News

The Biggest Perks of Buying a Home This Winter

 
 

Waiting for perfect market conditions often means missing out. Because what you may not realize is, if you’re ready and able to buy, this time of year could actually give you an edge. Here’s why. As the weather cools down, the housing market can too – and that works in your favor.

You Likely Won’t Feel as Rushed

Homes tend to take a little longer to sell during this time of year. Data from the National Association of Realtors (NAR) shows the average time a house sits on the market jumps up during the winter months.

This is partly because fewer buyers are active at this time of year – and that decrease in buyer competition means the houses that are on the market aren’t going to be snatched up as quickly. So, if you decide to buy a home in the next couple of months, you’ll likely have more time to consider your options and negotiate a deal without feeling as pressured.

Sellers May Be More Willing To Negotiate

And since homes generally take longer to sell during the winter, sellers are often more motivated to close a deal. That can work in your favor, too. According to NAR:

“Less competition can lead to better deals. While homes are not selling as fast as during the summer, sellers may be more willing to negotiate.”

Whether it’s compromising on price, covering closing costs or repairs, or including extras like appliances, you have more room to ask for what you need.

Homes Are Less Expensive in the Winter

With less competition from other buyers and sellers who are more willing to negotiate, you may see slightly lower prices too. In fact, according to NAR, homes are typically about 5% less expensive now compared to when prices normally peak in the summer.

That might not seem like a huge difference, but on a $400,000 home, it could mean savings of $20,000 on the purchase price.

You can see this expected seasonal shift in home prices taking place this year. Take a look at the graph below showing the median sales price of existing homes (homes that were previously owned) over the past 12 months. You’ll notice in the green bars that prices were lower in the winter months last year, and it seems like that’s going to happen again this year. That gives you the chance to make your budget go further:

 
 

Bottom Line

Buying a home during the winter means less competition, motivated sellers, and potentially lower prices, too. Work with a local real estate agent to find the right one at the right price for you.

Read more at Keeping Current Matters

Related Links

If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

Search Homes in Colorado

Search Homes in North Carolina

Search Homes in Oklahoma

What You Need To Know About Taxes When Selling A Home

 
 

The tax rules for a home sale are pretty clear-cut, yet I continue to speak with people who are confused about what they will owe if they were to sell their primary residence.

This confusion may be due to so few people owing taxes when they sell their primary residence. Another reason for the confusion may be how rarely people buy and sell a home. Here is what you need to know about taxes when selling a home:

How Can You Make Your Home Sale Tax-Free?

As you may or may not know, selling real estate is a taxable event. However, in the past, only some primary residence sales were subject to taxation. Thanks to former President Bill Clinton and the 1997 Taxpayer Relief Act, homeowners can exclude the first $250,000 ($500,000 for married filing jointly) of gains from the sale of a primary residence. That's assuming they meet certain requirements. Pretty good deal, right?

With the median home price in the U.S. well below the $500,000 price point, a vast majority of sales will not have any capital gains taxes due when sold. Of course, more homeowners will see gains above the $500,000 mark in more expensive parts of the country. From there, they will only owe taxes on gains above the $250,000/$500,000 profit levels. This tax break could potentially save a married couple between $75,000 and $111,000 in federal taxes and more if you include taxes at the state level.

I also want to point out that losses are not deductible on primary residences. If you sell a home for less than the purchase price, you are just out of luck. Also, know that you don’t have to roll over the proceeds into a new property to get the tax exclusion. For whatever reason, that question still comes up quite often.

Who Qualifies For A Real Estate Primary Home Tax Break?

There is only one relatively easy hurdle to get over to benefit from this valuable real estate tax break. You need to live in the home as your primary residence for a total of two of the last five years. You potentially can claim this exemption every two years, thereby possibly sheltering millions of dollars in capital gains over your lifetime.

