Mortgage Rates December 12, 2024

When Will Mortgage Rates Come Down?

One of the biggest questions on everyone’s minds right now is: when will mortgage rates come down? After several years of rising rates and a lot of bouncing around in 2024, we’re all eager for some relief.

While no one can project where rates will go with complete accuracy or the exact timing, experts offer some insight into what we might see going into next year. Here’s what the latest forecasts show.

Mortgage Rates Are Expected To Ease and Stabilize in 2025

After a lot of volatility and uncertainty, the most updated forecasts suggest rates will start to stabilize over the next year, and should ease a bit compared to where they are right now (see graph below):

a blue and white graph with numbers

As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:

“While mortgage rates remain elevated, they are expected to stabilize.”

Key Factors That’ll Impact the Future of Mortgage Rates

It’s important to note that the timing and the pace of what happens with mortgage rates is one of the most challenging forecasts to make in the housing market. That’s because these forecasts hinge on a few key factors all lining up. So, while rates are expected to come down slightly, expect them to be a moving target. And the ups and downs of ongoing economic drivers will likely stick around. Here’s a look at just a few of the things that’ll influence where they go from here:

  • Inflation: If inflation cools, rates could dip a bit more. On the flip side, if inflation rises or remains stubbornly high, rates may stay elevated longer.
  • Unemployment Rate: The unemployment rate also plays a significant role in upcoming decisions by the Federal Reserve (the Fed). And while the Fed doesn’t set mortgage rates, their actions do reflect what’s happening in the greater economy, which can have an impact.
  • Government Policies: With the next administration set to take office in January, fiscal and monetary policies could also affect how financial markets respond and where rates go from here.

Remember, these forecasts are based on the best information available right now. As new economic data comes out, experts will revise their projections accordingly. So, don’t try to time the market based on these forecasts alone.

Instead, the best thing you can do is focus on what you can control right now. Work on improving your credit score, put away any extra cash for your down payment, and automate your savings. All of these things will help you reach your homeownership goals even faster.

Homeownership December 12, 2024

Why Owning a Home Is Worth It in the Long Run

Today’s mortgage rates and home prices may have you second-guessing whether it’s still a good idea to buy a home right now. While market factors are definitely important, there’s also a bigger picture to consider: the long-term benefits of homeownership.

Think of it this way. If you know people who bought a home 5, 10, or even 30 years ago, you’re probably going to have a hard time finding someone who regrets their decision. That’s because over time, home values usually grow – and that means a homeowner’s net worth does too. Here’s a look at how that can really add up over the years.

Home Price Growth over Time

The map below uses data from the Federal Housing Finance Agency (FHFA) to show how much prices have grown over the last five years. Since home prices vary by area, the map is broken out regionally to really showcase larger market trends:

a map of the united states

You can see that nationally, home prices increased by over 57% in just five years.

Some regions are slightly above or below that average, but overall, home prices saw a big uptick in a short time. And if you zoom out even more, the benefit of homeownership — and the drastic gains homeowners made over the years — become even more clear (see map below):

The second map shows that, over a roughly 30-year span, home prices appreciated by an average of more than 320% nationally.

So the typical homeowner who bought a house about 30 years ago saw their home triple in value during that time. And that’s a major reason so many homeowners who bought their homes years ago are still happy with their decision today.

There’s no denying today’s market is complex. But if you’re ready and able to buy right now, let’s connect to talk about how we can still make your move happen. That way you can take advantage of the long-term advantages that come with homeownership, like your ability to build wealth as your home value rises.

Home Prices December 12, 2024

What Will It Take for Prices To Come Down?

Are you wondering if home prices will ever come down? Unfortunately, it’s unlikely to happen anytime soon. There are currently more people who want to buy a home than there are homes available to purchase. That’s what drives prices up.

For a quick breakdown:

Prices Depend on Supply and Demand

The housing market works like any other market – when demand is high and supply is low, prices rise.

According to the latest estimates, the U.S. is facing a housing shortfall of several million homes. That means there are far more people looking to buy (demand) than there are homes for sale (supply). That mismatch is the key reason why prices won’t fall at the national level. As David Childers, President of Keeping Current Matters (KCM), puts it:

“The main driving force on pricing is the limited amount of inventory in most markets across the country. That issue is not going to be solved overnight or in the next twelve months.”

