You’ll find our blog to be a wealth of information, covering everything from local market statistics and home values to community happenings. That’s because we care about the community and want to help you find your place in it. Please reach out if you have any questions at all. We’d love to talk with you!
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Over the past year, mortgage rates have fallen more than a full percentage point, hitting a new historic low 15 times. This is a great driver for homeownership, as today’s low rates provide consumers with some significant benefits. Here’s a look at three of them.
1. Move-up or Downsize: One option is to consider moving into a new home, putting the equity you’ve likely gained in your current house toward a down payment on a new one that better meets your needs – something that’s truly a perfect fit, especially if your lifestyle has changed this year.
2. Become a First-Time Homebuyer: There are many financial and non-financial benefits to owning a home, and the most important thing is to first decide when the time is right for you. You have to determine that on your own, but know that now is a great time to buy if you’re considering it. Just take a look at the cost of renting vs. buying.
3. Refinance: If you already own a home, you may decide you’re going to refinance. It’s one way to lock in a lower monthly payment and save more over time. However, it also means paying upfront closing costs, too. If you want to take this route, you have to answer the question: Should I refinance my home?
Last year, the average mortgage rate was 3.93% (substantially higher than it is today). If you waited for a better time to make a move, market conditions have improved significantly. Today’s low mortgage rates are a huge perk for buyers, so it’s a great time to get more for your money and consider a new home.
The chart below shows how much you would save per month based on today’s rates compared to what you would have paid if you purchased a home exactly one year ago, depending on how much you finance:
If you’ve been waiting since last year to make your move into homeownership or to find a house that better meets your needs, today’s low mortgage rates may be just what you need to get the process going. Let’s connect today to discuss how you may benefit from the current rates.
It may seem hard to imagine that the home you’re in today – whether it’s your starter home or just one you’ve fallen in love with along the way – might not be your forever home.
Many needs have changed in 2020, and it’s okay to admit if your house no longer fits your lifestyle. If you’re now working remotely, facilitating virtual school, trying to exercise at home, or simply just spending more time in your own four walls, you may be bursting at the seams in your current house.
According to the latest Home Price Insights from CoreLogic, prices have appreciated 7.3% year-over-year. At the same time, the National Association of Realtors (NAR) reports that inventory has dropped 22% from one year ago.
These two statistics are directly related to one another. As inventory has decreased and demand has increased, prices have been driven up.
This is great news if you own a home and you’re thinking about selling. The equity in your house has likely risen as prices have increased. Even better is the fact that there’s a large pool of buyers out there searching for the American dream, and your home may be high on their wish list.
If you think you’ve outgrown your current home, let’s connect to discuss local market conditions and determine if now is the best time for you to sell.
Black Friday and Cyber Monday are behind us, yet finding the perfect holiday gifts for friends and family is certainly still top of mind for many right now. This year, there’s another type of buyer that’s very active this holiday season – the homebuyer.
Each month, ShowingTime releases their Showing Index which tracks the average number of appointments received on active U.S. house listings. The most recent index notes:
“The Showing Index reported a 60.9 percent jump in nationwide showing traffic year over year in October, the sixth consecutive month to see an increase over last year.”
Here’s the breakdown of the latest activity by region of the country compared to this time last year:
The health crisis definitely put homebuying plans on pause for many earlier this year. Buyers, however, are in the market and making moves well past the typical busy homebuying seasons of spring and summer.
One of the main reasons buyer traffic has continued to soar in the second half of 2020 is how dramatically mortgage rates have fallen. According to Freddie Mac, the average mortgage rate last December was 3.72%. Today, the rate is a full percentage point lower.
There are first-time, move-up, and move-down buyers actively looking for the home of their dreams this winter. If you’re thinking of selling your house in 2021, you don’t need to wait until the spring to do it. Your potential buyer is very likely searching for a home in your neighborhood right now.
Many of us have gotten accustomed to spending a lot more time at home this year—which is a welcome reality for some and a trying one for others. So make the stay-at-home environment happier for everyone with these ideas for creating enjoyable living spaces.
