First Time Homebuyers Archives - Page 2 of 3

What’s Ahead For Real Estate in 2022?

The housing market is at a turning point, and if you’re thinking of buying or selling a home, you may have questions.

Is it still a good time to buy a home?
Should I make a move this year?
How does the remainder of 2022 look for residential real estate?

Mortgage Rates Are Subject To Inflation
While buyers question where mortgage rates will go in the months ahead, there is no crystal ball to foretell what will happen. What housing market experts know for sure is that the record-low mortgage rates during the pandemic were an outlier, not the norm.

In 2022, rates have climbed over 2% due to the Federal Reserve’s response to rising inflation. Greg McBride, Chief Financial Analyst at Bankrate, explains:

“Until inflation peaks, mortgage rates won’t either. Without improvement on the inflation front, we don’t know where the interest rate ceiling will be.”

The Supply of Homes for Sale Is Projected To Increase
This year, particularly during the spring, the number of homes for sale in the US increased. That’s partly due to more homeowners listing their houses, but also because higher
mortgage rates helped reduce buyer demand. As buyer demand moderates, inventories rise.

Experts say that growth will continue. Recently, realtor.com increased their 2022 projections for inventory gains dramatically from a 0.3% increase at the beginning of the year
to a 15.0% jump by the end of the year.

While an increase in home selection is great news, there is no sudden surplus of inventory on the horizon. Housing supply is still low. Finding a home will still be a challenge, but not as difficult as it has been over the past two years.

Home Price Appreciation Will Continue
Due to the imbalance between the number of homes for sale and the number of buyers, the pandemic led to record-breaking increases in home prices. According to CoreLogic, homes appreciated by 15% in 2021, and they’ve continued to rise this year.

Selma Hepp, Deputy Chief Economist at CoreLogic, explains why the housing market will see deceleration, but not depreciation, in prices:

“The current home price growth rate is unsustainable, and higher mortgage rates coupled with more inventory will lead to slower home price growth but unlikely declines in home prices.”

If you’re thinking about buying your first home or you’re ready to make a move, it may make sense to do so now before prices climb higher.

Contact me and let’s work together to determine the best plan for your move.

Source: KeepingCurrentMatters

The Future of Home Values

Many consumers are wondering what will happen with home values over the next few years. Some are concerned that the recent run-up in home prices will lead to a situation similar to the housing crash 15 years ago.

However, experts say the market is totally different today. They believe that price appreciation needs to slow, but continued price growth is supported by market fundamentals: limited supply, lower rates, and demographic demand. Because credit quality is better, debt to income is lower, and equity is plentiful, a crash in prices is believed to be unlikely.

While price appreciation will slow from the double-digit levels the market has seen over the last two years, experts believe home values will not depreciate.

A recent survey of over 100 economists, real estate experts, and investment and market strategists suggests home prices will continue appreciating over the next
five years.

Those responding to the survey believe home price appreciation will still be relatively high this year and then return to more normal levels over the next four years.

What Does This Mean For You As A Buyer?
With a limited supply of homes available for sale, and both prices and mortgage rates increasing, it can be a challenging market to navigate as a buyer. Buying a home sooner rather than later does have its benefits. If you wait to buy, you’ll pay more in the future.

If you buy now, you’ll be in the position to make future value increases work for you. Rising home prices will help build your home’s value and your own household wealth through home equity.

Bottom Line
If you’re trying to decide whether to buy now or wait, the key is knowing what’s expected to happen with home prices. If you want to get started, connect with me today.

Source: keepingcurrentmatters.com

Prepare For The Busy Housing Market

Homebuyers continue to face an uphill battle in the current homebuying season.

Home values skyrocketed by nearly 20% in 2021, according to the recent data by the S&P Case-Shiller national index of home prices.

While housing prices aren’t expected to drop this year, some experts believe home values will increase at roughly half the rate (single-digit increases) of the peak in 2021.
Here’s what to expect from the market in coming months and what you can do about it.

Preparing to Sell
The good news for sellers is that buyers looking for homes are still expected to outnumber the homes for sale. Overall, home prices are expected to continue to increase, but demand can vary from one neighborhood to the next.

If you plan to complete any maintenance or major upgrades before listing your home, start that process as
soon as possible. You’ll need more time to obtain materials and find trade professionals to do the work.

While market activity still favors sellers, there could be a reduction in bidding war activity, depending on the local market. In Northern Colorado, bidding wars continue
to be common across price ranges.

Preparing to Buy
Mortgage rate increases are forecast to continue. In early April, 2022, rates were about 1% higher compared to April, 2021. Determine how this affects your buying power and
adjust your target price range accordingly.

Know your home buying budget so you’re clear about what you’re willing to spend for a property that meets your needs.

Save for your down payment, closing costs, and unexpected repairs and maintenance.

First time buyers looking for more affordable homes will continue to face strong competition from a large demographic of buyers in search of their first home.

