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THINGS TO DO IN BATON ROUGE THIS MONTH

Cap City Beer Fest

Nov. 7th – Downtown BR
When you sponsor the Cap City Beer Fest, you become a highly visible partner in creating one of the most anticipated events in downtown Baton Rouge while helping the more than 8,000 lost, abandoned, and abused animals who will need Companion Animal Alliance in the coming year.

1 PM VIP ENTRY

2 PM GENERAL ADMISSION

LIVE MUSIC BY THE MICHAEL FOSTER PROJECT IN PARTNERSHIP WITH THE ARTS COUNCIL OF GREATER BATON ROUGE’S SUNDAY IN THE PARK.

For more info visit HERE


Mistletoe Market 

Nov. 13th-14th – Lamar Dixon 

$6 General Admission. A portion of the proceeds will benefit children in need.

MISTLETOE MARKET HOURS

November 13, 2021, 9 am – 6 pm

November 14, 2021, 10 am – 5 pm

LOCATION

Lamar Dixon Expo Center9039 S. St. Landry Ave, Gonzales, La 70737


Louisiana Book Festival 

The Louisiana Center for the Book in the State Library of Louisiana is proud to present the 17th edition of this free, world-class literary celebration. In lieu of our usual live and in-person festival this year, we are pleased to feature over 30 virtual programs with more than 80 authors, poets, and other participants. Check back here or follow us on Facebook for more details!


White Light Night

November 19th – Mid City BR

6:00PM – 10:00PM

White Light Night is Mid City’s largest art festival featuring Louisiana’s best artists, makers, and more. It’s free to attend and the best way to kick off your holiday shopping! Revel under the white lights adorning the streets, meet local artists, enjoy live music, and eat at Mid City’s exceptional and unique restaurants.


Check out the map for parking and a list of all of the participating shops and businesses along the route: HERE!


LSU Update


Men’s Football Schedule

Nov. 6th -@ Alabama – 6PM (ESPN)

Nov. 13th – Arkansas – 6:30PM (SEC Network)

Nov. 20rd – ULM – TBA (TBA)

Nov. 27th – Texas A&M – TBA (TBA)

Men’s Basketball Home Schedule 

Nov. 7th – ULM – 7pm 

Nov. 12th- Texas State – 7pm 

Nov. 15th- Liberty. – 6pm 

Nov. 18th – Mcneese. – 7pm

Nov. 22nd- Belmont – 7pm

Women’s Basketball Home Schedule

Nov. 9th – Nicholls  – 11am

Nov. 14th – Florida Gulf state – 12:30pm

Sun. Nov. 23rd – Tulane – 6pm

Home Appreciation

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Home Price Appreciation Is Skyrocketing in 2021. What About 2022?

Home Price Appreciation Is Skyrocketing in 2021. What About 2022? | MyKCM

One of the major story lines over the last year is how well the residential real estate market performed. One key metric in the spotlight is home price appreciation. According to the latest indices, home prices are skyrocketing this year.

Here are the latest percentages showing the year-over-year increase in home price appreciation:

The dramatic increases are seen at every price point and in all regions of the country.

Increases Are Across Every Price Point

Home Price Appreciation Is Skyrocketing in 2021. What About 2022? | MyKCM

According to the latest Home Price Index from CoreLogic, each price range is seeing at least a 19% increase year-over-year:

Increases Are Across Every Region in the Country

Home Price Appreciation Is Skyrocketing in 2021. What About 2022? | MyKCM

Every region in the country is experiencing at least a 14.9% increase in home price appreciation, according to the Federal Housing Finance Agency (FHFA):

Increases Are Across Each of the Top 20 Metros in the Country

Home Price Appreciation Is Skyrocketing in 2021. What About 2022? | MyKCM

According to the U.S. National Home Price Index from S&P Case-Shiller, every major metro is seeing at least a 13.3% growth in prices (see graph below):

What About Price Appreciation in 2022?

Prices are the result of the balance between supply and demand. The demand for single-family homes has been strong over the last 18 months. The supply of houses available for sale was near historic lows. However, there’s some good news on the supply side. Realtor.com reports:

“432,000 new listings hit the national housing market in August, an increase of 18,000 over last year.”

