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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

You CAN Buy a Home with Less than 20% Down

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

    The Impact of Inflation on Mortgage Rates

    17 Wednesday May 2023

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    If you’re reading headlines about inflation or mortgage rates, you may see something about the recent decision from the Federal Reserve (the Fed). But what does it mean for you, the housing market, and your plans to buy a home? Here’s what you need to know.

    Inflation and the Housing Market

    While the Fed’s working hard to lower inflation, the latest data shows that, while the number has improved some, the inflation rate is still higher than the target (2%). That played a role in the Fed’s decision to raise the Federal Funds Rate last week. As Bankrate explains:

    “Keeping its inflation-fighting streak alive, the Federal Reserve has raised interest rates for the 10th time in 10 meetings . . . The hikes aimed to cool an economy that was on fire after rebounding from the coronavirus recession of 2020.”

    While the Fed’s actions don’t directly dictate what happens with mortgage rates, their decisions do have an impact and contributed to the intentional cooldown in the housing market last year. 

    How This Impacts You 

    During times of high inflation, your everyday expenses go up. That means you’ve likely felt the pinch at the gas pump and in the grocery store. By raising the Federal Funds Rate, the Fed is actively trying to lower inflation. If the Fed is successful, it could also ultimately lead to lower mortgage rates and better homebuying affordability for you. That’s because when inflation is high, mortgage rates tend to be high. But, as inflation cools, experts say mortgage rates will likely fall.

    Where Experts Think Mortgage Rates and Inflation Will Go from Here

    Moving forward, both inflation and mortgage rates will continue to impact the housing market. And as Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:

    “Mortgage rates are likely to descend lower later in the year as the consumer price inflation calms down . . .” 

    Mike Fratantoni, Chief Economist at the Mortgage Bankers Association (MBA), explains: 

    “We continue to expect that mortgage rates will drift down over the course of the year as the economy slows . . .”

    While there’s no way to say with certainty where mortgage rates will go from here, the experts think mortgage rates will trend down this year if inflation comes down too. To stay informed on the latest insights, connect with a trusted real estate advisor. They keep their pulse on what’s happening today and help you understand what the experts are projecting and how it could impact your homeownership plans.

    Bottom Line

    Don’t let headlines about the latest decision from the Fed confuse you. Where mortgage rates go from here depends on what happens with inflation. If inflation cools, mortgage rates should tick down as a result. Let’s connect so you have expert insights on housing market changes and what they mean for you.

    Buyer Activity Is Up Despite Higher Mortgage Rates

    09 Tuesday May 2023

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    Market Trends 2023

    If you’re a homeowner thinking about making a move, you may wonder if it’s still a good time to sell your house. Here’s the good news. Even with higher mortgage rates, buyer traffic is actually picking up speed.

    Data from the latest ShowingTime Showing Index, which is a measure of buyers actively touring homes, helps paint the picture of how much buyer demand has increased in recent months (see graph below):

    As the graph shows, the first two months of 2023 saw a noticeable increase in buyer traffic. That’s likely because the limited number of homes for sale kept shoppers looking for homes even during colder months.

    To help tell the story of why the latest report is significant, let’s compare foot traffic this February with each February for the last six years (see graph below). It shows this was one of the best Februarys for buyer activity we’ve seen in recent memory.

    In the last six years, we saw the most February buyer traffic in 2021 and 2022 (shown in green above), but those years were highly unusual for the housing market. So, if we compare February 2023 with the more normal, pre-pandemic years, data shows this year still marks a clear rise in buyer activity.

    The uptick in buyer traffic is even more noteworthy considering the increase in mortgage rates this February. The Freddie Mac 30-year fixed mortgage rate rose from 6.09% during the week of February 2nd to 6.50% in the week of February 23rd. But even with higher rates, more buyers were looking for a home.

    Jeff Tucker, Senior Economist at Zillow, says the increased buyer activity could continue:

    “More buyers will keep coming out of the woodwork. We always see a seasonal uptick in home shoppers in March and April . . .”

    If you’re looking to sell your house, seeing buyers still active in the market this year should be encouraging. It’s a sign buyers are out there and could be looking for a home just like yours. Working with a real estate professional to list your house now will help you get your home in front of eager buyers today.

    Bottom Line

    Rising foot traffic is a bright spot for this year’s housing market and indicates that buyers are looking to purchase this year, even with higher mortgage rates. If you’re ready to sell your house, let’s connect.

    What’s the Difference Between a Home Inspection and an Appraisal?

