Area Real Estate News & Market Trends

You’ll find our blog to be a wealth of information, covering everything from local market statistics and home values to community happenings. That’s because we care about the community and want to help you find your place in it. Please reach out if you have any questions at all. We’d love to talk with you!

Feb. 4, 2022

How Remote Work Impacts Your Home Search

How Remote Work Impacts Your Home Search [INFOGRAPHIC]

How Remote Work Impacts Your Home Search [INFOGRAPHIC] | MyKCM

Some Highlights

  • If your workplace is delaying its return to office plans or is allowing permanent work from home options, that may open up new possibilities for your Home Search .
  • Ongoing remote work could give you the chance for a change in scenery, a move to an area with a lower cost of living, or finding a home with more home office space.
  • If you want to learn more about how remote work can give you more options, let’s connect to discuss your situation and priorities for your home search.
Posted in Blog Post
Feb. 4, 2022

Millions of Americans Have Discovered the Benefits of Multigenerational Households

Millions of Americans Have Discovered the Benefits of Multigenerational Households

Millions of Americans Have Discovered the Benefits of Multigenerational Households | MyKCM

If your needs are changing, you may be thinking about sharing a home with additional loved ones, such as grandparents, adult children, or other extended family members. Whether it’s for financial or health-related circumstances, or simply because you’ve reached a new phase of life, you might be wondering if living with multiple generations under the same roof is a good move for you. Many people have found themselves in a similar situation and they’ve already made the choice to live in a multigenerational home.

What Is a Multigenerational Home?

The Pew Research Center defines a multigenerational household as a home with two or more adult generations. They include households with grandparents and grandchildren under the age of 25. As you weigh your options and decide if multigenerational living is right for you, here's some helpful information highlighted by other homeowners living with additional loved ones.

The Benefits of Multigenerational Living

A recent report from Generations United surveyed individuals living in a multigenerational setting and asked them about the key benefits of this housing arrangement. It says:

Nearly all Americans who live in a multigenerational household (98%) feel their household functions successfully, citing various aspects of home design, family relationships and interactions, and supports and services influencing their success.”

The study identifies some of the top benefits of this lifestyle as an improved financial situation, better mental and physical health, strengthened bonds with loved ones, and more (see chart below):

Millions of Americans Have Discovered the Benefits of Multigenerational Households | MyKCM

Those are just some of the reasons why most people who decide to live in this situation find it worthwhile. As Donna Butts, Executive Director at Generations United, says:

"Families may come together from need, but they are staying together by choice. Indeed, more than 7 in 10 (72 percent) of those currently living in a multigenerational household plan to continue doing so long-term."

With More Adults Living Under One Roof, You May Need More Space

If you decide to look for a multigenerational home, it’s important to understand what everyone will need to make the arrangement work to its fullest. Something that often makes the top of the list for homeowners living with multiple generations is additional space for privacy. This could mean more bedrooms and bathrooms or features like an in-law suite or a basement.

If you’re realizing your current house doesn’t provide the room you need for multigenerational living, an expert real estate advisor can help you navigate the process to find the right home that works for you and your loved ones.

Bottom Line

Living in a multigenerational household has real and impactful benefits. If you’re interested in learning more about these options in our local area, contact one of our Realty100 Professionals to help you find a home that fits your changing needs.

Posted in Blog Post
Dec. 22, 2021

The Perks of Putting 20% Down on a Home

The Perks of Putting 20% Down on a Home | MyKCM

If you’re thinking of buying a home, you’re probably wondering what you need to save for your down payment. Is it 20% of the loan, or could you put down less? While there are lower down payment programs available that allow qualified buyers to put down as little as 3.5%, it’s important to understand the many perks that come with a 20% down payment.

Here are four reasons why putting 20% down may be a great option if it works within your budget.

1. Your Interest Rate May Be Lower

A 20% down payment vs. a 3-5% down payment shows your lender you’re more financially stable and not a large credit risk. The more confident your lender is in your credit score and your ability to pay your loan, the lower the mortgage interest rate they’ll likely be willing to give you.

2. You’ll End Up Paying Less for Your Home

The larger your down payment, the smaller your loan amount will be for your mortgage. If you’re able to pay 20% of the cost of your new home at the start of the transaction, you’ll only pay interest on the remaining 80%. If you put down 5%, the additional 15% will be added to your loan and will accrue interest over time. This will end up costing you more over the lifetime of your home loan.

3. Your Offer Will Stand Out in a Competitive Market

In a market where many buyers are competing for the same home, sellers often like to see offers come in with 20% or larger down payments. The seller gains the same confidence as the lender in this scenario. You are seen as a stronger buyer with financing that’s more likely to be approved. Therefore, the deal will be more likely to go through.

4. You Won’t Have To Pay Private Mortgage Insurance (PMI)

What is PMI? According to Freddie Mac:

“For homeowners who put less than 20% down, Private Mortgage Insurance or PMI is an added insurance policy for homeowners that protects the lender if you are unable to pay your mortgage.

