Thinking about selling your house this year? As you decide, consider what’s pushing you to think about moving. A recent survey from Realtor.com looked into why people want to sell their homes this year. Here are the top two reasons (see graphic below): Let’s look closer and see if they’re also motivating you to make a change.
1. To Make a Profit If you’re thinking about selling your house, you probably have a lot of questions on your mind. Well, here’s some good news — the latest data shows most sellers get a great return on their investment when they sell. ATTOM, a property data provider, explains: “. . . home sellers made a $121,000 profit on the typical sale in 2023, generating a 56.5 percent return on investment.” That’s significant. And here’s one contributing factor. During the pandemic, home prices skyrocketed. There was way more buyer demand than homes available for sale, pushing prices up. Now, home prices are still rising, just not as fast. That ongoing appreciation is good news for your bottom line. Any profit you make can help offset some of today’s affordability challenges when you buy your next home. Talk to a local real estate agent if you want to know how much your house is worth now and what’s happening with prices in your area. 2. For Family Reasons Maybe you want to be near relatives to help care for older family members or have more support nearby. Or maybe you’re just eager to spend time together on special occasions like birthdays and holidays. Selling a house and moving closer to the people who matter the most to you helps keep you connected. If the distance makes you miss out on some big milestones in their lives, it might be time to talk to a local real estate agent to find a nearby place. The National Association of Realtors (NAR) says: “a great real estate agent will guide you through the home search with an unbiased eye, helping you meet your buying objectives while staying within your budget.” Bottom Line Thinking about selling your house? There’s probably a good reason for it. Let’s talk with real estate agents in Chicago, IL, so you have help making the right move to reach your goals this year.
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Are you thinking about selling your house? If so, you might be weighing factors like today’s mortgage rates and changing needs to determine your next move. Here’s something else to consider. According to the latest Home Purchase Sentiment Index (HPSI) from Fannie Mae, the percentage of respondents who say it’s a good time to sell is on the rise (see graph below): Why Are Sellers Feeling so Optimistic?
One reason is because right now is traditionally the best time of year to sell a house. A recent article from Bankrate says: “Late spring and early summer are generally considered the best times to sell a house. . . . while today’s rates are relatively high, low inventory is still keeping sellers in the driver’s seat in most markets.” These are the seasons when most people move. That means buyer demand grows. And because there still aren’t enough homes for sale to meet that demand, sellers see some serious perks. According to Rocket Mortgage: “homes that are listed at the end of spring and the beginning of summer typically sell faster at a higher sales price.” What Does This Mean for You? More sellers are realising conditions are ripe for a move, which is one reason we’re seeing more homeowners put their homes up for sale. If you think you might want to get in on the action, it’s a good idea to start preparing. A local real estate agent can help you prepare your house by offering advice on how best to fix it and make it appealing to buyers in your area. They also know if you list during the peak buying seasons of spring and early summer, you might sell quickly and for a higher price. Bottom Line If you list during the spring and early summer, you might sell your house quickly and for a higher price. When you’re ready to make the most of today’s seller’s market, let’s get in touch. The number of homes for sale plays a big role in today’s housing market. And, if you’re considering whether or not to list your house, today’s limited supply is one of the biggest advantages you have right now. That’s because your house stands out more when the inventory is low, especially if priced right. But the supply of homes for sale is growing. According to the latest data from Realtor.com, new listings (homeowners who just put their house up for sale) are trending up (see graph below): This graph shows that more homeowners are putting that sale sign up in their yards than last year. As Realtor.com says:
