13% to $721,265. Condos took an average of 55 days to sell, which is 10% slower than 2020.
ZIP CODE 94901 REAL ESTATE
In 2021, 391 homes sold in San Rafael’s 94901 zip code at an average price of $1,598,275. The average sale price for SFHs increased 16% year-over-year to $1,814,579, and the number of SFHs sold increased 8% (310 sold in 2021, compared to 286 in 2020). SFHs sold 20% faster in 2021, with an average Days on Market of 28.
Condo sale volume surged 88% (81 units sold in 2021 compared to just 43 in 2020), and the average sale price increased 4% to $770,448. Condos took an average of 44 days to sell, a 15% faster sale cycle than in 2020.
Considering a move? Have questions?<br />I’m here to help. As the #<a href="https://www.marincounty.com/agents/48/-renee--adelmann/">1 Realtor for homes sold in San Rafael</a> since 2007, I know the market well. I am tuned in to local buyer behavior and the broader forces at play in the market. I’d love to walk you through the proven process my team and I utilize to help prepare, stage, price, list, market, and sell your home for maximum profit and with minimal stress. I’m also eager to answer your questions or give you an updated assessment of your home’s value, without any cost or obligation. Give me a call directly at 415-342-4537.2022-02-16T14:33:00-07:002022-02-16T14:49:13-07:00Renee Adelmann, Bay Area Moderntag:marincounty.com,2012-09-20:17791School of Rock San Rafael - Marin Music School for KidsHere in <a href="https://www.marincounty.com/">Marin County</a>, we are so lucky to have incredible organizations that help shape this growing community for the better. One face behind this community service is deserving of the spotlight: Heather Riley, owner and general manager of School of Rock San Rafael, opening in late February.
School of Rock is a performance-based music school that focuses on five key instruments: bass, drums, guitar, keyboards, and vocals. Their main programs combine weekly one-on-one lessons and group band rehearsals rounding out a great music education in a fun and nurturing environment. And let’s not forget that these students put on live shows at real Rock venues throughout the year!
When Heather was pulled in to help get neighboring School of Rock Santa Rosa up and running in 2018 she immediately felt fortunate to be involved. With about 250 School of Rock’s in the U.S. (300 plus globally), it was clear that this project was successfully changing communities and the lives of the kids involved. “They brought me in for my business administrative experience,” Heather said. “I turned down a very safe job, if you like, with Sonoma County to do this as it sounded much more exciting and challenging. And indeed it was! In doing so, I discovered that music was way more important to me than I realized.” Heather knew that she had always loved music, but her experience was heightened by combining the musical element with taking care of people. <br />“The upshot is that we teach kids to play music, we teach adults to play music, and we teach them to play music with each other,” Heather said. “With that comes a tremendous boost in confidence. And bigger than that, you get this local tribe and community that develops as a school - which has a real impact.”
<br />Right now, Heather is noticing that this kind of community is what people are really craving. “They wake up and they’re really feeling it,” Heather said. Now two years into this pandemic, it’s never been more important to foster creative communities such as this one.
<br />All School of Rocks stayed open, teaching remotely when needed, throughout these trying times, and remote lessons will be available when requested or required after the school here in <a href="https://www.marincounty.com/san-rafael/">San Rafael</a> opens. With the school build-out almost finished, Heather is looking forward to seeing the students gathered and connected, making music and new friends.
“The building that we have is just the most fantastic location,” Heather said. “It’s freestanding and right off the freeway less than a mile from the Civic Center, so that everyone in Marin County can get there. And that’s really important to note, that though this is School of Rock San Rafael, it’s for everyone in Marin County.”
Leading up to the opening, there are plenty of students that will get to see the brand-new facilities. “We should be open, all being well, mid-to-late February,” Heather explained. “So far, probably 350 new families have reached out to me and already signed up for free trial lessons. That’s how we always start out: With a free trial lesson and a tour of the school. This way, we can assess students and place them in the program that suits them best.”
And students of all ages are welcome! They have group classes for kids as young as four years old. And exactly what they do for the kids, they also do for adults. “One thing that tends to happen is adults will walk in and go, ‘I wish I had this when I was a kid,’ Heather said. And we say, ‘Well you do now!’ So whether somebody’s played before and could be quite handy in the garage, or they’re a complete beginner, School of Rock has got a spot for them - no matter what their age.
“We are going to be a place where there is one common factor uniting everything: Music. It’s a happy and inspiring place to be,” Heather said. “We’re also the place for kids that don’t necessarily find their home elsewhere - maybe a sports team hasn’t been for them - and this is where they find their tribe, home, and comfort zone.”
Not only that, but it’s also a place to rock out and have some fun! “We already know what our first two shows for our main performance groups will be,” Heather said. “This is for our students that are not adults, under age eighteen; British Invasion and Best of the 90’s!” The adult bands will have their setlist determined under the guidance of their show director, tailoring it to the abilities and taste of the group.
To keep up to date on these shows and all things School of Rock, you can find them on platforms such as Facebook, Instagram, and Tiktok @SchoolofRockSanRafael or at their website, SanRafael.SchoolofRock.com. Please share with others to let them know, as any aspiring musician can now book a free trial lesson and see for themselves what this school is all about. <br />School of Rock offers after school activities and will initially be open on Sundays from 10:00 am to 5:00 pm, and Monday through Thursdays from 2:00-8:00 pm. They also have fantastic Summer Camps, which can be found on their website and are already filling up fast. In about six months they will audition for the house band and those talented kids will receive special coaching and play gigs throughout Marin County.
“I am very grateful for the reception we’ve had in the Marin community,” Heather said. “We love what we’re seeing and feeling so far!”
Thank you, Heather and all the hard workers at School of Rock San Rafael, for all you are bringing to our community!
<img src="https://assets.site-static.com/userfiles/551/image/school_of_rock_san_rafael.jpg" width="1188" height="891" alt="school of rock san rafael" title="music school for kids in Marin County" />2022-02-13T21:57:00-07:002022-02-13T22:05:56-07:00Renee Adelmann, Bay Area Moderntag:marincounty.com,2012-09-20:17258The Next Generation of Homebuyers Is Here<img data-imagetype="External" src="https://files.mykcm.com/2022/01/24121723/20220125-KCM-Share-600x328.jpg" class="x_webfeedsFeaturedVisual x_wp-post-image" alt="The Next Generation of
Homebuyers Is Here | MyKCM" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width="600" height="328" />
Many members of Generation Z (Gen Z) are aging into adulthood and deciding whether to <a href="https://www.mykcm.com/2022/01/04/avoid-the-rental-trap-in-2022/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="10" data-ogsc="">rent</a> or buy a home. If you find yourself in this group, it's important to understand you're never too young to start thinking about homeownership. The sooner you start planning, the sooner you can move on from renting.
As you set off on your journey and plan your next move, here are a few reasons to think about homebuying this year.
The Reasons Gen Z Want To Become Homeowners
While the majority of Gen Z haven't entered the housing market yet, a large portion plan to according to a realtor.com <a href="https://www.realtor.com/research/gen-z-values-homeownership/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="11" data-ogsc="">report</a>. The report found that 72% of Gen Z would rather purchase a home than rent long-term. As George Ratiu, Manager of Economic Research for realtor.com, <a href="https://themreport.com/daily-dose/06-24-2021/report-shows-gen-z-values-homeownershipyears-301318972.html" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="12" data-ogsc="">says</a>:
With nearly three-quarters of those surveyed preferring to buy versus renting long-term, the housing industry should be prepared for millions of Gen Z buyers to bring a new wave of demand along a similar stage-of-life timeline as the millennial generation before them.
But why do so many members of Gen Z value homeownership? According to the latest <a href="https://cdn.nar.realtor/sites/default/files/documents/2021-home-buyers-and-sellers-generational-trends-03-16-2021.pdf" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="13" data-ogsc="">Home Buyers and Sellers Generational Trends Report</a> from the National Association of Realtors (NAR), young homebuyers – more than any other age group – want to become homeowners because they want to have a place of their very own.
That may be because one of the biggest <a href="https://www.mykcm.com/2021/12/23/when-a-house-becomes-a-home/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="14" data-ogsc="">benefits</a> of homeownership is having a place that you can truly make your own by customizing it to your style and personality. Whether that's the décor, painting, or renovations, when you own your home, you don't have to limit yourself to what your lease and landlord will allow.
Not to mention, owning a home provides much greater long-term stability and security than <a href="https://www.mykcm.com/2022/01/04/avoid-the-rental-trap-in-2022/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="15" data-ogsc="">renting</a>. When you own a home, there's also protection from steadily rising rental costs because your monthly mortgage payment is locked in for the length of your loan (typically 15 to 30 years).
Work with a Real Estate Professional To Achieve Your Goals
Whether you're just getting started on your homebuying journey, you want to learn more about the process, or you're fully committed to buying your first home this year, it's especially important to connect with a trusted real estate advisor soon, as you won't be the only first-time buyer in the market. According to a <a href="https://www.realtor.com/research/first-time-home-buyers-2021/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="16" data-ogsc="">recent survey</a> from realtor.com, a majority of first-time buyers surveyed are looking to purchase a home in 2022. As the survey notes:
First-time home buyers retain their optimism despite a challenging housing market in the past year. Hoping to achieve their goal of homeownership and provide a comfortable space for their families, young buyers are setting out to learn what they can about the market and setting their list of priorities for their home purchase.
