If you are a homeowner, your net worth got a BIG boost over the past few years thanks to rapidly rising home prices. Here is how it happened and what it means for you, even as the market moderates. Equity is the current value of your home minus what you owe on the loan.
Because there was a significant imbalance between the number of homes available for sale and the number of buyers looking to make a purchase over the past few years, home prices appreciated substantially.

While home price appreciation has moderated this year, and even depreciated slightly in some overheated markets, that does not mean you have lost all the equity you gained during the pandemic frenzy. To prove you still have equity you can use, the latest Homeowner Equity Insights from CoreLogic finds the average homeowner equity has actually grown by $34,300 over the past 12 months.

That is right, despite the headlines, the average homeowner still gained positive equity over the last year in just about every market. While the gains are not as dramatic as they were in the previous quarter due to home price moderation, they are still significant. In addition, if you have been in your home for longer than a year, chances are you have even more equity than you realize.
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While that is the national number, if you want to know what happened over the past year in your area, look at the map below from CoreLogic:

Why This Is So Important Right Now
While equity helps increase your overall net worth, it can also help you achieve other goals, like buying your next home. When you sell your current house, the equity you have built up comes back to you in the sale, and it may be just what you need to cover a large portion – if not all – of the down payment on your next home.

If you have been holding off on selling because you were not sure what the headlines meant for your bottom line, rest assured you have still gained equity in recent years, and it can help fuel your move.
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Planning to make a move in 2023? Now you have proof that the equity you have gained over time can make a big impact. To find out just how much equity you have in your current home and how you can use it to fuel your next purchase, shoot me a text, give me a call… let’s connect.

​The 2023 Housing Forecast from realtor.com expects rents will keep climbing.
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That forecast projects rents will increase by 6.3% in the year ahead (shown in green above). When compared to the blue bars in the graph, it is clear that the 2023 projection does not call for an increase as drastic as the ones renters have seen over the past two years, but it is still above the historical average for rent hikes between 2013 and 2019.

That means, if you are planning to rent again this year and you have not yet renewed your lease, you may pay more when you do.
These rising costs may make you reconsider what other alternatives you have. If you are looking for more stability, it could be time to prioritize homeownership. One of the many benefits of owning your own home is it provides a stable monthly cost that you can lock in for the duration of your loan. As Freddie Mac says:

“Monthly rent payments may increase over time, but a fixed-rate mortgage will ensure that you’re paying the same amount each month. With a fixed-rate mortgage, your interest rate is locked in for the life of loan. Steady payments allow you to budget wisely and make plans for the future.”

If you are planning to make a move this year, locking in your monthly housing costs for the duration of your loan can be a major benefit. You will avoid wondering if you will need to adjust your budget to account for annual increases like those that you would if you left your housing payment up to your landlord and their renewal cycle.

Homeowners also enjoy the added benefit of home equity, which has grown substantially. In fact, the latest Homeowner Equity Insight report from CoreLogic shows the average homeowner gained $34,300 in equity over the last 12 months. As a renter, your rent payment only covers the cost of your dwelling. When you pay your mortgage on a house, you grow your wealth through the forced savings that is your home equity.
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If you’re thinking of renting this year, it’s important to keep in mind the true costs you’ll face.
Let’s chat to see how you can begin your journey to homeownership today.

A new year brings with it the opportunity for new experiences. If that resonates with you because you are considering making a move, you are likely juggling a mix of excitement over your next home and a sense of attachment to your current one. A great way to ease some of those emotions and ensure you are feeling confident in your decision is to keep these three best practices in mind.

1. Price Your Home Right
The housing market shifted in 2022 as mortgage rates rose, buyer demand eased, and the number of homes for sale grew. As a seller, you will want to recognize things are different now and price your house appropriately based on where the market is today. Greg McBride, Chief Financial Analyst at Bankrate, explains:

“Price your home realistically. This isn’t the housing market of April or May, so buyer traffic will be substantially slower, but appropriately priced homes are still selling quickly.”

If you price your house too high, you run the risk of deterring buyers. And if you go too low, you’re leaving money on the table. An experienced real estate agent can help determine what your ideal asking price should be.
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2. Keep Your Emotions in Check
Today, homeowners are living in their houses longer. According to the National Association of Realtors (NAR), since 1985, the average time a homeowner has owned their home has increased from 5 to 10 years (see graph below):

This is several years longer than what used to be the historical norm. The side effect, however, is when you stay in one place for so long; you may be even more emotionally attached to your space. If it is the first home you bought or the house where your loved ones grew up, it very likely means something extra special to you. Every room has memories, and it is hard to detach from the sentimental value.
For some homeowners, that makes it even harder to negotiate and separate the emotional value of the house from fair market price. I can assist you with negotiations along the way.

