With yesterday’s news that the Federal Reserve (aka the Fed) may raise interest rates again, many homebuyers may be considering what their next move is.

Do they continue to house hunt?

Is now still the right time to buy a home?

Should they leap at the next house that becomes available?

Since buying a home is a big decision, these questions are always swirling. However, with the current housing market, they are more commonplace. One thing is certain, homebuyers should not panic. Panic leads to mistakes. The market always has its ups and downs, but any decision made should be based on the day-to-day needs of the prospective homebuyer.

Today’s blog post from Realtor.com, “The Massive Mistake Homebuyers May Be Tempted To Make Right Now: Is This You, Too?,” highlights concerns buyers have; especially when the market is unpredictable.

Example of Buyer Mistake

The post shares the story of buyers that put their housing search on hold. Their thought was prices would come down, but instead prices continued to rise. They inevitably panicked and purchased the home they were renting, even though it was too small and the layout didn’t suit their family. This is considered “FOMO buying” by an agent with Pacific Sotheby’s International Realty in San Diego. Fear of missing out should not be the reason to purchase a home…ever.

As Realtor.com’s Chief Economist Danielle Hale notes, “It is not a good idea to try to time the market. No one has a perfect view into the future. Whether you think rates or prices are going up or going down, the world may not evolve the way you expect it to. We all have to make decisions with that uncertainty.”

If you are in the market to buy a home, you’ll want to read through this post. Next step, meet with a realtor in the area of your home search. They will be able to guide and advise you to make the best decision based on your needs alone; not the ups and downs of the housing market.

Photo credit: Marco Verch Professional Photographer on Flickr. This image is available under Creative Commons 2.0.

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With the current state of the market and the high rate of inflation over the past year, it is imperative now more than ever that you know what you want and what you are willing to take on when buying or selling a home. This will include your needs now and in the future. First step is always to write things down; think pros and cons list but this time you’ll be answering specific questions to help you define your goals.

A blog post from Keeping Current Matters from January 2^nd of this year highlights the key questions you should be asking yourself if you plan to enter the housing market in 2023. These include:

• What’s Motivating You?
• What Does Your Next Home Look Like?
• How Ready Are You To Buy?

Go ahead; answer these questions. Even with uncertainty in the market, you’ll know for certain what you are looking for. Once you have that piece, local experts from mortgage professionals to realtors are ready to step in and help you reach your goals.

The post Your Housing Market Goals in 2023 appeared first on Laffely Real Estate Associates.

The biggest story in real estate hasn’t changed much over the past few months. Inventory of homes for sale remains low, while demand remains high. It doesn’t appear this tale is set for a plot twist anytime soon either. According to several recent blog posts since the turn of the year from Keeping Current Matters (KCM), now is the time to sell!

Why? We already mentioned the top two reasons, and this KCM post from February 10^th titled, “Want Top Dollar for Your House? Now’s the Time To List It,” gives you all the details regarding why they are still the top two reasons. Hint: High Demand, Low Inventory and the industry is still seeing record home sales!

These are not the only two reasons to factor in if you are considering selling. A post from January 18^th of this year titled, “Sellers: Don’t Wait Until Spring To Make Your Move,” the KCM crew points out that home owners are sitting on record amounts of equity. They site a recent report by CoreLogic that noted in the past 12 months the average homeowner has gained $56,700 in equity. With this much equity alone, you may be able to cover the down payment if you are considering buying a new home.

Another factor is mortgage rates which are set to rise in 2022. This reason is pushing more buyers into the market sooner, but can also affect sellers who are planning to move up or downsize. A January 19^th KCM story titled, “With Mortgage Rates Climbing, Now’s the Time To Act,” highlights this point. The post looks at projections from Freddie Mac which suggests rates will rise by 0.1 percent per quarter. This would bring us from 3.4 percent in Q1 to 3.7 percent in Q4 of this year. Even though this may seem like a small increase, even small increases add to your overall payment.