Given that specific types of homes will have more demand, be as flexible as possible with the type of home you want to buy.

A larger percentage of the workforce has the opportunity to work from home, which may fuel competition in housing markets typically known to be more affordable, such as smaller cities and suburbs of cities. Be open and flexible about where you want to buy.

Due to the strong seller’s market, buyers need to be patient. It’s important to buy when the time is right for you. Buying a home should make sense for your personal and financial situation. Don’t make a panic-driven buying decision and end up with a home purchase that causes regret.

You may not find your dream home today, but a home that works for you right now can be a stepping stone to another home down the road.

Contact me to discuss your plans for selling your current home or buying your next home!

Source: Nextadvisor

Wildfire Preparedness

Wildfire Preparedness:

Homeowners insurance typically covers property losses caused by wildfire and coverage continues to be available in most wildfire prone areas.

Many insurance companies require customers to share the wildfire risk by taking precautions to protect their property, requiring on-site inspections and notifying policyholders of necessary mitigation that will reduce risk to their home and keep it insurable.

Additional insurance considerations include:
• The type of construction, materials, and features on your home, including the
roofing, windows and siding.
• Distance to a fire hydrant and a fire station.
• Insurers consider many individual and geographical risk factors beyond
wildfire that affect premiums and insurability, such as hail proneness and
unique construction.

Wildfire Mitigation Resources:
• Firewise USA®: Provides instructional resources to inform communities how to
adapt to living with wildfire. csfs.colostate.edu/ wildfire-mitigation/coloradofirewise-communities/
• The Colorado State Forest Service: Provides professional forestry assistance,
wildfire mitigation expertise and outreach and education to help landowners
and communities reduce wildfire risk. csfs.colostate.edu/wildfire-mitigation
• The Fire Adapted Communities Coalition is committed to helping people and
communities in the wildland-urban interface adapt to living with wildfire and
reduce their risk for damage. FireAdapted.org

For more information, visit the resource center at coloradoprojectwildfire.com

General tips for maintaining your home insurance policy:
1. Schedule annual reviews with your insurance agent.
2. Understand the difference between replacement cost and market value.
3. Feel confident that the replacement cost of your home is sufficient to rebuild it.
4. Ask your insurance agent if your replacement cost automatically updates over time.
5. Photo or video the condition and contents of your home. Keep accurate inventories of personal possessions for faster and smoother claims’ settlements. Store video and photo records in the cloud. Check out these resources: https://one.google.com/about, https://www.carbonite.com, https://www.idrive.com, https://www.dropbox.com

Contact your insurance company or agent to learn more about reducing wildfire risk for your home.

Source: coloradorealtors.com; Unruh Allstate Team, Windsor, CO
Photo by Sippakorn Yamkasikorn from Pexels

Forecast: 2022 Real Estate Market Will Be A Mixed Bag

From remote work trends impacting where people can live to affordability issues cropping up as home prices rise, the real estate markets in 2022 will have a fair share of new challenges and opportunities. According to the realtor.com® 2022 Housing Forecast, next year is set to be a mixed bag.

Housing trends to watch in 2022:
• While 2020-2021 brought a homebuying frenzy largely fueled by first-time millennial homebuyers, potential homeowners will face increased competition for at least the
next three years.
• Workplace flexibility and higher incomes may give employees the advantage in 2022 with more sellers looking to move because they no longer need to live near the office.
• The suburbs will become increasingly popular compared to big urban metros as home shoppers search for more space— a trend brought on by the pandemic. However, as
demand is expected to outpace new construction growth, buyers may have to sacrifice space due to affordability constraints.
• Hispanic homeownership is predicted to rise in 2022, driving housing demand and impacting the homeownership rate for years to come.

The takeaway:
“Whether the pandemic delayed plans or created new opportunities to make a move, Americans are poised for a whirlwind year of home-buying in 2022,” according to
realtor.com® Chief Economist Danielle Hale.

While buyer competition will remain fierce, more sellers will be entering the market. “We anticipate strong home sales growth at a more sustainable pace than in 2021,” explained Hale.

“Affordability will increasingly be a challenge as interest rates and prices rise, but remote work may expand search areas and enable younger buyers to find their first homes sooner than they might have otherwise,” added Hale.

With more than 45 million potential millennial buyers between the ages of 26-35, the market is expected to remain competitive.

George Ratiu, manager of Economic Research for realtor.com®, commented, “With most real estate markets expected to be competitive in 2022, it’s important to remember that you’re in the driver’s seat of your real estate journey.”

“The bottom line for buyers is to make sure you’re comfortable with your timeline and budget — and especially for younger buyers making this massive financial decision for
the first time. For sellers, take into account your local market conditions as well as the likely increase in the number of homes for sale, and price yours competitively.”

Give me a call to discuss your real estate opportunities in 2022!

Source: rismedia.com