3. Stage Your Home Properly

While you may love your decor and how you have customized your home over the years, not all buyers will feel the same way about your design. That is why it is so important to make sure you focus on your home’s first impression so it appeals to as many buyers as possible. As NAR says:

“Staging is the art of preparing a home to appeal to the greatest number of potential buyers in your market. The right arrangements can move you into a higher price-point and help buyers fall in love the moment they walk through the door.”

Buyers want to envision themselves in the space so it truly feels like it could be their own. They need to see themselves inside with their furniture and keepsakes – not your pictures and decorations. 
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I can help you with tips to get your house ready to sell. The bottom line is this: If you are considering selling your house, let’s connect so you have the help you need to navigate through the process while prioritizing these best practices.

​If you are thinking about buying or selling a home soon, you probably want to know what you can expect from the housing market this year. In 2022, the market underwent a major shift as economic uncertainty and higher mortgage rates reduced buyer demand, slowed the pace of home sales, and moderated home prices. What about 2023?

An article from HousingWire offers this perspective:
“The red-hot housing market of the past 2 ½ years was characterized by sub-three percent mortgage rates, fast-paced bidding wars and record-low inventory. More recently, market conditions have done an about-face. . . . Now is the opportunity for everyone to become re-educated about what a ‘typical’ housing market looks like.”

This year, experts agree we may see the return of greater stability and predictability in the housing market if inflation continues to ease and mortgage rates stabilize.

Here is what they have to say.
The 2023 forecast from the National Association of Realtors (NAR) says:
“While 2022 may be remembered as a year of housing volatility, 2023 likely will become a year of long-lost normalcy returning to the market, . . . mortgage rates are expected to stabilize while home sales and prices moderate after recent highs, . . .”

Danielle Hale, Chief Economist at realtor.com, adds:
“. . . Buyers will not face the extreme competition that was commonplace over the past few years.”

Lawrence Yun, Chief Economist at NAR, explains home prices will vary by local area, but will net neutral nationwide as the market continues to adjust:
“After a big boom over the past two years, there will essentially be no change nationally . . . Half of the country may experience small price gains, while the other half may see slight price declines.”

Mark Fleming, Chief Economist at First American, says:
“The housing market, once adjusted to the new normal of higher mortgage rates, will benefit from continued strong demographic-driven demand relative to an overall, long-run shortage of supply.” 
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If you’re looking to buy or sell a home this year, the best way to ensure you’re up to date on the latest market insights is to partner with me. Myrtle Beach has some great values.

​There’s no doubt today’s housing market is very different than the frenzied one from the past couple of years. In the second half of 2022, there was a dramatic shift in real estate, and it caused many people to make comparisons to the 2008 housing crisis. While there may be a few similarities, when looking at key variables now compared to the last housing cycle, there are significant differences.
In the latest Real Estate Forecast Summit, Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), drew the comparisons below between today’s housing market and the previous cycle:

Looking at the facts, it is clear: today is VERY different than the housing market of 15 years ago.

There is Opportunity in Real Estate Today

And in today’s market, with inventory rising and less competition from other buyers, there’s opportunity right now.
According to David Stevens, former Assistant Secretary of Housing:

“So be advised…this may be the one and only window for the next few years to get into a buyer’s market. And remember…as the Federal Reserve data shows…home prices only go up and always recover from recessions no matter how mild or severe. Long term homeowners should view this market…right now…as a unique buying opportunity.”
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Today’s housing market is nothing like the real estate market 15 years ago. If you’re a buyer right now, this may be the chance you’ve been waiting for. 

During the pandemic, second homes became popular because of the rise in work-from-home flexibility. That is because owning a second home, especially in the luxury market, allowed those homeowners to spend more time in their favorite places or with different home features. Keep in mind, a luxury home is not only defined by price.

Investopedia shares additional factors that push a home into this category: location, such as a home on the water or in a desirable city, and features, the things that make the home itself feel luxurious. A recent report from the Institute for Luxury Home Marketing (ILHM) shows just how much remote work influenced the demand for second and luxury homes:

“The unprecedented ten-fold increase towards remote work since the pandemic is an historic development that will continue to fuel second home demand for many years to come.”
 
What if you bought a second home that you no longer use?

If you are now shifting back into the office or are seeing your priorities and needs change, you may find you are not utilizing your second home as much. If so, it may be time to sell it. And if you own what’s considered a luxury home, buyer demand for it may be even greater. In another report, the Institute for Luxury Home Marketing explains:

“. . . the last few years have left their legacy for the luxury market. While it might only represent a small percentage of the overall real estate market, luxury homeownership’s influence is growing. Not only has the purchase of homes valued over $1 million (a figure considered by the National Association of Realtors to be a benchmark for luxury) tripled from 2.6% to 6.5% since 2018, but demand for multiple luxury properties has soared over the last two years.
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This phenomenal increase has been driven by a growing affluent demographic who consider owning a luxury property a necessity in their asset portfolio. All indications are that this trend is here to stay, albeit that demand is set to return to a more sustainable level.”
If you own a luxury second home that is not being used as much anymore, now is the time to sell. There are still buyers in the market who are looking for a home like yours today. Let's connect!