“. . . sellers turned out in higher numbers this march as newly listed homes were 15.5% above last year’s levels. This marked the fifth month of increasing listing activity after a 17-month streak of decline.” What This Means for You If you’ve been putting off selling your house in Chicago, Illinois, or nearby areas, maybe it’s time to start thinking about it again — before your neighbours do. While we’re not going to suddenly have a surplus of homes for sale, each house that pops on the market in your area risks pulling buyer attention away from yours. For example, if your neighbour gets in on the action and lists their house, too, you’ll have competition right next door. You don’t want buyers to tour your house and fall in love with someone else’s; you want yours to be in the spotlight. A great agent can make that happen. They’ll help you get your house ready to list, draw attention to everything today’s buyers are looking for, and help you price it right. That way, buyers will be drawn to your listing and eager to make it their home. If you’re ready and able to sell now, here’s your chance to get the best of both worlds. Since the supply of homes for sale is growing, you’ll have more options for your move. But you’ll also be able to sell while your house will still stand out. Bottom Line Even though inventory is still low, you don’t want to wait for more competition in your neighbourhood. Let’s connect with top-rated real estate seller agents in Chicago, Illinois, to go over the perks of selling before more homes come to the market. Thinking about buying a home in your area? While today’s mortgage rates might seem intimidating, here are two solid reasons why, if you’re ready and able, it could still be a smart move to get your place. 1. Home Values Typically Go Up Over Time There’s been some confusion over the past year or so about which way home prices are headed. Make no mistake, nationally, they’re still going up. In fact, over the long term, home prices almost always go up (see graph below): Using data from the Federal Reserve (the Fed), you can see the overall trend is home prices have climbed steadily for the past 60 years. There was an exception during the 2008 housing crash when prices didn’t follow the normal pattern, but generally, home values kept rising. This is a big reason why buying a home can be better than renting. As prices go up and you pay down your mortgage, you build equity. Over time, this growing equity can increase your net worth. The Urban Institute says: “homeownership is critical for wealth building and financial stability.” 2. Rent Keeps Rising in the Long Run Here’s another reason you may want to think about buying a new home instead of renting — rent just keeps going up over the years. Sure, it might be cheaper to rent right now in some areas, but every time you renew your lease or sign a new one, you’re likely to feel the squeeze of your rent getting higher. According to data from iProperty Management, rent has been going up pretty consistently for the last 60 years, too (see graph below): So, how do you escape the cycle of rising rents? Buying a home with a fixed-rate mortgage helps you stabilize your housing costs and say goodbye to those annoying rent increases. That kind of stability is a big deal.
Your housing payments are like an investment, and you have a decision to make. Do you want to invest in yourself or keep paying your landlord? When you own your home, you’re investing in your future. Even when renting is cheaper, the money you pay every month is gone for good. As Dr. Jessica Lautz, Deputy Chief Economist and VP of Research at the National Association of Realtors (NAR), says: “if a homebuyer is financially stable, able to manage monthly mortgage costs, and can handle the associated household maintenance expenses, then it makes sense to purchase a home.” Bottom Line If you’re tired of your rent increasing and want to explore the many benefits of homeownership, let’s talk with real estate agents to explore your options. You may have heard mortgage rates will stay a bit higher for longer than originally expected. And if you’re wondering why, the answer lies in the latest economic data. Here’s a quick overview of what’s happening with mortgage rates and what experts say is ahead. Economic Factors That Impact Mortgage Rates When it comes to mortgage rates, the job market, the pace of inflation, consumer spending, geopolitical uncertainty, and more all impact them. Another factor is the Federal Reserve (the Fed) and its decisions on monetary policy. And that’s what you may be hearing a lot about right now. Here’s why. The Fed decided to start raising the Federal Funds Rate in early 2022 to try to slow down the economy (and inflation). That rate impacts how much it costs banks to borrow money from each other. It doesn’t determine mortgage rates, but they do respond when this happens. And that’s when mortgage rates started to climb. And while there’s been a ton of headway seeing inflation come down since then, it still isn’t back to where the Fed wants it to be (2%). The graph below shows inflation since the spike in early 2022 and where we are now compared to their target rate: As the graph shows, we’re much closer to their goal of 2% inflation than we were in 2022 — but we’re not there yet. It’s even inched up a hair over the last 3 months, impacting the Fed’s plans. As Sam Khater, Chief Economist at Freddie Mac, explains:
“strong incoming economic and inflation data has caused the market to re-evaluate the path of monetary policy, leading to higher mortgage rates.” Basically, long story short, inflation and its impact on the broader economy are going to be key moving forward. As Greg McBride, Chief Financial Analyst at Bankrate, says: “it’s the longer-term outlook for economic growth and inflation that has the greatest bearing on the level and direction of mortgage rates. inflation, inflation, inflation — that’s really the hub on the wheel.” When Will Mortgage Rates Come Down? Based on current market data, experts think inflation will be more under control, and we say see the Fed lower the Federal Funds Rate this year. It’ll just be later than originally expected. As Mike Fratantoni, Chief Economist at the Mortgage Bankers Association (MBA), said in response to the Federal Open Market Committee (FOMC) decision yesterday: “The FOMC did not change the federal funds target at its May meeting, as incoming data regarding the strength of the economy and stubbornly high inflation have resulted in a shift in the timing of a first rate cut. we expect mortgage rates to drop later this year, but not as far or as fast as we previously had predicted.” In the simplest sense, this says that mortgage rates should still come down later this year. However, timing can shift as new employment and economic data emerge, geopolitical uncertainty remains, and more. This is one of the reasons it’s usually not a good strategy to try to time the market. An article in Bankrate gives buyers this advice: “ trying to time the market is generally a bad idea. if buying a house is the right move for you now, don’t stress about trends or economic outlooks.” Bottom Line If you have questions about the housing market and what it means for you, contact the real estate experts at KM Realty Group LLC. When considering financial investments, one question that often arises is whether buying a home is a good investment.
The value of homes in Chicago, IL, makes this decision all the more significant. Let's delve into the data and explore why purchasing a home can be a smart financial move. The Reliability of Home Price Appreciation According to Brian D. Luke, Head of Commodities at S&P Dow Jones Indices, home prices have consistently shown a history of appreciation, with 2023 surpassing the average annual home price gains of the past 35 years. This graph displays how home prices have changed since 1980, demonstrating the general upward trend. The Growing Real Estate Market in Chicago The U.S. real estate market has proved reliable in increasing in value over time, except the housing market crash in 2008. However, the current market differs significantly from that time. There is currently a shortage of available homes, driving up demand. Homeowners today also possess substantial equity, ensuring their stability in the market. As a result, the fear of a wave of foreclosures affecting prices is significantly diminished. The Value of Homeownership as an Asset Owning a home provides the advantage of owning an asset with the potential to appreciate in value. As your home's value increases, your net worth grows. This consistent growth over time makes buying a home a wise investment decision, as highlighted by Forbes. Considering Financial Stability and Preparedness for Homeownership It's important to note that buying a home should be considered in light of your financial stability and preparedness for homeownership costs. If you find yourself in a favorable financial situation, purchasing a home can offer significant long-term benefits. Expert Guidance for Homeownership in Chicago Navigating the process of homeownership can be complex, especially for first-time buyers. That's why it is essential to seek guidance from real estate experts who are familiar with the value of homes in Chicago. KM Realty Group LLC specializes in the Chicago real estate market and can provide valuable insight and assistance throughout the home buying process. They can help you identify suitable properties, negotiate favorable terms, and guide you toward a successful homeownership journey. Conclusion In conclusion, the value of homes in Chicago, IL, coupled with historical data on home price appreciation, demonstrates that buying a home is a smart investment choice. If you are ready and able to take on the responsibilities of homeownership, reaching out to real estate experts such as KM Realty Group LLC can help you explore available options in the Chicago area. To learn more about the value of homes in Chicago, IL, and make an informed decision about buying a home, visit KM Realty Group LLC's website. If you have been contemplating buying a home, mortgage rates are likely at the forefront of your mind.