That means you'll likely face strong competition from other first-time buyers. One way to get a <a href="https://www.mykcm.com/2022/01/12/two-ways-homebuyers-can-win-in-todays-market/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="17" data-ogsc="">leg-up</a> on that competition is to work with a real estate <a href="https://www.mykcm.com/2021/11/26/reasons-to-hire-a-real-estate-professional-infographic/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="18" data-ogsc="">professional</a> to make sure you have the support you need to make an informed and confident decision.
Bottom Line
If you're planning your next move, you're not alone. Just know it's never too early to consider the benefits of homeownership over renting. To learn more, let's connect today so you have a trusted professional on your side to help you explore your options.
Contact the Marin Modern Team, your <a href="http://www.marincounty.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="14" data-ogsc="">Marin County real estate</a> connection, for assistance buying or selling a home in Marin County California.2022-01-25T10:00:00-07:002022-01-25T14:19:05-07:00Marin Modern Teamtag:marincounty.com,2012-09-20:17168With Mortgage Rates Climbing, Now's the Time To Act<img data-imagetype="External" src="https://files.mykcm.com/2022/01/18161955/20220119-KCM-Share-600x328.jpg" id="x__x0000_i1039" alt="With Mortgage Rates Climbing,
Now's the Time To Act | MyKCM" style="width: 6.25in; height: 3.4166in;" width="600" height="328" border="0" />
Last week, the average 30-year fixed <a href="https://www.mykcm.com/2021/11/24/how-smart-buyers-are-approaching-rising-mortgage-rates/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="2" data-ogsc="">mortgage rate</a> from Freddie Mac <a href="https://freddiemac.gcs-web.com/node/24636/pdf" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="3" data-ogsc="">jumped</a> from 3.22% to 3.45%. That's the <a href="http://www.freddiemac.com/pmms/pmms_archives.html" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="4" data-ogsc="">highest point</a> it's been in almost two years. If you're thinking about buying a home, this news may have come as a bit of a shock. But the truth is, it wasn't entirely unexpected. Experts have been calling for rates to rise in their 2022 projections, and the forecast is now becoming a reality. Here's a look at the <a href="http://www.freddiemac.com/research/forecast/20211015_quarterly_economic_forecast.page" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="5" data-ogsc="">projections</a> from Freddie Mac for this year:
Q1 2022: 3.4%
Q2 2022: 3.5%
Q3 2022: 3.6%
Q4 2022: 3.7%
As the numbers show, this jump in rates is in line with the expectations from Freddie Mac. And what they also indicate is that mortgage rates are projected to continue climbing throughout the year. But should you be worried about rising <a href="https://www.mykcm.com/2021/11/08/two-graphs-that-show-why-you-shouldnt-be-upset-about-3-mortgage-rates/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="6" data-ogsc="">mortgage rates</a>? What does that really mean for you?
As rates increase even modestly, they impact your monthly mortgage payment and overall <a href="https://www.mykcm.com/2021/12/09/two-reasons-why-waiting-to-buy-a-home-will-cost-you/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="7" data-ogsc="">affordability</a>. If you're looking to buy a home, rising mortgage rates should be an incentive to act sooner rather than later.
The good news is, even though rates are climbing, they're still worth taking advantage of. Historical data shows that today's rate, even at 3.45%, is still well below the average for each of the last five decades (see chart below):
<a href="https://files.mykcm.com/2022/01/18161951/20220119-MEM-Eng-1.png" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="8" data-ogsc=""><img data-imagetype="External" src="https://files.mykcm.com/2022/01/18161951/20220119-MEM-Eng-1.png" id="x__x0000_i1038" alt="With
Mortgage Rates Climbing, Now's the Time To Act | MyKCM" style="width: 6.25in; height: 4.6875in;" width="600" height="450" border="0" /></a>
That means you still have a great opportunity to buy now with a rate that's better than what your loved ones may have paid in decades past. If you buy a home while rates are in the mid-3s, your monthly mortgage payment will be locked in at that rate for the life of your loan. As you can see from the chart above, a lot can change in that time frame. Buying now is a great way to protect yourself from <a href="https://www.mykcm.com/2022/01/11/why-inflation-shouldnt-stop-you-from-buying-a-home-in-2022/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="9" data-ogsc="">rising costs</a> and future rate increases while also securing your payment amount for the long term.
Nadia Evangelou, Senior Economist and Director of Forecasting at the National Association of Realtors (NAR), <a href="https://www.nar.realtor/blogs/economists-outlook/instant-reaction-mortgage-rates-january-13-2022" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="10" data-ogsc="">says</a>:
Mortgage rates surged in the second week of the new year. The 30-year fixed mortgage rate rose to 3.45% from 3.22% the previous week. If inflation continues to grow at the current pace, rates will move up even faster in the following months.
Bottom Line
Mortgage rates are increasing, and they're forecast to be even higher by the end of 2022. If you're planning to buy this year, acting soon may be your most affordable option. Let's connect to start the homebuying process today.
Contact the Marin Modern Team, your <a href="http://www.marincounty.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="14" data-ogsc="">Marin County real estate</a> connection, for assistance buying or selling a home in Marin County California.2022-01-19T10:00:00-07:002022-01-19T16:22:08-07:00Marin Modern Teamtag:marincounty.com,2012-09-20:17077Why Inflation Shouldn't Stop You from Buying a Home in 2022<img data-imagetype="External" src="https://files.mykcm.com/2022/01/10133211/20220111-KCM-Share-600x328.jpg" id="x__x0000_i1037" alt="Why Inflation Shouldn't Stop
You from Buying a Home in 2022 | MyKCM" style="width: 6.25in; height: 3.4166in;" width="600" height="328" border="0" />
If you're following along with the news today, you're probably hearing a lot about record-breaking home prices, rising consumer costs, supply chain constraints, and more. And if you're thinking about <a href="https://www.mykcm.com/2021/12/20/homebuyers-be-ready-to-act-this-winter/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="9" data-ogsc="">purchasing a home</a> this year, all of these inflationary concerns are likely making you wonder if you should wait to buy. Investopedia <a href="https://www.investopedia.com/terms/i/inflation.asp" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="10" data-ogsc="">explains</a> that during a period of high inflation, prices rise across the board. And while home prices aren't immune from this increase, here's why inflation shouldn't stop you from buying a home in 2022.
Homeownership Offers Stability and Security
<a href="https://www.mykcm.com/2021/10/19/what-does-the-future-hold-for-home-prices/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="11" data-ogsc="">Home prices</a> have been increasing for quite some time, and <a href="https://www.mykcm.com/2021/12/15/what-everyone-wants-to-know-will-home-prices-decline-in-2022/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="12" data-ogsc="">experts</a> say they're going to continue to climb throughout 2022. So, as a buyer, how can you protect yourself from rising costs for things like food, shelter, entertainment, and other goods and services? The answer lies in housing.
Buying a home allows you to lock in your monthly mortgage payment for the foreseeable future. That means as other prices rise, your monthly payment will be consistent thanks to your fixed-rate mortgage. This gives you the peace of mind that the bulk of your housing costs is shielded from inflation.
James Royal, Senior Wealth Management Reporter at Bankrate, <a href="https://www.bankrate.com/investing/inflation-hedges-to-protect-against-rising-prices/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="13" data-ogsc="">says</a>:
A fixed-rate mortgage allows you to maintain the biggest portion of housing expenses at the same payment. Sure, property taxes will rise and other expenses may creep up, but your monthly housing payment remains the same.
If you <a href="https://www.mykcm.com/2022/01/04/avoid-the-rental-trap-in-2022/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="14" data-ogsc="">rent</a>, you don't have that same benefit and you won't be protected from rising housing costs. As an added incentive to buy, consider that today's mortgage interest <a href="https://www.mykcm.com/2021/11/08/two-graphs-that-show-why-you-shouldnt-be-upset-about-3-mortgage-rates/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="15" data-ogsc="">rates</a> are lower than they have been in decades. While inflation decreases what your dollars can buy, low mortgage rates help counteract it by boosting your purchasing power so you can get more home for your money. They also help keep your monthly payments down. This is especially important during an inflationary period because you'll want to protect yourself from the impact of inflation as much as possible.
Ali Wolf, Chief Economist at Zonda, <a href="https://www.forbes.com/advisor/mortgages/homebuying-can-hedge-against-inflation/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="16" data-ogsc="">explains</a>:
If you have cash and are expecting inflation, you want to think through where you can put your money so it does not lose value. Housing is commonly looked at as a good inflation hedge, especially with interest rates so low.
Bottom Line
The best hedge against inflation is a fixed housing cost. That's why you shouldn't let it stop you from buying a home this year. Not sure where to start? Let's connect so you have expert advice and help throughout every step of the homebuying process.
