Buy Or Sell With James Jestes and eXp Realty
![The Worst Home Price Declines Are Behind Us [INFOGRAPHIC] Simplifying The Market](https://daytonabeachpropertysearch.com/wp-content/uploads/2023/05/The-Worst-of-Home-Price-Declines-Are-Behind-Us-KCM-Share.png)
Whereas home prices differ by native space, they’ve already hit their low point nationally, and now they’re beginning to rise once more.
Final July, costs began to say no, however round February, they started climbing again up.
If you happen to put your plans to maneuver on maintain ready to see what would occur with home prices, attain out to a neighborhood actual property knowledgeable to debate if now’s the precise time to leap again in.
![Ways To Overcome Affordability Challenges in Today’s Housing Market [INFOGRAPHIC] Simplifying The Market](https://daytonabeachpropertysearch.com/wp-content/uploads/2023/04/Ways-To-Overcome-Affordability-Challenges-In-Todays-Market-KCM-Share.png)
There’s been a lot of focus on higher mortgage rates and how they’re creating affordability challenges for today’s homebuyers. It’s true that rates climbed dramatically since the record-low we saw during the pandemic. But home affordability is based on more than just mortgage rates – it’s determined by a combination of mortgage rates, home prices, and wages.
Considering how each one of these factors is changing gives you the full picture of home affordability today. Here’s the latest.
While mortgage rates are higher than they were a year ago, they’ve hovered primarily between 6% and 7% for nearly eight months now (see graph below):
As the graph shows, mortgage rates have experienced some volatility during that time. And even a small change in mortgage rates impacts your purchasing power. That’s why it’s so important to lean on your team of real estate professionals for expert advice to stay up to date on what’s happening in the market. While it’s hard to project where mortgage rates will go from here, many experts agree they’ll likely continue to remain around 6%-7% in the immediate future.
Over the past few years, home prices appreciated rapidly as the record-low mortgage rates we saw during the pandemic led to a surge in buyer demand. The heightened buyer demand happened while the supply of homes for sale was at record lows, and that imbalance put upward pressure on home prices. However, today’s higher mortgage rates have slowed down price appreciation.
And, the truth is, home price appreciation varies by market. Some areas are seeing slight declines while others have prices that are climbing. As Selma Hepp, Chief Economist at CoreLogic, explains:
“The divergence in home price changes across the U.S. reflects a tale of two housing markets. Declines in the West are due to the tech industry slowdown and a severe lack of affordability after decades of undersupply. The consistent gains in the Southeast and South reflect strong job markets, in-migration patterns and relative affordability due to new home construction.”
To find out what’s happening with prices in your local market, reach out to a trusted real estate agent.
The most positive factor in affordability right now is rising income. The graph below uses data from the Bureau of Labor Statistics (BLS) to show how wages have grown over time:
Higher wages improve affordability because they reduce the percentage of your income it takes to pay your mortgage since you don’t have to put as much of your paycheck toward your monthly housing cost.
Home affordability comes down to a combination of rates, prices, and wages. If you have questions or want to learn more, reach out to a real estate professional who can explain what’s happening locally and how these factors work together.
If you’re planning to buy a home, knowing the key factors that impact affordability is important so you can make an informed decision. To stay up to date on the latest on each, connect with a trusted real estate professional today.
The housing market’s been going through a lot of change lately, and there’s been uncertainty surrounding what will happen this spring. You may be wondering if more homes will go on the market, what’s next with home prices and mortgage rates, or what the best advice is for someone in your position right now.
Here’s what industry experts are saying right now about the spring housing market and what it means for you:
“We see more competition among buyers . . . Housing supply also tends to grow during the spring months. And this is also the time of year when relatively more migration happens, as people graduate and move elsewhere looking for jobs.”
“I don’t expect big moves in prices in the span of a month, but like the flower buds of spring, the housing market is showing signs of improvement. A pick up in activity with inventory still low does bode well for home prices.”
“If you can find a home you love and can afford at today’s prices, don’t wait. Home prices in most of the country are unlikely to crash, and mortgage rates will only come down very gradually if they decline at all this year.”
