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Signs Point to More Inventory this Spring

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The U.S. real estate housing market signals have been gradually building for a couple of months.

Home sellers are starting to ease back into the market, new listings are finally exceeding the levels of a year ago. As a result, we’re starting to see slightly more available supply of homes on the market. This is an expansion of the market from incredibly restricted levels last year. It’s a positive development. 

The longer we stay with mortgage rates higher, the more inventory will build closer to where it used to be. Each year we’ll have 5 million more people who don’t have crazy low rates that they want to hold onto forever. Mortgage rates are higher than they were a year ago. Higher than they were a month ago. Higher mortgage rates means more inventory. 

If mortgage rates fall into the 5s this spring, you should expect the available inventory to decline as demand picks up rapidly. But as of now, rates are holding in the upper 6s and inventory is building slowly. 

It is important to keep in mind that home sales are climbing with inventory. As supply comes to the market, that’s lifting one of the restrictions that kept the home sales so low last year. The number of homes for sale and the number that are being sold are both climbing into 2024 over last year.

Inventory ticked up

There are just over 505,000 single family homes on the market across the U.S. That’s a 1.2% increase over last week and nearly 7% more than last year at this time. Inventory ticked up this week. This week the supply of active inventory gained over 6000 homes. That would have been a big week any time last year.

These are the signals that point to growing inventory of homes on the market all spring. Even if inventory ticks down next week, it looks like that will be a smaller move down than last year, so the year-over-year percentage gain will continue to widen. 

Slightly more sellers

Inventory is building now because we have slightly more sellers each week. The market had about 49,000 new listings this week. 9,000 of those are already in contract. Leaving 40,000 New listings to add to the market which is about a 5% increase versus last year. 

It sure looks now like we’ll have more sellers each week all year long than we did in 2023.

The other side of the equation to keep watch is the purchase side. I’ve called this a supply constrained market. So as the inventory shortage eases just a bit, we should also see more transactions happening. And sure enough, that’s what we’re seeing. There continues to be more new contracts each week than last year at this same time. The pace of home sales is growing. It’s not a boom. but the market is growing.

Price cuts stable

Let’s move on to the price signals. Remember that in 2023, even though we had very few home sales, home prices inched up a bit nationwide. We’re looking at similar dynamics for 2024.

Price reductions continue to decline with the new inventory after the first of the year. Some 32.2% of the homes on the market have had a price reduction. That’s right in the middle of the normal range. This implies slight home price strength in general for the next few months. If rates fall from here into the 5s, watch demand pick up and we’ll immediately see fewer sellers need to cut their prices. 

Median price just under $420,000

The median price of single-family homes is just a hair under $420,000. Home prices ticked up almost half a percent this week. And the median price of single-family homes right now is 3% higher than last year at this time. In this market where supply and demand is pretty balanced, home prices are not going to skyrocket of course and there is no sign of prices dropping either. As inventory grows, and sales rates grow, home prices are reliably ticking up each week as well. That trend hasn’t changed. 

The median price of the newly listed homes is $389,900. That corrected back down from last week’s big jump.

We should be grateful that the market is expanding with more supply and more sales for more people than in 2023. 

Read more at HousingWire.com

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As Featured in West + Main Home Magazine: Classic Victorian Made Modern

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Esther + Thomas Leytush, clients of West + Main Agent Elizabeth Fischer

“When we were buying our house, we chose this one in part because of the many projects it needed, knowing it would be amazing to put in the work to bring it back to beautiful life. ”
— Esther + Thomas Leytush

 “This house is 136 years old and there were numerous changes that were just tacked on, especially in the kitchen - for example it had 2 doors out into the backyard but no windows, a cramped and dark main kitchen area, and two L-corners that broke flow. The original kitchen was really a small kitchen spread over a large footprint. As for inspiration, we have a shared love of the Dark Academia aesthetic and it was a clear fit for this Queen Anne Victorian house - we wanted a modern Victorian feeling.”

“The nature of our project was that our design meant ripping out the entire kitchen as well as breaking and rebuilding walls, fixing structural issues, redoing electric and plumbing layouts, re-leveling and laying a new floor, putting in all new drywall over all new framing and insulation, putting in French doors and a window, and only at the very end putting in new kitchen cabinets and appliances. We spent just under $25k, of which $14k covered contractors and $11k covered materials and appliances. We were able to come in so low on materials and appliances because of choices like buying all our cabinets and countertops from Ikea and putting them together ourselves, as our research showed that Ikea cabinetry is excellent quality and lasts well over their 25-year warranty. We also made choices like buying engineered hardwood planks for flooring and making our own wood accents thanks to Thomas’s love of carpentry projects.”

Before:

“For the main aspects of the kitchen, we stuck with Home Depot and Ikea and have been happy with that, but also spent time hunting for cool brackets and other details from antique stores and salvage centers. I was also shocked and thrilled to discover that we could purchase newly made rosettes and molding from Tabor Millworks https://www.tabormill.com/ that were the same design as the original molding in the house.”

