, , , , , , ,

Ways Your Home Equity Can Help You Reach Your Goals

, , , , , , ,
 
 

If you’ve owned your house for at least a couple of years, there’s something you’re going to want to know more about – and that’s home equity.

If you’re not familiar with that term, Freddie Mac defines it like this:

“. . . your home’s equity is the difference between how much your home is worth and how much you owe on your mortgage.”

That means your equity grows as you pay down your home loan over time and as home values climb. While it’s true home prices dipped slightly last year, they rebounded and have been climbing in many areas since then. Here’s why that price growth is good news for you.

In the latest Equity Insights Report, Selma Hepp, Chief Economist at CoreLogic, explains:

“With price gains continuing to help homeowners build wealth, equity has reached a new high and regained losses that resulted from declines last year. And while the average U.S. homeowner gained over $20,000 in additional equity compared with the third quarter of 2022, some markets are seeing larger increases as price growth catches up.”

And that figure is just for the last year. To help you really understand how that number can add up over time, the report also says the average homeowner with a mortgage has more than $300,000 in equity. That much equity can have a big impact.

Here are a few examples of how you can put your home equity to work for you.

1. Buy a Home That Fits Your Needs

If your current space no longer meets your needs, it might be time to think about moving to a bigger home. And if you’ve got too much space, downsizing to a smaller one could be just right. Either way, you can put your equity toward a down payment on something that fits your changing lifestyle.

2. Reinvest in Your Current Home

And, if you’re not ready to move just yet, you can use the equity you have to improve your current home. But it’s important to consider the long-term benefits certain upgrades can bring to your home’s value. A real estate agent is a great resource on which projects to prioritize to get the greatest return on your investment when you sell later on.

3. Pursue Personal Ambitions

Home equity can also serve as a catalyst for realizing your life-long dreams. That could mean investing in a new business venture, retirement, or funding an education. While you shouldn’t use your equity for unnecessary spending, using it responsibly for something meaningful and impactful can really make a difference in your life.

4. Understand Your Options to Avoid Foreclosure

While the number of foreclosure filings remains below the norm, there are still some homeowners who go into foreclosure each year. If you’re in a tough spot financially, having a clear understanding of your options can help. Equity can act as a cushion if you’re not able to make your mortgage payments on time.

Bottom Line

If you want to know how much equity you have in your home, connect with a local real estate agent. They can do a professional equity assessment report on how much you’ve built up over time and talk you through how you can use it to help you reach your goals.

Read more at KeepingCurrentMatters.com

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

Search Homes in Oregon

Search homes in Minnesota

, , , , , , ,

Mortgage rate decline pulls buyers back into the housing market

, , , , , , ,
 
 

A sharp drop in mortgage interest rates in December may have kickstarted this year’s spring housing market early.

Rates are about a full percentage point lower than they were in October, and consumers expect they will fall even more.

Optimism about mortgage rates increased sharply in December, according to a monthly consumer survey by Fannie Mae. For the first time since the survey was launched in 2010, more homeowners on net believe rates will go down rather than up, according to Mark Palim, deputy chief economist at Fannie Mae.

“This significant shift in consumer expectations comes on the heels of the recent bond market rally,” said Palim. “Notably, homeowners and higher-income groups reported greater rate optimism than renters.”

The average rate on the 30-year fixed has been on a wild ride since the start of the Covid pandemic. It hit more than a dozen record lows in 2020 and 2021, below 3%, causing a historic run on homebuying and a sharp rise in prices, only to then more than double in 2022. Rates hit a more than 20-year high in October 2023, hovering around 8% before falling back below 7% in December. Rates, however, are still twice what they were three years ago.

Buyers are coming back. Washington, D.C.-area real estate agent Paul Legere hosted two open houses over the weekend — homes in the $1.1 million to $1.2 million price range — and said they were the busiest he’s experienced in the last year.

“Similar report from my co-worker,” he added. “Even on Saturday, during torrential rain, we both had over 10 groups of active shoppers. These were people that had been in the market and had slowed or put their search on hold and are coming back, earnestly looking for a new property.”

Looking for inventory

Legere said he expects to see “an infusion” of inventory in the next week or two. Tight inventory has helped keep prices higher, another hurdle for potential homebuyers.

“Homeowners have told us repeatedly of late that high mortgage rates are the top reason why it’s both a bad time to buy and sell a home, and so a more positive mortgage rate outlook may [incentivize] some to list their homes for sale, helping increase the supply of existing homes in the new year,” said Palim.

A recent report from Redfin, a national real estate brokerage, found demand starting to pick up in December as rates fell. Redfin’s Homebuyer Demand Index — a seasonally adjusted measure of requests for tours and other homebuying services from Redfin agents — was up 10% from a month ago to its highest level since August, according to the report. Pending sales, which measure signed contracts on existing homes, were down 3% from December 2022, but that was the smallest decline in two years.