KITCHEN
Perhaps not surprisingly, sales of foods like tomato sauce, oil, and cheese have skyrocketed this year. It’s a great time to send a friend or family member on a taste adventure with a sampler kit! Hot sauces are always a popular choice for the more daring, as are BBQ sauces and spices. For heartier selections, you can opt for meat-and-cheese baskets or even a vegan jerky sampler pack.
HOME GYM
People are adjusting to working out more in the confines of their homes, even to the point of adding home gyms. So why not help these workout warriors with a perfect gift? Items as simple as exercise bands or hand weights are not only practical but also show that you support their effort to better themselves. Another great idea for the workout warrior in your life? Buying a gift pass or a trial subscription for an at-home fitness program.
LIVING AREAS
Nothing beats the gift of coziness, especially in frequently used rooms. Throw pillows, pillow covers, and throw blankets are affordable options that can add a touch of elegance and personality to anyone’s home. You can also customize these items with their favorite sports teams or animals.
OFFICE
The home office has become more valuable than ever; however, because of the amount of time spent there nowadays, it can start to get unorganized and feel stagnant. You can provide an answer with your holiday gifts! A daily calendar can start each day with a laugh, inspiration, or something to think about, while stackable trays or a drawer organizer can help keep things tidy. Remember: no matter what you choose, make sure it suits the recipient’s space and needs.
The holiday season may look and feel a little different this year, but that doesn’t mean the jolliness has to be left in the past. Keep the joyful spirit alive with these decor ideas, activities, and more seasonal fun that are as heartwarming as a cup of cocoa.
Make the most of being indoors by embracing what makes this time of year so special: decorating! Whether you’re someone who’s amped and ready the day after Thanksgiving or part of the late-decorating-tradition crowd, these ideas are sure to spark a bit more holiday cheer.
FOCUS ON A MINIMALIST AESTHETIC
If the thought of zeroing in on one specific look throughout your space seems boring, think again, because it can actually have the opposite effect. A pared-down aesthetic in every room has the ability to bring the beauty of the holidays to the surface without compromising personal taste. For a festive yet minimal feel in your bedroom, for example, add a little greenery and a throw blanket in a cool tone such as blue, gray, or ivory. Don’t forget a seasonal accent piece like a nutcracker, a snow globe, or macramé. The less-is-more approach elicits a sense of peacefulness while keeping alive the joy that comes with decorating.
ADD GREENERY
As previously mentioned, adding plants to your space livens everything up. But did you know just how many mental and physical benefits you can get from doing so? It can support fresher air quality, help you concentrate, and even boost your mood—replicating that feeling you get when you take a walk through a park, a field, or the woods. So, while this isn’t necessarily a typical holiday decor element, it’ll surely help keep the spirit of the season alive simply by making you feel better. Holly, poinsettia, cyclamen, and Norfolk pine are a few seasonal staples to consider. Shop online at any of these websites: The Sill, Bloomscape, and, for flowers, The Bouqs Co.
MAKE ATMOSPHERE A PRIORITY
Yes, decoration is a key factor in creating a festive atmosphere, but don’t forget about all the other little details that contribute to an unforgettable season. An essential-oil diffuser—Vitruvi and Objecto are fan favorites—fills your home with peppermint, clove, or pine fragrances all day, every day. Considering that smells are firmly tied to memory, nothing evokes holidays of the past quite like diffusing essential oils in nostalgic scents. You can even blend your own cheerful scent by combining drops of clove, orange, and cinnamon in the diffuser. Flood your other senses as you wrap gifts to your customized playlist and snack on festive confections.
Normally, we could go about baking gingerbread cookies and strolling along on a holiday lights tour around the neighborhood, but the uniqueness of this holiday season means taking a different route. This doesn’t mean you can’t bake or hop in the car to see the best light shows near you; it just means you don’t have to be afraid to switch up or swap out old traditions for new ones.