There are many people thinking about buying a home, but with everything affecting the economy, some are wondering if it is a smart decision to buy now or if it makes more sense to wait it out into the future. As Bob Broeksmit, President and CEO of the Mortgage Bankers Association (MBA), explains:

“The desire for homeownership is strong. Many prospective buyers are waiting for the volatility in mortgage rates to subside, as well as for a clearer picture of the economic outlook.”
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If you are in that position, remember that it’s important to consider not just what’s happening today but also what benefits you may gain in the long run.

If you want to create wealth to help set you up for success later on, it may be time to prioritize homeownership. That is because, whether you decide to rent or buy a home, you will have a monthly housing expense either way.

​The question is: are you going to invest in yourself and your future, or will you help someone else (your landlord) increase their wealth?

If you are trying to decide whether or not to sell your house, recent headlines about home prices may be top of mind. And if those stories have you wondering what that means for your home’s value, here’s what you really need to know.
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What is Really Happening with Home Prices?
It’s possible you’ve seen news stories mentioning a drop in home values or home price depreciation, but it’s important to remember those headlines are designed to make a big impression in just a few words. But what headlines aren’t always great at is painting the full picture in the Greater Myrtle Beach Market.
While home prices are down slightly month-over-month, it’s also true that home values are up nationally on a year-over-year basis. The graph below uses the latest data from S&P Case-Shiller to help tell the story of what’s actually happening in the housing market today:

As the graph shows, its true… home price growth has moderated in recent months (shown in green) as buyer demand has pulled back in response to higher mortgage rates. This is what the headlines are drawing attention to today.

What is important to notice is the bigger, longer-term picture. While home price growth is moderating month-over-month, the percent of appreciation year-over-year is still well above the home price change we saw during more normal years in the market.
The bars for January 2019 through mid-2020 show home price appreciation around 3-4% a year was more typical, but even the latest data for this year shows prices have still climbed by roughly 10% over last year.

What Does This Mean for Your Home’s Equity?

While you may not be able to capitalize on the 20% appreciation we saw in early 2022, in most markets your home’s value, on average, is up 10% over last year – and a 10% gain is still dramatic compared to a more normal level of appreciation (3-4%).
The big takeaway? Do not let the headlines get in the way of your plans to sell. Over the past two years alone, you have likely gained a substantial amount of equity in your home as home prices climbed. Even though home price moderation will vary by market moving forward, you can still use the boost your equity to help power your move.

As Mark Fleming, Chief Economist at First American says:
“Potential home sellers gained significant amounts of equity over the pandemic, so even as affordability-constrained buyer demand spurs price declines in some markets, potential sellers are unlikely to lose all that they have gained.”
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If you have questions about home prices or how much equity you have in your current home, let’s connect.
 

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​Americans’ opinion on the value of real estate as an investment is climbing. That is according to an annual survey from GALLUP. Not only is real estate viewed as the best investment for the ninth year in a row, but more Americans selected it than ever before. The graph below shows the results of the survey since GALLUP began asking the question in 2011. As the trend lines indicate, real estate has been gaining ground as the clear favorite for almost a decade now:

How an Investment in Real Estate Can Benefit You During High Inflation
Because inflation reached its highest level in 40 years recently, it is more important than ever to understand the financial benefits of homeownership. Rising inflation means prices are increasing across the board, and that includes goods, services, housing costs, and more. When you purchase your home, you lock in your monthly housing payments, effectively shielding yourself from increases on one of your biggest budgetary items each month.
If you are a renter, you do not have that same benefit, and you are not protected from these increases, especially as rents rise. As Danielle Hale, Chief Economist at realtor.com, notes:

“Rising rents, which continue to climb at double-digit pace . . . and the prospect of locking in a monthly housing cost in a market with widespread inflation are motivating today’s first-time homebuyers.”

When Inflation Has Risen in the Past, Home Prices Have Too!
Your house is also an asset that typically increases in value over time, even during inflation. That‘s because as prices rise, the value of your home does too. Mark Cussen, Financial Writer for Investopedia, puts it like this:

“There are many advantages to investing in real estate. . . . It often acts as a good inflation hedge since there will always be a demand for homes, regardless of the economic climate, and because as inflation rises, so do property values. . . .”

Moreover, since rising home values help increase your equity, and by extension your net worth, homeownership is historically a good hedge against inflation. Buying a home is a powerful decision. It’s no wonder why so many people view it as the best long-term investment, even when inflation is high. When you buy, you help shield yourself from increases in your housing costs and you own an asset that typically gains value with time. If buying a home could be a great investment for you, let’s connect!