First Time Home Buyers | Daytona Beach Property Search

How Buying a Multi-Generational Home Helps with Affordability Today

In today’s world of rising housing costs, many buyers are looking for ways to still be able to buy a home. Some of them have found a solution in multi-generational living.

Multi-generational living is when two or more adult generations live together under one roof. This includes siblings, parents, or even grandparents. Here’s an in-depth look at why more buyers are choosing this option today, so you can see if it may be right for you too.

Reasons To Buy a Multi-Generational Home

According to a recent study by the National Association of Realtors (NAR), the top two reasons people are opting for multi-generational homes today have to do with affordability (see graph below):

Cost Savings: About 28% of first-time buyers and 11% of repeat buyers are deciding on a multi-generational home to save on costs. By pooling their resources, households can share the financial responsibilities like mortgage payments, utilities, property taxes, and maintenance, to make homeownership more affordable. This is especially helpful for first-time homebuyers who may be finding it tough to afford a home on their own in today’s market.

More Space: Another 28% of first-time buyers and 18% of repeat buyers are doing it because they want a larger home they couldn’t afford on their own. For some of the repeat buyers who listed this as a main motivator, it could be because they find themselves taking care of older parents while also welcoming back young adults who’ve returned to the nest. With everyone chipping in and combining their incomes, suddenly, that big dream home with more space is within reach. As the Triangle Business Journal explains:

“Choosing multi-gen living allows people to purchase a home much larger than they could afford on their own by leveraging the combined income, credit and a down payment of those that they will be occupying the home with.”

Lean on an Expert

If you’re interested in this too, partner with a local real estate agent. Finding the perfect multi-generational home isn’t as simple as shopping for a regular house. That’s because there are more people with even more opinions and needs that should be considered.

You’ve got to make sure everyone has their own space, find room for shared household time, and possibly even create adaptable areas for older relatives. It’s a puzzle, and the pieces need to fit just right. Your real estate agent has the expertise and local knowledge to help you find that home where everyone can be comfortable without breaking the bank. As MoneyGeek.com puts it:

“Having a good multigenerational property can improve the prospects of success when living with loved ones. A multigenerational home should fit the specific needs of most family members regardless of age or health. Speaking to a real-estate agent can help you gain clarity and locate a fit.”

Bottom Line

Buying a multi-generational home can be a smart way to tackle some of today’s affordability challenges. When you team up to share expenses, you can make your dream of homeownership more attainable. If this sounds like an option for you and your loved ones, connect with a local real estate agent to help you find a home that’s the perfect fit.

Are Higher Mortgage Rates Here To Stay?

Mortgage rates have been back on the rise recently and that’s getting a lot of attention from the press. If you’ve been following the headlines, you may have even seen rates recently reached their highest level in over two decades (see graph below):

That can feel like a little bit of a gut punch if you’re thinking about making a move. If you’re wondering whether or not you should delay your plans, here’s what you really need to know.

How Higher Mortgage Rates Impact You

There’s no denying mortgage rates are higher right now than they were in recent years. And, when rates are up, that affects overall home affordability. It works like this. The higher the rate, the more expensive it is to borrow money when you buy a home. That’s because, as rates trend up, your monthly mortgage payment for your future home loan also increases.

Urban Institute explains how this is impacting buyers and sellers right now:

“When mortgage rates go up, monthly housing payments on new purchases also increase. For potential buyers, increased monthly payments can reduce the share of available affordable homes . . . Additionally, higher interest rates mean fewer homes on the market, as existing homeowners have an incentive to hold on to their home to keep their low interest rate.”

Basically, some people are deciding to put their plans on hold because of where mortgage rates are right now. But what you want to know is: is that a good strategy?

Where Will Mortgage Rates Go from Here?

If you’re eager for mortgage rates to drop, you’re not alone. A lot of people are waiting for that to happen. But here’s the thing. No one knows when it will. Even the experts can’t say with certainty what’s going to happen next.

Forecasts project rates will fall in the months ahead, but what the latest data says is that rates have been climbing lately. This disconnect shows just how tricky mortgage rates are to project.

The best advice for your move is this: don’t try to control what you can’t control. This includes trying to time the market or guess what the future holds for mortgage rates. As CBS News states:

“If you’re in the market for a new home, experts typically recommend focusing your search on the right home purchase — not the interest rate environment.”