There will, however, still be a shortage of supply compared to demand in 2022. CoreLogic reveals:

“Given the widespread demand and considering the number of standalone homes built during the past decade, the single-family market is estimated to be undersupplied by 4.35 million units by 2022.”

Yet, most forecasts call for home price appreciation to moderate in 2022. The Home Price Expectation Survey, a survey of over 100 economists, investment strategists, and housing market analysts, calls for a 5.12% appreciation level next year. Here are the 2022 home appreciation forecasts from the four other major entities:

  1. The National Association of Realtors (NAR): 4.4%
  2. The Mortgage Bankers Association (MBA): 8.4%
  3. Fannie Mae: 5.1%
  4. Freddie Mac: 5.3%

Price appreciation is expected to slow in 2022 when compared to the record highs of 2021. However, it is still expected to be greater than the annual average of 4.1% over the last 25 years.

Bottom Line

If you owned a home over the past year, you’ve seen your household wealth grow substantially, and you’ll see another nice boost in 2022. If you’re thinking of buying, consider buying now as prices are forecast to continue increasing through at least next year.

Newest Development off of Hoo-Shoo-Too Rd in Baton Rouge

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10127 Clarks Ferry

This is an E3 Homes New Construction located in Clarks Ferry subdivision. This 4 bedroom 3 bath is decked out with all the bells & whistles. Boasting a modern farmhouse style that brings elegance but simplicity. Lots of great cabinets, large island, walk-in pantry, upgraded appliances, formal dining room, ventless gas fireplace, french doors leading to a large covered patio with full outdoor kitchen. Private master suite with his and her vanities, stand-alone tub and upgraded custom shower. You will not want to miss out on this new style home in this beautiful new subdivision. Call for all the details today.

10137 Clarks Ferry

Come fall in love with this new subdivision, new floor plan and very modern design. The farmhouse style is something you will fall in love with as soon as you pull in to the subdivision.This home is very well-designed with four bedrooms, three full baths, large closet, large utility, lots of cabinets, open floor plan, formal dining room, large island upgraded stainless appliances, gas fireplace with gas logs. The private master suite with en suit bath boast an oversized master closet, double vanities and stand alone tub, with custom shower. There is still time to make this home custom for your family by selecting your flooring, granite, light fixtures.and much more. Don’t wait too long to make this home yours!

YOU CAN BUY A HOME WITH LESS THAN 20% DOWN!

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Many potential home buyers give up before they’ve even gotten started because they think they don’t have enough for a down payment. Often times it’s because they’ve bought into the myth that you can’t buy a home with less than a 20% down payment. Use our free infographic to show potential buyers that their dream is within reach and that now is the time to start their search.

Email it to potential clients, post it on your website, or use it in a blog post. Here are some post ideas to get you started:

  • Mortgage loan types
  • How to save for a down payment
  • Tips for first-time buyers
  • Breaking down the mortgage application process

CLICK THE LINK FOR ALL THE DETAILS

3 Reasons Your Real Estate Agent WANTS You To Bother Them

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YOU CAN BOTHER TEAM SISTERS ANYTIME….  YOUR AGENTS FOR LIFE!

Real estate agents hear this all the time…

“I wish I had called you before. But I just didn’t want to bother you. I know you’re busy…”

…after it is too late.

There are times when you might feel like you shouldn’t “bother” the real estate agent you know. (Could be your friend, a neighbor, your brother-in-law, cousin, your sister…)

Maybe you’re truly trying to be considerate.

But, maybe it’s because you’re not even aware that you should.

Or, you just don’t want to feel obligated or pushed into doing something. (Despite what many people think, most agents are not pushy. Most are the exact opposite.)

So, let’s go over a few times that you should “bother” your real estate agent. Because it really isn’t a bother.

In fact, we’ll get into why it will bother them if you don’t reach out to them for any of these things.

1. You just want to check out a house.

You see a house online. Or a For Sale sign. Maybe even just stumble across an open house.

You’re not all that serious about buying a house. Maybe you’re only just starting to think about it. Or, maybe you have no desire at all to move, and you’re just curious and want to take a peek.

So, you don’t want to “bother” the agent you know to show you the house.

Instead, you call the listing agent. Or some random agent you don’t even know. Or just walk right into the open house.

Next thing you know, you love the house. You’re making an offer. The offer is accepted. And then you regret it. Or problems come up. Or the process is miserable. Or you don’t feel like the agent you’re dealing with is giving you the best advice.

