Home sellers are returning to the market

The weekly volume of new listings is now higher than at anytime last year.

It’s just now May, so there could be as many as eight more weeks of seller growth in the spring housing market. And seller growth is happening pretty much everywhere across the country, with Florida and Texas leading the way. 

There’s two ways to interpret these trends. The bearish take is that there are many more sellers than buyers and inventory is rising. Mortgage rates are at 7.5% and there are no signs of improvement anytime soon. This implies that home prices will decline in the near future.

The more optimistic take is that more sellers will result in more sales. Even if the imbalance of more sellers than buyers continues, more sales will happen, especially compared to last year at this time. 

But maybe both of these interpretations prove true. In addition to a higher number of new listings, there were also more new contracts started this week than in any week in 2023. That’s not saying much, since last year had so few home sales, but it is a step in the right direction.

Should we elaborate further? Mortgage rates are now topping 7.5%, the highest levels seen this year.  You’d think the sales rate would be slowing, but there aren’t signs of it. It’s possible that sales will slow, but maybe it takes a few more weeks to manifest than expected.

At Altos Research, where we track every home for sale in the country each week, the data so often defies expectations or changes very quickly. By tracking the pricing, supply and demand, sales and changes in the data, you can immediately understand it as it happens. Let’s look at the details of the U.S. housing market at the end of April 2024.

Housing inventory

There are now 556,000 single-family homes on the market. That’s up 2.4% from last week, with slightly more than 13,000 additional properties on the market now than a week ago.

Unsold inventory now is almost 32% higher than at this time last year — and it’s 90% higher compared to the end of April 2022. Two years ago, inventory was jumping along with mortgage rates. But that’s not what’s occurring now as the increases are more steady.

This is one way to illustrate that consumers are more sensitive to changes in rates than to the actual levels. Rates are higher now, so unsold inventory is higher. But two years ago, rates were climbing by 20 basis points or so each week for much of the spring. Rates were climbing rapidly and so was inventory. Now the increase in both of these lines is slower. 

In 2022, there were record-low numbers of unsold homes on the market, but the numbers were climbing rapidly, with 18,000 to 20,000 properties added each week. Today, we’re adding 13,000 per week. While interest rates and inventory are rising in 2024, they were doing so much more quickly two years ago. The change in rates is what drives change in behavior.

New listings

There were 72,000 new single-family listings unsold this week, Another 21,000 homes were newly listed and already under contract (what are known as immediate sales) for a total of 93,000 new sellers this week. That’s much more than at any point of 2023. You have to go back to July 2022 to find this much seller activity in a given week. 

So, why is the seller volume increasing, where is it coming from and is it time to panic? 

First, keep in mind that immediate sales are still at a reasonably healthy level. Plenty of homes are receiving offers and going into contract immediately upon being listed — 21,000 this week, or 22.5% of the market. 

Next, keep in mind that there are still 20% fewer sellers each week than there would have been in a “normal” year prior to the COVID-19 pandemic. There are not a lot of sellers. It’s just that in the past decade as mortgage rates fell, more real estate began to be hoarded and fewer sales took place. In the accompanying video, you can see the relative levels of new weekly listings. Seller volume is still running pretty low because homeowners have such a good deal with their low mortgage rates that they don’t want to sell. 

Fixed mortgage rates mean fixed costs for most homeowners. Fixed costs theoretically means they won’t ever have to sell. But in areas where costs are rising — due to higher property taxes, insurance hikes or other rising maintenance expenses — homes are more likely to hit the resale market.

Right now, this is most obvious in Texas and Florida. Over the past year, 40% of the inventory increase at the national level has come from these two states. Texas and Florida combine for 29% of the country’s active listings and 16% of its population, so outsized gains are happening in these place. For example, if you have a second home in southwest Florida that you only use occasionally and your insurance costs tripled this year, it’s very tempting to sell. And some people are doing so.

The opposite trend is happening in New York, which has the fewest available homes per capita right now. That dubious distinction is usually reserved for California. New York has slightly fewer homes on the market than at this time last year, whereas Florida now has 59% more. 

The takeaway here is that inventory gains are happening pretty much everywhere but at a significantly higher rate in the Sun Belt states — from Florida to Texas and Arizona. 