Contact the Marin Modern Team, your <a href="http://www.marincounty.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="14" data-ogsc="">Marin County real estate</a> connection, for assistance buying or selling a home in Marin County California.2022-01-12T10:00:00-07:002022-01-12T15:14:43-07:00Marin Modern Teamtag:marincounty.com,2012-09-20:16877Key Things To Avoid After Applying for a Mortgage<img data-imagetype="External" src="https://files.mykcm.com/2021/12/21112712/20211227-KCM-Share-600x328.jpg" id="x__x0000_i1037" alt="Key Things To Avoid After
Applying for a Mortgage | MyKCM" style="width: 6.25in; height: 3.4166in;" width="600" height="328" border="0" />
Once you've found your dream home and applied for a mortgage, there are some key things to keep in mind before you close. It's exciting to start thinking about moving in and decorating your new place, but before you make any large purchases, move your money around, or make any major life changes, be sure to consult your lender – someone who's qualified to explain how your financial decisions may impact your home loan.
Here's a list of things you shouldn't do after applying for a mortgage. They're all important to know – or simply just good reminders – for the process.
1. Don't Deposit Cash into Your Bank Accounts Before Speaking with Your Bank or Lender.
Lenders need to source your money, and cash isn't easily traceable. Before you deposit any amount of cash into your accounts, discuss the proper way to document your transactions with your loan officer.
2. Don't Make Any Large Purchases Like a New Car or Furniture for Your Home.
New debt comes with new monthly obligations. New obligations create new qualifications. People with new debt have higher debt-to-income ratios. Since higher ratios make for riskier loans, qualified borrowers may end up no longer qualifying for their mortgage.
3. Don't Co-Sign Other Loans for Anyone.
When you co-sign, you're obligated. With that obligation comes higher debt-to-income ratios as well. Even if you promise you won't be the one making the payments, your lender will have to count the payments against you.
4. Don't Change Bank Accounts.
Remember, lenders need to source and track your assets. That task is much easier when there's consistency among your accounts. Before you transfer any money, speak with your loan officer.
5. Don't Apply for New Credit.
It doesn't matter whether it's a new credit card or a new car. When you have your credit report run by organizations in multiple financial channels (mortgage, credit card, auto, etc.), your FICO® score will be impacted. Lower credit scores can determine your interest rate and possibly even your eligibility for approval.
6. Don't Close Any Credit Accounts.
Many buyers believe having less available credit makes them less risky and more likely to be approved. This isn't true. A major component of your score is your length and depth of credit history (as opposed to just your payment history) and your total usage of credit as a percentage of available credit. Closing accounts has a negative impact on both of those determinants of your score.
Bottom Line
Any blip in income, assets, or credit should be reviewed and executed in a way that ensures your home loan can still be approved. If your job or employment status has changed recently, share that with your lender as well. The best plan is to fully disclose and discuss your intentions with your loan officer before you do anything financial in nature.
Contact the Marin Modern Team, your <a href="http://www.marincounty.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="14" data-ogsc="">Marin County real estate</a> connection, for assistance buying or selling a home in Marin County California.2021-12-27T10:00:00-07:002021-12-27T19:10:35-07:00Marin Modern Teamtag:marincounty.com,2012-09-20:16753Homebuyers Are Going on a Shopping Spree This Winter<img data-imagetype="External" src="https://files.mykcm.com/2021/12/14140358/20211216-KCM-Share-600x328.jpg" class="x_webfeedsFeaturedVisual x_wp-post-image" alt="Homebuyers Are Going on a
Shopping Spree This Winter | MyKCM" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width="600" height="328" />
Black Friday and Cyber Monday are over, which means some shoppers have wrapped up their holiday buying. But there's still a group of buyers that are very active this holiday season – homebuyers.
Experts anticipate the real estate market will see a flurry of activity this winter, and that's great news for today's sellers. If you're planning on listing your home, there's no need to wait until the spring for better conditions – today's real estate market is already heating up.
Buyers Have Warmed Up to the Idea of Purchasing This Winter
The past 18 months brought about significant lifestyle changes for many of us, including the rise in <a href="https://www.mykcm.com/2021/09/21/remote-work-is-here-to-stay-can-your-home-deliver-the-space-you-need/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="10" data-ogsc="">remote</a> work, job changes, and even early <a href="https://www.mykcm.com/2021/11/17/retirement-may-be-changing-what-you-need-in-a-home/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="11" data-ogsc="">retirement</a> for some. For many people, it's prompting a search for their next home now rather than waiting for warmer months.
Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), <a href="https://www.realtor.com/advice/sell/should-you-wait-until-spring-to-sell-your-home-no-way-why-winter-listings-rule-today/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="12" data-ogsc="">points out</a> how this winter may see a significant number of sales:
Compared to other past winter seasons, this winter season's sales activity will be stronger. . . . This winter, there will be more sales compared to pre-pandemic winters going back all the way to 2006.
You might be wondering: what does strong <a href="https://www.mykcm.com/2021/11/18/home-sales-about-to-surge-we-may-see-a-winter-like-never-before/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="13" data-ogsc="">sales activity</a> mean for you? It means there are likely to be more buyers active in the market this winter – far more than more normal, pre-pandemic years.
In the same article, Danielle Hale, Chief Economist for realtor.com, puts it in these simple terms:
Sellers can expect to see plenty of buyers.
The more buyers there are in the market, the more likely it is your home will get noticed. That can lead to a <a href="https://www.mykcm.com/2021/11/16/sellers-youll-likely-get-multiple-strong-offers-this-season/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="14" data-ogsc="">multiple-offer</a> scenario or a potential <a href="https://www.mykcm.com/2021/11/02/sellers-have-incredible-leverage-in-todays-market/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="15" data-ogsc="">bidding war</a>. Receiving multiple offers on your home means you can select the right offer and terms for your situation – so you can truly win as a seller when you list your house this winter.
Bottom Line
If you're thinking about selling your house, you don't need to wait until the spring. Buyers are ready now. Let's connect to discuss why selling this holiday season could be the gift that keeps on giving.
Contact the Marin Modern Team, your <a href="http://www.marincounty.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="14" data-ogsc="">Marin County real estate</a> connection, for assistance buying or selling a home in Marin County California.2021-12-16T10:00:00-07:002021-12-16T11:23:54-07:00Marin Modern Teamtag:marincounty.com,2012-09-20:16433Real Estate News – The Truth Many Headlines Overlook <img data-imagetype="External" src="https://files.mykcm.com/2021/11/18154523/20211123-KCM-Share-600x328.jpg" id="x__x0000_i1041" alt="Don't Believe Everything
You Read: The Truth Many Headlines Overlook | MyKCM" style="width: 6.25in; height: 3.4166in;" width="600" height="328" border="0" />
There are a lot of questions right now regarding the real estate market as we head into 2022. The forbearance program is coming to an end and mortgage rates are beginning to rise.
With all of this uncertainty, anyone with a megaphone – from the mainstream media to a lone blogger – has realized that bad news sells. Unfortunately, we'll continue to see a rash of troublesome headlines over the next few months. To make sure you aren't paralyzed by a headline, turn to reliable resources for a look at what to expect from the housing market next year.
There are already alarmist headlines starting to appear. Here are two recent topics you may have seen in the news.
1. Foreclosures Are Spiking Today
There are a number of headlines circulating that call out the rising foreclosures in today's real estate market. Those stories focus on an overly narrow view on that topic: the current volume of foreclosures compared to 2020. They emphasize that we're seeing far more foreclosures this year compared to last.
That seems rather daunting. However, though it's true foreclosures have been up over the 2020 numbers, it's important to realize that there were virtually no foreclosures last year because of the forbearance plan. If we compare this September to September of 2019 (the last normal year), foreclosures <a href="https://www.attomdata.com/news/market-trends/foreclosures/attom-september-and-q3-2021-u-s-foreclosure-market-report/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="4" data-ogsc="">were down 70%</a> according to ATTOM.
Even Rick Sharga, an Executive Vice President of the firm that issued the report referenced in the above article, <a href="https://dsnews.com/daily-dose/11-10-2021/foreclosures-tick-up-in-october" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="5" data-ogsc="">says</a>:
As expected, now that the moratorium has been over for three months, foreclosure activity continues to increase. But it’s increasing at a slower rate, and it appears that most of the activity is primarily on vacant and abandoned properties, or loans in foreclosure prior to the pandemic.
Homeowners who have been impacted by the pandemic are not generally the ones being burdened right now. That's because the <a href="https://www.mykcm.com/2021/11/04/why-a-wave-of-foreclosures-is-not-on-the-way/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="6" data-ogsc="">forbearance program</a> has worked. Ali Haralson, President of Auction.com, <a href="https://image.adc.auction.com/lib/fe391570756404787c1774/m/3/c441fd11-2b21-40ac-9da2-ce7836e5e0ae.pdf" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="7" data-ogsc="">explains</a> that the program has done a remarkable job:
The tsunami of foreclosures many feared in the early days of the pandemic has not materialized thanks in large part to the swift and decisive foreclosure protections put in place by government policymakers and the mortgage servicing industry.