And that’s when you call the agent you know.

Too late. At that point, the agent you know can’t help. (Or at least shouldn’t…) Because now you are represented by another agent. The agent you know can get in a lot of trouble for even giving you friendly advice.

As innocent as it seems, when you just want to go see a house… you are inadvertently making a bigger decision than you think — you are deciding who will represent your interests, advise you, and help you through the process.

Even if you just go see a house with another agent, and before you even make an offer you decide to have the agent you know write up the offer and represent you… the agent who simply showed you the house could claim you as their client. It’s called “procuring cause”. I won’t get into the details here, but it can become messy.

You’re better off calling the agent you know to show you the house in the first place. You won’t be considered a bother.

What will bother him is to have to bite his tongue and not give you the help you want further into the process.

2. You want to know how much your home is worth.

Maybe you’re just curious about how much your home is worth. Or, maybe you’re actually thinking of selling. It might be because you want to get a feel for your net worth.

Nowadays, you can hop online and check out any number of sites that will give you the value of your home.

So, why “bother” the agent you know about this?

Because most of what you will find online is highly inaccurate to begin with. They are “automated” valuations. They are based upon data and algorithms. They have never even seen the inside of your home. They do not take into account your local market conditions.

And if you base your hopes, dreams, and decisions off of an inaccurate value, that can hurt you quite a bit.

Again, asking the agent you know to do an analysis and give you a true market value… not a bother.

But, it would be bothersome to hear that you’ve based important life decisions off of an inaccurate value once it’s too late.

3. You are considering a home improvement project.

The real estate agent you know probably isn’t an architect. Or a builder, a plumber, an electrician, a painter, etc. So, they probably can’t advise you about the ins and outs of a specific project or costs.

But once you have a sense of the proposed cost of a project, before you just pull the trigger and move forward, you really should “bother” your agent for their input.

Putting on an addition? That will surely increase the value.

A kitchen or bathroom remodel? Yep, your house will be worth more.

But will the value increase more than the amount you spent? Will that matter in your situation? Will the choices you make in decor, layout, or fixtures appeal to a buyer down the road? Does that even matter, given your future plans?

All questions and thoughts your agent can get into with you. Before you spend the money and go through the headaches of a huge project.

On the other hand, if you go forward with a home improvement project and spend, let’s say $60,000, and then call your agent…

You could seriously regret how much you spent, or even doing the project at all.

Your agent doesn’t want to break the news to you that your home is only worth $38,000 more after you spent $60,000. There is no joy in that. There is nothing that can be done at that point.

That’s just three examples. There are certainly more. But you get the point…

So, reach out to your agent before you do anything real estate related… and just trust that it isn’t a “bother”.

Credit: Lighter Side of Real Estate

What Buyers Need To Know About the Inventory of Homes Available for Sale

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What Buyers Need To Know About the Inventory of Homes Available for Sale | MyKCM

If you’re thinking about buying a home, you’re likely trying to juggle your needs, current mortgage rates, home prices, your schedule, and more to try to decide if you want to jump into the market.

If this sounds like you, here’s one key factor that could help you with your decision: there are more homes for sale today than there were at this time last year. According to Calculated Risk, for the week ending in November 18th, there were 47.7% more homes available for sale than there were at the same time in 2021. And having more options for your home search may be exactly what you need to feel confident about making a move.

Here’s a look at where the increased housing supply is coming from so you can get a better sense of what’s happening in the market today and what it means for you.

What Caused the Growth in Housing Inventory This Year?

The increase we’ve seen in housing supply this year isn’t from the source you think it is. Rather than an influx of recent homeowners listing their houses for sale (known as new listings), the primary reason the supply has grown is because homes are staying on the market a bit longer (known as active listings).

That’s happening because higher mortgage rates and home prices have helped moderate the peak frenzy of buyer demand, which has slowed down the pace of sales. And, as the pace of sales has eased, inventory has grown as a result.

The graph below uses data from realtor.com to show that it’s active listings, not new listings, that have driven the growth we’ve seen over the past few months:

What Buyers Need To Know About the Inventory of Homes Available for Sale | MyKCM

And while overall inventory gains may slow down this winter due to typical housing market seasonality, you still have a chance to capitalize on the current supply.