Much will depend on both interest rates and home prices in the months to come. Prices continue to rise, due to lack of supply, and if rates continue to drop, price gains could accelerate. The lower the rate, the more potential homebuyers can afford.

While mortgage rates are expected to drop further, that will depend on the strength of the economy and inflation.

“The rate momentum is as good as the trajectory of economic data. So if the data continues to do what it has been doing, there’s no reason rates couldn’t go down into the 5′s, possibly even the high 4′s if some of the talking heads are right about recession in 2024,” Matthew Graham, chief operating officer of Mortgage News Daily, said on CNBC’s “The Exchange.”

The average rate on the 30-year fixed mortgage hit a recent low of 6.61% at the end of December, but is up slightly this month to 6.76%, according to Mortgage News Daily.

Read more at CNBC.com

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

Search Homes in Oregon

Search homes in Minnesota

, , , , , , ,

Why Pre-Approval Is Your Homebuying Game Changer

, , , , , , ,
 
 

If you’re thinking about buying a home, pre-approval is a crucial part of the process you definitely don’t want to skip.

So, before you start picturing yourself in your new living room or dining on your future all-season patio, be sure you’re working with a trusted lender to prioritize this essential step. Here’s why.

While home price growth is moderating and mortgage rates have been coming down in recent weeks, affordability is still tight.  At the same time, there’s a limited number of homes for sale right now, and that means ongoing competition among hopeful buyers. But, if you’re strategic, there are ways to navigate these waters – and pre-approval is the game changer.

What Pre-Approval Does for You

To understand why it’s such an important step, you need to know more about pre-approval. As part of the homebuying process, a lender looks at your finances to determine what they’re willing to loan you. From there, your lender will give you a pre-approval letter to help you understand how much money you can borrow. Freddie Mac explains it like this:

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

Getting pre-approved starts to put you in the mindset of seeing the bigger financial picture, one step at a time. And the key is actually more than just getting a pre-approval letter from your lender. The combination of pre-approval and strategic budgeting is your golden ticket to understanding what you can actually afford. It saves you from painful heartaches down the road so you don’t fall in love with a house that might be out of reach.

Pre-Approval Helps Show Sellers You’re a Serious Buyer

But that’s just the beginning. Let’s face it, there are more people looking to buy than there are homes available for sale, and that creates competition among homebuyers. That means you could see yourself in a multiple-offer scenario when you get ready to make your move. But getting pre-approved for a mortgage can help you stand out from other buyers.

In today’s fast-moving housing market, having that pre-approval in your back pocket can be your secret weapon. When sellers see you’re pre-approved, it tells them you’re a strategic and serious buyer. In a world of multiple offers, that’s a big deal. As an article from the Wall Street Journal (WSJ) says:

“If you plan to use a mortgage for your home purchase, preapproval should be among the first steps in your search process. Not only can getting preapproved help you zero in on the right price range, but it can give you a leg up on other buyers, too.”

Pre-approval shows sellers you’re more than just a window shopper. You’re a buyer who’s already undergone a credit and financial check, making it more likely that the sale will move forward without unexpected delays or issues. Sellers love that because they see your offer as a reliable one. A win-win, right?

Bottom Line

So, before you start mentally arranging furniture in your dream home, let’s connect to get your pre-approval set. It’ll save you time, stress, and a lot of headaches that could come up along the way without it. The reality is, the more prepared you are, the more likely you are to land the home you’re longing for.

Read more at KeepingCurrentMatters.com

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

Search Homes in Oregon

Search homes in Minnesota

7 New Restaurants Coming to Central Oregon!

 
 
 

While razor-thin margins and a competitive market forced some restaurateurs to shutter their businesses in 2023, others were putting the final touch on their business plans.

A handful of eateries are slated to open this month and there’s much to look forward to eating in Central Oregon in 2024.

Here are the eateries we’re excited to try in the new year:

Hawkeye & Huckleberry Lounge

Celebrity chef Brian Malarkey and his brother James Malarkey are set to open Hawkeye & Huckleberry Lounge in the former space of Walt Reilly’s on Century Drive in early 2024. A press release described the forthcoming restaurant as a “steakhouse with a modern cowboy aesthetic.” The Malarkey brothers look forward to paying tribute to Oregon, where they were both raised on a ranch — Brian in Tumalo and James in Scappoose.