And the government is still making sure homeowners have every opportunity to stay in their homes. Rohit Chopra, the Director of the Consumer Financial Protection Bureau (CFPB), issued this <a href="https://themreport.com/daily-dose/11-10-2021/stepping-up-efforts-to-avoid-a-wave-of-foreclosure" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="8" data-ogsc="">statement</a> just last week:
Failures by mortgage servicers and regulators worsened the impact of the economic crisis a decade ago. Regulators have learned their lesson, and we will be scrutinizing servicers to ensure they are doing all they can to help homeowners and follow the law.
2. Rising Mortgage Rates Will Slow the Housing Market
Another topic that's generating frequent headlines is the rise in <a href="https://www.mykcm.com/2021/11/08/two-graphs-that-show-why-you-shouldnt-be-upset-about-3-mortgage-rates/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="9" data-ogsc="">mortgage rates</a>. Some people are expressing concern that rising rates will negatively impact the housing market by causing home sales to dramatically decline. The resulting headlines are raising unneeded alarm bells. To counteract those headlines, we need to take a look at what history tells us. Looking at data over the last 20 years, there's no evidence that an increase in rates dramatically forces sales to come to a halt. Nor does home <a href="https://www.mykcm.com/2021/11/10/whats-happening-with-home-prices/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="10" data-ogsc="">price appreciation</a> come to a screeching stop. Let's look at home sales first:<a href="https://files.mykcm.com/2021/11/18154526/20211123-MEM-Eng-1.png" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="11" data-ogsc=""><img data-imagetype="External" src="https://files.mykcm.com/2021/11/18154526/20211123-MEM-Eng-1.png" id="x__x0000_i1040" alt="Don't Believe Everything You Read: The Truth Many Headlines Overlook |
MyKCM" style="width: 6.25in; height: 4.6875in;" width="600" height="450" border="0" /></a>The last three times rates increased (shown in the graph above in red), sales (depicted in blue in the graph) remained rather consistent. It's true that sales fell rather dramatically from 2007 through 2010, but mortgage rates were also falling at the time. The next two instances showed no meaningful drop in sales.
Now, let's take a look at home price appreciation (see graph below):<a href="https://files.mykcm.com/2021/11/18154530/20211123-MEM-Eng-2.png" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="12" data-ogsc=""><img data-imagetype="External" src="https://files.mykcm.com/2021/11/18154530/20211123-MEM-Eng-2.png" id="x__x0000_i1039" alt="Don't Believe Everything You Read: The Truth Many Headlines Overlook |
MyKCM" style="width: 6.25in; height: 4.6875in;" width="600" height="450" border="0" /></a>Again, we see that a rise in rates didn't cause prices to depreciate. Outside of the years following the crash, prices continued to appreciate, just at a slower rate.
Bottom Line
There's a lot of misinformation out there. If you want the best advice on what's happening in the current housing market, let's connect.
Contact Marin Modern Real Estate, experienced <a href="http://www.marincounty.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="15" data-ogsc="">Marin County Realtors</a>, for help purchasing or selling a home in Marin County.2021-11-23T10:00:00-07:002021-11-23T18:56:26-07:00Marin Modern Teamtag:marincounty.com,2012-09-20:16312Sellers: You'll Likely Get Multiple Strong Offers This Season<img data-imagetype="External" src="https://files.mykcm.com/2021/11/10110426/20211116-KCM-Share-600x328.jpg" class="x_webfeedsFeaturedVisual x_wp-post-image" alt="Sellers: You'll Likely Get
Multiple Strong Offers This Season | MyKCM" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width="600" height="328" />
Are you thinking about <a href="https://www.mykcm.com/2021/11/05/numbers-dont-lie-its-still-a-great-time-to-sell-infographic/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="10">selling</a> your house right now, but you're not sure you'll have the time to do so as the holidays draw near? If so, consider this: even as the holiday season approaches, there are plenty of buyers out there, and they really want <a href="https://www.mykcm.com/2021/10/28/does-your-house-have-what-buyers-want/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="11">your house</a>. Here's why selling this winter is a win for you.
Today's buyers are still dealing with a limited number of homes for sale. Thanks to continued <a href="https://www.mykcm.com/2021/10/27/housing-challenge-or-housing-opportunity-it-depends/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="12">low inventory</a>, those buyers are competing with one another for their dream home. And when that happens, if your house is one of the few on the market, it will rise to the top of the pool – and it will be worth it.
According to the latest data from the <a href="https://cdn.nar.realtor/sites/default/files/documents/2021-09-realtors-confidence-index-10-21-2021.pdf" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="13">National Association of Realtors</a> (NAR), the average seller received 3.7 offers on their house in September. For a view into what's happening at the state level, take a look at the map below:<a href="https://files.mykcm.com/2021/11/15102757/20211115-MEM-Eng-1-1.png" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="14"><img data-imagetype="External" src="https://files.mykcm.com/2021/11/15102757/20211115-MEM-Eng-1-1.png" class="x_aligncenter x_wp-image-99933" alt="Sellers: You'll Likely Get Multiple Strong Offers This Season | MyKCM" width="600" height="450" /></a>Nationwide, the average seller today is getting nearly four offers. That number is significant because it means you'll likely have multiple offers to pick from if you sell your house this season. To put things into perspective, no matter where your state falls, remember that you really only need one good offer to close the deal.
Any offer you receive will likely be from a highly motivated buyer who's doing everything they can to beat the <a href="https://www.mykcm.com/2021/10/08/whats-causing-todays-competitive-real-estate-market-infographic/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="15">competition</a>. The stakes for buyers are high. They've been looking for a house and they want to lock in their dream home before <a href="https://www.mykcm.com/2021/10/19/what-does-the-future-hold-for-home-prices/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="16">prices</a> and <a href="https://www.mykcm.com/2021/11/03/experts-project-mortgage-rates-will-continue-to-rise-in-2022/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="17">mortgage rates</a> rise further next year. Chances are, they'll get creative with the terms of their offer, which could include waiving contingencies and offering over the asking price – both of which are great news for <a href="https://www.mykcm.com/2021/11/02/sellers-have-incredible-leverage-in-todays-market/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="18">you</a>.
If you're on the fence about when to sell, remember your house is a hot commodity this season. As other sellers take a break for the holidays with plans to re-list their homes in the new year, you can put your house in front of motivated buyers by making your move today. That means your house will be the <a href="https://www.mykcm.com/2021/10/18/sellers-your-house-could-be-an-oasis-for-buyers-seeking-more-options/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="19">center of attention</a>, and likely the center of a bidding war too.
Bottom Line
Selling now gives you even more opportunity to win big as buyers compete for your house in today's market.
Contact the Marin Modern Team, your <a href="http://www.marincounty.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="14">Marin County real estate</a> connection, for assistance buying or selling a home in Marin County California.2021-11-16T10:00:00-07:002021-11-16T15:54:39-07:00Marin Modern Teamtag:marincounty.com,2012-09-20:16214Two Graphs That Show Why You Shouldn't Be Upset About 3% Mortgage Rates<img data-imagetype="External" src="https://files.mykcm.com/2021/11/04171357/20211108-KCM-Share-600x328.jpg" class="x_webfeedsFeaturedVisual x_wp-post-image" alt="Two Graphs That Show Why You
Shouldn't Be Upset About 3% Mortgage Rates | MyKCM" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width="600" height="328" />
With the average 30-year fixed mortgage rate from <a href="http://www.freddiemac.com/pmms/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="2">Freddie Mac</a> climbing above 3%, rising rates are one of the topics dominating the discussion in the housing market today. And since experts <a href="https://www.mykcm.com/2021/10/12/dont-wait-for-a-lower-mortgage-rate-it-could-cost-you/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="3">project</a> rates will rise further in the coming months, that conversation isn't going away any time soon.
But as a homebuyer, what do <a href="https://www.mykcm.com/2021/10/05/the-main-key-to-understanding-the-rise-in-mortgage-rates/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="4">rates</a> above 3% really mean?
Today's Average Mortgage Rate Still Presents Buyers with a Great Opportunity
Buyers don't want mortgage rates to rise, as any upward movement increases your monthly mortgage payment. But it's important to put today's average mortgage rate into perspective. The <a href="http://www.freddiemac.com/pmms/pmms_archives.html" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="5">graph</a> below shows today's rate in comparison to average rates over the last five years:<a href="https://files.mykcm.com/2021/11/04171217/20211108-MEM-ENG-1.png" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="6"><img data-imagetype="External" src="https://files.mykcm.com/2021/11/04171217/20211108-MEM-ENG-1.png" class="x_aligncenter x_wp-image-99855" alt="Two
Graphs That Show Why You Shouldn't Be Upset About 3% Mortgage Rates | MyKCM" width="600" height="450" /></a>As the graph shows, even though today's rate is above 3%, it's still incredibly competitive.