Instead, work on building a team of skilled professionals, including a trusted lender and real estate agent, who can explain what’s happening in the market and what it means for you. If you need to move because you’re changing jobs, want to be closer to family, or are in the middle of another big life change, the right team can help you achieve your goal, even now.

Bottom Line

The best advice for your move is: don’t try to control what you can’t control – especially mortgage rates. Even the experts can’t say for certain where they’ll go from here. Instead, focus on building a team of trusted professionals who can keep you informed. When you’re ready to get the process started, connect with a local real estate agent.

The Difference Between Renting and Buying a Home [INFOGRAPHIC]

Deciding to own a home or rent one is still a big choice for many people. The decision depends on personal circumstances and financial goals. Both options have advantages. This article will discuss the advantages of owning a home versus renting one. It will help you make a smart choice that fits your needs and dreams.

Building Equity

One of the primary advantages of owning a home is the opportunity to build equity. When you make your mortgage payment, some of it goes towards the loan’s principal, increasing your home’s equity. Over time, your home typically appreciates in value, allowing you to build wealth and financial stability. When you rent a property, you don’t have the chance to build equity. Your monthly payments benefit the landlord’s equity.

Investment Potential

Real estate has been a sound investment. Homeowners may see their property value increase if they buy in a popular area. Additionally, homeowners can leverage their property as collateral for loans or even generate income by renting out a portion of the property. These investment opportunities are generally not available to renters.

Stability and Control

Owning a home provides stability and control over your living space. You can renovate, paint, and decorate as much as you want without asking the landlord. This control extends to decisions about landscaping, security measures, and energy-efficient upgrades. Renters, however, must typically adhere to restrictions set by the landlord or property management.

Predictable Monthly Payments

With a fixed-rate mortgage, homeowners enjoy predictability in their monthly housing expenses. Your mortgage payment stays the same throughout the loan, making it easier to plan for future goals. Rent costs can increase yearly because of market conditions or landlord choices. This can make it difficult to budget for future expenses.

Tax Benefits

Homeownership offers several tax advantages. You can deduct mortgage interest and property taxes on your federal income tax return. This might lower your tax liability. Additionally, if you sell your primary residence, you can benefit from a capital gains tax exclusion on profits (up to a certain threshold), which can result in substantial savings.

Sense of Community

Owning a home often fosters a stronger sense of community and belonging. You’re more likely to establish long-term relationships with neighbors and engage in local activities when you plan to stay in an area for an extended period. Renters may not have the same level of commitment to a community, as their tenure can be more transient.

Retirement Planning

Homeownership can be an integral part of retirement planning. Paying off your mortgage before retirement can significantly reduce your monthly expenses, allowing you to live comfortably on a fixed income. Moreover, if you decide to downsize or sell your home upon retirement, you can use the proceeds to fund your retirement lifestyle or pass down wealth to your heirs.

Conclusion

The decision to own or rent a home is a personal one that depends on individual circumstances, financial goals, and lifestyle preferences. Owning a home offers numerous benefits, including building equity, investment potential, stability, and tax advantages. However, renting can be flexible for those who prioritize mobility and lower upfront costs. Ultimately, the right choice is the one that aligns with your long-term objectives and provides you with the security and satisfaction you seek in your liv

Some Highlights

Consider these three important factors when deciding between buying a home or renting.
Buying a home means avoiding rising rents, owning a tangible and valuable asset, and growing wealth over time.
If you’re ready to enjoy the advantages of owning a home, connect with a local real estate expert to discuss your options.

The Latest Expert Forecasts for Home Prices in 2023

If you’re contemplating a move, you may feel anxious due to the rumors about home prices crashing this year. However, you can rest assured that the data and experts indicate that prices are not on a downward trend and will conclude the year on a strong note. So, read further to make your decision based on these facts.

Despite the speculations that the prices of homes would drop by 5, 10 or even 20 percent this year, it hasn’t happened yet. The primary reason behind this is the insufficient supply of homes available for sale. There is a higher number of buyers in the market seeking to purchase a house, but the limited supply has resulted in fairly stable pricing.

To prove that this year’s home prices weren’t a bust, let’s take a look at the latest 2023 forecast from multiple experts..

Most Experts Project Home Prices Will Net Positive This Year

The general consensus from industry experts is that home price appreciation will actually be positive for 2023. The graph below shows the latest 2023 year-end forecasts from six different organizations:

As you can see, all but one project nationally prices will net positive this year. That’s significant because it shows the majority are optimistic about home price growth.

