“Nancy is an amazing agent!. She went “above and beyond” to help us find the perfect home. She took the time to show us many houses. She was patient while we decided. She worked with and for us every step of the way. I recommend her to anyone looking to buy here. We moved from Connecticut and she educated us on the area so we were comfortable moving somewhere we had never been before.” Duncan Brown - Murrells Inlet, SC |
Nancy Aborn Wuennemann |
12/22/2022 0 Comments Is It Time To Sell Your Second Home?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. 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!
0 Comments
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.” 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. 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.” If you have questions about home prices or how much equity you have in your current home, let’s connect. 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! 10/10/2022 0 Comments What You Should Know About HOAsI would have to say that the vast majority of housing communities and condos have HOA's in and around Myrtle Beach.
My clients are split 10 - 50 - 40. What does that mean? There are 10-percent of my clients coming into the area from somewhere else that vehemently DO NOT want an HOA. The conversation goes something like this when the option of a homeowner's association is mentioned: "No HOA! Period end of story, don't even bother to show me homes with an HOA... don't like them, don't want them, no thank you." Fifty-percent of my clients come down from somewhere else and they have never had a home in a community with an HOA. They have some homework to do to learn about the community they are buying into. My husband and I fit into this category when we moved from Connecticut. The other 40-percent are flexible. They know someone, or have lived in a community with an HOA before and they are not bothered by the existence of it one way or another. What is an HOA? Homeowners Associations (HOAs) are organizations designed to create and enforce rules for residential communities. While HOAs are most common in condominiums and townhomes, they are also prevalent in single-family home developments. When someone purchases a condominium or a home in a community that has an HOA, the homeowner automatically becomes a member and must pay dues in the form of monthly fees. HOAs are responsible for the general maintenance of the community, as well as rules for parking, home improvement, and amenity usage. What is an HOA fee? An HOA fee is an amount of money that a homeowner must pay to the association each month. The association is then responsible for using this money to maintain and improve properties in the community, as well as provide amenities for residents. HOAs typically cover the costs of landscaping, clubhouses, swimming pools, garbage disposal, water/sewage, and possibly security. A portion of the money is placed into a reserve fund, which is set aside in case significant repairs or upgrades are needed. The fee amount ranges from location, property type, and service. Homeowners can expect to pay anywhere from $100-1,000; however, the average amount is in the $200-300 range. A good rule to remember is that the more amenities a community offers, the higher the fees. Are there downsides? The main criticism of HOAs is the fee amount, which homeowners are sometimes reluctant to pay. Adding an extra $200-300 a month to mortgage payments, taxes, and utilities can create more pressure on the homeowner’s finances. If a homeowner fails to make the monthly payments, the HOA has the authority to take action depending on the contract between the homeowner and HOA. Action can include a lawsuit, a lien on the property, or foreclosure to collect payments. Homeowners may also find the rules to be restrictive since HOAs often regulate the exterior colors, landscaping, fencing, and detached storage of the home. An HOA can provide desirable amenities for residents and manage the neighborhood so it is a safe and welcoming environment, but at an additional cost to homeowners. If your workplace is delaying its return to office plans or is allowing permanent work from home options, which may open up new possibilities for you in terms of where you would like to live. Click the link for your home search. Ongoing remote work could give you the chance for a change in scenery, a move to our area with a lower cost of living, or finding a home with more home office space. In fact, according to The American Institute of Architects Home Design Trends Survey, home offices rank high in popularity for new buyers. 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 along the Hammock Coast of South Carolina. 9/28/2022 0 Comments Why You May Want To Consider a Vacation Home along the hammock coast of south carolinaMy husband just said to me the other day, “The stock market is volatile. Home equity is where it’s at. I am so glad we moved our money into real estate.” Owning a vacation home can be an investment in your future and your lifestyle. A recent article from the National Association of Realtors (NAR), mentions some of the top reasons buyers today are looking into purchasing a second, or a vacation, home: “According to Google’s data, the top reasons that homeowners cited for purchasing a second home were to diversify their investments, earn money renting, and use as a vacation home.” So, Autumn is here. We can all agree, the summer was too short. Over the coming months, it may be worthwhile to start thinking about your plans and where you want to spend your vacation next year. Perhaps you are someone who wants to spend a few months of