“The final result was much more beautiful and character-full even than we had hoped. We did not realize we would encounter multiple points where our contractors or us would notice details or questions we had missed in our plans, and because our costs were able to stay low we were able to make choices to create cleaner lines, grander openings, better lighting, and much more. In the end, we felt like we could have gone with an even smaller kitchen, even though the footprint of the new kitchen is actually smaller than the original that we had demoed.”

“For Thomas, since we matched the new archway with the rest of the house, it has become so much more inviting to just flow from one room to the next and into the backyard. For Esther, my favorite things are the wood accents that Thomas built - the beautiful large wood shelf with gorgeous Victorian-like routed edges that now hold the majority of our plants, the wood windowsill, the little wood shelves he built to make use of the dead space next to one of the cabinets which now stores all the cutting boards and cookbooks. We also love the bright light in the space, the way the dark green colors of the cabinets create a sense of elegance, and the way it feels so easy to cook in it because the flow is top notch - plenty of counter space, good organization with big drawers instead of standard lower cabinets, a big sink, etc.”

 

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Why You May Want To Seriously Consider a Newly Built Home

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Are you putting off your plans to sell because you’re worried you won’t be able to find a home you like when you move?

If so, it may be time to consider a newly built home and the benefits that come with one. Here’s why.

Near-Record Percentage of New Home Inventory

Newly built homes are becoming an increasingly significant part of today’s housing inventory. According to the most recent report from the National Association of Home Builders (NAHB):

“Newly built homes available for sale accounted for 31% of total homes available for sale in November, compared to an approximate 12% historical average.”

That means the percentage of the total homes available to buy that are newly built is well over two times higher than the norm. And even more new homes are on the way.

Recent data from the Census shows there’s been an uptick in both housing starts (where builders break ground on more new homes) and housing completions (homes where construction just wrapped).

And while some people may worry builders are building too many homes, that isn’t a concern – if anything, the recent increase is really good news. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains:

“Even more home building will be needed with the housing shortage persisting in most markets . . . Another 30% rise in home construction can easily be absorbed in the marketplace . . .”

How This Helps You 

Since the supply of existing homes for sale is still low right now, the increase of new-home construction can be a game changer because it gives you more options for your search.

Picture yourself in a home that’s new from the ground up: new appliances, fresh paint, fewer maintenance needs because everything is new, and so much more. Doesn’t that sound nice?

And it may be more within reach than you ever imagined. In addition, some builders are offering things like mortgage rate buy-downs for homebuyers right now. This can help offset today’s affordability challenges while also getting you into your dream home. In a recent article, Patrick Duffy, Senior Real Estate Economist at U.S. News, explains:

“Builders have been using mortgage interest rate buydowns for many years as a sales incentive whenever interest rates are relatively high, . . .Today more builders are offering rate buydowns for the entirety of the loan, allowing buyers to finance more home for the same payment amount.”

Just remember, the process of buying from a builder is different from buying from a home seller, so it’s important to partner with a trusted real estate agent who knows the local market. They’ll be your go-to resource for coordinating with the builder, reviewing contracts, and more.

Bottom Line

If you’re trying to sell so you can make a move but you’re having a hard time finding a home you like, connect with a local real estate agent to explore all of your options, including the newly built homes in our area.

Read more at KeepingCurrentMatters.com

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How To Choose a Bathtub To Complete Your Bathroom Remodel

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Bathroom remodeling is a great way to revamp your home's look and feel, and choosing a bathtub to complete the project can be a crucial step.

With so many options available in the market, choosing the right bathtub can sometimes be challenging and overwhelming. However, understanding your needs, budget, and preferences can help you select a bathtub that will complement the design and layout of your bathroom. In this blog post, we will provide you with some useful tips on how to choose a bathtub and the factors you need to consider to complete the remodel.

Determine Your Budget
The first factor you need to consider before choosing a bathtub is your budget. Bathtubs come in different prices, and it's essential to choose one that suits your budget range. When it comes to bathtubs, remember that price doesn't always dictate quality, so focus on getting value for your money. Consider not only the initial purchase price but also the long-term maintenance costs such as installation, repair, and cleaning.

Consider Your Space
Another essential factor to consider when choosing a bathtub is the available space in your bathroom. There are different bathtub sizes, shapes, and styles, and you need to choose one that fits your space. Also, keep in mind the location of your bathtub with other bathroom fixtures such as sinks, toilets, and showers. This is important in ensuring that your bathtub doesn't overcrowd other areas and that there's enough space for movement.

Think About Material
When it comes to bathtubs, there is a wide range of materials to choose from. You can opt for the classic and sturdy cast iron, the sleek and lightweight acrylic, or the versatile and affordable fiberglass. If you're feeling adventurous, you can even explore the unique charm of a wooden or stained glass bathtub. Each material has its distinct advantages and drawbacks, so it's crucial to delve into its specific properties and consider factors such as durability, ease of maintenance, and resistance to wear and tear. By carefully evaluating these aspects, you can select the perfect bathtub material that perfectly suits your needs and enhances your bathing experience.