Finally, one other point we came across when perusing KCM’s recent posts. New construction will be a home sellers’ greatest competition this spring. Now we know new homes have their appeal, as do existing homes. So, why will this be a concern this year over others? The post titled, “Why Waiting To Sell Your House Could Cost You a Small Fortune,” notes that over 979,000 new single-family units were approved for building permits in 2020, according to the U.S. Census Bureau. However, these homes are yet to be built due to labor and materials shortages.

Yes, this is a lot to take in but you’ll want to weigh all these factors to determine what makes the most sense for your home sale. Is now the time to list your home? One step that can help you determine this is understanding the local real estate market in your area and your home’s value in that market. A local realtor can provide this information as well as other insight to help with your next move.

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As we enter the New Year, it’s a time for predictions. What will the 2022 real estate market look like? If you are planning on buying or selling this year, we know this question is top of mind.

While no one can predict the future, it seems we may see some similarities to 2021. According to Danielle Hale, Chief Economist at realtor.com, 2022 will continue to be a seller’s market. However, if you watch her recent video post, she does note some shifts.

Yes, Hale mentions that homes will continue to move quickly and prices will rise; however, she also points to the fact that there will be less competition overall. Hale adds that price growth will return to a more normal rate, but we do have to consider that prices are starting at 2021’s highs. The market will also see rising mortgage rates and more inventory.

Fueling the market in 2022 will be a new generation of homebuyers. Millennials will be a key buying demographic in 2022 as many will be at the prime age for buying a home. This will help fuel the market; as well as the trend of suburban living. Many millennials, and homebuyers in general, will continue to search for their forever home outside the city; a trend accelerated by the pandemic. The suburbs tend to offer more flexible space to live, work and play, and as people continue to spend more time at home the need for this space will be prevalent.

A final note from Hale, rising rents will also push more buyers into the market this year as they weigh the benefits of renting versus owning (stay tuned we are working on a post on this topic).

As stated above, nothing is set in stone but these are some things to consider as we look ahead into 2022. As always, we are here to help navigate the market in our area and would love the opportunity to help with your next move.

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Instead of focusing on current real estate news this week, we looked back a ways, and found an article that could prove very helpful if you are moving forward with your plan to buy a home this year. There are often times buyers cannot visit a home, especially now when sellers may not be as open to in-person showings. This leaves many buyers counting on their agents as their personal home shoppers, previewing properties or doing showings via video platforms, like FaceTime.

This article, featured on Zillow’s Porchlight blog in May of 2018, shares the story of a couple that purchased a home sight unseen. Yes, they were moving from a different state and needed to act fast. While this is different from the scenarios buyers might find themselves in today, it still provides a helpful look into buying virtually and tips for making things easier. These include:

1. Sketch it out: Get dimensions and create a layout, so you can see how your personal items will fit in a space and if it will work for you.

2. Preview the views: Listing photos don’t always show you everything. Enlist your realtor to take photos or videos around the neighborhood, as well as through windows in the home. This way you can see exactly what you’ll be looking at while relaxing in your living room.

3. Embrace the folder: A move is hectic, and things can be misplaced. Be sure one of those things is not all the paperwork needed to complete your purchase. This is important now more than ever with closings happening virtually. If you are printing documents, get the brightest folder you can (one that screams important!) and put it in a safe place; or if you are filing documents digitally, make sure you know where to find them on your computer.

4. Take care of yourself: Okay, we can’t hit the gym right now; but we can stick to routines. Go for a walk, do yoga, relax and read a book. Whatever helps you unwind! Don’t neglect yourself or your family, and focus solely on packing and prepping.

5. Brace for impact: When you first walk into your new home as its owner, you might be a bit taken aback. Don’t freak out. Give it some time, settle in and start unpacking. Ultimately you chose the house, and it will feel like “home” in no time.

We hope these tips provide some insight. If you are thinking of buying this spring, we are happy to answer any questions and discuss options for your move.

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You can look at homes currently on the market and the list price. You can also look at homes that have sold; but how do you know what they sold for?

A comparative market analysis (CMA) can give you the answers you are looking for, but most current or future home owners wouldn’t know where to begin gathering information.

So why is a CMA so important, what is it and who creates one? We answer these questions here:

Why is a CMA important?
No two homes are the same so choosing a sales or offer price can be challenging. Enter the CMA!