What This Means for Your Home Search

Regardless of the source, the increase in available housing supply is good for buyers. More homes available for sale means you have more options to choose from as you search for your next home, and you may even have more time to consider them.

So, if you tried to buy a home last year and lost out in a bidding war or just couldn’t find something you liked, this may be the news you’ve been waiting for. If you start your search today, those additional options should make it less difficult to find a home you love, especially as some other buyers pause their search this holiday season.

Just remember, housing supply is still low overall, so it won’t suddenly be easy – it’ll just be less challenging than it was at this time last year. As a recent article from realtor.com says:

“Despite this improvement in the number of homes actively for sale, active listings still lag their pre-pandemic levels.”

The increase in housing supply helps put you in a great position to kick off the new year in your dream home. And who better to help you find it than a trusted, local real estate professional?

Bottom Line

If you’re ready to jump into the housing market and see what’s available in our local area, let’s connect.

Home Equity: A Source of Strength for Homeowners Today

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Home Equity: A Source of Strength for Homeowners Today | MyKCM

Experts agree there’s no chance of a large-scale foreclosure crisis like we saw back in 2008, and that’s good news for the housing market. As Mark Fleming, Chief Economist at First Americansays:

“. . . don’t expect a housing bust like the mid-2000s, as lending standards in this housing cycle have been much tighter and homeowners have historically high levels of home equity, so there likely won’t be a surge in foreclosures.”

Data from the Mortgage Bankers Association (MBA) helps tell this story. It shows the overall percentage of homeowners at risk is decreasing significantly with time (see graph below):

Home Equity: A Source of Strength for Homeowners Today | MyKCM

But even though the volume of homeowners at risk is very low, there is still a small percentage of homeowners who may be coming face to face with foreclosure as a possibility today. If you’re facing difficulties yourself, it can help to understand your options. It starts with knowing what foreclosure is. Investopedia defines it like this:

Typically, default is triggered when a borrower misses a specific number of monthly payments . . . Foreclosure is the legal process by which a lender attempts to recover the amount owed on a defaulted loan by taking ownership of and selling the mortgaged property.

The good news is there are alternatives available to help you avoid going through the foreclosure process, including:

  • Reinstatement
  • Loan modification
  • Deed-in-lieu of foreclosure
  • Short sale

But before you go down any of those paths, it’s worth seeing if you have enough equity in your home to sell it and protect your investment.

You May Be Able To Use Your Equity To Sell Your House

Equity is the difference between what you owe on the home and its market value based on factors like price appreciation.

In today’s real estate market, many homeowners have far more equity in their homes than they realize due to the home price appreciation we’ve seen over the past few years. According to CoreLogic:

“The total average equity per borrower has now reached almost $300,000, the highest in the data series.”

So, what does that mean for you? If you’ve lived in your house for at least a few years or more, chances are your home’s value, and your equity, has risen dramatically. In addition, the mortgage payments you’ve made during that time chipped away at the balance of your loan. If your home’s current value is higher than what you still owe on your loan, you may be able to use that increase to your advantage.

Rick Sharga, Executive VP of Market Intelligence at ATTOM Dataexplains how equity can help:

“Very few of the properties entering the foreclosure process have reverted to the lender at the end of the foreclosure. . . We believe that this may be an indication that borrowers are leveraging their equity and selling their homes rather than risking the loss of their equity in a foreclosure auction.”

Lean on Experts To Explore Your Options

To find out how much equity you have, work with a local real estate professional. They can give you an estimate of what your house could sell for based on recent sales of similar homes in your area. You may be able to sell your house to avoid foreclosure.

If you find out you have to pursue other options, your agent can help with that too. They’ll be able to connect you with other professionals in the industry, like housing counselors, who can look into your unique situation and offer advice on next steps if selling isn’t your best alternative.

Bottom Line

If you’re a homeowner facing hardship, let’s connect so you have an expert on your side to explore your options and see if you can sell your house to avoid foreclosure.

What’s Ahead for Mortgage Rates and Home Prices?

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What’s Ahead for Mortgage Rates and Home Prices? | MyKCM

Now that the end of 2022 is within sight, you may be wondering what’s going to happen in the housing market next year and what that may mean if you’re thinking about buying a home. Here’s a look at the latest expert insights on both mortgage rates and home prices so you can make your best move possible.