Pending sales

There are 398,000 single-family homes under contract now — a few percentage points more on a year-over-year basis. These homes in the pending-sales stage will mostly close in May.

This is slight seller growth but not a pullback, even with April’s mortgage rate increases.

Frankly, this pace could’ve been expected to reverse, but it hasn’t happened yet. In 2022, sales dwindled in the second half of the year and have yet to recover. The video above illustrates how quickly home sales slowed as mortgage rates rose — especially in June and September 2022.

This year, the trajectory is staying surprisingly positive. As the average rate jumped from 7% to 7.5%, that slowdown could’ve been expected to happen again. If the market gets lucky and rates don’t climb past 8%, then the sales rate might continue to slowly recover by later this summer. But rates could keep climbing. The macroeconomic data keeps coming in strong and we’ll just have to watch to see what happens.

There were 76,000 new contracts started this week for single-family homes in the U.S. That’s more than in any week for all of 2023. It’s strong growth — 9% more than the same week a year ago. Sales volume typically peaks at the end of June, so we likely have more growth to come in the spring market. And the weekly new pending sales count is already ahead of the best weeks posted last year.

Home prices

The median price of homes under contract is now slightly more than $399,900, good for 5% year-over-year growth. What’s being tracked here is the final asking price for the homes that went into contract. This is the earliest proxy for the final sales price. Any given home may sell for more or less than asking price, but in aggregate, the actual sales price is very close to this pending sales price.

Altos Data watches several measurements of home prices. There’s asking prices, or what you’ll see if you’re shopping the market today. The median price of all homes on the market right now is just under $445,000 and is only 1% higher than in April 2023. 

The price for a new listing is the best leading indicator, and there are the prices of the set that is being purchased, which is what we’re looking at here. These are all useful indicators of home prices.

Historic data shows, for example, precisely when home prices fell in June and September 2022. At that time, there were large jumps in seller inventory coupled with sudden, additional spikes in mortgage rates. So, homebuyers adjusted their expectations and prices dropped. We’re on the alert for these price declines today but have yet to see them.

Price reductions

While watching for leading indicators for changes in sales prices, we saw a meaningful uptick in price reductions. This week, 32.5% of the homes on the market included a price cut. That’s up 50 basis points from last week and is 340 bps more than at the end of April 2023.

This week last year was the final decline of the spring season. Pricing was much firmer last year, but the share of homes with price cuts in 2024 have increased for 10 weeks. It’s a much slower season compared to last year and spring is when the most upward pressure on home prices typically happens.

But price cuts are on the rise. The curve this year is following a very clear seasonal trend. Home prices are not crashing and there’s no signal anywhere in the data that a crash is imminent. But there are more homes with price cuts now than in April of any recent year, so that’s a pretty weak signal.

In the price reductions chart of the accompanying video, notice how this year’s curve is elevated above that of any recent year. There are more homes on the market with price cuts today than in any April in more than a decade — even though this rate is not climbing nearly as quickly as it did two years ago when the market changed.

If you look at the local data, you’ll see that the Florida markets are dominating in terms of price cuts. More than 50% of the homes on the market in most of the major Florida metro areas have had price cuts. Inventory is up and prices are lower on an annualized basis.  Nationally, however, the data is balanced out by many markets, such as those in the Northeast, where inventory is still very low.

If mortgage rates keep climbing, we could more than 40% of U.S. listings with price cuts by the latter portion of summer. That would likely be a negative indicator for future sales prices — i.e., home price declines. As mentioned earlier, home prices today are higher than they were a year ago (by 1% to 5%, depending on which measurement is used). But the price-reductions trend seems like it is poised to slow down. It looks as if home prices in 2024 will remain flat, at best, although 2023 offered a surprise and that could happen again as this year unfolds.

Read more at HousingWire.com

Related Links

• This Is How Much the Average Kitchen Remodel Actually Costs, According to Experts

• How to make your home look bigger – without getting the construction crew in

• The Best Way To Keep Track of Mortgage Rate Trends

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.