It is not the same thing as homeowner's insurance. It's a monthly fee, rolled into your mortgage payment, that’s required if you make a down payment less than 20%. . . . Once you've built equity of 20% in your home, you can cancel your PMI and remove that expense from your monthly payment.”

As mentioned earlier, if you put down less than 20% when buying a home, your lender will see your loan as having more risk. PMI helps them recover their investment in you if you’re unable to pay your loan. This insurance isn’t required if you’re able to put down 20% or more.

Many times, home sellers looking to move up to a larger or more expensive home are able to take the equity they earn from the sale of their house to put 20% down on their next home. With the equity homeowners have today, it creates a great opportunity to put those savings toward a larger down payment on a new home.

If you’re looking to buy a home, consider the benefits of 20% down versus a smaller down payment option. Let’s connect so you have expert advice to help make your homeownership goals a reality.

Posted in Blog Post
Aug. 20, 2021

A Look at Home Price Appreciation and What It Means for Sellers

A Look at Home Price Appreciation and What It Means for Sellers | MyKCM

When you hear the phrase home price appreciation, what does it mean to you? Through context clues alone, chances are you know it has to do with rising home prices. And as a seller, you know rising home prices are good news for your potential sale. But let’s look past the dollar signs and dive deeper into the concept. To truly understand home price appreciation, you need to know how it works and why it matters to you.

Investopedia defines appreciation like this:

Appreciation, in general terms, is an increase in the value of an asset over time. The increase can occur for a number of reasons, including increased demand or weakening supply, or as a result of changes in inflation or interest rates. This is the opposite of depreciation, which is a decrease in value over time.” 

When we consider this definition and how it applies to real estate, a few words stick out: supply and demand. In today’s real estate market, we’re experiencing high buyer demand and very few sellers listing their homes for sale (see maps below):A Look at Home Price Appreciation and What It Means for Sellers | MyKCMNo matter the industry, anytime there’s more demand than supply, prices naturally rise. It happens because buyers are willing to pay more to secure the scarce product or service they’re looking for. That’s exactly what’s happening in today’s real estate market. Buyers are competing with one another to purchase a home, leading to bidding wars that drive prices up. For sellers, the rising prices mean that opportunity is knocking.

According to Quicken Loans, the national average home price appreciation rate is between 3-5% in a typical year. Today, home prices are appreciating well beyond the norm thanks to high demand. Here are the latest expert projections on the rate of home price appreciation for this year (see chart below):A Look at Home Price Appreciation and What It Means for Sellers | MyKCM

Compared to the normal pace of 3-5% appreciation per year, the current average forecast of nearly 11.5% is significant.

For sellers, this means that with the current rise in prices, your house may be worth more than you realize. That price appreciation helps give your equity a boost. Equity is the difference between what you owe on the home and its market value based on factors like price appreciation. It works like this (see chart below):A Look at Home Price Appreciation and What It Means for Sellers | MyKCMYou can use your built-up equity to power a move into your dream home, or you can put it toward life-changing goals like funding an education or opening a business.

But don’t wait. While price appreciation is strong now, those same experts say it’ll start to appreciate at a more normalized pace next year. If you list your house sooner rather than later, you’ll be in a better position to capitalize on the higher-than-average home price appreciation we’re seeing today.

Posted in Blog Post
Aug. 20, 2021

Options for First-Time Homebuyers

Options for First-Time Homebuyers [INFOGRAPHIC] | MyKCM

Some Highlights

  • With a housing market this competitive, sometimes you have to think outside the box.
  • Work with your trusted real estate advisors to do things like assess your budget, expand your search radius, look into other options, and determine your true needs.
  • If you're having trouble finding your first home, let’s connect to explore your options. It's out there!
Posted in Blog Post
Dec. 1, 2020

Follow These 4 Tips When Inventory Is Low - by The CE Shop

 

Gain the Edge When It Comes to Finding Homes When Inventory Is Low

Several years months ago, before the pandemic, industry experts predicted a tight housing market for 2020. Throw in a coronavirus-sized wrench into the mix, and sure enough, the spring and summer seasons saw record-low home listings on the market.

The initial prediction was predicated on a few historically-backed assumptions:

  • Low mortgage rates will lead to more buyers
  • Rising rental prices will convert millennials into homebuyers
  • Homeowners are staying in their homes longer than ever
  • Less free-up of smaller homes due to acceptance of minimalism
  • Families are smaller and kids are living with parents into their 20s

COVID-19 has further limited housing supply by limiting transactions through “shelter-in-place” and social distancing protocols, and initial uncertainty over how the virus is transmitted. As the months have passed and more information became available, these issues have slowly become less burdensome to the home buying and selling process. However, even with a drop in cases during the month of August, home inventory remains low throughout the nation.

U.S. Home Inventory Numbers

The National Association of REALTORS® recently reported that there were 18.2 percent fewer home listings than during the previous year. Meanwhile, mortgage rates are hovering just under three percent. When low inventory meets rising demand, it creates a unique mix of high-flying home prices. Right now, these basic assumptions are being proven true as we enter a 10-year low in home inventory.