The menu will feature venison, elk, boar, quail, Oregon wild-caught salmon and trout. Brian said in a press release, “It’s been my lifetime dream to come home and cook great food for my friends and give the community another amazing place to share stories, shoot the breeze and celebrate life.” 225 SW Century Drive, Bend

C.R.A.V.E. Bend

Just down the street on Century Drive, C.R.A.V.E. Bend is expected to open in the former building of the SEA Crab House in January. Husband and wife team Jeff Taber and Sandy Egge will be serving artisan tacos, functional coffee and fresh-pressed juice with ample vegetarian and vegan options. Egge is a clinical nutritionist with a naturopathic background who takes a nutritional approach to food. The couple previously planned to open a cafe in Sisters until the city informed them that the location did not qualify for outdoor seating, Taber said in a Facebook post. 335 SW Century Drive, Bend

Redmond Food Park

Hoss Talebi has listened to those asking for a booze-free gathering place and plans to launch the Redmond Food Park this month. Despite the fact others have told him the business won’t be successful without alcohol, Talebi is committed to offering a comfortable space for teenagers and those who choose not to imbibe. Alternative drinks such as boba tea and fresh juice will be served at the alcohol-free food cart pod, Talebi said. 122 SW Fifth St., Redmond

Honies Thai Food

Chef Kaew Sumner opened Honies Thai Food in the former location of The Growler Guys inside the Shell gas station Highway 20 on Monday. Sumner was raised in Thailand is the founder and previous owner of A Taste of Thailand. Honies Thai Food serves curries, stir fry noodle dishes, soups and salads. In an email to The Bulletin, a representative of the restaurant said, “Chef Kaew draws inspiration from her grandmother and mother’s time-honored recipes, infusing each dish with the authentic flavors and rich traditions of her heritage.” The business is open from 10 a.m.-9 p.m. Monday through Saturday and 11 a.m.-8 p.m. Sunday. 2699 US-20, Bend

Pinky G’s Pizzeria

With three other locations in Wyoming, Montana and Idaho, Pinky G’s Pizzeria is inching closer to opening its restaurant in Bend. The pizza parlor’s New York-style has been featured twice on “Diner’s, Drive-In’s & Dives.” Pinky G’s has unveiled its menu on its website and is announcing updates on social media. 719 SE Third St., Bend

BAR RBC

Incorporation documents were filed in September for BAR RBC in the building that formerly housed Dogwood Cocktail Cabin in downtown Bend, Willamette Week reported in October. The papers were filed by co-owners of Rancher Butcher Chef, including chef John Gorham. 147 NW Minnesota Ave., Bend

Real Taste of India

Shilo Inns is ushering in a new Indian food option in Bend with Real Taste of India. At the time of writing, an employee of the hotel said the restaurant was scheduled to open Monday. 3105 O. B. Riley Rd., Bend

Read more on The Bulleton.

 

Central Oregon Real Estate Market Report from December 2023

 
 

Record Highs to Stable Endings in Most of Central Oregon

In Bend, the year began on a promising note with a median sale price of $685,000. By July, a record high was set at $800,000, demonstrating some robust growth. However, this peak gradually stabilized, and by December, the median sale price had adjusted to $725,000. This price represents a 5.8% increase compared to December 2022's $678,000, underscoring a year of consistent appreciation. Interestingly, Bend's inventory levels saw a modest rise, concluding the year at approximately a 2-month supply, a slight increase from the early months of 2023.

Redmond's market mirrored Bend's trajectory to some extent. The year started with a median sale price of $420,000, and experienced a steady climb, peaking at $520,000 in October. The final months of 2023 saw the prices slightly retract, settling at $510,000 in December. These numbers, while showing a dip from the October peak, still appear to reflect a healthy market in Redmond where inventory hovered around a 3-month supply.

“Between late October and mid-December, the 30-year fixed-rate mortgage plummeted more than a percentage point. However, since then rates have moved sideways as the market digests incoming economic data. Given the expectation of rate cuts this year from the Federal Reserve, as well as receding inflationary pressures, mortgage rates will likely continue to drift downward as the year unfolds. While lower mortgage rates are welcome news, potential homebuyers are still dealing with the dual challenges of low inventory and high home prices that continue to rise.” reported Freddie Mac.

Mike Simonsen of Altos Research said, “The US real estate market data keeps turning in strong results. If you’ve not been paying close attention, you might be surprised at the strong real estate market this spring. 1. Home sales are increasing every week. 2. Inventory is inching up. 3. Home price signals are increasing too.”

Download the Full Report

 

BEND AREA
$725,000
Median Price
29 Days on Market

REDMOND AREA
$510,000
Median Price
33 Days on Market

JEFFERSON COUNTY
$339,000
Median Price
60 Days on Market

SUNRIVER
$1,165,000
Median Price
117 Days on Market

LA PINE
$388,000
Median Price
74 Days on Market

SISTERS
$755,000
Median Price
26 Days on Market

CROOK COUNTY
$501,000
Median Price
67 Days on Market

 

Thank you to Beacon Appraisal Group for compiling this report. Prepared by Donnie Montagner with information from the MLS of Central Oregon with permission from COAR.

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.

 
W+M_Logo (1).jpg
 
Cart (0)