the year working from a remote location. Options are available for you to work and rent your home out safely to others the rest of the year to help your investment pay for itself. And if retirement planning is down the road, investing in a vacation home now could be right for you. Why You May Want To Consider a Vacation Home Today: Over the past two years, a lot has changed. You may be one of many people who now work from home and have added flexibility in where you live. You may also be someone who delayed trips for personal or health reasons. If either is true for you, there could be a unique opportunity to use the flexibility that comes with remote work or the money saved while not traveling to invest in your future by buying a vacation home. Bankrate explains why a second home, or a vacation home, may be something worth considering: “For those who are able, buying a second home is suddenly more appealing, as remote working became the norm for many professionals during the pandemic. Why not work from the place where you like to vacation — the place where you want to live? If you don’t work remotely, a vacation home could still be at the top of your wish list if you have a favorite getaway spot that you visit often. It beats staying in a tiny hotel room or worrying about rental rates each time you want to take a trip.” So, if you’re looking for an oasis, you may be able to make it a second home rather than just the destination for a trip. If you could see yourself soaking up the sun in a vacation home, you may want to start your search. Fall is a popular time to buy vacation homes. Older generation boomers that are selling their homes to go back to their families for the holidays are listing now. By beginning the process with me now, you can get ahead of the competition. A recent article from the National Association of Realtors (NAR), mentions some of the top reasons buyers today are looking into purchasing a second, or a vacation, home: “According to Google’s data, the top reasons that homeowners cited for purchasing a second home were to diversify their investments, earn money renting, and use as a vacation home.” Are you ready? If any of the reasons covered here resonate with you, connect with me. If you would like to text instead of email, kindly add your phone number in the comments and I can get back to you right away! 9/27/2022 0 Comments yes, myrtle beach is a low cost of living luxury market and there are plenty to choose from!As people realize their needs are changing, some are turning to luxury housing to find their dream home. This is often the case with multi-generational housing needs. As of today there are 100 properties available in Pawleys Island, for example, listing between $600,000 and $7.5-Million dollars. In Myrtle Beach, there are currently 450 properties available between $600,000 and $5.7-million dollars. But price alone does NOT define luxury. Investopedia helps define what pushes a home into this category. In a recent article, they point out that location is also an important factor. It could be a condo at a desirable city address, a spacious home on the water, or one with access to luxury activities like arts and entertainment, high-end shopping and dining, and more. The home itself will also boast some of the finest features available. According to the Luxury Market Report from the Institute for Luxury Home Marketing, there’s been a substantial increase in how many buyers are purchasing luxury homes over the past two years. It says: “. . . North America recorded the fastest growth of demand during the first year of the pandemic. Also, demand has . . . consistently increased, and even in April 2022, we saw a higher volume of sales compared to 2021.” If you own a luxury home, it could be a great time to list your house with me today while demand remains high. First, let’s understand where the demand is coming from. What is Driving the Heightened Buyer Demand for High-End Homes? The same report says more people have reached a certain net-worth threshold, and that is contributing to the increased interest in luxury housing: “In 2020, we saw a 2.2% growth in the number of individuals with wealth of over $5 million in net value, but in 2021 that number grew by an outstanding 19.8%. This total increase has resulted in the introduction of over 660,000 new individuals into the high net-worth bracket, which, combined with the existing affluent looking to both diversify and add new properties to their portfolio, provides a true insight into why the demand for luxury properties skyrocketed during 2021 and into 2022.” If you are looking to make changes to your real estate portfolio or are looking to sell your current house, it may be a great time to list and benefit from the high demand for luxury homes today. Do you want to learn about the strength of the Myrtle Beach luxury market? How strong is demand? Let’s connect so you can capitalize on current market conditions before the new year. Visit my website to browse the latest MLS listings or enter this into your browser: https://www.bhhscoastal.com/myrtle-beach/nancy-aborn-wuennemann Photo Credit: NCRMLS 2020 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 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 is 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 are borrowing 80% of the home’s value. So your LTV ratio is 80%.” Why Is This Important? This is yet another reason we will not 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. 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. Homeownership in any market makes sense. |
Location1232-B Farrow Parkway
Myrtle Beach, SC 29577 |
Client Kuddos:
|