How Did We Get Here?

For over 15 years, homebuilders haven’t been building enough homes to keep up with buyer demand. After the 2008 housing crisis, homebuilding slowed significantly, and it’s only recently started to recover (see graph below):

a graph of a number of yearsEven with new construction on the rise over the past few years, builders are playing catch-up. And according to AmericanProgress.org, they’re still not even keeping up with today’s demand, let alone making up for years of underbuilding.

And as long as there’s a housing shortage, home prices will remain steady or increase in most areas.

What About Next Year?

The majority of experts agree prices will keep rising next year, but at a much slower, healthier pace (see graph below):

a graph of green bars

So, if you’re wondering what it’ll take for prices to come down, it all goes back to supply and demand. With inventory still limited in most markets, including ours, prices are likely to remain steady or rise. Of course prices and trends will vary by area, so when you’re ready to look, we’ll assess the current market in our local area.

 

Buying a New Construction Home December 12, 2024

The Top 2 Reasons To Look at Newly Built Homes

When planning a move, a newly built home might not be the first thing that comes to mind. But with more brand-new homes on the market and builders focusing on smaller, more affordable options, this type of home may just be the key to crossing the homebuying finish line.

Here’s why a new build is worth considering – and how an agent can help you find one that meets your needs and your budget.

1. More Newly Built Homes Are Available Right Now

First, let’s break down the types of homes on the market. A newly built home is a house that was just built or is under construction. On the other hand, an existing home is one a homeowner has already lived in.

Right now, the number of existing homes for sale is still low. And, if you’re struggling to find something you like because there aren’t that many existing homes for sale, opening up your search to include brand-new homes could really expand your options. That’s because there are more newly built homes available right now than in a typical year (see graph below):

a graph of blue lines and white textFrom 1983 to 2019, newly built homes made up only 13% of the total inventory of homes for sale. Today, that number has climbed to 28.8%, according to the most recent data.

And as Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:

“Even though existing home sales have been stuck at low levels, newly constructed home sales look to mark one of its best annual performance in 15 years . . . The new home inventory has been consistently rising with homebuilders getting active and making up around 1/3 of total inventory.” 

There are still more buyers than there are homes on the market. But the good news for you is this increase in newly built homes means more options for your search.

2. Newly Built Homes Are Becoming Less Expensive

Still skeptical if a new build is right for you or if they’re even in your budget? The average cost of newly built homes has actually come down from a year ago.

Why is that? Builders know affordability is top of mind for homebuyers right now. So they’re focusing their efforts on building smaller homes they can offer at lower price points and are more likely to sell. As Realtor.com says:

“Builders are increasingly bringing smaller, more affordable homes to the market, so buyers may find more newly-built homes that fit their budget.” 

Something to keep in mind: buying a newly built home isn’t the same as buying an existing one. Builder contracts have different fine print. So be sure to partner with your trusty real estate agent (it’s me!) who knows the market, builder reputations, and what to look for in those contracts.

Depending on your needs and budget, a new build might be the opportunity you’ve been waiting for to bring your homebuying vision to life. If you’re interested in a brand-new home, give me a call and we can look into the best options.

Home Maintenance November 14, 2024

6 No-Guilt Decluttering Tips for Thanksgiving

As Thanksgiving approaches, we’re encouraged to reflect on gratitude—not just for family, friends, and the good in our lives, but also for the space we live in. 

Ideally, our home provides peace, comfort, and a feeling of stability. But if clutter is making it feel more chaos than calm, it’s time to remove some stuff.  Having rooms filled with items we don’t need or love can really mess with our sense of comfort and even disrupt the natural energy in our living spaces. 

But, do you find it hard to get rid of things? And what about the items that were given as gifts? Sometimes guilt and obligation make us hold onto things.

How about some feng shui? Here are 6 ideas, inspired by feng shui principles, for decluttering with NO guilt. If you have some time, this is a great thing to do before the holidays so your home feels peaceful and balanced.

1. Release “Obligated” Items with Kindness

Many of us have items we keep out of obligation—whether they’re family heirlooms or gifts from friends that just don’t fit with our current life or style. 

According to feng shui, each object carries its own energy, and items that don’t feel aligned with who you are now can create emotional clutter. 