The Two-Out-Of-Five-Year Real Estate Rule: What Homeowners Need To Know

If you find yourself trying to sell your home before living in it for two years, you might qualify for a prorated tax exclusion. The early home sale should result from employment issues, illness or another unforeseen circumstance out of your direct control, which potentially would make you eligible for a partial tax exclusion.

For many homeowners, even a partial exclusion could be enough to not owe taxes on the sale of a primary residence. Let’s say you are single, lived in your home for one year and had a $125,000 increase in value after paying closing costs and real estate fees. You could assume a prorated exclusion of half of the $250,000 available to single homeowners. Voila! No capital gains are due. These numbers could be doubled for a married couple.

The Real Cost Basis Of Your Home

Most of us can remember what we paid for our home. You might falsely assume that this is your home's cost basis. You might also falsely assume your capital gains taxes will be based on the selling price minus your purchase price. The reality is a bit more complex. Capital gains taxes on real estate will be based on the home's sale price (minus real estate fees and closing costs) minus the cost basis of the house.

The purchase price will play a part in determining the property tax basis. You may be able to increase the cost basis when considering certain expenses that you’ve incurred while owning the home. Think of things like a new roof, adding more square footage or ADUs, or remodeling.

Work with your tax preparer and tax-focused CFP to ensure you understand how these rules apply to you before selling a home. Even if you aren’t planning on selling anytime soon, keep track of expenses that can increase your cost basis on your primary residence. As you can imagine, it’s easier than you think to miss expenses from last year or even decades ago. That might be especially true if you were trying to block out how much that kitchen remodel was over budget a few years ago.

Read more at Forbes

Related Links

If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

Search Homes in Colorado

Search Homes in North Carolina

Search Homes in Oklahoma

FHFA finalizes new housing goals for Fannie Mae, Freddie Mac

 
 

The agency announced the final rule on Thursday, establishing new affordable housing goals for loans purchased by the GSEs over the next three years.

The Federal Housing Finance Agency (FHFA) this week announced a new final rule establishing affordable housing goals for the loan purchases of government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac from 2025 through 2027.

The goals, originally proposed in August, are largely unchanged from the initial draft. They are designed to “support equitable housing access for low-income families and families in low-income areas,” according to an announcement.

On the single-family side, 25% of the purchase mortgages acquired by Fannie and Freddie must go to borrowers earning less than 80% of the area median income (AMI), a decline from the 28% required in the previously outlined goals.

In line with the August proposal, there is also a new goal for very low-income purchases (for borrowers earning less than 50% AMI). The GSEs must allocate 6% of their purchases in this area, down from 7% in the previous plan. The low-income refinance goal of 26% as proposed is unchanged, as is the purchase subgoal for low-income census tracts at 4%. A purchase subgoal for minority census tracts is now 12%, up from the current 10%.

“The affordable housing goals better enable the Enterprises to effectively advance their missions and support housing finance markets in a safe and sound manner,” FHFA Director Sandra Thompson said in a statement. “It is critical that the Enterprises meet these goals, as required by law and regulation.”

For the single-family goals, “the Enterprises must meet the benchmark level or the actual market level of loans for each category,” the agency explained. “The actual market level is determined retrospectively for the year based on Home Mortgage Disclosure Act (HMDA) data.”

The goals also establish what FHFA calls “measurement buffers,” which help to determine what to do if either GSE fails to meet a goal. In these instances, the enterprise “must develop a housing plan (which is an action plan to demonstrate how it will improve its performance),” the FHFA explained.

A housing plan may be required if Fannie or Freddie “fails to meet a goal and the gap between the Enterprise’s performance and the market level is greater than the buffer defined in the final rule,” the agency stated.

The final rule is scheduled to go into effect on Feb. 27, 2025, or 60 days following its publication in the Federal Register.

Read more at Housingwire

Related Links

If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

Search Homes in Colorado

Search Homes in North Carolina

Search Homes in Oklahoma

No View, No Problem: How to Improve The View From Your Property

 
 

Compensating for a lack of view is not insurmountable. Here are some clever ways to create your own. 

