​The recent changes in home prices are top of mind for many as the housing market begins gearing up for spring. It can be hard to navigate misleading headlines and confusing data, so here’s what you should know about today’s home prices.
 
Local price trends still vary by market. Looking at national data, Nataliya Polkovnichenko, Ph.D., Supervisory Economist at the Federal Housing Finance Agency (FHFA), explains:
“U.S. house prices were largely unchanged in the last four months and remained near the peak levels reached over the summer of 2022. While higher mortgage rates have suppressed demand, low inventories of homes for sale have helped maintain relatively flat house prices.”
​
Month-over-month home price changes can be seen in the chart below. The data also shows that price depreciation peaked around August. Since then, any depreciation has been even milder. In other words, today’s home prices aren’t in a freefall.

What Does This Mean for You?
If you currently own your house, you may be concerned about even the smallest decline in prices. Keep in mind how much home values grew over the last few years. Compared to that growth, any declines we’re seeing nationally are likely to be minimal. Selma Hepp, Chief Economist at CoreLogic, shares:
“. . . while prices continued to fall from November, the rate of decline was lower than that seen in the summer and still adds up to only a 3% cumulative drop in prices since last spring’s peak.”
​
It’s also important to remember that every local market is different.  Call or message me for updates in your specific area.
​

Owning a home means having a place that is solely your own and provides the space, features, and location you and your loved ones need. But, what happens when your needs change? If this hits home for you, it may be time to make a move.

According to the latest Home Buyers and Sellers Generational Trends Report from the National Association of Realtors (NAR), the average person has lived in their current house for ten years. If you have been in your home for a while, think about how much in your life has changed since you moved in. Even if you thought it would be your forever home when you bought it, it does not have to be. Work with a local real estate agent to explore all your options in today’s market before settling for your current home.
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That’s actually what a lot of homeowners are doing right now. A recent survey from Realtor.com finds that, of people who are considering selling in 2023, one in three are thinking about moving because their home no longer meets their needs. According to the same report from NAR, that’s consistent with this year’s top reasons for selling, which include:

• Want to move closer to friends or family
• Moving due to retirement
• Home is too small or too large
• Change in family situation
• Job relocation

If things in your life have changed, it may be time to make a move. And there’s good news: it’s still a great time to sell.

Here’s why:

We are in a strong sellers’ market. That means homes listed at market value and in good condition are getting attention from buyers and selling quickly. Lean on me and let's talk about getting your house ready to sell.

Your equity can power your next move. There is a good chance you have a significant amount of equity right now thanks to record levels of price appreciation in recent years. When you sell, you can use that equity to help afford your next home.

In fact, NAR’s report from above shows 38% of recent buyers used the money from the sale of their previous home to cover the down payment on their next one.

Bottom Line

Work with me to learn how much equity you have and what you can do with it in today’s housing market.
If your home no longer meets your needs, consider selling it so you can find your dream home.
Let’s connect so you can learn about your options.

​If you are buying a home, today’s housing market can feel like a challenge. With so few homes on the market right now, plus higher mortgage rates, it’s essential to have a firm grasp on your home buying budget. You will also need a sense of determination to find the right house and act quickly when you go to put in an offer. One thing you can do to help you prepare is to get pre-approved.

To understand why it is such an important step, you need to know what pre-approval is. As part of the process, a lender looks at your finances to determine what they would be willing to loan you. From there, your lender will give you a pre-approval letter to help you understand how much money you can borrow.

Freddie Mac explains it like this:
“A pre-approval is an indication from your lender that they are willing to lend you a certain amount of money to buy your future home. . . . Keep in mind that the loan amount in the pre-approval letter is the lender’s maximum offer. Ultimately, you should only borrow an amount you are comfortable repaying.”

Pre-approval gives you critical information about the home buying process that will help you understand how much you may be able to borrow so you have a stronger grasp of your options. With higher mortgage rates impacting affordability for many buyers today, a solid understanding of your numbers is even more important.
Pre-Approval Helps Show You’re a Serious Buyer
That is not the only thing pre-approval can do. Another added benefit is it can help a seller feel more confident in your offer because it shows you are serious about buying their house. With sellers seeing a slight increase in the number of offers again this spring, making a strong offer when you find the perfect house is key.

As a recent article from the Wall Street Journal (WSJ) says:
“If you plan to use a mortgage for your home purchase, preapproval should be among the first steps in your search process. Not only can getting preapproved help you zero in on the right price range, but it can give you a leg up on other buyers, too.”
​
My Bottom Line:
Getting pre-approved is an important first step when you are buying a home. It lets you know what you can borrow for your loan and shows sellers you are serious.

As the housing market continues to change, you may be wondering where it will go from here.

One factor you are probably thinking about is home prices, which have come down a bit since they peaked last June. You’ve likely heard something in the news or on social media about a price crash on the horizon. As a result, you may be holding off on buying a home until prices drop significantly.

That’s not the best strategy.

A recent survey from Zonda shows 53% of millennials are still renting right now because they’re waiting for home prices to come down. Here’s the thing: the most recent data shows that home prices appear to have bottomed out and are now on the rise again.
​Selma Hepp, Chief Economist at CoreLogic, reports:

“U.S. home prices rose by 0.8% in February . . . indicating that prices in most markets have already bottomed out.”
And the latest data from Black Knight shows the same shift. The graph below compares home price trends in November to those in February:

So, should you keep waiting to buy a home until prices come down?