Understand Drain Location
The drain location is an often overlooked but significant aspect of bathtub selection. It is vital to align the new bathtub's drain with the existing plumbing to avoid costly alterations. Be sure to check whether the drain is located on the left, right, or center of the tub. A skilled plumber can provide a practical assessment of your existing plumbing structure and help determine the best bathtub option in terms of drain positioning and capacity. It's also important to remember that some tub designs only come with specific drain locations, so this factor might influence your overall choice.

Think About Style
Finally, it is important to carefully consider the style that best suits your bathroom. Bathtubs offer a wide range of styles, from classic and timeless to modern and contemporary. The style you ultimately choose should harmonize with the overall design and theme of your bathroom, creating a cohesive and visually pleasing space. Take into account various factors such as color, shape, and aesthetics when making your decision. By choosing a bathtub style that reflects your personality and meets your aesthetic needs, you can ensure a truly customized and inviting bathing experience.

Choosing a bathtub to complete your bathroom remodel is not a decision to be taken lightly. It involves careful thought and consideration of various factors such as your budget, the available space, the material, drain location, and, of course, your preferred style. Remember, the perfect bathtub is one that not only enhances the aesthetic appeal of your bathroom but also offers functionality and value for money. Don't hesitate to consult with a professional plumber to guide you through the process and help you make an informed decision. With the right choice, your bathtub can be the crowning glory of your bathroom remodel, turning your bathing experience into a daily indulgence.

Read more at Rismedia.com

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Gen Z’s Homeownership Rate Stagnated in 2023, But Millennials and Gen Xers Saw Gains

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  • 26% of adult Gen Zers owned a home in 2023, little changed from 2022. Meanwhile, the homeownership rate for millennials rose to 55% from 52%, and the rate for Gen X climbed to 72% from 70%.

  • Still, most adult Gen Zers are tracking ahead of where their parents were at the same age. That’s likely because many Gen Z homeowners were able to buy when rates were near record lows.

Just over one-quarter (26.3%) of adult Gen Zers owned a home in 2023, little changed from 26.2% in 2022. Meanwhile, the homeownership rate for millennials rose to 54.8% from 52%, and the homeownership rate for Gen X rose to 72% from 70.5%. The rate for baby boomers was little changed (78.8% vs 78.7% in 2022), down from a record 79.7% in 2020, as some boomers have passed away or moved into retirement homes.

 
 

Gen Zers were 11-26 years old in 2023 (born 1997-2012); only adult Gen Zers (19-26 years old) were included in this analysis. Millennials were 27-42 (born 1981-1996) in 2023, Gen Xers (born 1965-1980) were 43-58 and baby boomers were 59-77 (born 1946-1964). Scroll down for a more detailed methodology. 

The homeownership rate for adult Gen Zers likely moved sideways in 2023 because it was an especially hard year to buy a home; mortgage rates surpassed 8% for the first time since 2000 and housing prices remained stubbornly high, causing homebuyer mortgage payments to soar. While that posed challenges for house hunters across generations, it was particularly difficult for America’s youngest homebuyers, many of whom are just starting their careers and don’t have significant savings or wealth from the sale of a previous home.

The good news is that 2024 is shaping up to be a more affordable year for homebuying than 2023. Mortgage rates have dropped from over 8% in October to 6.8% as of mid January, pushing homebuyers’ monthly payments down more than $300 from their 2022 record high. The drop in rates is bringing both buyers and sellers off the sidelines. And an increase in sellers has fueled a jump in new listings, which is giving buyers more options to choose from and could ultimately put downward pressure on prices.

“Housing affordability remains strained, but things are looking up for Gen Z,” said Redfin Chief Economist Daryl Fairweather. “The recent decline in rents means Gen Zers can put more money toward saving for a down payment. Plus, the job market is strong, and career opportunities have become less concentrated in expensive cities during the remote work era, meaning many Gen Zers can choose to live somewhere more affordable.”

Most Adult Gen Zers Are Tracking Ahead of Where Their Parents Were at the Same Age

While the homeownership rate for adult Gen Zers has stagnated, a majority of them are still outpacing young people of the past.

The homeownership rates for 19-to-25-year-old Gen Zers are higher than the homeownership rates were for millennials and Gen Xers when they were the same age. For example, the rate for 24-year-old Gen Zers is 27.8%, compared with 24.5% for millennials when they were 24 and 23.5% of Gen Xers when they were 24.

This is likely because many Gen Z homeowners bought during the pandemic, when mortgage rates hit a record low. When many millennials were in their early twenties, many were struggling to find work due to the Great Recession, which made it harder to afford a home. And when Gen Xers were in their early twenties, they were grappling with some of the highest mortgage rates in history; for example, rates were around 11% in 1989, when the oldest Gen Xers were 24.

 
 

The only Gen Zers who are tracking behind prior generations are 26-year-olds, who were the oldest Gen Zers as of 2023. The homeownership rate for 26-year-old Gen Zers is 30%, below 31% for millennials at 26, 32.5% of Gen Xers at 26, and 35.6% of boomers at 26. 

It’s possible that younger Gen Zers are more likely to track ahead of older generations because many of them are receiving financial help from family members, while many older Gen Zers are being weaned off of their parents’ wallets. 

Read more at Redfin.com

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