“The market is still much friendlier this spring for buyers who can overcome affordability hurdles, but buyers are going to see more competition than they might expect because there are not many homes on the market to go around. New listings are increasing, which they almost always do this time of year, but not nearly as quickly as usual.”
If you’re thinking about selling your house, this spring’s a great time to do so while inventory is still so low. And if you’re in a good position to buy, lean on your team of expert advisors for the best advice. Whatever your plans, work with a real estate agent to make sure you’re able to navigate the spring housing market with confidence.
As the housing market continues to change, you may be wondering where it’ll go from here. One factor you’re probably thinking about is home prices, which have come down a bit since they peaked last June. And you’ve likely heard something in the news or on social media about a price crash on the horizon. As a result, you may be holding off on buying a home until prices drop significantly. But that’s not the best strategy.
A recent survey from Zonda shows 53% of millennials are still renting right now because they’re waiting for home prices to come down. But here’s the thing: the most recent data shows that home prices appear to have bottomed out and are now on the rise again. Selma Hepp, Chief Economist at CoreLogic, reports:
“U.S. home prices rose by 0.8% in February . . . indicating that prices in most markets have already bottomed out.”
And the latest data from Black Knight shows the same shift. The graph below compares home price trends in November to those in February:
So, should you keep waiting to buy a home until prices come down? If you factor in what the experts are saying, you probably shouldn’t. The data shows prices are increasing in much of the country, not decreasing. And the latest data from the Home Price Expectation Survey indicates that experts project home prices will rise steadily and return to more normal levels of appreciation after 2023. The best way to understand what home values are doing in your area is to work with a local real estate professional who can give you the latest insights and expert advice.
Selling your home can be daunting, but with proper preparation and execution, it can be a smooth experience. Port Orange, Florida, is a popular city for homeowners and potential buyers. In this guide, we’ll cover the steps you need to take to prepare your home for sale, price it correctly, market it to potential buyers, negotiate offers, and close the sale successfully. If you would like to discuss further selling your home with a professional, I am here to talk with you. Please give me a call at 386-315-4744 – James Jestes
Before you list your home on the market, you must prepare it for sale. Here are three steps you should take:
Decluttering and cleaning your home is an essential step in preparing it for sale. Start by removing any excess furniture and personal items, such as family photos or knick-knacks. This will make your home look more spacious and allow potential buyers to envision themselves living there. Next, deep clean your home, paying attention to details such as baseboards, light fixtures, and windows. Consider hiring a professional cleaning service if needed.
Making necessary repairs and updates to your home is another critical step in preparing it for sale. Fix any plumbing or electrical issues, replace any damaged flooring or walls, and update outdated fixtures such as faucets and light fixtures. Consider giving your home a fresh coat of paint and updating the landscaping to enhance its curb appeal.
Staging your home can help potential buyers envision themselves living in the space. Consider hiring a professional staging company or doing it yourself. Focus on creating a neutral and inviting space that highlights your home’s best features, such as natural light and open floor plans.
Hire A Professional To Sell Your Port Orange HomePricing your home correctly is crucial to attracting potential buyers. Here are some tips to keep in mind:
Research the local real estate market to see what similar homes in your area are selling for. This will give you an idea of what price range to aim for.
Consider the condition and features of your home when setting the price. Homes in excellent condition and with desirable features, such as updated kitchens, bathrooms, or spacious yards, can command a higher price.
Be realistic when setting the price. Pricing your home too high can turn off potential buyers and lead to a longer time on the market.
View Homes For Sale In Port OrangeMarketing your home is essential to attracting potential buyers. Here are three strategies you should use:
Hire a professional photographer and videographer to showcase your home in the best light. High-quality photos and videos can significantly impact potential buyers and help your home stand out.
Utilize online and offline advertising to reach potential buyers. List your home on real estate websites and social media platforms, and consider running print ads in local newspapers or magazines.
Hosting open houses and showings can allow potential buyers to see your home in person. Work with your real estate agent to schedule these events and ensure your home is ready to impress.