If you factor in what the experts are saying, you probably should not. The data shows prices are increasing in much of the country, not decreasing. The latest data from the Home Price Expectation Survey indicates that experts project home prices will rise steadily and return to more normal levels of appreciation after 2023.
​
My Bottom Line:
Let’s have a conversation. That’s the best way to understand what home values are doing in the Myrtle Beach Market.
If you are waiting to buy a home until prices come down, you may want to reconsider. Connect with me to make sure you understand what’s happening in our local housing market.

The biggest challenge the housing market’s facing is how few homes there are for sale. Mark Fleming, Chief Economist at First American, explains the root causes of today’s low supply:

“Two dynamics are keeping the existing-home inventory historically low – rate-locked existing homeowners and the fear of not finding something to buy.”

Let’s break down these two big issues in today’s housing market.
​
Rate-Locked Homeowners
According to the Federal Housing Finance Agency (FHFA), the average interest rate for current homeowners with mortgages is less than 4% (see graph below):

Today, the typical mortgage rate offered to buyers is over 6%. As a result, many homeowners are opting to stay put instead of moving to another home with a higher borrowing cost. This is a situation known as being rate locked.

When so many homeowners are rate locked and reluctant to sell, it’s a challenge for a housing market that needs more inventory. However, experts project mortgage rates will gradually fall this year, and that could mean more people will be willing to move as that happens.

The Fear of Not Finding Something To Buy

The other factor holding back potential sellers is the fear of not finding another home to buy if they move. Worrying about where they will go has left many on the sidelines as they wait for more homes to come to the market. That is why, if you are on the fence about selling, it is important to consider all your options. That includes newly built homes, especially right now when builders are offering concessions like mortgage rate “buydowns.”

What Does This Mean for You?

These two issues are keeping the supply of homes for sale lower than pre-pandemic levels. But, if you want to sell your house, today’s market is a sweet spot that can work to your advantage. I can help you explore your options. This could include leveraging your current home equity.

According to ATTOM:
“. . . 48 percent of mortgaged residential properties in the United States were considered equity-rich in the fourth quarter, meaning that the combined estimated amount of loan balances secured by those properties was no more than 50 percent of their estimated market values.”
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This could make a major difference when you move. Work with me to learn how putting your equity to work can keep the cost of your next home down.

​The biggest challenge in the housing market is how few houses there are for sale compared to the number of people who want to buy.
The number of homes for sale is up from last year but below pre-pandemic numbers, and that means we are still in a sellers’ market.
The housing market needs more homes for sale to meet the demand of today’s buyers. If you have thought about selling, let’s connect today.

Recent changes in home prices are top of mind for many as the housing market begins gearing up for spring. It can be hard to navigate misleading headlines and confusing data, so here is what you should know about today’s home prices.

Local price trends still vary by market. But looking at national data, Nataliya Polkovnichenko, Ph.D., Supervisory Economist at the Federal Housing Finance Agency (FHFA), explains:
“U.S. house prices were largely unchanged in the last four months and remained near the peak levels reached over the summer of 2022. While higher mortgage rates have suppressed demand, low inventories of homes for sale have helped maintain relatively flat house prices.”

Month-over-month home price changes can be seen in the chart. The data also shows that price depreciation peaked around August. Since then, any depreciation has been even milder. In other words, today’s home prices are not in a freefall.

What Does This Mean for You?

If you currently own your house, you may be concerned about even the smallest decline in prices. But keep in mind how much home values grew over the last few years. Compared to that growth, any declines we are seeing nationally are likely to be minimal.

Selma Hepp, Chief Economist at CoreLogic, shares:

“. . . while prices continued to fall from November, the rate of decline was lower than that seen in the summer and still adds up to only a 3% cumulative drop in prices since last spring’s peak.”

If you are planning to make a move to the Myrtle Beach area in 2023, let's talk about market trends. 

If you are thinking about retirement or have already retired this year, you may be planning your next steps. One of your goals could be selling your house and finding a home that more closely fits your needs. Fortunately, you may be in a better position to make a move than you realize. Here are a few things to think about when making that decision.

Consider How Long You’ve Been in Your Home!

From 1985 to 2008, the average length of time homeowners typically stayed in their homes was only six years. According to the National Association of Realtors (NAR), that number is rising today, meaning many homeowners are living in their houses even longer.
When you live in a home for a significant period of time, it is natural for you to experience a number of changes in your life while you are in that house. As those life changes and milestones happen, your needs may change. If your current home no longer meets your needs, you may have better options waiting for you.

Consider the Equity You’ve Gained
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Additionally, if you have been in your home for more than a few years, you have likely built up significant equity that can fuel your next move. That is because the longer you have been in your home, the more likely it has grown in value due to home price appreciation. Data from the Federal Housing Finance Agency (FHFA) illustrates that point (see graph below):

While home price growth varies by state and local area, the national average shows the typical homeowner who has been in their house for five years saw it increase in value by over 50%. And the average homeowner who’s owned their home for 30 years saw it almost triple in value over that time.

Consider Your Retirement Goals

Whether you are looking to downsize, relocate to a dream destination, or move so you live closer to loved ones, that equity can help you achieve your homeownership goals. NAR shares that for recent home sellers, the primary reason to move was to be closer to loved ones. Retirement also played a large role for those moving greater distances.

Whatever your home goals are, I can work with you to find the best option. I can help you sell your current house and guide you as you buy the home that is right for you and your lifestyle today. Retirement can bring about major changes in your life, including what you need from your home. Let’s connect to explore your opportunities in the Myrtle Beach Market.