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How to make your home look bigger – without getting the construction crew in

If you live in a house on the smaller side of things, then you've probably wondered how to make your home look bigger – without getting structural changes involved.

Similarly, you may be working with a larger space but for some reason the rooms feel smaller than their footprint. Luckily, there are so many ways to visually increase the size of your space so it feels bigger and roomier.

In a small home you may have considered extending, but if that's not possible or looking at examples like kitchen extension costs put you off, then breathe easy, because we've got a wide range of ways to make your home feel larger without any construction coming into play and you won't have to redo your budget to make them work. That's what we call a win-win!

How to make your home look bigger 

'If your home is tight on space, there are several easy ways to make your space more functional, without having to make any major changes,' says Matthew Currington, technical director, The Lighting Superstore.  

We've asked the experts to tell us all so that we can help you transform tight spaces into gloriously spacious-feeling areas. Whether you're working with small kitchens, snug bedrooms or the whole house is looking a bit cramped, these tips will help with how to make your home look bigger whether you try one, or a combination of ideas.

1. Declutter and organise

When it comes to how to make a home look bigger everything begins with a good declutter. 'Our homes are essential to our self-care and relaxing, so creating a clutter free, calming space is a must, even when space is limited,' agrees Rikke Blaeside, design and range manager at JYSK.

Whether you're starting with quick 10 minute clear-out a or you're going full-out with an ultimate declutter you'll of course have to kick things off by getting rid of anything you don't need - if you haven't used it in the last year, you're probably not going to use it in the next either. Equally, anything that is out on display that isn't adding value to the space can go too.

Keep display items to a minimum; it's better to have fewer, larger statement pieces placed carefully around the home, than lots of little knick-knacks springing up everywhere, which is a sure way to make your rooms feel overcrowded.  

2. Choose a light colour scheme

'When wanting to make a space feel bigger the colour choice is incredibly important,' stresses William Durrant, owner, Herringbone Kitchens. 'Light, pastel, taupe or neutral colours work wonders when creating the illusion of a bigger space.'

Light, neutral colours on the walls will maintain an airy feeling in the room, whereas deeper and darker shades will have the opposite effect as they don't reflect light. This is especially important if your space is lacking in natural light. 'Choose a light colour such as white to reflect the little light you have and widen up your room upwards,' suggests Rikke from JYSK.

And don't make the mistake of thinking that lighter paint on the walls is a boring style choice; there are plenty of beige living room ideas that will create an enviable front room, for example.

'Soft, pale colours like light grey, creamy white, or pastel shades used on the walls and painted furniture can reflect light and create a sense of openness,' says Kate Palmer, creative director, The Painted Furniture Company. 'These hues can also provide a calm and tranquil atmosphere, making the space feel more inviting.'

'In addition, it's generally advisable to avoid using multiple contrasting colours or busy patterns in a small space,' advises Kate. 'These can create a visually cluttered and disjointed look, making the space feel overwhelming and lacking cohesion.'

Try colour drenching, or using similar shades throughout your scheme. 'For your kitchen for example, consider using the same tones on the walls as well as the cabinets to create a lovely warm space that appears larger than it is,' suggests William.

3. Pick patterns carefully

Just like colours, the patterns you use in a room can impact how to make a home look bigger or smaller than it actually is.

'Horizontal stripes can make a narrow room feel wider, so upholstered sofas can stretch out the feel of a room or if you have a space you want to make feel taller, use vertical stripes – ceiling to floor curtains can help enormously with this,' says textile designer Tori Murphy.

With ant type of pattern you also need to consider the scale. Smaller spaces work best with smaller repeats, however you can use larger patterns in small spaces if done so carefully. 'For example, small, quieter patterns can complement a cushion with a bold pattern which you can use more sparingly,' suggests interior designer Ann Marie Cousins.

When choosing the colourways of your pattern also consider how much 'traffic' they're adding to the eyeline.  'I would suggest avoiding high-contrast colour combinations, such as black and white or strong complementary colours,' advises Debbie Leigh, design manager at ILIV, 'as they can create a visually busy environment that may feel cluttered in a small space.'