4 Tips For Finding New Listings

A low inventory environment can present a fantastic opportunity for real estate agents who think creatively. Consider these tactics for uncovering those hidden gems and adding new homes to your featured listings.

1. Search MLS for Expired Listings

Many expired listings are a result of overpriced homes or inattentive agents (who do not complete their Continuing Education at The CE Shop). It’s unlikely that their desire to sell their home has diminished. Instead, they need an agent who is willing to go the extra distance and appropriately list a home at market value.

The best mode of action is to directly contact the owner and demonstrate the value you can bring to the table. Present a pre-listing marketing package and explain the benefits of selling their home in this uncertain market. If you can effectively express your knowledge, breadth, and drive to help them sell, they could reconsider placing their home back on the market with you as their agent.

2. Look Into Rental Listings

As rental price listings throughout the U.S. continue to rise, many families have seen an opportunity to forgo a sale and utilize the property to generate passive income. However, there are other rental listing scenarios where the family may have wanted to sell but were unable to due to timing, divorce settlements, or job changes.

These families are simply waiting out and trying to time the market when they don’t realize the entire market has changed. Inform rental homeowners on this matter and make sure to include the benefits of being able to pay off their current mortgage in exchange for a better rate on a new home. More often than not, this issue is the main reason why these families are forced to forgo a long-winded sell.

3. Target For Sale By Owners (FSBOs)

A listing is classified as a For Sale By Owner (FSBO) when an owner is selling real estate (usually their home) without the representation of a broker or agent. You’ve probably seen thousands of those red dinky signs where owners will sloppily write their cell number. Prospecting this group can be very lucrative but also tricky.

Like with expired MLS listings, make sure to present a pre-listing marketing package to demonstrate your value. This group wants to save as much money as possible by completing the home buying process on their own. They want to save and they believe they don’t need to waste money on your services. However, the financial gain and other benefits of working with a real estate agent clearly outweigh the heavy cost of trying to sell one’s home without one. Demonstrate these benefits and you could capture their listing.

4. Browse Social Media

Sites like Facebook Marketplace feature what are essentially FSBO listings made by owners trying to make their own home sale. Just go on there or search hashtags like #LookingToMove or #IWantToMove on Instagram and you’ll find a treasure trove of potential new home listings. Some of these listings may remind you of “We Buy Ugly Homes” advertisements. However, among the rubbish, you could find some uncut gems that may simply need a few quick upgrades or changes to marketing.

This is where you can help them. If you can find these types of homes that are only one or two steps away from being highly-demanded commodities, you can utilize your expertise to help get them sold. But again, demonstrating this value to these buyers is critical for your success.

Posted in Blog Post
Sept. 28, 2020

New Single-Family Home Sales Skyrocket in August

New Single-Family Home Sales Skyrocket in August

By RISMedia Staff

 

August was a busy month for sales on new single-family homes. According to the latest from the Commerce Department monthly report, in August, sales increased 4.8 percent from July’s numbers. This is 43.2 percent above the August 2019 estimate of 706,000, reaching the highest pace since September 2006. The seasonally adjusted annual rate was 1,011,000 in August, up from July’s revised rate of 965,000.

Regionally, new home sales were up in all four regions: 23.6 percent in the Northeast, 23.6 percent in the Midwest, 13.9 percent in the South and 12.4 percent in the West.

Here’s the market breakdown:

New-Home Sales: 1,011,000

For-Sale Inventory: 282,000

Months’ Supply:  3.3 months

Median Price: $312,800

What the Industry’s Saying:

“Surging sales are consistent with record builder confidence levels stemming from higher buyer traffic, historically low interest rates and a shift in demand for lower density markets. However, higher lumber costs and limited building material availability in some markets signify we could see higher prices down the road.” — Chuck Fowke, Chairman, National Association of Home Builders

“New home sales are now 15 percent higher on a year-to-date basis, with gains in all regions. But with inventory at just a 3.3 months’ supply, more construction is needed. The challenge will be whether materials and labor are available.” — Robert Dietz, Chief Economist, National Association of Home Builders

Posted in Blog Post
Sept. 28, 2020

Tips for first-time home buyers

Posted in Blog Post
July 31, 2017

Curious About Local Real Estate?

Receive the Latest Local Market Stats

Curious about local real estate? So are we! Every month we review trends in our real estate market and consider the number of homes on the market in each price tier, the amount of time particular homes have been listed for sale, specific neighborhood trends, the median price and square footage of each home sold and so much more. We’d love to invite you to do the same!

Get Local Market Reports Sent Directly to You

You can sign up here to receive your own market report, delivered as often as you like! It contains current information on pending, active and just sold properties so you can see actual homes in your neighborhood. You can review your area on a larger scale, as well, by refining your search to include properties across the city or county. As you notice price and size trends, please contact us for clarification or to have any questions answered.

We can definitely fill you in on details that are not listed on the report and help you determine the best home for you. If you are wondering if now is the time to sell. You’ll get an estimate on the value of your property in today’s market. Either way, we hope to hear from you soon as you get to know our neighborhoods and local real estate market better.

Posted in Blog Post