    20 Thursday Apr 2023

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    If you’re planning to buy a home, an inspection is an important step in the process. It assesses the condition of the home before you finalize the transaction. It’s also a different step in the process from an appraisal, which is a professional evaluation of the market value of the home you’d like to buy. In most cases, an appraisal is ordered by the lender to confirm or verify the value of the home prior to lending a buyer money for the purchase. Here’s the breakdown of each one and why they’re both important when buying a home.

    Home Inspection

    Here’s the key difference between an inspection and an appraisal. Bankrate says:

    “In short, while an appraisal helps you understand a home’s value, inspections help you understand a home’s condition.”

    The home inspection is a way to determine the current state, safety, and condition of the home before you finalize the sale. If anything is questionable in the inspection process – like the age of the roof, the state of the HVAC system, or just about anything else – you as a buyer have the option to discuss and negotiate any potential issues or repairs with the seller before the transaction is final. Your real estate agent is a key expert to help you through this part of the process.

    Home Appraisal

    The National Association of Realtors (NAR) explains:

    “A home purchase is typically the largest investment someone will make. Protect yourself by getting your investment appraised! An appraiser will observe the property, analyze the data, and report their findings to their client. For the typical home purchase transaction, the lender usually orders the appraisal to assist in the lender’s decision to provide funds for a mortgage.”

    When you apply for a mortgage, an unbiased appraisal (which is required by the lender) is the best way to confirm the value of the home based on the sale price. Regardless of what you’re willing to pay for a house, if you’ll be using a mortgage to fund your purchase, the appraisal will help make sure the bank doesn’t loan you more than what the home is worth.

    This is especially critical in today’s sellers’ market where low inventory is driving an increase in bidding wars, which can push home prices upward. When sellers are in a strong position like this, they tend to believe they can set whatever price they want for their house under the assumption that competing buyers will be willing to pay more.

    However, the lender will only allow the buyer to borrow based on the value of the home. This is what helps keep home prices in check. If there’s ever any confusion or discrepancy between the appraisal and the sale price, your trusted real estate professional will help you navigate any additional negotiations in the buying process.

    Bottom Line

    The inspection and the appraisal are critical steps when buying a home, and you don’t need to manage them by yourself. Let’s connect today so you have the expert guidance you need to navigate the entire homebuying process.

    How Changing Mortgage Rates Can Affect You

    05 Wednesday Apr 2023

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    The 30-year fixed mortgage rate has been bouncing between 6% and 7% this year. If you’ve been on the fence about whether to buy a home or not, it’s helpful to know exactly how a 1%, or even a 0.5%, mortgage rate shift affects your purchasing power.

    The chart below helps show the general relationship between mortgage rates and a typical monthly mortgage payment:

    Even a 0.5% change can have a big impact on your monthly payment. And since rates have been moving between 6% and 7% for a while now, you can see how it impacts your purchasing power as rates go down.

    What This Means for You

    You may be tempted to put your homebuying plans on hold in hopes that rates will fall. But that can be risky. No one knows for sure where rates will go from here, and trying to time them for your benefit is tough. Lisa Sturtevant, Housing Economist at Bright MLS, explains:

    “It is typically a fool’s errand for a homebuyer to try to time rates in this market . . . But volatility in mortgage rates right now can have a real impact on buyers’ monthly payments.”

    That’s why it’s critical to lean on your expert real estate advisors to explore your mortgage options, understand what impacts mortgage rates, and plan your homebuying budget around today’s volatility. They’ll also be able to offer advice tailored to your specific situation and goals, so you have what you need to make an informed decision.

    Bottom Line

    Your ability to buy a home could be impacted by changing mortgage rates. If you’re thinking about making a move, let’s connect so you have a strong plan in place.

    IT’S ALMOST TIME!

    29 Wednesday Mar 2023

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    Get Ready: The Best Time To List Your House Is Almost Here

    If you’re thinking about selling this spring, it’s time to get moving – the best week to list your house is fast approaching.

    Experts at realtor.com looked at seasonal trends from recent years (excluding 2020 as an uncharacteristic year due to the onset of the pandemic) and determined the ideal week to list a house this year:

    “Home sellers on the fence waiting for that perfect moment to sell should start preparations, because the best time to list a home in 2023 is approaching quickly. The week of April 16-22 is expected to have the ideal balance of housing market conditions that favor home sellers, more so than any other week in the year.”

    If you’ve been waiting for the best time to sell, this is your chance. But remember, before you put your house on the market, you’ve got to get it ready. And if you haven’t started that process yet, you’ll need to move quickly. Here’s what you should keep in mind.