4. Storage is key

When learning how to make a home look bigger, storage is your best friend. In every room, maximise storage possibilities by utilising your furniture and fixtures. For example, kitchen islands can offer space to store larger appliances that don't need to be out on the worktop all the time, as well as air fyers and cooking pots.

'Factor in plenty of storage to keep your home clear of clutter as clear surfaces and floors make a home feel bigger,' advises Sallie King, founder of Urbansize. 'Utilise clever hidden storage, such as above kitchen cabinets, underneath the stairs, built-in seating and the back of the door.'

'In narrow areas such as hallways opt for wall hung furniture and shoe storage to keep the floor clear of clutter to make the space feel larger,' Sallie suggests. 'In bedrooms, opt for wall hung bedside cabinets to give clear sight lines around the bed.'

5. Use multipurpose furniture

Knock two birds out with one stone and choose furniture that will help with how to make a home look bigger by moonlighting as secret storage areas.

'Choose pieces that serve multiple purposes, such as an island with built-in storage or a dining table with hidden storage compartments,' advises James Bernard, director of Plus Rooms.

'A stylish stool can be used as both seating at a dressing table as well as additional storage for hair dryers and beauty utensils, while opting for a bed with drawers built into the frame can provide a wealth of additional storage that is easily accessible for items such as extra bedding and blankets,' adds Rikke from JYSK.

6. Go high with shelving

Smaller spaces benefit from shelves sitting higher up the wall than usual. 'This gives the impression that the room is taller, and therefore bigger than it really is,' explains Lee Trethewey, interiors expert, Sustainable Furniture. 'The lower the shelving, the more compact any room feels.'

'Avoid wall cabinets that can close in the space. Instead opt for open shelving,' advises Chris Spink, founder of Hush Kitchens. Placing photos and framed pieces of artwork on these shelves will naturally draw the eye upwards and add height to the room. The same applies if you're hanging any decor on the wall; place it a few inches higher than planned and you'll be surprised at the difference it makes.

However, you don't have to take it all the way to the ceiling. 'Don’t go too high, it isn’t supposed to be really obvious, and you don’t want to get a sore neck from looking up all the time,' says Chris Bawden, lighting expert, Simple Lighting.

7. Let furniture breath

Thinking about how your furniture sits in a space can affect how to make a home seem bigger. This may involve choosing items elevated off the floor, or simply moving existing pieces.

'Maximising the amount of floor space that can be seen in the room will trick the eye into thinking it is larger than it is, so opt for furniture on legs,' suggests Sallie from Urbansize. 'Taller legs on furniture create the illusion of light and space and make the room look bigger.'

'Not every piece needs to be elevated but adding legs to your living room sofa would be most effective for bringing in the illusion of space,' continues Patricia Gibbons from the design team at sofa.com. 'There is something about being able to see more floor which creates the feel of spaciousness especially when you aren’t spoiled for it.'

This is just as applicable in spaces like kitchens and bathrooms as it is rooms you might expect like lounges. 'If an island is on your wish-list (and there’s room) choose a farmhouse style which has legs so you can see the floor underneath giving a feel of space,' explains Chris from Hush Kitchens.

Spacing out furniture is just important as the space underneath. 'Where you can, leave 10cm of breathing space around each side of your furniture,' adds Sallie. 'Don't always be tempted to push everything as close to the wall as possible as it can create a cluttered busy look.'

8. Select the right sofa

Thinking about how your furniture sits in a space can affect how to make a home seem bigger. This may involve choosing items elevated off the floor, or simply moving existing pieces.

'Maximising the amount of floor space that can be seen in the room will trick the eye into thinking it is larger than it is, so opt for furniture on legs,' suggests Sallie from Urbansize. 'Taller legs on furniture create the illusion of light and space and make the room look bigger.'

'Not every piece needs to be elevated but adding legs to your living room sofa would be most effective for bringing in the illusion of space,' continues Patricia Gibbons from the design team at sofa.com. 'There is something about being able to see more floor which creates the feel of spaciousness especially when you aren’t spoiled for it.'

This is just as applicable in spaces like kitchens and bathrooms as it is rooms you might expect like lounges. 'If an island is on your wish-list (and there’s room) choose a farmhouse style which has legs so you can see the floor underneath giving a feel of space,' explains Chris from Hush Kitchens.