Mortgage Rates Will Continue To Respond to Inflation

There’s no doubt mortgage rates have skyrocketed this year as the market responded to high inflation. The increases we’ve seen were fast and dramatic, and the average 30-year fixed mortgage rate even surpassed 7% at the end of last month. In fact, it’s the first time they’ve risen this high in over 20 years (see graph below):

What’s Ahead for Mortgage Rates and Home Prices? | MyKCM

In their latest quarterly report, Freddie Mac explains just how fast the climb in rates has been:

“Just one year ago, rates were under 3%. This means that while mortgage rates are not as high as they were in the 80’s, they have more than doubled in the past year. Mortgage rates have never doubled in a year before.

Because we’re in unprecedented territory, it’s hard to say with certainty where mortgage rates will go from here. Projecting the future of mortgage rates is far from an exact science, but experts do agree that, moving forward, mortgage rates will continue to respond to inflation. If inflation stays high, mortgage rates likely will too.

Home Price Changes Will Vary by Market

As buyer demand has eased this year in response to those higher mortgage rates, home prices have moderated in many markets too. In terms of the forecast for next year, expert projections are mixed. The general consensus is home price appreciation will vary by local market, with more significant changes happening in overheated areas. As Mark Fleming, Chief Economist at First American, says:

“House price appreciation has slowed in all 50 markets we track, but the deceleration is generally more dramatic in areas that experienced the strongest peak appreciation rates.

Basically, some areas may still see slight price growth while others may see slight price declines. It all depends on other factors at play in that local market, like the balance between supply and demand. This may be why experts are divided on their latest national forecasts (see graph below):

What’s Ahead for Mortgage Rates and Home Prices? | MyKCM

Bottom Line

If you want to know what’s happening with home prices or mortgage rates, let’s connect so you have the latest on what experts are saying and what that means for our area.

3 Trends That Are Good News for Today’s Homebuyers

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3 Trends That Are Good News for Today’s Homebuyers | MyKCM

While higher mortgage rates are creating affordability challenges for homebuyers this year, there is some good news for those people still looking to buy a home.

As the market has cooled this year, some of the intensity buyers faced during the peak frenzy of the pandemic has cooled too. Here are just a few trends that may benefit you when you go to buy a home today.

1. More Homes To Choose from

During the pandemic, housing supply hit a record low at the same time buyer demand skyrocketed. This combination made it difficult to find a home because there just weren’t enough to meet buyer demand. According to Calculated Risk, the supply of homes for sale increased by 39.5% for the week ending October 28 compared to the same week last year.

Even though it’s still a sellers’ market and supply is still lower than more normal levels, you have more to choose from in your home search. That makes finding your dream home a bit less difficult.

2. Bidding Wars Have Eased

One of the top stories in real estate over the past two years was the intensity and frequency of bidding wars. But today, things are different. With more options, you’ll likely see less competition from other buyers looking for homes. According to the National Association of Realtors (NAR), the average number of offers on recently sold homes has declined. This September, the average was 2.5 offers per sale. In contrast, last September, the average was 3.7 offers per sale.

If you tried to buy a house over the past two years, you probably experienced the bidding war frenzy firsthand and may have been outbid on several homes along the way. Now you have a chance to jump back into the market and enjoy searching for a home with less competition.

3. More Negotiation Power

And when you have less competition, you also have more negotiating power as a buyer. Over the last two years, more buyers were willing to skip important steps in the homebuying process, like the appraisal or inspection, to try to win a bidding war. But the latest data from the National Association of Realtors (NAR) shows the percentage of buyers waiving those contingencies is going down.

As a buyer, this is good news. The appraisal and the inspection give you important information about the value and condition of the home you’re buying. And if something turns up in the inspection, you have more power today to renegotiate with the seller.

survey from realtor.com confirms more sellers are accepting offers that include contingencies today. According to that report, 95% of sellers said buyers requested a home inspection, and 67% negotiated with buyers on repairs as a result of the inspection findings.

Bottom Line

While buyers still face challenges today, they’re not necessarily the same ones you may have been up against just a year or so ago. If you were outbid or had trouble finding a home in the past, now may be the moment you’ve been waiting for. Let’s connect to start the homebuying process today.

What Happens to Housing When There’s a Recession?