The fluctuation of these rates can often dictate whether it is the right time to make your move. In this article, we will explore the key mortgage rate factors to consider to ensure that you make your move at the right rate. The Impact of Mortgage Rates on Homebuying Decisions When mortgage rates rise significantly, many potential homebuyers find themselves putting their plans on hold. The affordability of purchasing a home can be greatly affected by higher mortgage rates. Data from Bright MLS reveals that high mortgage rates are the top reason for buyers postponing their plans. Projections and Optimism for Decreasing Rates Despite the unpredictable nature of mortgage rates, experts remain optimistic about the future. Projections are indicating that rates will continue to decrease throughout this year, provided inflation remains under control. Some experts even suggest that rates may fall below 6% by the end of 2024. Such a decline would present a significant opportunity for potential buyers. Determining Your Optimal Mortgage Rate To determine the right mortgage rate for your move, it is crucial to have a specific target in mind. This target would be the percentage at which you feel comfortable initiating your home search once again. Whether it's 6.5%, 6.25%, or below 6%, identifying your ideal rate will allow you to make informed decisions regarding your moving plans. Staying Informed and Seeking Professional Guidance To navigate the complex world of mortgage rates, it is advisable to connect with a local real estate professional. These experts can provide valuable insights and keep you updated on the latest rate fluctuations. They will be instrumental in informing you when rates align with your target, ensuring that you are well-prepared to make your move. Conclusion If higher mortgage rates have caused you to delay your plans, remember that the market is dynamic and subject to change. By defining your target rate and staying connected with a real estate professional, you can seize the opportunity when rates align with your goals. Don't let these fluctuations discourage you from achieving your dream of buying a home. For more information on mortgage rates for buying a home and key factors to consider, visit our new blog. If you're a homebuyer on a budget, considering a fixer-upper can be a smart move to find a home you can afford while also having the opportunity to create your dream space.
However, it's crucial to identify the right fixer-upper to ensure you make a wise investment. Here are some tips and strategies to help you identify the perfect fixer-upper for your needs. 1. Make a List of Must-Haves, Nice-To-Haves, and Dream Features Start by creating a list of features you absolutely must have in a home. These are non-negotiable and directly impact your lifestyle. Next, categorize nice-to-have features that would be desirable but not deal-breakers. Lastly, dream big and include features that would be ideal if within your budget. This list will help you prioritize your search and identify the fixer-uppers that align with your needs. 2. Collaborate with a Knowledgeable Real Estate Agent Partnering with a real estate agent who specializes in fixer-uppers can be invaluable. They have the expertise and network to assist you in finding suitable properties. Share your list of requirements with your agent, and they will help you identify fixer-uppers that have the potential to become your dream home. Additionally, they can provide guidance on the local market, potential resale value, and recommended renovations. 3. Assess the Property's Structural Integrity When considering a fixer-upper, it's important to assess the property's structural integrity. Look for signs of major issues such as foundation problems, roofing issues, or electrical and plumbing issues. While cosmetic updates are easier to tackle, major structural issues can significantly impact your budget and timeline. It's advisable to consult with professional inspectors to get a thorough assessment of the property's condition. 4. Evaluate the Renovation Potential Consider the renovation potential of the fixer-upper. Focus on the layout and flow of the home. Determine if any load-bearing walls can limit your ability to make desired changes. Assess the size of the rooms and if they can be reconfigured to better suit your needs. Evaluate the overall potential for cosmetic updates and improvements that can add value to the property. 5. Estimate Renovation Costs and Return on Investment Before making an offer on a fixer-upper, it's crucial to estimate the renovation costs and potential return on investment. Consider the cost of necessary repairs, updates, and any desired improvements. This will help you determine if the investment aligns with your budget and financial goals. Consult with contractors and experts to get accurate estimates and projections. Conclusion Identifying the perfect fixer-upper requires careful consideration of your must-haves, collaboration with a knowledgeable real estate agent, assessment of structural integrity, evaluation of renovation potential, and estimation of renovation costs and return on investment. To explore available fixer-upper options and get expert guidance from top-rated real estate brokers, visit our blog “Finding Your Perfect Home in a Fixer-Upper”. Start your journey towards homeownership and create your dream home within your budget. 3/7/2024 Rightsizing Your Home in Retirement: Prioritizing Your Lifestyle and Financial GoalsRead NowIn retirement, rightsizing your home can be a strategic move that allows you to prioritize your lifestyle and achieve your financial goals.