Instead of holding onto something out of guilt, try releasing it with gratitude. Thank it for its role in your life, then allow it to find a new home where it will be cherished and loved.

2. Let Go of Gifts That Don’t Reflect Who You Are

Gifts come from a place of love, but not every gift aligns with our personal energy or style. 

If you have gifts that feel like they belong in someone else’s home, it’s okay to let them go. Feng shui encourages letting go of things that don’t bring joy or match your energy. 

By parting with these items, you honor the intention behind the gift, keeping only those things that lift your spirit.

3. Release Items Tied to Past Relationships 

Objects can carry the energy of past relationships—whether it’s an old photograph, a forgotten memento, or something with sentimental weight. 

According to feng shui, holding onto items linked to past relationships can weigh down your heart and even affect the energy in your home. 

As you declutter, give yourself permission to let go of these items with compassion. This clears space for new relationships and experiences that align with who you are today.

4. Reconsider “Just-in-Case” Items

There’s always that closet, drawer, or box filled with “just-in-case” items—things you might need someday but haven’t touched in ages. 

Feng shui teaches that clutter, even hidden clutter, can stifle energy in a home. Holding on to items out of a “just-in-case” mindset creates a lack mentality, suggesting that you might need it because you won’t be able to find it later. 

Decluttering these items can bring a sense of abundance and trust that you’ll always have what you need. Embrace gratitude for what you have now and feel free to let go of what you don’t actively use.

5. Remove Items That No Longer Spark Joy

Marie Kondo popularized the “spark joy” approach, which is closely aligned with feng shui’s principle of surrounding yourself with uplifting energy. 

If something doesn’t bring you happiness, it probably isn’t contributing to the flow of positive energy in your home. 

As you declutter, give yourself permission to let go of anything that no longer makes you smile, even if it once did. This simple act can create a home filled with joy and gratitude for every item you choose to keep.

6. Make Space for New Beginnings

A great principle in feng shui is that empty space invites new energy, opportunity, and clarity. 

You don’t need to fill every corner; instead, create areas where energy can flow freely. 

As you declutter, focus on how much lighter and more open each room feels. This shift allows your home to be a place of peace and rest, filled only with items that support your goals and dreams.

In this month of gratitude and Thanksgiving, try approaching decluttering as a practice of gratitude and intention. You can release what no longer serves you without guilt, creating a home that truly feels like a reflection of you.

Home Maintenance November 13, 2024

Controlling Clutter with Kids: 10 Practical Tips for Keeping Your Home Organized

A few years back, I was at a birthday party for a friend of my then 3-year old daughter. The house was immaculate, and I mentioned it to the friend’s dad. I’ll never forget his response. He said, “it’s always like this. My wife trained me how to keep a tidy house a few years ago and it’s changed my life for the better ever since! I’ll never go back to being the messy guy I was before.” 

Unfortunately, I can’t say that I learned how to maintain a tidy house after that. But the concept that it’s possible, even with kids, has stuck with me. Because let’s be honest: managing clutter can be a mega challenge, and with kids added to the mix, it often feels pretty much impossible. 

So, in an effort to step on less Lego pieces in the future, I found these 10 ideas online that might be worth trying for keeping your home tidy when you have kids:

1. Keep the Toys Circulating: Rotate & Donate

Instead of keeping every toy out and accessible, try rotating your child’s toys every month or so. This keeps them entertained by making “old” toys feel new again and reduces clutter. Simply pack away half the toys and rotate them every few weeks.

And, before rotating them back in, ask yourself if it’s time to donate? This keeps toys circulating inside and outside of your home. It’s a win-win.

2. Assign a ‘Home’ for Every Item

Create designated spots for everything, from backpacks to books to building blocks. When each item has a “home,” it’s easier for everyone to know where things go. This is key for getting kids to help clean up – it’s so much easier for them when they know what to do.  

3. Use Clear Bins and Labels

Transparent bins are a game-changer for family organization. You can see what’s inside without opening every container, saving time and preventing spills. Label each bin (pictures work well for younger kids) to help everyone put things back where they belong.

4. Invest in Multi-functional Furniture

In small spaces, furniture that doubles as storage is essential. Ottomans that open up to store toys, beds with drawers underneath, and benches with cubbies are all perfect for keeping kids’ items organized and out of sight.