Spacing out furniture is just important as the space underneath. 'Where you can, leave 10cm of breathing space around each side of your furniture,' adds Sallie. 'Don't always be tempted to push everything as close to the wall as possible as it can create a cluttered busy look.'

9. Light with care

It's probably no surprise that lighting will make a huge difference to how big or small your house feels. 'Good lighting can help a space to feel larger than it actually is. If you are not blessed with lots of natural light, ensure you have enough light sources to keep the room feeling bright and airy,' says Mara Rypacek Miller, managing director of Industville.

The hot new lighting trends for 2024 will give you plenty of inspiration, but it's just as much about how you position the fixtures as it is the fixtures themselves. 'Wall sconces with uplighting are a good choice, as they don’t take up any floor room,' says Chris from Simple Lighting. 'If you already have a floor lamp which can be angled, point it up rather than down. The same goes for table lamps.'

Ceiling lights can be tricky to navigate if you have low ceilings or a small room. Ideally, you don’t want anything that will dominate a cosy space, or anything you could walk into, so ditch the idea of a chandelier. 

'Flush ceiling lights are a good choice as they take up less room and choosing clear or glass shades will keep the space feeling fresh and open,' advises Mara.

10. Get reflective

It's the oldest trick in the book and sometimes classics like these just can't be beaten. 'Brilliant for creating the illusion of more space, mirrors can be used virtually every room in the home to reflect the light and other reflective, glossy surfaces,' explains Helen Pett, design ambassador for Arteriors London. 'Light and colours bouncing off mirrors can create a real impact as they give the illusion of a larger space as well as brighten it.'

Think, however, about how you're placing your mirrors. 'Try the mirror at different angles, both vertically and horizontally, to see which fits and compliments your space better,' advises Rikke from JYSK.

'Consider propping your mirror onto a mantelpiece or shelf as an alternative to hanging it so the mirror hangs lower,' adds Amy Wilson, interior design expert, 247 Blinds & Curtains . 'Propping small mirrors onto shelves and windowsills helps extend the line of sight beyond the items placed around them and works particularly well if you pop something metallic in front.'

And it's not just mirrors themselves that can help. Antiqued glass splashbacks do the same thing, for example. Or, if in a room that's really tight for space look to options like mirrored radiators. 'They are a stylish space-saving option that allows you to heat a room whilst adding a design feature at the same time,' notes Nick Duggan, director of the Radiator Centre.

11. Opt for blinds over curtains

If the windows in your home are currently fixed with curtains, consider swapping these for blinds instead. Blinds are better at letting light from the window flood a room, and will instantly make a space feel brighter and more open. They take up less space than curtains as well.

'I would avoid heavy curtains, they can make windows look smaller and take up wall space, opt instead for roman blinds that maximise the amount of light coming into the room,' explains Sallie from Urbansize.

12. Be smart with flooring

It may be surprising how much of an impact flooring can have on how large or small a room seems to be. 'You want to pick patterns that give the appearance they are extending the size of the floor,' advises Carolina Hansson, head of design, Luxury Flooring & Furnishings.

When it comes to tiles, you need think big. Unlike pattern repeats, you can really play with scale here. 'Using oversized tiles in a small area tricks the eye into thinking that the room is much bigger than it really is, so can help to create a sense of scale where it doesn't naturally exist,' explains Grazziella Wilson, head of creative at Ca’ Pietra. 'You’ll also have minimal grout lines which help to create a sleek and polished finish.'

Read more at IdealHome.co

Related Links

• This Is How Much the Average Kitchen Remodel Actually Costs, According to Experts

• 20 Packing and Moving Tips and Tricks to Simplify Your Move

• The Best Way To Keep Track of Mortgage Rate Trends

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.

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This Is How Much the Average Kitchen Remodel Actually Costs, According to Experts

The kitchen is the heart of the home, so it makes sense that you’d want it to look good — and that’s why it’s one of the first spots people look at remodeling when they’ve got the chance to upgrade their space.

The cost of a kitchen remodel, though, can vary wildly based on what you’re updating, and how big of a renovation you’re planning. 