But today's rate isn't just low when compared to the most recent years. To truly put today into perspective, let's look at the last 50 years (see graph below):<a href="https://files.mykcm.com/2021/11/04171253/20211108-MEM-ENG-2.png" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="7"><img data-imagetype="External" src="https://files.mykcm.com/2021/11/04171253/20211108-MEM-ENG-2.png" class="x_aligncenter x_wp-image-99856" alt="Two
Graphs That Show Why You Shouldn't Be Upset About 3% Mortgage Rates | MyKCM" width="600" height="450" /></a>When we look back even further, we can see that today's rate is truly outstanding by comparison.
What Does That Mean for You?
Being upset that you missed out on sub-3% mortgage rates is understandable. But it's important to realize, buying now still makes sense as <a href="https://www.mykcm.com/2021/11/03/experts-project-mortgage-rates-will-continue-to-rise-in-2022/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="8">experts project</a> rates will continue to rise. And as rates rise, it will cost more to purchase a home.
As Mark Fleming, Chief Economist at First American, <a href="https://blog.firstam.com/economics/how-will-rising-mortgage-rates-impact-house-buying-power" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="9">explains</a>:
Rising mortgage rates, all else equal, will diminish house-buying power, meaning it will cost more per month for a borrower to buy ‘their same home.'
In other words, the longer you wait, the more it will <a href="https://www.mykcm.com/2021/09/23/two-reasons-why-waiting-a-year-to-buy-could-cost-you/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="10">cost you</a>.
Bottom Line
While it's true today's average mortgage rate is higher than just a few months ago, 3% mortgage rates shouldn't deter you from your homebuying goals. Historically, today's rate is still low. And since rates are expected to continue rising, buying now could save you money in the long run. Let's connect so you can lock in a great rate now.
Contact Marin Modern Real Estate, experienced <a href="http://www.marincounty.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="15">Marin County Realtors</a>, for help purchasing or selling a home in Marin County.2021-11-08T10:00:00-07:002021-11-08T17:54:49-07:00Marin Modern Teamtag:marincounty.com,2012-09-20:16128Experts Project Mortgage Rates Will Continue To Rise in 2022<img data-imagetype="External" src="https://files.mykcm.com/2021/10/29134054/20211103-KCM-Share-600x328.jpg" class="x_webfeedsFeaturedVisual x_wp-post-image" alt="Experts Project Mortgage
Rates Will Continue To Rise in 2022 | MyKCM" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width="600" height="328" />
Mortgage rates are one of several factors that impact how much you can afford if you're buying a home. When rates are low, they help you get more house for your money. Within the last year, mortgage rates have hit the <a href="https://www.mykcm.com/2021/10/12/dont-wait-for-a-lower-mortgage-rate-it-could-cost-you/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="10">lowest point</a> ever recorded, and they've hovered in the historic-low territory. But even over the past few weeks, <a href="https://www.mykcm.com/2021/10/05/the-main-key-to-understanding-the-rise-in-mortgage-rates/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="11">rates</a> have started to rise. This past week, the average 30-year fixed rate was <a href="https://freddiemac.gcs-web.com/node/23986/pdf" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="12">3.14%</a>.
What does this mean if you're thinking about making a move? Waiting until next year will cost you more in the long run. Here's a look at what several experts project for mortgage rates going into 2022.
<a href="http://www.freddiemac.com/fmac-resources/research/pdf/Quarterly_Forecast_October2021_Press_Release.pdf" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="13">Freddie Mac</a>:
The average 30-year fixed-rate mortgage (FRM) is expected to be 3.0 percent in 2021 and 3.5 percent in 2022.
Doug Duncan, Senior VP & Chief Economist, <a href="https://www.fanniemae.com/newsroom/fannie-mae-news/economic-growth-again-revised-downward-due-supply-chain-and-inflation-concerns" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="14">Fannie Mae</a>:
Right now, we forecast mortgage rates to average 3.3 percent in 2022, which, though slightly higher than 2020 and 2021, by historical standards remains extremely low and supportive of mortgage demand and affordability.
<a href="https://www.firstam.com/news/2021/rising-rates-dull-house-buying-power-20211026.html" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="15">First American</a>:
Consensus forecasts predict that mortgage rates will hit 3.2 percent by the end of the year, and 3.7 percent by the end of 2022.
If rates rise even a half-point percentage over the next year, it will impact what you pay each month over the life of your loan – and that can really add up. So, the reality is, as <a href="https://www.mykcm.com/2021/10/19/what-does-the-future-hold-for-home-prices/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="16">prices</a> and mortgage rates rise, it will cost more to purchase a home.
As you can see from the quotes above, industry experts project rates will rise in the months ahead. Here's a table that compares other expert views and gives an average of those projections:<a href="https://files.mykcm.com/2021/10/29134056/20211103-MEM-Eng-1.png" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="17"><img data-imagetype="External" src="https://files.mykcm.com/2021/10/29134056/20211103-MEM-Eng-1.png" class="x_aligncenter x_wp-image-99789" alt="Experts Project Mortgage Rates Will Continue To Rise in 2022 | MyKCM" width="600" height="338" /></a>Whether you're thinking about buying your first home, moving up to your dream home, or downsizing because your needs have <a href="https://www.mykcm.com/2021/09/20/is-it-time-to-move-on-to-a-new-home/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="18">changed</a>, purchasing before mortgage rates rise even higher will help you take advantage of today's homebuying <a href="https://www.mykcm.com/2021/10/21/important-distinction-homes-are-less-affordable-not-unaffordable/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="19">affordability</a>. That could be just the game-changer you need to achieve your homeownership goals.
Bottom Line
If you're thinking of buying or selling over the next year, it may be wise to make your move sooner rather than later – before mortgage rates climb higher.
Contact the Marin Modern Team, your <a href="http://www.marincounty.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="14">Marin County real estate</a> connection, for assistance buying or selling a home in Marin County California.2021-11-03T09:00:00-07:002021-11-03T14:08:00-07:00Marin Modern Teamtag:marincounty.com,2012-09-20:16039Housing Challenge or Housing Opportunity? It Depends.<img data-imagetype="External" src="https://files.mykcm.com/2021/10/26142237/20211027-KCM-Share-600x328.jpg" class="x_webfeedsFeaturedVisual x_wp-post-image" alt="Housing Challenge or Housing
Opportunity? It Depends. | MyKCM" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width="600" height="328" />
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 <a href="https://www.nar.realtor/newsroom/existing-home-sales-ascend-7-0-in-september" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="2">2.4-month</a> supply of homes available for sale.<a href="https://files.mykcm.com/2021/10/26142239/20211027-MEM-Eng-1.png" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="3"><img data-imagetype="External" src="https://files.mykcm.com/2021/10/26142239/20211027-MEM-Eng-1.png" class="x_aligncenter x_wp-image-99733" alt="Housing Challenge or Housing Opportunity? It Depends. | MyKCM" width="600" height="450" /></a>
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 <a href="https://www.corelogic.com/intelligence/homeowner-equity-insights/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="4">CoreLogic</a>, the average home has appreciated by more than $50,000 over the <a href="https://www.mykcm.com/2021/10/22/your-home-equity-is-growing-infographic/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="5">past year</a>. And for many homeowners, that's opening new doors as they re-think their needs and use their equity to move up or downsize.
According to <a href="https://twitter.com/DrFrankNothaft/status/1450526459483807749" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="6">Dr. Frank Nothaft</a>, Chief Economist at CoreLogic:
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.
Contact Marin Modern Real Estate, experienced <a href="http://www.marincounty.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="15">Marin County Realtors</a>, for help purchasing or selling a home in Marin County.2021-10-26T12:00:00-07:002021-10-28T08:55:55-07:00Marin Modern Teamtag:marincounty.com,2012-09-20:16042Your Home Equity Is Growing [INFOGRAPHIC]<img data-imagetype="External" src="https://files.mykcm.com/2021/10/18091034/20211022-MEM-306x600.png" class="x_webfeedsFeaturedVisual x_wp-post-image" alt="Your Home Equity Is Growing
[INFOGRAPHIC] | MyKCM" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width="306" height="600" />
Some Highlights
If you're a homeowner, today's <a href="https://www.corelogic.com/intelligence/homeowner-equity-insights/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="2">rising equity</a> is great news. On average, homeowners have gained $51,500 in <a href="https://www.mykcm.com/2021/10/07/111285-reasons-you-should-buy-a-home-this-year/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="3">equity</a> since this time last year.
Whether it's funding an education, fueling your next move, or starting a business, your home equity is a <a href="https://www.mykcm.com/2021/02/17/3-ways-home-equity-can-have-a-major-impact-on-your-life/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="4">great tool</a> you can use to power your dreams.
Ready to <a href="https://www.mykcm.com/2021/10/04/4-tips-to-prep-for-your-home-sale-this-fall/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="5">sell</a>? Let's connect to talk about how you can take advantage of your rising equity to reach your goals.
