Homeownership in 2023

 Whether you are purchasing a home or selling a home, it is a very personal decision. The house you sell or buy is your home that you will spend a good part of your life. It is also a big financial decision that can affect your finances. To make the best decision for you, professionals in the industry reveal what the real estate market looks like in 2023. 

As you begin the search of finding the right home, many start by looking at listings. According to the National Association of Realtors in 2022 almost half (47%) started the process by looking for a home online. Buyers that were younger than 41 had around 60% that purchased a home online. This actually is a good way to handle the process due to the frenzy and fury of buyers in the market. As of April 2023, the median home price for existing homes was $388,800 which was a decline from a year ago. Even with the decline, the stats were up from recent months.

Once you find a home you want to buy, you have to secure the finances. Getting a pre-approval from a mortgage lender will help you in the buyer’s market. This also goes along with a down payment which can be daunting. It was reported that 26% of first-time home buyers agreed that saving up for a down payment was the hardest part of the home-buying process.

Baby Boomers have been at the forefront when it comes to purchasing a home, but there is a new generation, the millennials who have taken over. In 2022 millennials were noted as the largest home buying age group at 43%. Sixty percent were married couples while single women were next at 19%.

If you are in the market to purchase a home, contact a local realtor who can help you through the process. A Realtor can also recommend a mortgage lender who can help you with the financing aspect of purchasing a home.

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Homes Sales Are Rising But Still Below Pre-Pandemic Years

 There are many challenges when it comes to selling and buying a home, but today’s market is seeing a setback if you are a buyer. The reason for this is that there are so few homes on the market with too many potential buyers that are interested. If you are thinking about selling your home, now is the perfect opportunity.

“There are 65.5% more homes for sale in January compared to the same time in 2022. This means that there were 248,000 more homes available to buy this past month compared to one year ago. While the number of homes for sale is increasing, it is still 43.2% lower than it was before the pandemic in 2017 to 2019. This means that there are still fewer homes available to buy ona typical day than there were a few years ago,” according to Realtor.com‘s Monthly Housing Market Trends Report.

Active monthly listing counts for the last six Januarys show a big increase between 2022 and 2023. There is still a lag between what was reported in January 2018 versus what was reported this January so the market has not caught up to prepandmic levels. January 2018 listings were up to 1,042,660 on a monthly basis, in January 2019 they slightly increased to 109,507, January 2020 saw a drop to 953,045, January 2021 came in at 532,603, January 2022 decreased to 378,189 and jumped in January 2023 to 625,875.

If you are a potential seller, this is great news. Buyers have been frustrated with the low inventory and many gave up altogether. This has changed this spring due to the lowered interest rates, buyers are coming back to the market. “Home buyers are edging back into the market after being sidelined last year….,” reports the New York Times.

If you are thinking about selling your home, now is the time! Choose a local realtor who can help you with the sale of your home. A local agent knows the area and will help you get the best price from a trusted buyer.

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Ways To Sell a Home in a Buyer's or Seller’s Market

 How to determine which type of home buying market you are in?

If there are more buyers than sellers then it is a seller's market. If there are more homes for sale than there are buyers, then it is a buyer's market.

If you are a seller, then being able to sell your home whether it's in a buyer's market or a seller's market is the goal. Selling your home is a big life-changing event that can be bother costly and time-consuming. This is why it is so important to know what kind of market you are in and approach the market accordingly.

The first step in the process is to figure out what type of market you are currently in. It can only be one of two types, a seller's market or a buyer's market. When you are in a buyer's market, it is a little bit harder to sell a home. This means that there are more listings than there are potential buyers. You have a lot more competition when it comes to selling. In a seller's market, it is less demanding on a seller. This means there are more potential buyers than there are listings. A seller can usually list for top prices and get multiple offers, selling their home more quickly.

A seller has to work hard in a buyer's market. That means a seller needs to do more to have their house stands out in an inundated market. Make sure your home is staged. You want a potential buyer to come into the house and be able to envision themselves in the home. Professional home stagers can work with your Realtor to stage your home. A big part of the process is cleaning, decluttering and removing personal artifacts.

Not only is the interior important but your home's curb appeal must be eye-catching. The yard and exterior are the first things that potential buyers see when they come to see your home in person. Make sure your yard is clean and tidy. You will also want to repaint outdoor fixtures and your front door.