HAVE A BOUQUET-MAKING COMPETITION
This will not only give you centerpiece options for days but also provide an activity people of all ages will enjoy doing. Why? Making floral bouquets will spark creativity, inspire you to learn something new, and ignite your adventurous mindset. Grab a few bouquets of varying colors and styles from your local supermarket—and if it sounds expensive, don’t worry: most stores carry arrangements for less than ten dollars. Pick up garland from a home improvement store (or buy online—Etsy and West Elm have great options). Separate and lay everything out on your table. Play around with pine cones, holly, and even greenery you find outside. Make everyone adhere to a theme for a more competitive element: a minimal look might include a frosted rose bouquet with evergreen tied together with twine, whereas a traditional holiday bouquet might include holly, red amaryllis, and plaid or gold ribbon.
GIVE A LITTLE DIFFERENTLY
Instead of buying gifts for each other, have each person in the family pick a charity of his or her choosing, and donate or create a gift basket for the organization. GuideStar has a directory of both charities and other nonprofits that you can browse through to find one that speaks to you. If you decide to go this route, another helpful resource is CharityWatch, which ensures that you’re making informed decisions when contributing.
Another gift-giving idea is to only buy presents from small businesses. We all saw and felt the impact this year had on mom-and-pop shops, so this is a great way to support those in your local area while also giving gifts that are a bit more one of a kind. Manta is a search engine specifically for finding small businesses. Whether you’re on the hunt for art, baked goods, jewelry, or anything else specific to someone’s personality or favorite hobby, your thoughtful purchases will inspire joy all around.
A good holiday light display can be awe-inspiring, leaving neighbors talking and prompting people from all over town to drive by just to see it. Unfortunately, some of these displays can be difficult to install, and may even require some technical know-how if you want the display to sync to music or have multiple parts working together. There are services that can help with this, putting in the work to set up your lights, regardless of whether you want a modest display or something that would make Clark Griswold green with envy. Are they right for you, though? Here are a few things to consider.
One thing that can influence your decision of whether to DIY your holiday lighting is the complexity of the display you want to create. There might not be much of a need for you to hire someone if you are doing basic decorations or have all the equipment you need to get your lights in place. If you want a large elaborate display, or don’t already have everything that you need to reach and mount lights everywhere you want them, you might be better off hiring someone to get the decorations done.
Putting up lights around the holidays can take a lot of time, especially for larger displays. This is why a lot of people make decorating into a weekend project when there’s more time available to put into it. Between work, family time, and other responsibilities, though, you may not have large blocks of time available to put into your decorations. This can lead to holiday decorating being stretched out across days or even weeks of small bursts of activity, so if you’re in that situation you might consider paying to have it done instead.
Hanging lights might seem like a simple task, but it becomes a lot harder if you don’t have the necessary equipment on hand. While you can get light mounting hooks and other supplies pretty cheaply, you’re looking at bigger expenses if you find that you need to buy a ladder or other equipment just to get to the areas where you want the lights to go. If you don’t already have everything you need, hiring someone who does may be the cheaper and easier option.
Some lighting displays are really impressive, using computers and other specialized hardware to sync multiple display pieces, and in some cases even operating projectors or broadcast music that can be picked up on the FM band. If you’re not very technologically savvy, setting up a display like this might be more of a job than you can realistically handle alone. Bringing in someone with experience setting up these more technology-driven displays can save you some serious time. It may save you money as well, as they’ll make sure that you don’t buy anything that you don’t actually need to get your display working.
When trying to decide whether you can do your decorating yourself or if you need to bring someone else in, consider whether there’s anything else that you need help doing. Some holiday decorating services offer assistance with multiple parts of decorating, including setting up trees or displays inside the house. Some may even offer custom decorations or consulting services to make sure that everything ties together and matches the existing themes of your home. These are all things that you can typically do yourself, of course. Still, if you have a certain look in mind, it’s worth remembering that you may be able to get some help bringing it to life this holiday season.
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Talk of a housing bubble is beginning to crop up as home prices have appreciated at a rapid pace this year. This is understandable since the appreciation of residential real estate is well above historic annual averages. According to the Federal Housing Finance Agency (FHFA), annual appreciation since 1991 has averaged 3.8%. Here are the latest 2020 appreciation numbers from three reliable sources:
It’s easy to jump to the conclusion that house appreciation is out of control in today’s market. However, we need to put these numbers into context first.
Following the housing crash, home values depreciated dramatically from 2007-2011. Values are still recovering from that unusually long period of falling prices. We must also realize that normal inflation has had an impact.