Contact the Marin Modern Team, your <a href="http://www.marincounty.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="14">Marin County real estate</a> connection, for assistance buying or selling a home in Marin County California.2021-10-22T12:00:00-07:002021-10-28T09:00:39-07:00Marin Modern Teamtag:marincounty.com,2012-09-20:15943What Does the Future Hold for Home Prices?<img data-imagetype="External" src="https://files.mykcm.com/2021/10/13150342/20211019-KCM-Share-600x328.jpg" class="x_webfeedsFeaturedVisual x_wp-post-image" alt="What Does the Future Hold for
Home Prices? | MyKCM" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width="600" height="328" />
If you're looking to buy or sell a house, chances are you've heard talk about today's <a href="https://www.mykcm.com/2021/10/06/what-do-supply-and-demand-tell-us-about-todays-housing-market/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="2">rising home prices</a>. And while this increase in home values is great news for sellers, you may be wondering what the future holds. Will prices continue to rise with time, or should you expect them to fall?
To answer that question, let's first understand a few terms you may be hearing right now.
<a href="https://www.merriam-webster.com/dictionary/appreciation" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="3">Appreciation</a> is an increase in the value of an asset.
<a href="https://www.merriam-webster.com/dictionary/depreciation" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="4">Depreciation</a> is a decrease in the value of an asset.
<a href="https://www.merriam-webster.com/dictionary/deceleration" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="5">Deceleration</a> is when something happens at a slower pace.
It's important to note home prices have increased, or appreciated, for <a href="https://www.nar.realtor/newsroom/existing-home-sales-recede-2-0-in-august" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="6">114</a> straight months. To find out if that trend may continue, look to the experts. <a href="https://pulsenomics.com/surveys/#home-price-expectations" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="7">Pulsenomics</a> surveyed over 100 economists, investment strategists, and housing market analysts asking for their five-year projections. In terms of what lies ahead, experts say the market may see some slight deceleration, but not depreciation.
Here's the forecast for the next few years:<a href="https://files.mykcm.com/2021/10/13150344/20211019-MEM-Eng-1.png" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="8"><img data-imagetype="External" src="https://files.mykcm.com/2021/10/13150344/20211019-MEM-Eng-1.png" class="x_aligncenter x_wp-image-99581" alt="What
Does the Future Hold for Home Prices? | MyKCM" width="600" height="450" /></a>As the graph above shows, prices are expected to <a href="https://www.mykcm.com/2021/09/09/home-price-appreciation-is-skyrocketing-in-2021-what-about-2022/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="9">continue to rise</a>, just not at the same pace we've seen over the last year. Over 100 experts agree, there is no expectation for price depreciation. As the arrows indicate, each number is an increase, which means prices will rise each year.
Bill McBride, author of the blog <a href="https://www.calculatedriskblog.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="10">Calculated Risk</a>, also expects deceleration, but not depreciation:
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.
Ivy Zelman of <a href="https://www.zelmanassociates.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="11">Zelman & Associates</a> agrees, saying:
. . . home price appreciation is on the cusp of flipping to a decelerating trend.
A <a href="https://www.realtor.com/news/trends/is-housing-market-frenzy-going-to-cool-off-this-fall/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="12">recent article</a> from realtor.com indicates you should expect:
. . . annual price increases will slow to a more normal level, . . .
What Does This Deceleration Mean for You?
What experts are projecting for the years ahead is more in line with the historical norm for appreciation. According to data from <a href="https://cdn.blackknightinc.com/wp-content/uploads/2021/04/BKI_MM_Feb2021_Report.pdf" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="13">Black Knight</a>, the average annual appreciation from 1995-2020 is 4.1%. As you can see from the chart above, the expert forecasts are closer to that pace, which means you should see appreciation at a level that's aligned with a more normal year.
If you're a buyer, don't expect a sudden or drastic drop in home prices – experts say it won't happen. Instead, think about your homeownership goals and consider purchasing a home before prices rise further.
If you're a seller, the continued home price appreciation is good news for the value of your house. Work with an agent to list your house for the <a href="https://www.mykcm.com/2021/09/03/your-agent-is-key-when-pricing-your-house-infographic/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="14">right price</a> based on market conditions.
Bottom Line
Experts expect price deceleration, not price depreciation over the coming years. Let's connect to talk through what's happening in the housing market today, where things are headed, and what it means for you.
Contact the Marin Modern Team, your <a href="http://www.marincounty.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="14">Marin County real estate</a> connection, for assistance buying or selling a home in Marin County California.2021-10-19T12:00:00-07:002021-10-19T17:55:18-07:00Marin Modern Teamtag:marincounty.com,2012-09-20:15517The Truth About Today's Buyer Demand<img data-imagetype="External" src="https://files.mykcm.com/2021/09/08132851/20210914-KCM-Share-1-600x328.jpg" id="x__x0000_i1037" alt="The Truth About Today's Buyer
Demand | MyKCM" style="width: 6.25in; height: 3.4166in;" width="600" height="328" border="0" />
When it comes to the latest news in <a href="https://www.mykcm.com/2021/09/02/5-reasons-todays-housing-market-is-anything-but-normal/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="2">real estate</a>, there are a lot of sensational headlines in the media. In times like this, when it can be hard to know what to believe, put your trust in the <a href="https://www.mykcm.com/2021/06/14/the-right-expert-will-guide-you-through-this-unprecedented-market/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="3">experts</a>. Those of us in the housing market respect that buying or selling a home is a major life decision, and we offer advice based on what the data shows.
Despite what you may have read, the housing market is still undeniably strong. Here's a look at what leading experts have to say about <a href="https://www.mykcm.com/2021/08/18/real-estate-its-still-a-lack-of-supply-not-a-lack-of-demand/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="4">buyer demand</a> today and how it continues to shape the industry:
<a href="https://www.showingtime.com/blog/july-2021-showing-index-results/?utm_source=feedotter&utm_medium=email&utm_content=july-2021-showing-index-results-traffic-cools-though-showings-remain-at-historic-levels" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="5">Michael Lane</a>, President at ShowingTime:
In general, there are definite signs of cooling demand. However, buyer traffic is still at historically high levels compared to pre-pandemic showings.
<a href="https://twitter.com/odetakushi/status/1433074722028273665" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="6">Odeta Kushi</a>, Deputy Chief Economist at First American:
Seasonally adjusted purchase applications tick up slightly to the highest level since July. Demand for homes remains strong and steady. Excluding 2020 (not a good benchmark) purchase applications are the strongest in a decade.
<a href="https://www.corelogic.com/intelligence/u-s-sp-corelogic-case-shiller-reflects-consumer-post-vaccination-optimism-surges-18-6/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="7">Selma Hepp</a>, Deputy Chief Economist at CoreLogic:
Home buyer demand pushed price growth to a new record high in June, with S&P CoreLogic national Case-Shiller Index clocking in an 18.6% year-over-year growth rate. The month-to-month index jumped 2.18%, making it another strong monthly growth, and the fastest May-to-June increase since the data series began.
What It Means for You
As a seller, buyer demand is an important factor that helps influence how fast your house will sell and how many buyers may be competing for it. When buyers have to compete against each other for a limited supply of available homes, bidding wars can drive prices up. While things have cooled slightly since the peak of the pandemic housing rush, buyer demand is still far surpassing historical norms. That's why we're still in a <a href="https://www.mykcm.com/2021/08/17/what-does-being-in-a-sellers-market-mean/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="8">sellers' market</a>.
Bottom Line
If you're torn on whether or not you want to sell your home this year, rest assured it's still a <a href="https://www.mykcm.com/2021/08/25/why-2021-is-still-the-year-to-sell-your-house/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="9">great time</a> to make a move. Let's connect to discuss how you can sell now and do it on your best terms thanks to today's buyer demand.
Contact the Marin Modern Team, your <a href="http://www.marincounty.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="14">Marin County real estate</a> connection, for assistance buying or selling a home in Marin County California.2021-09-14T12:00:00-07:002021-09-14T17:02:34-07:00Marin Modern Teamtag:marincounty.com,2012-09-20:15397Reasons You Should Consider Selling This Fall<img data-imagetype="External" src="https://files.mykcm.com/2021/08/31113807/20210907-KCM-Share-600x328.jpg" class="x_webfeedsFeaturedVisual x_wp-post-image" alt="Reasons You Should Consider
Selling This Fall | MyKCM" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width="600" height="328" />
If you’re trying to decide when to sell your house, there may not be a better time to list than right now. The ultimate <a href="https://www.mykcm.com/2021/08/17/what-does-being-in-a-sellers-market-mean/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="10">sellers’ market</a> we’re in today won’t last forever. If you're thinking of making a move, here are four reasons to put your house up for sale sooner rather than later.
1. Your House Will Likely Sell Quickly
According to the Realtors Confidence Index released by the <a href="https://cdn.nar.realtor/sites/default/files/documents/2021-07-realtors-confidence-index-08-23-2021.pdf" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="11">National Association of Realtors </a>(NAR), homes continue to sell quickly – on average, they’re selling in just 17 days. As a seller, that’s great news for you.
Average days on market is a strong indicator of buyer <a href="https://www.mykcm.com/2021/08/18/real-estate-its-still-a-lack-of-supply-not-a-lack-of-demand/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="12">demand</a>. And if homes are selling quickly, buyers have to be more decisive and act fast to submit their offer before other buyers swoop in.