If you’re still worried about the one red bar indicating an overall drop in home prices for the year, remember this: The National Association of Realtors (NAR) projects only a slight decline, not the big crash that many headlines called for. Additionally, if you average all six forecasts together, the expectation is that prices will increase by around 3.3% for the year.

Consider the following six organizations, which should be enough to convince you that home prices are expected to remain stable. One of these six forecasts is the Home Price Expectation Survey (HPES) from Pulsenomics. It is a combination of survey results from more than 100 economists, investment strategists, and housing market analysts. According to HPES, the average prediction of all 100 experts is a 3.3% growth in home prices for the year.

If you look back at the graph above, you’ll notice the blue average for the forecasts in this graph is also 3.3%. While individual forecasts may vary, both the HPES survey and the average of these forecasts provide the same projection. And 3.3% appreciation is a completely different story than prices falling.

Bottom Line

If you’re worried about home prices falling this year, let the experts reassure you. Based on the average of the latest forecasts, home prices will actually show positive growth this year. If you have questions about what’s happening with home prices in your area, connect with me and lets talk about whats going on! 386-315-4744.

Are You a Homebuyer Worried About Climate Risks?

The increasing effects of natural disasters are leading to new obstacles in residential real estate. As a recent article from CoreLogic explains:

“As the specter of climate change looms large, the world braces for unprecedented challenges. In the world of real estate, one of those challenges will be the effects of natural catastrophes on property portfolios, homeowners, and communities.”

That may be why, according to Zillow, more and more Americans now consider how climate risks and natural disasters can impact their homeownership plans (see below):

This study goes on to explain that climate risks affect where many people look for a home. That’s because homebuyers are interested in finding out if the house they want will be exposed to things like floods, extreme heat, and wildfires.

If you’re in the same situation and are thinking about what to do next, here’s some important information to consider as you start looking for a home.

Expert Advice for Homebuyers To Reduce Climate Risks

The first thing to do is understand how to go about buying a home while thinking about climate risks. With the right help and resources, you can simplify the process.

The Mortgage Reports provides these tips for buying your next home:

Evaluate climate risks: Before buying a home, it’s important to check if it’s in a flood-prone area using the FEMA website, review the seller’s property disclosure for any past damage, and get an inspection for issues like cracks and mold to make sure it’s a safe investment.
Consider future preventative maintenance costs: For areas that get tropical storms, you may need to purchase hurricane shutters and sandbags to protect the home. In wildfire-prone areas, you may want to clear plants five feet from the house, consider rooftop sprinklers, or possibly buy gutter guards to prevent fire hazards. Factor these future expenses in when touring homes that may need them.
Take steps to avoid losing your assets: Getting the right insurance for a home in a high-risk climate area is crucial. You should shop around and talk to multiple insurance agents to compare prices and options before deciding to bid on a home.

Above all else, your most valuable resource during this process is a trusted real estate expert. They’ll always focus on your goals while keeping your concerns top of mind. Even if they don’t have all the answers about how your home can handle natural disasters, they can connect you with the right experts and information.

Bottom Line

If you want to buy a home, but you’re also thinking about climate risks, you’re not alone. Your home is a big investment, and if anything can impact that, you want to know. Connect with a real estate professional so you have someone you can trust to guide you as you find your next home.

Understanding the Benefits of Owning Your First Home

Are you considering buying your first home? If so, it can be helpful to know what led other people to make that decision. According to a recent survey of first-time homebuyers by PulteGroup:

“When asked why they purchased their first home recently, the answer was simple: because they wanted to. Either the desire to stop renting or recognition that homeownership is a smart financial investment was the main motivator for 72% of respondents.”

While that survey looked specifically at first-time homebuyers buying newly built homes, the same sentiment is true for just about anyone buying their first home. Here’s a bit more information to help you think about those two benefits of homeownership to see if they’re a key factor for you too.

When You Buy a Home, You Have More Stability than When You Rent

You might want to stop renting because rents keep going up. If you’re a renter, that means there’s a chance your payment will increase each time you sign a new rental agreement or renew your current one.

On the other hand, when you buy your home with a fixed-rate mortgage, your monthly housing payment is predictable over the length of that loan. This stability can give you a peace of mind that renting just can’t provide. Jeff Ostrowski, real estate journalist, breaks it down:

“With a fixed-rate mortgage, your monthly principal and interest payment is set for as long as you keep the loan. Sign a rental lease, however, and you could see your rent rise the following year, the year after that and so on.”