5. Establish a Daily Reset Routine

A 10-minute reset before bed can make a huge difference. Set a timer, turn on some music, and encourage everyone to pitch in. It’s amazing how much can get tidied up in a short time, and it helps start the next day with a clean slate.

6. Get Kids Involved in Decluttering

Kids are more likely to respect and maintain the organization if they’re part of the process. Make it a game, or let them be in charge of sorting toys into different bins. Teaching them about tidiness early on sets them up for future success.

7. Use Vertical Storage to Maximize Space

When floor space is limited, think vertical. Install shelves, hooks, and pegboards on the walls for everything from toys to art supplies. It keeps things accessible but out of the way, making your small space feel bigger and less cluttered.

8. Create a ‘Lost and Found’ Bin

Designate a basket as your family’s “lost and found.” If you find something misplaced, drop it in the bin. At the end of the week, everyone can retrieve their belongings from it. This cuts down on the scramble to find misplaced items daily.

9. Practice “One In, One Out” for New Items

For every new toy or item that comes into the house, try to donate or give away one thing that’s no longer used. This keeps things from piling up and encourages kids to value what they have, rather than accumulating items they’ll quickly forget.

10. Create Personal Spaces for Each Child

Even in small spaces, giving each kid a specific area for their belongings helps with organization. It might be a drawer, shelf, or cubby. When they have a spot for their treasures, they’re more likely to keep them tidy and less likely to add to the family clutter.

 

Will you give any of these a try? Putting some of these ideas into practice, especially before the holidays, could really help reduce stress and overwhelm. Here’s to less Lego injuries in 2025!  

Selling Your House November 13, 2024

4 Signs Your Home May Be Priced Too High

Seasonal Home Maintenance November 13, 2024

6 Easy Ways to Protect Your Home from Rain Damage

Buying a Home November 13, 2024

More Homes, Slower Price Growth – What It Means for You as a Buyer

There are more homes on the market right now than there have been in years – and that could be a game changer for you if you’re ready to buy. Let’s look at two reasons why.

1. You Have More Options To Choose From

A recent article from Realtor.com helps explain just how much the number of homes for sale has gone up this year:

“There were 29.2% more homes actively for sale on a typical day in October compared with the same time in 2023, marking the twelfth consecutive month of annual inventory growth and the highest count since December 2019.”

And while the number of homes on the market still isn’t quite back to where it was in the years leading up to the pandemic, this is definitely an improvement (see graph below):

a graph of a number of homesWith more homes available for sale now, you have more options to choose from. As Hannah Jones, Senior Economic Research Analyst at Realtor.comexplains:

“Though still lower than pre-pandemic, burgeoning home supply means buyers have more options . . .

That means you have a better chance of finding a house that meets your needs. It also means the buying process doesn’t have to feel quite as rushed, because more options on the market means you’ll likely face less competition from other buyers.

2. Home Price Growth Is Slowing

When there aren’t many homes for sale, buyers have to compete more fiercely for the ones that are available. That’s what happened a few years ago, and it’s what drove prices up so quickly.

But now, the increasing number of homes on the market is causing home price growth to slow down (see graph below):

a graph of green and blue linesIn certain markets, the number of available homes has not only bounced back to normal, but has even surpassed pre-pandemic levels. In those areas, home price growth has slowed or stalled completely. As Lance Lambert, Co-Founder of ResiClubexplains:

“Generally speaking, housing markets where active inventory has returned to pre-pandemic 2019 levels have seen home price growth soften or even decline outright from their 2022 peak.”

Slower or stalled price growth could give you a better chance of finding something within your budget. As Dr. Anju Vajja, Deputy Director at the Federal Housing Finance Agency (FHFA), says:

“For the third consecutive month U.S. house prices showed little movement . . . relatively flat house prices may improve housing affordability.

Of course, inventory levels and home prices are going to vary by market. If you’re looking to buy or sell, I’ll provide you with the local trends in your area.

More housing options – and the slower home price growth they bring – can help you find and buy a home that works for your lifestyle and budget. So don’t hesitate to reach out if you want to talk about the growing number of choices you have right now.

Selling Your House November 12, 2024

Setting the Right Asking Price