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What Happens to Housing when There’s a Recession? | MyKCM

Since the 2008 housing bubble burst, the word recession strikes a stronger emotional chord than it ever did before. And while there’s some debate around whether we’re officially in a recession right now, the good news is experts say a recession today would likely be mild and the economy would rebound quickly. As the 2022 CEO Outlook from KPMG says:

“Global CEOs see a ‘mild and short’ recession, yet optimistic about global economy over 3-year horizon . . .

 More than 8 out of 10 anticipate a recession over the next 12 months, with more than half expecting it to be mild and short.”

To add to that sentiment, housing is typically one of the first sectors to rebound during a slowdown. As Ali Wolf, Chief Economist at Zondaexplains:

“Housing is traditionally one of the first sectors to slow as the economy shifts but is also one of the first to rebound.”

Part of that rebound is tied to what has historically happened to mortgage rates during recessions. Here’s a look back at rates during previous economic slowdowns to help put your mind at ease.

Mortgage Rates Typically Fall During Recessions

Historical data helps paint the picture of how a recession could impact the cost of financing a home. Looking at recessions in this country going all the way back to 1980, the graph below shows each time the economy slowed down mortgage rates decreased.

What Happens to Housing when There’s a Recession? | MyKCM


Fortune explains mortgage rates typically fall during an economic slowdown:

Over the past five recessions, mortgage rates have fallen an average of 1.8 percentage points from the peak seen during the recession to the trough. And in many cases, they continued to fall after the fact as it takes some time to turn things around even when the recession is technically over.”

While history doesn’t always repeat itself, we can learn from and find comfort in the trends of what’s happened in the past. If you’re thinking about buying or selling a home, you can make the best decision by working with a trusted real estate professional. That way you have expert advice on what a recession could mean for the housing market.

Bottom Line

History shows you don’t need to fear the word recession when it comes to the housing market. If you have questions about what’s happening today, let’s connect so you have expert advice and insights you can trust.

What’s Ahead for Home Prices?

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What’s Ahead for Home Prices? | MyKCM

As the housing market cools in response to the dramatic rise in mortgage rates, home price appreciation is cooling as well. And if you’re following along with headlines in the media, you’re probably seeing a wide range of opinions calling for everything from falling home prices to ongoing appreciation. But what’s true? What’s most likely to happen moving forward?

While opinions differ, the most likely outcome is we’ll fall somewhere in the middle of slight appreciation and slight depreciation. Here’s a look at the latest expert projections so you have the best information possible today.

What the Experts Are Saying About Home Prices Next Year

The graph below shows the most up-to-date forecasts from five experts in the housing industry. These are the experts that have most recently updated their projections based on current market trends:

What’s Ahead for Home Prices? | MyKCM

As the graph shows, the three blue bars represent experts calling for ongoing home price appreciation, just at a more moderate rate than recent years. The red bars on the graph are experts calling for home price depreciation.

While there isn’t a clear consensus, if you take the average (shown in green) of all five of these forecasts, the most likely outcome is, nationally, home price appreciation will be fairly flat next year.

What Does This Mean?

Basically, experts are divided on what’s ahead for 2023. Home prices will likely depreciate slightly in some markets and will continue to gain ground in others. It all depends on the conditions in your local market, like how overheated that market was in recent years, current inventory levels, buyer demand, and more.

The good news is home prices are expected to return to more normal levels of appreciation rather quickly. The latest forecast from Wells Fargo shows that, while they feel prices will fall in 2023, they think prices will recover and net positive in 2024. That forecast calls for 3.1% appreciation in 2024, which is a number much more in line with the long-term average of 4% annual appreciation.

And the Home Price Expectation Survey (HPES) from Pulsenomics, a poll of over one hundred industry experts, also calls for ongoing appreciation of roughly 2.6 to 4% from 2024-2026. This goes to show, even if prices decline slightly next year, it’s not expected to be a lasting trend.

As Jason Lewris, Co-Founder and Chief Data Officer for Parcl, says:

“In the absence of trustworthy, up-to-date information, real estate decisions are increasingly being driven by fear, uncertainty, and doubt.”

Don’t let fear or uncertainty change your plans. If you’re unsure about where prices are headed or how to make sense of what’s going on in today’s housing market, reach out to a local real estate professional for the guidance you need each step of the way.