Whether you're looking to downsize to a smaller home or upgrade to a more suitable property, finding the right size for your needs plays a crucial role in maximizing your retirement experience. Read our blog to discover the benefits of downsizing and how it can empower you to live your best retirement life. Assessing Your Lifestyle and Future Needs Rightsizing goes beyond simply downsizing; it involves evaluating your current lifestyle and future needs to find a home that suits you best. Consider factors such as location, proximity to amenities, accessibility, and space requirements to ensure your new home aligns with your retirement goals. By matching your home to your lifestyle, you can create an environment that promotes comfort, convenience, and fulfillment. Financial Considerations and Opportunities Rightsizing your home provides an opportunity to optimize your financial situation in retirement. If you're downsizing to a smaller property, you can potentially reduce your housing costs, including mortgage payments, utility bills, and maintenance expenses. Alternatively, if you're upgrading to a more suitable home, you can invest in features that support your desired lifestyle while still maintaining financial stability. Leveraging Home Equity and Building Wealth One of the major advantages of rightsizing is the ability to leverage your home equity. Selling your current property can unlock the equity you have built up over the years, providing additional funds that can be used for retirement purposes. Whether you choose to reinvest the proceeds, pay off debts, or supplement your income, utilizing your home equity strategically can help build long-term wealth and enhance financial security. Partnering with a Real Estate Expert To navigate the rightsizing process with confidence and maximize your outcome, it's essential to partner with a real estate professional who specializes in retirement transitions. A knowledgeable agent can assist in determining your financial objectives, identifying potential properties, and negotiating on your behalf. Their expertise can help you make informed decisions and ensure a smooth transition to your new home. Conclusion Rightsizing your retirement home is a thoughtful approach that allows you to prioritize your lifestyle and financial goals. By assessing your needs, considering the financial implications, and leveraging your home equity, you can create a living situation that supports your retirement dreams. Read our main blog to gain deeper insights into the benefits of downsizing and discover how it can empower you to live your best retirement life. When it comes to selling your house, one crucial factor that shouldn't be underestimated is providing easy access for potential buyers.
In this article, we will explore why easy access matters in the real estate market and how it can significantly impact the success of selling your house. Importance of Easy Access: When selling your house, it is essential to make it as convenient as possible for buyers to view and tour your property. With buyer competition increasing, especially in the spring, you want to ensure that interested buyers can quickly schedule showings. By offering easy access, you increase the likelihood of attracting serious buyers and receiving competitive offers. Options for Convenient Access: To accommodate different needs, your real estate agent will discuss options that provide varying levels of convenience for potential buyers. These options range from using a lockbox on the door, making it easy for agents to show the home, to providing a key to the home, which requires agents to pick up the key from an office. Offering open access with a phone call's notice or scheduling showings by appointment only are also viable options. The goal is to strike a balance that fits both your schedule and the preferences of potential buyers. Importance of Scheduling Flexibility: By allowing open access or showings with minimal notice, you provide flexibility to buyers who may come across your listing while driving by or those who want to tour your property promptly after discovering it online. This level of flexibility enhances the visibility of your house and increases the chances of attracting more interested buyers. Creative Solutions: In certain situations where physical access becomes challenging, technology can offer alternative solutions. Your real estate agent can help you explore options such as video tours or virtual showings, allowing buyers to get a comprehensive view of your property remotely. These innovative solutions ensure that despite any limitations, buyers still have access to the details of your house. Conclusion: In conclusion, easy access is a key factor in successfully selling your house. By making it convenient for buyers to view and tour your property, you attract more serious offers. Work closely with your real estate agent to determine the level of access that aligns with your schedule and preferences. Prioritizing easy access sets the stage for a successful real estate transaction. Discover more tips and insights on selling your house by visiting our blog [Why Access Is So Important When Selling Your House]. Maximize your selling potential with expert guidance. |
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