Once you receive offers on your home, it’s time to negotiate and close the sale. Here are some tips to keep in mind:
Consider all offers, even if they are lower than you hoped. You may be able to negotiate a better price or terms.
Review inspections and contingencies carefully and be prepared to make necessary repairs or adjust the price accordingly.
Work closely with your real estate agent throughout the negotiation and closing process. They can help guide you through any challenges and ensure a smooth transaction.
Selling your home in Port Orange, FL, can be a complex process, but with the right preparation and execution, it can be successful. Remember to focus on decluttering, making repairs and updates, and staging your home to prepare it for sale. Price your home appropriately, and use professional photography and videography, online and offline advertising, and open houses and showings to market it effectively. When it comes time to negotiate offers and close the sale, working with an experienced real estate agent will help make for a smooth transaction. Give me a call, and let me share with you my plan to get your home sold! 386-315-4744 – James Jestes
We’re still in a sellers’ market. And if you’re looking to buy a home, that means you’re likely facing some unique challenges, like difficulty finding a home and volatile mortgage rates. But keep in mind, there are some benefits to being a buyer in today’s market that give you good reason to stick with your search. Here are a few of them.
Owning a home grows your net worth – and since building that wealth takes time, it makes sense to start as soon as you can. If you wait to buy and keep renting, you’ll miss out on those monthly housing payments going toward your home equity. Freddie Mac puts it this way:
“Homeownership not only builds a sense of pride and accomplishment, but it’s also an important step toward achieving long-term financial stability.”
The key there is long-term because the financial benefits homeownership provides, like home value appreciation and equity, grow over time. Those benefits are worth the short-term challenges today’s sellers’ market presents.
Mortgage rates have been hovering around 6.5% over the last several months. However, as Sam Khater, Chief Economist at Freddie Mac, notes, they’ve been coming down some recently:
“Economic uncertainty continues to bring mortgage rates down. Over the last several weeks, declining rates have brought borrowers back to the market . . .”
Lower mortgage rates improve your purchasing power when you buy, and that can help make homeownership more affordable. Hannah Jones, Economic Data Analyst at realtor.com, explains:
“As we move into the spring buying season, mortgage rates have ticked lower, a welcomed sign of progress towards affordability.”
The recent drop in mortgage rates is good news if you couldn’t afford to buy a home when they peaked.
According to the Home Price Expectation Survey, which polls over 100 real estate experts, home values will go up steadily over the next few years after a slight decline this year (see graph below):
Rising home prices in the coming years means two things for you as a buyer:
If you’re thinking about buying a home, you want to know the decision will be a good one. And for many, that means thinking about what home prices are projected to do in the coming years and how that could impact your investment.
This year, we aren’t seeing home prices fall dramatically. As the year goes on, however, some markets may go up in value while others may lose value. That’s why it’s helpful to keep the long-term view in mind. Experts project a return to a steadier rate of price appreciation in the years that follow.
Over 100 economists, investment strategists, and housing market analysts were polled by Pulsenomics in their latest quarterly Home Price Expectation Survey (HPES). The report indicates what they believe will happen with home prices over the next five years. As the graph below shows, after mild depreciation this year, these experts forecast home prices will return to more normal levels of appreciation through 2027.
The big takeaway is experts aren’t forecasting a drastic fall in home prices nationally, even though some markets will see home price appreciation while others may depreciate. And when they look further out, they see steady price appreciation in the long run. That’s a great example of why homeownership wins over time.
Once you buy a home, price appreciation raises your home’s value, and that grows your household wealth. Here’s how a typical home’s value could change over the next few years using the expert price appreciation projections from the survey mentioned above (see graph below):
In this example, if you bought a $400,000 home at the beginning of this year and factor in the forecast from the HPES, you could accumulate over $54,000 in household wealth over the next five years. So, if you’re wondering if buying a home is a sound decision, keep in mind what a strong wealth-building tool it is long term.
![The Key Advantage of Investing in a Home [INFOGRAPHIC] Simplifying The Market](https://daytonabeachpropertysearch.com/wp-content/uploads/2023/04/The-Key-Advantage-of-Investing-in-a-Home-KCM-Share.png)