Prestigious addresses in desirable neighborhoods may suggest apartments and townhouses that check all the boxes, but sunlight and views are not guaranteed. It is a simple matter of geometry: Each building may be a square or rectangular box, or a series of boxes, with a front, two sides, and a back. While the front of the building may boast park or river views, the two sides most likely abut another building or a courtyard, and the back may have no view of any kind.

While everyone, whether renter or owner, may prefer an open view, as opposed to a partial or obstructed view, it is clear that lovely homes exist in charming neighborhoods at affordable prices, but without a view.

Compensating for the lack of any view is not insurmountable. Urban living offers many options, particularly in New York City, and views may be the first amenity to fall by the wayside. The density of construction and the need to utilize every square inch of land virtually guarantees that views will be less than ideal, if not entirely expendable.

Buyers are willing to pay for a favorable view, particularly of a landmark building, skyline, park or river. Units on a building's lower floors, or its rear, while they may receive ample light and air circulation, can benefit from innovative ways of manipulating space.

Create a Tropical Feeling

I have rented apartments to individuals who come to New York from warm, sunny countries near the equator, with courtyards and fountains in the center of their homes, looking to recreate the same ambiance in an urban setting. I recommend using bright, warm colors, lighting, mirrors and plants to evoke a tropical feeling in the middle of a concrete jungle.

Light fixtures with higher wattage and warm bulbs can provide a sunny atmosphere. Plants of varying heights, both live and artificial, grouped with light shining onto their leaves, casting shadows on the walls and ceiling, can add a sunny feeling, especially if combined with a small water feature or recirculating fountain and maybe even a live bird in a cage.

Get Window Treatments and Stained Glass

Large expanses of glass that look at nothing, or worse, look out onto garbage dumpsters or HVAC systems offer greater challenges. Window treatments consisting of sheer fabric can soften these non-views. Colorful antique stained-glass windows, modern reproduction colorful glass, or beveled glass windows suspended both in front of and behind the fabric will distract the eye. Lighting will again play an important role: In spotlights or track lighting, focus on the jewel-like glass to create the suggestion of sunlight.

Wooden shutters and blinds of light wood or composite materials can do wonders to disguise a depressing view. Other options include lighting behind window treatments that can be dimmed to prove subtle effects or dialed up to the maximum to create a sense of sunlight.

Window treatments, from the minimal to the most elaborate, can help detract from a less-than-inspiring view. To add the illusion of an additional window or to create symmetry, it is possible to hang a curtain rod opposite or next to an existing window and add draperies or curtains with a bamboo or translucent shade in the center. Only you will know that it is not a real window.

Use Mirrors Strategically

This brings us to mirrors, a tried-and-true solution to dark and viewless apartments. A wall-hung framed decorative mirror, opposite a sunny window, with or without a view, easily expands a space and reflects exterior interest. If it reflects some sunlight, a wall of mirrors will make your home feel more expansive.

A mirrored three-panel folding screen, which is angled, can reflect exterior light, adding sparkle and energy. Caution! Overdoing mirrors can create a fun-house effect that can be disconcerting.

Clear mirrors, as you see in any bathroom medicine cabinet or department store fitting room, are not the only option. Rose-colored mirrors provide a warm, healthy glow, gray or smoky-toned mirrors evoke a mysterious mood, and crackled or veined mirrors provide an atmospheric feeling that will make one forget the absence of a view.

Antique mirrors can be both dramatic and historically accurate in a period setting. The lack of a view is mitigated if a statement crystal chandelier is reflected in the antique mirror.

Distract With Artwork

Artwork is another solution to no view. I listed a very large apartment, a combination of three units in a former hotel in a historic landmarked district of Brooklyn Heights. Despite being on a high floor, with ample light, there was no view to speak of.

While I used plants and mirrors, I placed dramatic "statement" art to distract from the lack of a view. The artist who loaned me the art was willing to part with her paintings, and they were so effective that several sold to the couple who ultimately bought the apartment. A landscape or ocean view, as depicted in a framed poster or print, can substitute for a view. I had to catch myself when looking at the artwork out of the corner of my eye, as they appeared to be a real window with a view.