Bottom Line

The housing market is shifting, and it’s a confusing place right now. Let’s connect so you have a trusted real estate professional to help you make confident and informed decisions about what’s happening in our market.

Perspective Matters When Selling Your House Today

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Perspective Matters When Selling Your House Today | MyKCM

Does the latest news about the housing market have you questioning your plans to sell your house? If so, perspective is key. Here are some of the ways a trusted real estate professional can explain the shift that’s happening today and why it’s still a sellers’ market even during the cooldown.

Fewer Homes for Sale than Pre-Pandemic

While the supply of homes available for sale has increased this year compared to last, we’re still nowhere near what’s considered a balanced market. A recent article from Calculated Risk helps put this year’s increased inventory into context (see graph below):

Perspective Matters When Selling Your House Today | MyKCM

It shows supply this year has surpassed 2021 levels by over 30%. But the further back you look, the more you’ll understand the big picture. Compared to 2020, we’re just barely above the level of inventory we saw then. And if you go all the way back to 2019, the last normal year in real estate, we’re roughly 40% below the housing supply we had at that time.

Why does this matter to you? When inventory is low, there is still demand for your house because there just aren’t enough homes available for sale.

Homes Are Still Selling Faster Than More Normal Years

And while homes aren’t selling as quickly as they did a few months ago, the average number of days on the market is still well below pre-pandemic norms – in large part because inventory is so low. The graph below uses data from the Realtors’ Confidence Index by the National Association of Realtors (NAR) to illustrate this trend:

Perspective Matters When Selling Your House Today | MyKCM

As the graph shows, the pre-pandemic numbers (shown in blue) are higher than the numbers we saw during the pandemic (shown in green). That’s because the average days on the market started to decrease as homes sold at record pace during the pandemic. Most recently, due to the cooldown in the housing market, the average days on the market have started to tick back up slightly (shown in orange) but are still far below the pre-pandemic norm.

What does this mean for you? While it may not be as fast as it was a couple of months ago, homes are still selling much faster than they did in more normal, pre-pandemic years. And if you price it right, your home could still go under contract quickly.

Buyer Demand Has Moderated and Is Now in Line with More Typical Years

Buyer demand has softened this year in response to rising mortgage rates. But again, perspective is key. Getting 3-5 offers like sellers did during the pandemic isn’t the norm. The graph below uses data from NAR going back to 2018 to help tell the story of this shift over time (see graph below):

Perspective Matters When Selling Your House Today | MyKCM

Prior to the pandemic, it was typical for homes sold to see roughly 2-2.5 offers (shown in blue). As the market heated up during the pandemic, the average number of offers skyrocketed as record-low mortgage rates drove up demand (shown in green). But most recently, the number of offers on homes sold today (shown in orange) has started to return to pre-pandemic levels as the market cools from the frenzy.

What’s the takeaway for you? Buyer demand has moderated from the pandemic peak, but it hasn’t disappeared. The buyers are still out there, and if you price your house at current market value, you’ll still be able sell your house today.

Bottom Line

If you have questions about selling your house in today’s housing market, let’s connect. That way you have context around what’s happening now, so you’re up to date on what you can expect when you’re ready to move.

Saving for a Down Payment? Here’s What You Should Know.

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Saving for a Down Payment? Here’s What You Should Know. | MyKCM

As you set out to buy a home, saving for a down payment is likely top of mind. But you may still have questions about the process, including how much to save and where to start.

If that sounds like you, your down payment could be more in reach than you originally thought. Here’s why.

The 20% Down Payment Myth

If you believe you have to put 20% down on a home, you may have based your goal on a common misconception. Freddie Mac explains:

“. . . nearly a third of prospective homebuyers think they need a down payment of 20% or more to buy a home. This myth remains one of the largest perceived barriers to achieving homeownership.”

Unless it’s specified by your loan type or lender, it’s typically not required to put 20% down. According to the latest Profile of Home Buyers and Sellers from the National Association of Realtors (NAR), the median down payment hasn’t been over 20% since 2005. There are even loan types, like FHA loans, with down payments as low as 3.5%, as well as options like VA loans and USDA loans with no down payment requirements for qualified applicants.

This is good news for you because it means you could be closer to your homebuying dream than you realize. For more information, turn to a trusted lender.