Buyers have the upper hand so a seller needs to be prepared to make concessions. Keep in mind that in a buyer's market, you might need to negotiate on your asking price, be flexible with the closing date, pay for some of the repairs, and waive certain contingencies if requested.

In a seller's market, the demands are not as demanding. This doesn't mean that you should list your home for an inflated price, but you should price your home fairly. If you price your home too high, it can be skipped by potential buyers who are looking online within a certain budget. Remember some offers may sound too good to be true. You will want to weigh multiple offers very carefully. Sometimes choosing the highest offer is not always the best way to go.

No matter what the current market, it is important to use a Realtor when it comes to selling your home. A Realtor can help you navigate both markets and get you the best price for the best home.

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Facts All Agents Should Know When It Comes to the Green House Market

 What are simple ways to make sure my new home is cared for?

-Focus on home decor that pulls double-duty
-Make sure your insurance protects your needs
-While you have a blank slate, create an organized foundation
-Learn climate-specific maintenance tips
-Add or update safety monitors
-Assess landscaping and head-off concerns
-Get to know your neighbors
-Put household check-ups on the schedule

Buying a new home is a big step in life and is both an exciting and nerve-wracking time. Many new homeowners feel very overwhelmed not with just the buying process but owning their own home and caring for it. In order to feel peace of mind, there are several things you can do to maintain your new home from the start.

1. Focus on home decor that pulls double-duty

When you start to move your belongings into your new house becomes your home. Remember to prioritize multi-functional products. For example, a nice ottoman can also act as a storage space. You want to limit the clutter from the beginning. Studies show that limiting excess items can boost your mental health. Not only can some things boost your mental health but your physical health as well. House plants are natural air purifiers. The snake plant takes indoor air and filters it by taking up to four toxins out of the air plus it changes carbon dioxide into oxygen.

2. Make sure your insurance protects your needs

When you are shopping around for home insurance, make sure that you choose a plan that fits your unique home's needs. If you have an expensive piano, you will want to make sure this is covered. There are many insurance companies where you can get a quote and a new policy online. You can also save if you bundle things such as your car and home insurance.

3. While you have a blank slate, create an organized foundation

Remember to make a plan for each item when moving all your stuff into your new home. If you are moving from another home you will be tempted to put everything in the same room it went in in the new home. Add things such as closet organizers before moving all your items into the closet, and racks in the garage.

4. Learn climate-specific maintenance tips

If you are moving from New York to Miami, it might be a good idea to study the average tips and weather for each season. In New York, you have to winterize your home, whereas in Miami you do not. You will need to look into different pest maintenance in the South.

5. Add or update safety monitors

A fire can happen anytime day or night so having a smoke and carbon monoxide detector can save a homeowner's life. These should be in every home. When installing, be sure to follow the installation guidelines. You want to make sure they are strategically placed throughout your house and always make sure to test them monthly. Another safety measure is to install a home-monitoring system or a burglar alarm.

6. Assess landscaping and head-off concerns

Tree branches hanging over your roof can be a hazard. A heavy tree branch can fall on a roof during bad weather or make a great extension for pests to enter a home. Look around your home and assess what would cause a threat to the exterior of the house or your property if a storm were to occur. The leading cause of homeowners' insurance claims is weather-related incidents.

7. Get to know your neighbors

It is always nice to know your neighbors but it can also have an advantage when it comes to safety. When you are away it is nice to have your neighbors that will keep an eye out on your place. Neighbors can also help with taking out your trash or bringing in the mail when you are out of town.

8. Put household check-ups on the schedule

Just like we need an annual check-up with the doctor, your home needs one as well. Put a household check-up on your calendar. Go around and look at what needs to be done every season. Check the landscaping, test the smoke detectors, make sure your HVAC filters are good and even take a minute to declutter.

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2022 Tax Deductions For Homeowners

 Everyone in America will be filing for taxes if they earned any money in 2021. Current homeowners have tax incentives that will help protect their investment and make homeownership easier for everyone. If you are a homeowner then you will want to understand how these tax incentives will benefit you.