Make Your Own View With a Projector

If the view from your window is a completely bland brick wall, there are clever ways to compensate or even "create" a view. A projection camera on the windowsill can use the blank wall as a screen for an image of a Venetian canal or Alpine mountain.

Your neighbors may be fascinated by your changing choice of projected images, that you can select according to time of day, season or your mood. Your virtual "view" is limited only by your imagination.

Create Interior Interest in Your Home

Apartment dwellers and house owners alike get very excited about exterior views and sunny exposures, but every residence has desirable and less desirable aspects. Views and sunlight may be expendable when the location, price, size and resale value are right.

A less-than-perfect kitchen or bathroom can be rehabbed, ugly paint colors can be replaced, floors refinished, closets added and light fixtures or moldings changed or enhanced. But a drab or nonexistent view cannot be altered.

Creating interior interest in a home, as mentioned, with artwork lighting or plants and disguising a flawed view are possible solutions to this dilemma. Each space, even the least desirable, has potential and can be transformed into a welcoming environment with imagination and creativity.

Read more at U.S News

Related Links

If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

Search Homes in Colorado

Search Homes in North Carolina

Search Homes in Oklahoma

The #1 Reason People Move: To Be Closer to Family and Friends

 
 

Have you ever thought about packing up and moving to be closer to the people who mean the most to you? Maybe you’re tired of long drives to see your family or wish your kids could spend more time with their grandparents. Clearly, a lot of other people feel the same way.

According to recent data from the National Association of Realtors (NAR), the desire to be near family and friends is the #1 reason people move (see graph below):

 
 

That’s because moving isn’t just about finding a new house – it’s about living a life where you’re surrounded by the people who matter most. Whether it’s catching up over weeknight dinners, watching your kids play with their cousins, or just knowing someone’s there when you need them, living near loved ones changes everything.

Let’s dive into why so many people are making this move and how it could be the best decision for you, too.

Why Family Comes First

Living near family and friends is a universal motivator that cuts across all types of buyers, whether you’re buying your first home or making a big lifestyle change.

But it’s especially important to repeat buyers. Unlike first-time homebuyers, who may be more focused on looking in more affordable areas, repeat buyers often have more flexibility on where they live. Many Baby Boomers, for example, have built significant equity in their homes, giving them the freedom to prioritize what matters most – like retiring near their grandkids. As Ali Wolf, Chief Economist at Zonda, says:

“25% of Baby Boomer households plan to retire near their children and grandchildren . . .”

Making a move to be closer to friends and family is all about creating a meaningful next chapter in your life where loved ones are just around the corner.

The Benefits of Living Near Loved Ones

But moving closer isn’t just a lifestyle choice – it’s a decision that offers real benefits:

Spending More Time Together Whether it’s joining family dinners, going to weekend activities, or simply having someone nearby to talk to, these moments strengthen relationships and make life more fulfilling.

Sharing Resources Living close to family can provide practical advantages, too – like sharing childcare, tools, or household items.

Cutting Down on Travel Instead of spending hours on the road to spend time together, you can enjoy more spontaneous visits. This not only enhances your quality of life, but it also provides peace of mind in case of emergencies.

Being There for Big Moments It also offers both emotional and practical support during life’s milestones. From graduations to tough times, being close to loved ones helps you feel connected and cared for.

Ready To Make Your Move?

At the end of the day, home isn’t just a place you live – it’s where your people are. Whether you’re looking to spend more quality time with family or enjoy the practical benefits of being closer to loved ones, the decision to move closer to those you care about is a deeply personal one.

Bottom Line

If you’re thinking about making a change, a local real estate agent would love to help. Together, you can explore neighborhoods that brings you closer to the people and places you love most.

Read more at Keeping Current Matters

Related Links

If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

Search Homes in Colorado

Search Homes in North Carolina

Search Homes in Oklahoma