    Work with an Agent To Determine Which Updates To Make

    Start by prioritizing which updates you’ll make. In February, realtor.com asked more than 1,200 recent or potential home sellers what updates they ended up making to their house before listing it (see graph below):

    As you can see, the most common answers included landscaping and painting. Work with a trusted real estate agent to determine what projects make the most sense for your goals and local market.

    If Possible, Plan To Have Your House Staged

    Once you’ve made any necessary repairs and updates to your house, consider having it staged. According to the National Association of Realtors (NAR), 82% of buyers’ agents said staging a home made it easier for a buyer to visualize the property as a future home. Additionally, almost half of buyers’ agents said home staging had an effect on most buyers’ view of the home in general. Homes that are staged typically sell faster and for a higher price because they help potential buyers more easily picture their new life in the house.

    Bottom Line

    Are you ready to sell this spring? Let’s connect to plan your next steps. You can start by making a checklist of what you think your house needs to get ready. Then, we can work together to prioritize your list and move forward together.

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    The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.

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    We believe every family should feel confident when buying and selling a home.

    What can you do with your Home Equity?

    15 Wednesday Mar 2023

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    Leverage Your Equity When You Sell Your House

    One of the benefits of being a homeowner is that you build equity over time. By selling your house, that equity can be used toward purchasing your next home. But before you can put it to use, you should understand exactly what equity is and how it grows. Bankrate explains it like this:

    “Home equity is the portion of your home you’ve paid off – in other words, your stake in the property as opposed to the lender’s. In practical terms, home equity is the appraised value of your home minus any outstanding mortgage and loan balances.”

    Majority of Americans Have a Large Amount of Equity

    If you’ve owned your home for a while, you’ve likely built up some equity – and you may not even realize how much. Based on data from the U.S. Census Bureau and ATTOM, the majority of Americans have a substantial amount of equity right now (see graph below):

    And having such large amounts of equity is a benefit to homeowners in more ways than one. Rick Sharga, Executive Vice President of Market Intelligence at ATTOM, explains:

    “Record levels of home equity provide security for millions of families, and minimize the chance of another housing market crash like the one we saw in 2008.”

    Over time, your home equity grows. In addition to providing financial stability while you own your house, when you’re ready to sell it, that money could go a long way toward paying for your next home. 

    Renting vs Buying a Home

    07 Tuesday Mar 2023

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    Is It Really Better To Rent Than To Own a Home Right Now?

    Is It Really Better To Rent Than To Own a Home Right Now? | MyKCM

    You may have seen reports in the news recently saying it’s better to rent right now than it is to own your home. But before you let that impact your decisions, you should understand what these claims are based on.

    A lot of the time, these reports are assuming things that aren’t realistic for the average household. For example, the methodology behind one of those reports says that renting is the smarter financial option because of the opportunity to invest money elsewhere. It assumes renters take the money they’d spend on costs tied to buying a home and put it in an investment portfolio.

    But here’s the thing – most people who rent aren’t making those investments. Ken Johnson, Co-Author of the BH&J National Price-to-Rent Index, explains:

    “One of the difficulties with the rent and reinvest model is many people . . . simply rent and spend the difference. . . . That’s wealth destroying.”

    The reason homeownership is one of the best investments you can make is the wealth it helps you build. That’s why there’s a significant difference between the net worth of the average homeowner and the average renter (see graph below):

    So, before you renew your rental agreement, think about the opportunity to build wealth that homeownership provides.

    Bottom Line

    If you’re unsure whether to continue renting or to buy a home, let’s connect to help you make the best decision.

    How To Make Your Dream of Homeownership a Reality

    23 Thursday Feb 2023

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    How To Make Your Dream of Homeownership a Reality | MyKCM

    According to a recent Harris Poll survey, 8 in 10 Americans say buying a home is a priority, and 28 million Americans actually plan to buy within the next 12 months. Homeownership provides many financial and nonfinancial benefits, so that interest is understandable.

    However, it’s unlikely all 28 million Americans will accomplish that goal in the coming year. Experts project a total of around five million homes will be sold in 2023. Why is there such a big difference? It’s partly because there can be challenges to buying a home.

    In the same survey, when asked, “Which of the following are preventing you from pursuing homeownership at this time?”:

    • 34% answered, “I don’t have enough saved for a down payment”
    • 30% answered, “My credit score”

    If you’re aiming to buy a home, here’s what you need to know to accomplish that goal.

    Save for Your Down Payment

    Your down payment is a big chunk of what you pay up front for your home. For most home purchases, buyers put down some amount of cash up front (a down payment) and then take out a loan (a mortgage) to pay for the rest.