Mortgage interest deductions are one of these incentives. This will reduce your taxable income. A homeowner can deduct mortgage interest on the first $750,000 of their mortgage. Premiums paid on qualified mortgage insurance and home equity loans that are specifically used to buy, build or improve your home can also be itemized under deductions. If you are married but filing separately, the maximum deduction will be $375,000 for each.

A homeowner can also deduct state and local taxes. You can deduct up to $10,000 in state and local taxes. In fact, this includes property taxes! Remember again, if you are married and filing separately you will receive $5,000.

Another tax incentive for a homeowner is residential energy credits. There are two kinds, residential energy credit, and non-business energy credit. For residential energy credit, a homeowner can get 26% of the cost of residential energy property equipment plus labor. This includes solar, wind, and geothermal equipment. Examples of geothermal equipment are solar panels, advanced circulation fans, or natural gas water heaters. Non-business energy credits will give homeowners 10% of the cost of qualified energy efficiency improvements and 100% of residential energy property costs. There is a maximum of $500 from the time the credit was created in 2006 to 2022.

Homeowners have many financial benefits when it comes to owning a home. During tax season you need to add up your tax breaks. Speaking to a tax professional will help you with potentially getting thousands of dollars in tax deductions.

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Several Tips To Follow When Selling a House in 2021

 Photo by Anete Lusina from Pexels

Both selling and buying a home can be very exciting. When it comes to the sale of your home, it can be bitter-sweet. Leaving a home behind where there are sentimental attachments can be difficult. An emotional mindset might hinder the sale of your home. Here are some tips to follow that will help navigate you through the process and hinder costly mistakes.

1. Price Your Home Right

Low inventory usually means higher pricing, but that is not always the case when it comes to a listing price. A buyer can only purchase a home based on the fair market value when it comes to obtaining a mortgage. In a nutshell, the bank will only lend what the home is worth. During the mortgage process, the lender will require an appraisal from a professional appraiser who will determine the fair market value. It is always best to stick with a Realtor who can help you price your home right.

2. Keep Your Emotions in Check

Most homeowners live in the house for quite a long period of time. During this time, they will create a lot of memories and these memories will be attached to their house.  According to the National Association of Realtors, current homeowners lives in their home for an average of ten years. It can be hard for a homeowner to separate the sentimental value of a home from fair market value. Using a Realtor can help you with the process and can negotiate without emotional attachment.

3. Stage Your Home Properly

The first impression goes a long way when a potential buyer enters a home.  A buyer will not be impressed with all of your sentimental nick-nacks or special wallpaper hung in the dining room.  A home needs to be staged with a buyer in mind.  The buyer needs to be able to come into the space and envision it as their own. A Realtor can help you stage your home before it is listed.

If you are considering selling your current home, now is a great time.  Even though it is a seller's market, it is a good idea to use a real estate professional.  A local Realtor can help you sell your home for the right price.

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Student Debt Is Not an Obstacle to Homeownership

According to a study done by Zillow.com, the only way student debt can negatively impact young professionals interested in starting a family and “settling down” to buy their first home is if that debt is combined with no degree at all.  According to the study, student debt is not an obstacle to homeownership with those students who finished with a bachelor’s degree or higher for the amount of debt they acquired.  Home buyers that are college graduates and never had to take on student loans have a higher chance (70%) of becoming a homeowner than home buyers that have student debt and at least a bachelor’s college degree, but not by much – the statistic only drops to 66% for these types of buyers.

Because of the Recession and the lack of jobs for college graduates upon completing college, many young people did not get married and start a family right away, so household formation was also a considering factor in the study done by Zillow.com.  The study seemed to indicate that people were waiting until their 30’s to have children, and the study included those couples that had actually started a family with at least one child.

High rents were also a factor as being a deterrent for young professionals to be able to buy a home.  The payment of higher rent made it impossible for them to get the larger down payment together upon trying to get financing for a conventional mortgage.  The FHA just recently reduced the percentage of down payment required for both FHA and Rural Development loans, so this factor will not be as pertinent moving forward.

The truth about young professionals becoming homeowners is that student debt is not an obstacle to homeownership, and the possession of a bachelor’s degree or higher and the acquisition of a good job after college has made it possible for these students to be able to buy a new or pre-existing home upon graduation (or later).  This is good news for the housing market as one more positive sign that the real estate market is moving in the upwards direction.

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