Apartment Therapy spoke to six experts to figure out exactly how much a kitchen renovation or remodel might set you back, and the experts quoted ranges from $1,000 to $300,000 — keep reading to see how that cost breaks down.

What Is the Average Kitchen Remodel Cost?

On average, you can expect to spend about $45,000 for a full kitchen remodel, the experts share. That cost, of course, depends on everything from the size of your kitchen and where you live, to the type of home you have and the quality of materials you choose. Labor expenses will vary, too, based on who you hire, how many hands they’ll need, and their availability (more on that below). And, unfortunately, Mazzarini notes, “with the lingering effects of the pandemic, costs are still trending high.”

Basic Kitchen Remodel Cost

A minor remodel can cost between $1,000 to $25,000. On the lowest end, you’d be doing simpler things yourself like painting your cabinets, upgrading hardware, shopping appliance sales, and doing some labor work — like hanging drywall or doing small carpentry jobs — on your own. This price range is for the DIYers who want to have a hand in (almost) every part of the process but don’t want to tackle major things like moving plumbing, electricity, or gas lines. When you add in new countertops and upgraded flooring, you’ll head to the higher end of this range.

Midrange Kitchen Remodel Cost

A moderate remodel costs between $25,000 to $60,000. In this price range, you’ll be replacing things like countertops, flooring, appliances, and cabinets. Lighting and walls may also be on the docket for this level of renovation. The majority of the cost here will come from cabinetry and appliances. Cabinets are often considered the most expensive part of a remodel, so consider painting what’s there instead of fully replacing them to keep costs down.

High-End Kitchen Remodel Cost

A major remodel of your kitchen will range from $60,000 to $300,000. For high-end renovations, you’ll be doing things like moving around plumbing, potentially adding gas lines, or even completely demolishing the existing footprint of your kitchen and redoing it into something new. Finishes like hardware and molding may be more upscale or luxury, and appliances will likely be top-of-the-line. Here’s the chance to grab those custom countertops you’ve always wanted, with a chic backsplash to match.

Kitchen Renovation Cost Breakdown

The cost of a kitchen remodel isn’t just for the materials — you’ll also need to pay for the workers you hire along the way. 

Labor Cost

For your remodel’s labor cost, Hagood says you’ll need to account for “the fees for skilled tradespeople, such as carpenters, plumbers, electricians, and general contractors, as well as any permits and inspections required for the project.” You’ll also include the cost of any designers you hire, which Babcock says runs $65-$250 per hour. Expect for your renovation cost to split up to around 60% materials and 40% labor.

Item Cost

• Cabinet painting — $2,000 to $7,000

• Cabinets — $25,000 to $75,000

• Appliances — $1,000 to $50,000

• Countertops — $1,500 to $20,000

• Flooring — $5,000 to $10,000

• Hardware and faucets — $5,000 to $15,000

• Plumbing — $2,000 to $20,000

• Electrical — $2,000 to $20,000

• Lighting — $50 to $20,000

• Painting — $200 to $3,000

• Kitchen Island — $4,500 to $7,000

As always, remember that kitchen remodels are not one-size-fits-all. Your overall cost will depend on “the extent of the renovation, including whether you’re changing the kitchen’s footprint, or just updating existing elements,” Hagood says, which will significantly raise the cost.

Read more at ApartmentTherapy.com

Related Links

• What You Really Need To Know About Home Prices

• 20 Packing and Moving Tips and Tricks to Simplify Your Move

• The Best Way To Keep Track of Mortgage Rate Trends

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.

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What You Really Need To Know About Home Prices

According to recent data from Fannie Mae, almost 1 in 4 people still think home prices are going to come down. If you’re one of the people worried about that, here’s what you need to know.

A lot of that fear is probably coming from what you’re hearing in the media or reading online. But here’s the thing to remember. Negative news sells. That means, you may not be getting the full picture. You may only be getting the clickbait version. As a source from Real Estate News explains:

“Housing market headlines are everywhere. Many are quite sensational, ending with exclamation points or predicting impending doom for the industry. Clickbait, the sensationalizing of headlines and content, has been an issue since the dawn of the internet, and housing news is not immune to it.”