2. Buyers Are Willing To Compete for Your House
In addition to selling quickly, homes are receiving multiple offers. That same survey shows sellers are seeing an average of 4.5 offers, and they're competitive ones. The graph below shows how the average number of offers right now compares to previous years:<a href="https://files.mykcm.com/2021/08/31113814/20210907-MEM-Eng-1.png" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="13"><img data-imagetype="External" src="https://files.mykcm.com/2021/08/31113814/20210907-MEM-Eng-1.png" class="x_aligncenter x_wp-image-99211" alt="Reasons You Should Consider Selling This Fall | MyKCM" width="600" height="450" /></a>Buyers today know <a href="https://www.mykcm.com/2021/08/31/what-buyers-and-sellers-need-to-know-about-the-appraisal-gap/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="14">bidding wars</a> are a likely outcome, and they’re coming prepared with their best offer in hand. Receiving several offers on your house means you can select the one that makes the most sense for your situation and financial well-being.
3. When Supply Is Low, Your House Is in the Spotlight
One of the most significant challenges for motivated buyers is the current <a href="https://www.mykcm.com/2021/07/27/a-look-at-housing-supply-and-what-it-means-for-sellers/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="15">inventory of homes</a> for sale. Though it's improving, it remains at near-record lows. The <a href="https://www.nar.realtor/newsroom/existing-home-sales-climb-2-0-in-July" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="16">chart</a> below shows how today's low inventory stacks up against recent years. The lighter the blue is in the chart, the lower the housing supply.<a href="https://files.mykcm.com/2021/08/31113816/20210907-MEM-Eng-2.png" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="17"><img data-imagetype="External" src="https://files.mykcm.com/2021/08/31113816/20210907-MEM-Eng-2.png" class="x_aligncenter x_wp-image-99212" alt="Reasons You Should Consider Selling This Fall | MyKCM" width="600" height="450" /></a>If you're looking to take advantage of buyer demand and get the most attention for your house, <a href="https://www.mykcm.com/2021/08/25/why-2021-is-still-the-year-to-sell-your-house/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="18">selling now</a> before more listings come to the market might be your best option.
4. If You're Thinking of Moving Up, Now May Be the Time
If your current home no longer meets your needs, it may be the perfect time to make a move. Today, homeowners are gaining a significant amount of wealth through <a href="https://www.mykcm.com/2021/07/09/your-home-equity-can-take-you-places-infographic/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="19">growing equity</a>. You can leverage that equity, plus current <a href="https://www.mykcm.com/2021/08/23/what-do-experts-say-about-todays-mortgage-rates/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="20">low mortgage rates</a>, to power your move now. But these near-historic low rates won't last forever.
Experts forecast interest rates will rise. In their forecast, Freddie Mac <a href="http://www.freddiemac.com/fmac-resources/research/pdf/2021Q3-Forecast-04.pdf" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="21">says</a>:
While we forecast rates to increase gradually later in the year, we don’t expect to see a rapid increase. At the end of the year, we forecast 30-year rates will be around 3.4%, rising to 3.8% by the fourth quarter of 2022.
When rates rise, even modestly, it'll impact your monthly payment and by extension your purchasing power.
Bottom Line
Don’t delay. The combination of housing supply challenges, low mortgage rates, and extremely motivated buyers gives sellers a unique opportunity this season. If you're thinking about making a move, let’s chat about why it makes sense to list your house now.
Contact Marin Modern Real Estate, experienced <a href="http://www.marincounty.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="15">Marin County Realtors</a>, for help purchasing or selling a home in Marin County.2021-09-07T12:00:00-07:002021-09-07T17:19:00-07:00Marin Modern Teamtag:marincounty.com,2012-09-20:15333What You Can Do Right Now To Prepare for Homeownership<img data-imagetype="External" src="https://files.mykcm.com/2021/08/30171737/20210901-KCM-Share-600x328.jpg" id="x__x0000_i1037" alt="What You Can Do Right Now To
Prepare for Homeownership | MyKCM" style="width: 6.25in; height: 3.4166in;" width="600" height="328" border="0" />
As <a href="https://www.mykcm.com/2021/08/03/with-rents-on-the-rise-is-now-the-time-to-buy/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="2">rent prices</a> continue to soar, many renters want to know what they can do to get ready to buy their first home. According to recent data from <a href="https://www.apartmentlist.com/research/national-rent-data" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="3">ApartmentList.com</a>:
The first half of 2021 has seen the fastest growth in rent prices since the start of our estimates in 2017. Our national rent index has increased by 11.4 percent since January . . . .
Those rising rental costs may make it seem impossible to prepare for homeownership if you're a renter. But the truth is, there are ways you can – and should – prepare to purchase your first home. Here's some expert advice on what to do if you're ready to learn more about how to escape rising rents.
Start Saving – Even Small Amounts – Now
Experts agree, setting aside what you can – even smaller amounts of money – into a dedicated savings account is a great starting point when it comes to saving for a <a href="https://www.mykcm.com/2021/04/19/how-much-time-do-you-need-to-save-for-a-down-payment/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="4">down payment</a>. As Cindy Zuniga-Sanchez, Founder of Zero-Based Budget Coaching LLC, <a href="https://www.today.com/tmrw/how-save-home-deposit-get-house-your-dreams-t218825" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="5">says</a>:
I recommend saving for a home in a ‘sinking fund' . . . . This is a savings account separate from your emergency fund that you use to save for a short or mid-term expense.
Zuniga-Sanchez adds saving in smaller increments can help make a large goal – such as saving for a down payment –achievable:
Breaking up your goals into smaller bite-sized pieces by saving incrementally can make a large daunting number more manageable.
Assess Your Finances and Work on Your Credit
Another tip experts recommend: take a look at your overall finances and credit score and find ways to reduce your debt. According to the <a href="https://www.hud.gov/sites/dfiles/Housing/documents/HUD_HC_FirstTimeCredit101.pdf" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="6">HUD</a>, the average credit score of first-time homebuyers is 716. If you're not sure what your credit score is, there are numerous online tools that can help you check. If your score is below that average, don't fret. Remember that an average means there are homeowners with credit scores both above and below that threshold.
If you find out your score is below the average, there are several ways to improve your credit before you apply for a loan. HUD recommends reducing your debt as much as you can, paying your bills on time, and using your credit card responsibly.
Start the Conversation with Your Advisor Today
Finally, it's important to talk to someone who <a href="https://www.mykcm.com/2021/06/14/the-right-expert-will-guide-you-through-this-unprecedented-market/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="7">understands the market</a> and what it takes to become a first-time homebuyer. That's where we come in. A trusted advisor can help you navigate your specific market and talk you through all the available options. Having the right network of real estate and lending professionals in your corner can help you plan for the homebuying process as well as determine <a href="https://www.mykcm.com/2021/08/11/are-houses-less-affordable-than-they-were-in-past-decades/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="8">what you can afford</a> and how you can get <a href="https://www.mykcm.com/2021/05/07/the-power-of-mortgage-pre-approval-infographic/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="9">pre-approved</a> when you're ready.
Most importantly, we can help you understand how homeownership is achievable. As Lauren Bringle, Accredited Financial Advisor with Self Financial, <a href="https://www.washingtonpost.com/business/2021/05/25/four-tips-become-homeowner-despite-low-income/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="10">says</a>:
Don't write home ownership off just because you have a low income . . . . With the right tools, resources and assistance, you could still achieve your dream.
Bottom Line
If you're planning to be a homeowner one day, the best thing you can do is start <a href="https://www.mykcm.com/2021/06/18/owning-a-home-has-distinct-financial-benefits-over-renting-infographic/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="11">preparing</a> now. Even if you don't think you'll purchase for a few years, let's connect today to discuss the process and to set you up for success on your journey to homeownership.
Contact the Marin Modern Team, your <a href="http://www.marincounty.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="14">Marin County real estate</a> connection, for assistance buying or selling a home in Marin County California.2021-09-01T12:00:00-07:002021-09-01T14:10:33-07:00Marin Modern Teamtag:marincounty.com,2012-09-20:15222What Do Experts Say About Today's Mortgage Rates?<img data-imagetype="External" src="https://files.mykcm.com/2021/08/19154921/20210823-KCM-Share-600x328.jpg" class="x_webfeedsFeaturedVisual x_wp-post-image" alt="What Do Experts Say About
Today's Mortgage Rates? | MyKCM" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width="600" height="328" />
Mortgage rates are hovering near record lows, and that's good news for today's homebuyers. The <a href="http://www.freddiemac.com/pmms/pmms_archives.html" target="_blank" rel="noopener noreferrer" data-linkindex="2">graph</a> below shows mortgage rates dating back to 2016 and where today falls by comparison.<a href="https://files.mykcm.com/2021/08/19154923/20210823-MEM-Eng-1.png" target="_blank" rel="noopener noreferrer" data-linkindex="3"><img data-imagetype="External" src="https://files.mykcm.com/2021/08/19154923/20210823-MEM-Eng-1.png" class="x_aligncenter x_wp-image-99108" alt="What
Do Experts Say About Today's Mortgage Rates? | MyKCM" width="600" height="450" /></a>Generally speaking, when rates are low, you can afford more home for your money. That's why experts across the industry agree – today's low rates present buyers with an <a href="https://www.mykcm.com/2021/02/19/home-mortgage-rates-by-decade-infographic/" target="_blank" rel="noopener noreferrer" data-linkindex="4">incredible opportunity</a>. Here's what they have to say:
Sam Khater, Chief Economist at Freddie Mac, <a href="https://freddiemac.gcs-web.com/node/23271/pdf" target="_blank" rel="noopener noreferrer" data-linkindex="5">points out</a> the historic nature of today's rates:
As the economy works to get back to its pre-pandemic self, and the fight against COVID-19 variants unfolds, owners and buyers continue to benefit from some of the lowest mortgage rates of all-time.