    It’s a longstanding myth that you need to pay 20% of the purchase price for your down payment. In reality, 20% down isn’t always required. In fact, according to the National Association of Realtors (NAR), today’s median down payment is 14% for the average buyer and just 6% for a first-time buyer.

    Regardless of how much money you can save for your down payment, know there’s help available. A local lender can show you options to help you get closer to your down payment goal. Plus, there are even loan types, like FHA loans, with down payments as low as 3.5% for some buyers, as well as options like VA loans and USDA loans with no down payment requirements for qualified applicants.

    Beyond assistance programs and different loan types, here are a few other tips to help you as you save for your down payment:

    • Remember to factor in closing costs. In addition to your down payment, closing costs are usually 2-5% of the home’s purchase price.
    • Maintain your savings. Your down payment shouldn’t deplete all your savings. It’s important to still have some money set aside for homeownership expenses after you move in.
    • Explore your options and lean on your trusted advisor for expert guidance. Do your research, ask questions, and look into the resources available for buyers like you.

    Improve Your Credit Score

    Your credit score is a number that indicates how financially reliable you are to lenders. A higher credit score usually means you’ll be able to borrow more money at a better interest rate. If your credit score is preventing you from getting an affordable mortgage, there are steps you can take to improve it. Here are two:

    • Pay your bills on time. When you pay your bills on time, your credit score improves. When you’re late, it takes a hit. One way to make paying your bills on time easier? Set up automatic payments when and where you can.
    • Mix it up. From auto loans, to credit cards, to mortgages – there are several different types of credit. And having a mix of them improves your credit score.

    Bottom Line

    If you want to purchase a home this year, let’s connect so we can start preparing.

    Why Today’s Housing Market Isn’t Headed for a Crash

    14 Tuesday Feb 2023

    Posted by in Helpful Information, News you can USE!

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    Latest Housing Market News

    Why Today’s Housing Market Isn’t Headed for a Crash | MyKCM

    67% of Americans say a housing market crash is imminent in the next three years. With all the talk in the media lately about shifts in the housing market, it makes sense why so many people feel this way. But there’s good news. Current data shows today’s market is nothing like it was before the housing crash in 2008.

    Back Then, Mortgage Standards Were Less Strict

    During the lead-up to the housing crisis, it was much easier to get a home loan than it is today. Banks were creating artificial demand by lowering lending standards and making it easy for just about anyone to qualify for a home loan or refinance an existing one.

    As a result, lending institutions took on much greater risk in both the person and the mortgage products offered. That led to mass defaults, foreclosures, and falling prices. Today, things are different, and purchasers face much higher standards from mortgage companies.

    The graph below uses data from the Mortgage Bankers Association (MBA) to help tell this story. In this index, the higher the number, the easier it is to get a mortgage. The lower the number, the harder it is.

    This graph also shows just how different things are today compared to the spike in credit availability leading up to the crash. Tighter lending standards have helped prevent a situation that could lead to a wave of foreclosures like the last time.

    Foreclosure Volume Has Declined a Lot Since the Crash

    Another difference is the number of homeowners that were facing foreclosure when the housing bubble burst. Foreclosure activity has been lower since the crash, largely because buyers today are more qualified and less likely to default on their loans. The graph below uses data from ATTOM to show the difference between last time and now:

    So even as foreclosures tick up, the total number is still very low. And on top of that, most experts don’t expect foreclosures to go up drastically like they did following the crash in 2008. Bill McBride, Founder of Calculated Risk, explains the impact a large increase in foreclosures had on home prices back then – and how that’s unlikely this time.

    “The bottom line is there will be an increase in foreclosures over the next year (from record level lows), but there will not be a huge wave of distressed sales as happened following the housing bubble. The distressed sales during the housing bust led to cascading price declines, and that will not happen this time.”

    The Supply of Homes for Sale Today Is More Limited

    For historical context, there were too many homes for sale during the housing crisis (many of which were short sales and foreclosures), and that caused prices to fall dramatically. Supply has increased since the start of this year, but there’s still a shortage of inventory available overall, primarily due to years of underbuilding homes.

    The graph below uses data from the National Association of Realtors (NAR) to show how the months’ supply of homes available now compares to the crash. Today, unsold inventory sits at just 2.7-months’ supply at the current sales pace, which is significantly lower than the last time. There just isn’t enough inventory on the market for home prices to come crashing down like they did last time, even though some overheated markets may experience slight declines.

    Bottom Line

    If recent headlines have you worried we’re headed for another housing crash, the data above should help ease those fears. Expert insights and the most current data clearly show that today’s market is nothing like it was last time.