When You Buy a Home, You Grow Your Wealth as Home Values Climb

Beyond that, owning a home can also be a great long-term investment. While renting may be the more affordable option right now, it doesn’t provide an avenue for you to grow your wealth over time. Mark Fleming, Chief Economist at First American, explains that’s an important distinction to consider:

“Given current dynamics, more young households may choose to rent in the near term as the cost to own, excluding house price appreciation, has unequivocally increased. Yet, accounting for house price appreciation in that cost of homeownership, whether to rent or buy will depend on where, and if, a home is likely to cost more or less in the near future.”

Basically, renting doesn’t allow you to build equity. In contrast, homeownership can help you grow your net worth as your home’s value appreciates. That’s a significant perk you can’t get if you keep renting.

When you take that into account, it may make better financial sense to buy. Most experts project home prices will continue to appreciate over the next few years at a pace that’s more normal for the market. That means when you buy a home, not only are you investing in a place to live, but you’re also investing in your financial future.

Bottom Line

If you’re ready, it can be a smart move to buy your first home instead of renting. Connect with a real estate professional so you can stabilize your housing payment and start building wealth for your future.

Unpacking the Long-Term Benefits of Homeownership

If you’re thinking about buying a home soon, higher mortgage rates, rising home prices, and ongoing affordability concerns may make you wonder if it still makes sense to buy a home right now. While those market factors are important, there’s more to consider. You should think about the long-term benefits of homeownership too.

Think about this: if you know people who bought a home 5, 10, or even 30 years ago, you’re probably going to have a hard time finding someone who regrets their decision. Why is that? The reason is tied to how home values grow with time and how, by extension, that grows your own wealth. That may be why, in a recent Fannie Mae survey, 76% of respondents say they believe buying a home is a safe investment.

Here’s a look at how just the home price appreciation piece can really add up over the years.

Home Price Growth over Time

The map below uses data from the Federal Housing Finance Agency (FHFA) to show just how noteworthy price gains have been over the last five years. And, since home prices vary by area, the map is broken out regionally to help convey larger market trends:

If you look at the percent change in home prices, you can see home prices grew on average by just over 57% nationwide over a five-year period.

Some regions are slightly above or below that average, but overall, home prices gained solid ground in a short time. And if you expand that time frame even more, the benefit of homeownership and the drastic gains homeowners made over the years become even clearer (see map below):

The second map shows, nationwide, home prices appreciated by an average of over 297% over a roughly 30-year span.

This nationwide average tells you the typical homeowner who bought a house 30 years ago saw their home almost triple in value over that time. That’s a key factor in why so many homeowners who bought their homes years ago are still happy with their decision.

And while you may have heard talk throughout the year that home prices would crash, it hasn’t happened. In fact, experts project home prices will continue to rise for years to come.

Bottom Line

If you’re wondering if it still makes sense to buy a home today, it’s important to focus on the long-term advantages that come with homeownership. When you’re ready to start your homebuying journey, reach out to a local real estate professional.

The Return of Normal Seasonality for Home Price Appreciation

If you’re thinking of making a move, one of the biggest questions you have right now is probably: what’s happening with home prices? Despite what you may be hearing in the news, nationally, home prices aren’t falling. It’s just that price growth is beginning to normalize. Here’s the context you need to really understand that trend.

In the housing market, there are predictable ebbs and flows that happen each year. It’s called seasonality. Spring is the peak homebuying season when the market is most active. That activity is typically still strong in the summer but begins to wane as the cooler months approach. Home prices follow along with seasonality because prices appreciate most when something is in high demand.

That’s why there’s a reliable long-term home price trend. The graph below uses data from Case-Shiller to show typical monthly home price movement from 1973 through 2022 (not adjusted, so you can see the seasonality):

As the data shows, at the beginning of the year, home prices grow, but not as much as they do in the spring and summer markets. That’s because the market is less active in January and February since fewer people move in the cooler months. As the market transitions into the peak homebuying season in the spring, activity ramps up, and home prices go up a lot more in response. Then, as fall and winter approach, activity eases again. Price growth slows, but still typically appreciates.

After several unusual ‘unicorn’ years, today’s higher mortgage rates helped usher in the first signs of the return of seasonality. As Selma Hepp, Chief Economist at CoreLogic, explains:

“High mortgage rates have slowed additional price surges, with monthly increases returning to regular seasonal averages. In other words, home prices are still growing but are in line with historic seasonal expectations.”