Here’s a look at the data to set the record straight.

Home Prices Rose the Majority of the Past Year

Case-Shiller releases a report each month on the percent of monthly home price changes. If you look at their data from January 2023 through the latest numbers available, here’s what you’d see:

What do you notice when you look at this graph? It depends on what color you’re more drawn to. If you look at the green, you’ll see home prices rose for the majority of the past year.

But, if you’re drawn to the red, you may only focus on the two slight declines. This is what a lot of media coverage does. Since negative news sells, drawing attention to these slight dips happens often. But that loses sight of the bigger picture. 

Here’s what this data really says. There’s a lot more green in that graph than red. And even for the two red bars, they’re so slight, they’re practically flat. If you look at the year as a whole, home prices still rose overall.

It’s perfectly normal in the housing market for home price growth to slow down in the winter. That’s because fewer people move during the holidays and at the start of the year, so there’s not as much upward pressure on home prices during that time. That’s why, even the green bars toward the end of the year show smaller price gains.

The overarching story is that prices went up last year, not down.

To sum all that up, the source for that data in the graph above, Case Shiller, explains it like this:

“Month-over-month numbers were relatively flat, . . . However, the annual growth was more significant for both indices, rising 7.4 percent and 6.6 percent, respectively.”

If one of the expert organizations tracking home price trends says the very slight dips are nothing to worry about, why be concerned? Even Case-Shiller is drawing your attention to how those were virtually flat and how home prices actually grew over the year.

Bottom Line

The data shows that, as a whole, home prices rose over the past year. If you have questions about what’s happening with home prices in your local area, connect with a trusted real estate professional.

Read more at KeepingCurrentMatters.com

Related Links

• Improve Your Curb Appeal: 6 Projects You Can Tackle in a Weekend

• 20 Packing and Moving Tips and Tricks to Simplify Your Move

• The Best Way To Keep Track of Mortgage Rate Trends

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.

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The Best Way To Keep Track of Mortgage Rate Trends

If you’re thinking about buying a home, chances are you’ve got mortgage rates on your mind.

You’ve heard about how they impact how much you can afford in your monthly mortgage payment, and you want to make sure you’re factoring that in as you plan your move.

The problem is, with all the headlines in the news about rates lately, it can be a bit overwhelming to sort through. Here’s a quick rundown of what you really need to know.

The Latest on Mortgage Rates

Rates have been volatile – that means they’re bouncing around a bit. And, you may be wondering, why? The answer is complicated because rates are affected by so many factors.

Things like what’s happening in the broader economy and the job market, the current inflation rate, decisions made by the Federal Reserve, and a whole lot more have an impact. Lately, all of those factors have come into play, and it’s caused the volatility we’ve seen. As Odeta Kushi, Deputy Chief Economist at First American, explains:

“Ongoing inflation deceleration, a slowing economy and even geopolitical uncertainty can contribute to lower mortgage rates. On the other hand, data that signals upside risk to inflation may result in higher rates.”

Professionals Can Help Make Sense of it All

While you could drill down into each of those things to really understand how they impact mortgage rates, that would be a lot of work. And when you’re already busy planning a move, taking on that much reading and research may feel a little overwhelming. Instead of spending your time on that, lean on the pros.

They coach people through market conditions all the time. They’ll focus on giving you a quick summary of any broader trends up or down, what experts say lies ahead, and how all of that impacts you.

Take this chart as an example. It gives you an idea of how mortgage rates impact your monthly payment when you buy a home. Imagine being able to make a payment between $2,500 and $2,600 work for your budget (principal and interest only). The green part in the chart shows payments in that range or lower based on varying mortgage rates (see chart below):

As you can see, even a small shift in rates can impact the loan amount you can afford if you want to stay within that target budget.

It’s tools and visuals like these that take everything that’s happening and show what it actually means for you. And only a pro has the knowledge and expertise needed to guide you through them.

You don’t need to be an expert on real estate or mortgage rates, you just need to have someone who is, by your side.

Bottom Line

Have questions about what’s going on in the housing market? Connect with a real estate professional to take what’s happening right now and figure out what it really means for you. 

Read more at KeepingCurrentMatters.com

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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.

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