What is a CMA?
A side-by-side comparison of homes for sale, recently sold or under contract that are similar to the subject property. It is used to estimate the market value of the property.

Who can create a CMA?
CMA’s are created using information found in a real estate agents’ multiple listing service (MLS). Available to licensed agents ONLY, this tool allows for in-depth analysis of a home’s worth in today’s market.

Want more detail? We came across this realtor.com post that explains the CMA using examples. Check it out for yourself and know, any real estate decision is a big one. You must ensure you have all the information needed to make an educated decision whether selling or buying. A realtor who understands the value of the CMA and will put in the time to conduct a thorough analysis is a key part of any real estate decision you make.

We believe this analysis is a key first step to any listing or offer. If you are considering a move this year, we’d love the opportunity to discuss our sincere approach to creating a detailed CMA.

The post CMA: Discovering a Home’s Value appeared first on Laffely Real Estate Associates.

Buying a home is a huge, and sometimes scary, step for anyone. From showings to offer, home inspection to closing, and all the steps in between, there’s a lot to consider whether it’s your first time buying a home or you are a seasoned buyer. Each home purchase is different but there are a few common things you should know not to do when you are buying a home.

This video post from realtor.com covers five things to never do when buying a home:

#1: Don’t house hunt without an agent.

#2:  Don’t meet just one mortgage lender.

#3:  Don’t hold out for the perfect house.

#4:  Don’t forget to budget for closing costs.

#5:  Don’t make big purchases before you close.

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Buying, or selling, a home should not be restricted to the spring, summer, or even fall. Winter can be a good time to go house hunting as well. Yes, we know the weather isn’t always ideal, and we are all busy with holiday preparations and celebrations; but do not let these factors stop you from finding your dream home.

While many focus on the negatives of buying in the winter, there are definitely positives too. This recent post from Massachusetts Real Estate News highlights the benefits of continuing your search and even scheduling your move during the colder, New England months.

Here are a few reasons why:

1. There’s less competition than trying to buy in the spring or summer
2. Sellers and their realtors are more motivated
3. Moving companies are not overbooked, and tend to be more available
4. Your home could close faster
5. Sellers often have extenuating circumstances for listing their home
6. Lock-in low interest rates now
7. You can see how your potential home performs during the winter months

After you’ve read the full post and gone over the pros and cons for buying in the winter, search current inventory in your area and set up a meeting with a local realtor to discuss your next move. Winter may just be the perfect season!

The post Don’t Avoid Buying a House This Winter appeared first on Laffely Real Estate Associates.

Before we know it, we’ll be ringing in the New Year! If buying a home is a 2019 goal, you’ll want to start planning now.

Even if you are not prepared to hire an agent or start your home search, there are necessary steps to make buying a home a reality. At realtor.com, they’ve pulled together a great video that features “5 Habits to Start Now to Buy a Home Next Year.”  You’ll want to pay attention…

#1:  Automate your down payment savings.

#2:  Build your credit history and keep it clean.

#3:  Practice living on a budget.

#4:  Get your handy on so you’re ready for basic home maintenance tasks.

#5:  Do your homework.

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In fact, according to the survey, 73% of homebuyers noted that schools were important when searching for a new home. The survey findings further identified this as an important factor for young buyers with 86% of 18-34 year olds and 84% of 35-54 year olds indicating school district as a key factor in their home search.

What is more surprising is the fact that 78% of those surveyed would be willing to give up “must-have” home features in favor of a good school district. We’ve highlighted those features in this chart, and they include a garage, large backyard, updated kitchen, number of bedrooms and outdoor living area.

And, what do buyers consider important when it comes to living in a good school district. Based on responses to the Realtor.com survey, key attributes of a good school include test scores (59%), accelerated programs (53%), arts and music (49%), diversity (43%), and before- and after-school programs (41%).

These findings prove that above everything, quality of education tops the must-have list for parents and parents-to-be. If you are searching for a home and school district matters, be sure to discuss this point with your real estate agent. Often local agents are a wonderful resource for information on the area, including schools.

The post Buyers Prioritize School District Over Must-Have Features appeared first on Laffely Real Estate Associates.