Down Payment Assistance Programs Can Be a Game Changer

A professional will be able to show you other options that could help you get closer to your down payment goal. According to latest Homeownership Program Index from downpaymentresource.com, there are over 2,000 homebuyer assistance programs in the U.S., and the majority are intended to help with down payments.

A recent article explains why programs like these are helpful:

These resources can immediately build your home buying power and help you take action sooner than you thought possible.”

And if you’re wondering if you have to be a first-time buyer to qualify for these programs, that’s not always the case. According to an article from downpaymentresource.com:

“It is a common misconception that homebuyer assistance is only available to first-time homebuyers, however, 38% of homebuyer assistance programs in Q1 2022 did not have a first-time homebuyer requirement.

There are also location and profession-based programs you could qualify for as well.

Bottom Line

Saving for your down payment is an important first step on your homebuying journey. Let’s connect today and make sure you have a trusted lender to help explore your options.

The True Strength of Homeowners Today

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The True Strength of Homeowners Today | MyKCM

The real estate market is on just about everyone’s mind these days. That’s because the unsustainable market of the past two years is behind us, and the difference is being felt. The question now is, just how financially strong are homeowners throughout the country? Mortgage debt grew beyond 10 trillion dollars over the past year, and many called that a troubling sign when it happened for the first time in history.

Recently Odeta Kushi, Deputy Chief Economist at First American, answered that question when she said:

“U.S. households own $41 trillion in owner-occupied real estate, just over $12 trillion in debt, and the remaining ~$29 trillion in equity. The national “LTV” in Q2 2022 was 29.5%, the lowest since 1983.”

She continued on to say:

“Homeowners had an average of $320,000 in inflation-adjusted equity in their homes in Q2 2022, an all-time high.”

What Is LTV?

The term LTV refers to loan to value ratio. For more context, here’s how the Mortgage Reports defines it:

“Your ‘loan to value ratio’ (LTV) compares the size of your mortgage loan to the value of the home. For example: If your home is worth $200,000, and you have a mortgage for $180,000, your LTV ratio is 90% — because the loan makes up 90% of the total price.

You can also think about LTV in terms of your down payment. If you put 20% down, that means you’re borrowing 80% of the home’s value. So your LTV ratio is 80%.”

Why Is This Important?

This is yet another reason we won’t see the housing market crash. Home equity allows homeowners to be in control. For example, if someone did need to sell their home, they likely have the equity they need to be able to sell it and still put money in their pocket. This was not the case back in 2008, when many owed more on their homes than they were worth.

Bottom Line

Homeowners today have more financial strength than they have had since 1983. This is a combination of how homeowners have handled equity since the crash and rising home prices of the last two years. And this is yet another reason homeownership in any market makes sense.

What Experts Say Will Happen with Home Prices Next Year

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What Experts Say Will Happen with Home Prices Next Year | MyKCM

Experts are starting to make their 2023 home price forecasts. As they do, most agree homes will continue to gain value, just at a slower pace. Over the past couple of years, home prices have risen at an unsustainable rate, leaving many to wonder how long it would last. If you’re asking yourself: what’s ahead for the price of my home, know that experts are now answering this question, and its welcome news for homeowners who may have been led by the media to believe their home would lose value.

Historically, home prices have appreciated at a rate near 4%. For 2023, the average of six major forecasters noted below is 2.5%. While one, Zelman & Associates, is calling for depreciation, the other five are calling for appreciation. The graph below outlines each expert forecast to show where they project home prices are going in the coming year.

What Experts Say Will Happen with Home Prices Next Year | MyKCM

To understand why experts are calling for appreciation next year, look to the economics of supply and demand. Dave Ramsey, Financial Expert, says this:

“The root issue of what drives house prices almost always is supply and demand . . .”   

Two things are driving home prices upward. First, the undersupply of homes on the market is an issue we continue to face in this country. We still don’t have enough homes on the market for the number of people that want to buy them. To further that point, we’re still in a sellers’ market nationally, and in that scenario, home prices tend to appreciate.

Second, millennials are moving through their peak homebuying years. Since they’re the largest demographic behind the baby boomers, demand isn’t going away any time soon.

Bottom Line

Experts are calling for home prices to appreciate next year, although at a slower pace than the previous three years. The reason for this is simple. The dynamics of supply and demand are playing out in real estate and will continue for many years to come.