Why This Is So Important to Understand

In the coming months, you’re going to see the media talk more about home prices. In their coverage, you’ll likely see industry terms like these:

Appreciation: when prices increase.
Deceleration of appreciation: when prices continue to appreciate, but at a slower or more moderate pace.
Depreciation: when prices decrease.

Don’t let the terminology confuse you or let any misleading headlines cause any unnecessary fear. The rapid pace of home price growth the market saw in recent years was unsustainable. It had to slow down at some point and that’s what we’re starting to see – deceleration of appreciation, not depreciation.

Remember, it’s normal to see home price growth slow down as the year goes on. And that definitely doesn’t mean home prices are falling. They’re just rising at a more moderate pace.

Bottom Line

While the headlines are generating fear and confusion on what’s happening with home prices, the truth is simple. Home price appreciation is returning to normal seasonality. If you have questions about what’s happening with prices in your local area, connect with a real estate professional.

Beginning with Pre-Approval

If you’re looking to buy a home this fall, there are a few things you need to know. Affordability is tight with today’s mortgage rates and rising home prices. At the same time, there’s a limited number of homes on the market right now and that’s creating some competition among buyers. But, if you’re strategic, there are ways to navigate these waters. The first thing you’ll want to do is get pre-approved for a mortgage. That way you’ll know your numbers and can set yourself up for success from the start of your home search.

What Pre-Approval Does for You

To understand why it’s such an important step, you need to know what pre-approval is. As part of the homebuying process, a lender looks at your finances to determine what they’d be willing to loan you. From there, your lender will give you a pre-approval letter to help you know how much money you can borrow. Freddie Mac explains it like this:

“A pre-approval is an indication from your lender that they are willing to lend you a certain amount of money to buy your future home. . . . Keep in mind that the loan amount in the pre-approval letter is the lender’s maximum offer. Ultimately, you should only borrow an amount you are comfortable repaying.”

Basically, pre-approval gives you critical information about the homebuying process that’ll help you understand how much you may be able to borrow. Why does this help you, especially today? With higher mortgage rates and home prices impacting affordability for many buyers right now, a solid understanding of your numbers is even more important so you can truly wrap your head around your options.

Pre-Approval Helps Show Sellers You’re a Serious Buyer

Let’s face it, there are more buyers looking to buy than there are homes available for sale and that imbalance is creating some competition among homebuyers. That means you could see yourself in a multiple-offer scenario when you make an offer on a home. But getting pre-approved for a mortgage can help you stand out from other hopeful buyers.

As an article from Wall Street Journal (WSJ) says:

“If you plan to use a mortgage for your home purchase, preapproval should be among the first steps in your search process. Not only can getting preapproved help you zero in on the right price range, but it can give you a leg up on other buyers, too.”

Pre-approval shows the seller you’re a serious buyer that’s already undergone a credit and financial check, making it more likely that the sale will move forward without unexpected delays or financial issues.

Bottom Line

Getting pre-approved is an important first step when you’re buying a home. The more prepared you are, the better chance you have of getting the home you want. Connect with a trusted lender so you have the tools you need to purchase a home in today’s market.

How Remote Work Helps with Your House Hunt [INFOGRAPHIC]

Some Highlights

While remote work peaked during the pandemic, many people still work from home today.
If you’re one of them, it could have an unexpected benefit when you’re looking to buy a home.
If you can work from home, you might have more choices for where to live. Connect with a real estate agent to talk about your options and what’s most important to you.

Reasons To Buy a Multi-Generational Home

Lean on an Expert

Bottom Line

How Higher Mortgage Rates Impact You

Where Will Mortgage Rates Go from Here?

Bottom Line

Building Equity

Investment Potential

Stability and Control

Predictable Monthly Payments

Tax Benefits

Sense of Community

Retirement Planning

Conclusion

Some Highlights

Most Experts Project Home Prices Will Net Positive This Year

Bottom Line

Expert Advice for Homebuyers To Reduce Climate Risks

Bottom Line

When You Buy a Home, You Have More Stability than When You Rent

When You Buy a Home, You Grow Your Wealth as Home Values Climb

Bottom Line

Home Price Growth over Time

Bottom Line

Why This Is So Important to Understand

Bottom Line

What Pre-Approval Does for You

Pre-Approval Helps Show Sellers You’re a Serious Buyer

Bottom Line

Some Highlights

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