Bill McBride, the founder of the well-respected Calculated Risk blog, recently summed it up this way:
“It has been over fourteen years since the bubble peak. In the Case-Shiller release today, the seasonally adjusted National Index, was reported as being 22.2% above the previous bubble peak. However, in real terms (adjusted for inflation), the National index is still about 2% below the bubble peak…As an example, if a house price was $200,000 in January 2000, the price would be close to $291,000 today adjusted for inflation.”
The pandemic caused many households to reconsider whether their current home still fulfills their lifestyle. Many homeowners now want larger yards that are both separate and private.
Their needs on the inside of the home have changed too. People now want home offices, gyms, and living rooms well-suited for video conferencing. Barbara Ballinger, a freelance writer and the author of several books on real estate, recently wrote:
“While homeowners continue to want their outdoor spaces that offer a safe retreat, that appeal has shifted into other parts of the home, coupling comfort with function. In other words, homeowners want amenities for work and leisure, and they plan to enjoy them long after the pandemic.”
At the same time, concerns about the pandemic have caused many homeowners to put their plans to sell on hold. Realtor.com just released their November Monthly Housing Market Trends Report. It explains:
“Nationally, the inventory of homes for sale decreased 39.2% over the past year in November…This amounted to 490,000 fewer homes for sale compared to November of last year.”
More people buying and fewer people selling has caused home prices to escalate. However, with a vaccine on the horizon, more homeowners will be putting their houses on the market. This will better balance supply with demand and slow down the rapid appreciation.
That’s why major organizations in the housing industry are calling for much more moderate home appreciation next year. Here are the most recent forecasts for 2021:
Finally, let’s put to rest some of the concerns that today’s scenario is anything like what led up to the last housing crash. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains why this is nothing like 2006:
“Such a frenzy of activity, reminiscent of 2006, raises questions about a bubble and the potential for a painful crash. The answer: There’s no comparison. Back in 2006, dubious adjustable-rate mortgages taxed many buyers’ budgets. Some loans didn’t even require income documentation. Today, buyers are taking out 30-year fixed-rate mortgages. Fourteen years ago, there were 3.8 million homes listed for sale, and home builders were putting up about 2 million new units. Now, inventory is only about 1.5 million homes, and home builders are underproducing relative to historical averages.”
Most aspects of life have been anything but normal in 2020. That includes buying and selling real estate. High demand coupled with restricted supply has caused home prices to appreciate above historic levels. With the end of the health crisis in sight, we will see price appreciation return to more normal levels next year.
Last Friday, the Bureau of Labor Statistics released the November Jobs Report. It revealed that, though headed in the right direction, the nation’s job recovery has slowed. The consensus reaction is best exemplified by a quote from Glassdoor Senior Economist, Daniel Zhao:
“We saw positive job gains, but I think the sentiment is largely negative because we know that we’re heading into a dark winter.”
There’s no doubt that millions of households have been - and continue to be -devastated by the economic downturn caused by the pandemic.
We should, however, put the current situation into perspective. Where we currently stand is much better than where most experts thought we would be at this time. Jed Kolko, Chief Economist of Indeed, explained in his State of the Labor Market that, though the situation is not good, we’re doing better than original expectations:
“Though the labor market rebound is incomplete, it has nevertheless surpassed expectations. In May, after payrolls plunged and unemployment spiked, the Wall Street Journal panel of economic forecasters projected unemployment would be over 11% in December 2020 and not fall below 7% until the first half of 2022 — a milestone already passed in October.”
With the announcement that vaccines should be available soon, we’re not far from the most damaged segments of the economy gaining momentum again.
Jeff Sparshott of the Wall Street Journal recently wrote:
“Even with signs of a recent slowdown, the labor-market recovery since this spring has been stronger than most economists expected. Many now project widespread vaccine distribution will eventually help lift the economy further as businesses are allowed to reopen and consumers feel more comfortable traveling, going to the movies.”
Though millions of Americans are still out of work, the situation was forecasted to be even direr than it is today. Once a vaccine becomes available, the economy should complete its comeback, and so should the labor market.