Mark Fleming, Chief Economist at First American, <a href="https://blog.firstam.com/economics/affordability-declined-for-third-month-in-a-row" target="_blank" rel="noopener noreferrer" data-linkindex="6">talks about</a> how rates impact a buyer's bottom line:
Mortgage rates are generally the same across the country, so a decline in mortgage rates boosts affordability equally in each market.
Danielle Hale, Chief Economist at realtor.com, also notes the significance of today's low rates and <a href="https://www.realtor.com/research/freddie-mac-mortgage-rates-july-29-2021/" target="_blank" rel="noopener noreferrer" data-linkindex="7">urges buyers</a> to carefully consider their timing:
Those who haven't yet taken advantage of low rates to buy a home or refinance still have the opportunity to do so this summer.
Hale goes on to say that buyers who don't act soon could see <a href="https://www.mykcm.com/2021/07/19/what-you-should-do-before-interest-rates-rise/" target="_blank" rel="noopener noreferrer" data-linkindex="8">higher rates</a> in the coming months, negatively impacting their purchasing power:
We expect mortgage rates to fluctuate near historic lows through the summer before beginning to climb this fall.
And while mortgage rates are still low today, the data from Freddie Mac indicates rates are fluctuating ever so slightly right now, as they moved up one week before inching slightly back down in their latest release. It's important to keep in mind the influence rates have on your monthly mortgage payment.
Even small increases can have a big <a href="https://www.mykcm.com/2021/07/30/waiting-to-buy-a-home-could-cost-you-infographic/" target="_blank" rel="noopener noreferrer" data-linkindex="9">impact</a> on what you pay each month. Trust the experts. Today's rates give you opportunity and flexibility in what you can afford. Don't wait on the sidelines and hope for a better rate to come along; the rates we're seeing today are worth capitalizing on.
Bottom Line
Mortgage rates hover near record lows today, but experts forecast they'll rise in the coming months. Waiting could prove costly when that happens. Let's connect today to discuss today's rates and determine if now's the time for you to buy.
Contact the Marin Modern Team, your <a href="http://www.marincounty.com/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="14">Marin County real estate</a> connection, for assistance buying or selling a home in Marin County California.2021-08-23T12:00:00-07:002021-08-23T14:56:32-07:00Marin Modern Teamtag:marincounty.com,2012-09-20:14981Waiting To Buy a Home Could Cost You [INFOGRAPHIC]<img data-imagetype="External" src="https://files.mykcm.com/2021/07/29150353/20210723-MEM-1-261x600.png" class="x_webfeedsFeaturedVisual x_wp-post-image" alt="Waiting To Buy a Home Could
Cost You [INFOGRAPHIC] | MyKCM" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width="261" height="600" />
Some Highlights
If you're thinking of <a href="https://www.mykcm.com/2021/06/21/5-things-homebuyers-need-to-know-when-making-an-offer/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="2">buying a home</a> but wondering if waiting a few years will save you in the long run, think again.
The longer the wait, the more you'll pay, especially when <a href="https://www.mykcm.com/2021/07/19/what-you-should-do-before-interest-rates-rise/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="3">mortgage rates</a> and <a href="https://www.mykcm.com/2021/07/06/a-look-at-home-price-appreciation-through-2025/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="4">home prices</a> rise. Even the slightest change in the mortgage rate can have a big impact on your <a href="http://www.freddiemac.com/research/forecast/20210715_quarterly_economic_forecast.page" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="5">buying power</a> no matter your price point.
Don't assume waiting will save you money. Let's connect to set the ball into motion today while mortgage rates are hovering near historic lows.
Looking for experienced real estate representation in the Bay Area? Let the Bay Area Modern Team help you with your <a href="https://www.bayareamodern.com/marin-county-real-estate/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="1">Marin real estate</a> and <a href="https://www.bayareamodern.com/east-bay-real-estate/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="2">East Bay real estate</a> needs. Call us at 415-233-6821.2021-07-30T12:00:00-07:002021-07-30T18:14:37-07:00Marin Modern Teamtag:marincounty.com,2012-09-20:14870Remote Work Has Changed Our Home Needs. Is It Time for Your Home To Change, Too?<img data-imagetype="External" src="https://files.mykcm.com/2021/07/20122358/20210721-KCM-Share-600x328.jpg" class="x_webfeedsFeaturedVisual x_wp-post-image" alt="Remote Work Has Changed Our
Home Needs. Is It Time for Your Home To Change, Too? | MyKCM" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width="600" height="328" />
Over the past year, many homeowners realized what they need in a home is changing, especially with the rise in remote work. If you're longing for a dedicated home office or a change in scenery, now may be the <a href="https://www.mykcm.com/2021/05/04/4-big-incentives-for-homeowners-to-sell-now/" target="_blank" rel="noopener noreferrer" data-linkindex="10">time</a> to find the home that addresses your <a href="https://www.mykcm.com/2021/06/11/have-your-day-in-the-sun-by-moving-up-this-summer-infographic/" target="_blank" rel="noopener noreferrer" data-linkindex="11">evolving needs</a>.
Working from Home Isn't a Passing Fad
Before the pandemic, only 21% of individuals worked from home. However, if you've recently discovered remote work is your new normal, you're not alone.
A <a href="https://www.statista.com/chart/23781/remote-work-teams-departments/" target="_blank" rel="noopener noreferrer" data-linkindex="12">survey</a> of hiring managers conducted by Statista and Upwork projects 37.5% of U.S. workers will work remotely in some capacity over the next 5 years (see chart below):<a href="https://files.mykcm.com/2021/07/20155327/20210721-MEM-Eng-01.png" target="_blank" rel="noopener noreferrer" data-linkindex="13"><img data-imagetype="External" src="https://files.mykcm.com/2021/07/20155327/20210721-MEM-Eng-01.png" class="x_aligncenter x_wp-image-98656" alt="Remote Work Has Changed Our Home Needs. Is It Time for Your Home To
Change, Too? | MyKCM" width="600" height="450" /></a>
Working from Home Gives You More Flexibility and More Options
If you fall in that category, working from home may provide you with opportunities you didn't realize you had. The ongoing rise in remote work means a portion of the workforce no longer needs to be tied to a specific area for their job. Instead, it gives those workers more flexibility when it comes to where they can live.
If you're one of the nearly 23% of workers who will remain 100% remote, you have the option to move to a lower cost-of-living area or to the location of your dreams. If you search for a home in a more affordable area, you'll be able to get more house for your money, freeing up more options for your dedicated office space and more breathing room. You could also move to an area you've always dreamed of <a href="https://www.mykcm.com/2021/06/24/demand-for-vacation-homes-is-still-strong/" target="_blank" rel="noopener noreferrer" data-linkindex="14">vacationing</a> in – somewhere near the beach, the mountains, or simply an area that features better weather and community amenities. Without your job tying you to a specific location, you're bound to find your ideal spot.
If you're one of the almost 15% of individuals who will have a partially remote or hybrid schedule, relocating within your local area to a home that's further away from your office could be a great choice. Since you won't be going into work every day, a slightly longer commute from a more suburban or rural area could be a worthy trade-off for a home with more features, space, or comforts. After all, if you'll still be at home part-time, why not find a home that better suits your needs?
According to the latest <a href="https://www.cre.org/external-affairs/2021-22-top-ten-issues-affecting-real-estate/" target="_blank" rel="noopener noreferrer" data-linkindex="15">Top Ten Issues Affecting Real Estate</a> from The Counselors of Real Estate (CRE), many homebuyers are already taking advantage of their newfound flexibility:
. . . after years of apparent but variant trends towards urbanization, the pandemic universally caused a movement away from urban cores, particularly for those with higher incomes who could afford to move and for lower-income individuals seeking lower costs of living.
Bottom Line
If you've found what you're looking for in a home has changed due to remote work, it may be time to make a move. Let's connect today to start prioritizing your home needs.
Contact Marin Modern Real Estate, experienced <a href="http://www.marincounty.com/" target="_blank" rel="noopener noreferrer" data-linkindex="15">Marin County Realtors</a>, for help purchasing or selling a home in Marin County.2021-07-21T12:00:00-07:002021-07-21T18:24:36-07:00Marin Modern Team