Is the Housing Market Starting To Balance Out?

For years, sellers have had the upper hand in the housing market. With so few homes for sale and so many people who wanted to purchase them, buyers faced tough competition just to get an offer accepted. But now, inventory is rising, and things are starting to shift in many areas.

So, is the market finally balancing out? And does that mean buyers will have it a bit easier now? Here’s what you need to know.

What Makes It a Buyer’s Market or a Seller’s Market?

It all comes down to how many homes are for sale in an area compared to how many buyers want to buy there. That’s what ultimately determines who has the most leverage.

• A Seller’s Market is when there are more buyers than homes available, so sellers hold the power. This leads to rising prices, multiple offers, and homes selling quickly – often above the asking price – because there isn’t enough to go around.

• A Buyer’s Market is when there are more homes than buyers. In this case, the tables turn. Sellers may have to offer concessions and incentives, or negotiate more to get a deal done. That’s because buyers have more choices and can take their time making decisions.

You can see this play out over time using data from the National Association of Realtors (NAR) in the graph below:

Where the Market Stands Now

While it’s still a seller’s market in many places, buyers in certain locations have more leverage than they’ve had in years. And that’s thanks to how much inventory has grown lately. As Lance Lambert, Co-Founder of ResiClub, explains:

"Among the nation’s 200 largest metro area housing markets, 41 markets ended January 2025 with more active homes for sale than they had in pre-pandemic January 2019. These are the places where homebuyers will be able to find the most leverage or market balance in 2025."

Here’s a look at some of the strongest seller’s markets and buyer’s markets today, according to that research:

Do you know how to adjust your plans based on who’s got the most negotiating power? Because an agent does.

Clever strategies can make buying in a seller’s market easier – and vice versa. And that’s exactly why you need to hire a pro. A local real estate agent knows their market like the back of their hand. They’re super familiar with what the supply and demand balance looks like and how to help their clients get a deal done either way. So, as long as you have a skilled pro by your side, it doesn’t really matter if your town is on the list or not.

With their expertise, you’ll be able to plan ahead and buy (or sell) no matter what the market looks like.

Bottom Line

With inventory rising, the market may be starting to balance out – but it all depends on where you want to buy or sell.

Are you wondering if buyers or sellers have the upper hand in our area? Let’s connect so you can find out.

Is a Newly Built Home Right for You? The Pros and Cons

When searching for a home, you don’t want to skip over new builds as an option. Right now, there are more newly built homes to choose from than there would normally be in the market. And those added choices come with some pretty incredible benefits. Talking to your agent is the best way to see if this type of home makes sense for you.

Here’s a quick rundown of some things your agent will walk you through – including a few of the top perks of buying a newly built home today and some potential things you’ll want to think about before you ink any contracts.

The Perks of Buying a Newly Built Home 

Customization Options: Many builders allow buyers to choose finishes, layouts, and upgrades so that you can personalize your home to your unique sense of style. This is obviously more of a draw if the home is still under construction, but sometimes you can have a builder agree to some tweaks even after it’s completed.

Less Maintenance and Fewer Repairs: Everything from the roof to the appliances is brand new, which should save you on any upfront maintenance or repair costs — for at least the first few years. Many builders also offer warranties on things like structural components and major systems, to give you extra peace of mind. And not having to worry about this sort of thing is a big perk when everything feels so expensive right now.

Eco-Friendly and Energy-Efficient Features: With stricter building codes, newly built homes tend to be more environmentally friendly. This can include energy-efficient upgrades like smart thermostats and high-efficiency HVAC systems or eco-friendly tech. And all of these features can save you money on your future energy bills – again a welcome relief while inflation is stubbornly high.

Builder Incentives: Some builders are also offering incentives to homebuyers. While this will vary by builder, it could include rate buy-downs or other ways to offset today’s affordability challenges. As Bankrate says:

“Some builders offer financial incentives, including flexible financing options, to encourage buyers to purchase. These incentives — especially if they get the buyer a lower interest rate — could make a new-construction home more affordable in the long run.”

Other Considerations When Buying a Newly Built Home

On the other side of the coin, there are some things that you’ll want to at least consider before making your choice.

Longer Timelines: If you’re purchasing a home that’s still under construction, you may have to wait several months — or longer — before you can move in. As Realtor.com puts it:

“For homebuyers who have a short time frame to move into a new home, buying new construction could be challenging if the house isn’t built yet. This is not always the case, since a community may have some quick move-in homes or spec homes that are already complete (or nearly so) and ready for a buyer to move in. But if not, a buyer may have to wait.”

Potential Price Changes: Keep an eye on costs, too. It’s easy to go over budget if you keep tacking on upgrades or add-ons as you customize your build. At the same time, building materials, like lumber, can be affected by the economy, inflation, and changing trade policies. And unfortunately, if the cost of supplies climbs, builders will pass at least some of that increase on to people like you. As HousingWire explains:

“Upgrades and add-ons, unforeseen delays due to weather, supply chain issues or labor shortages, and expenses like landscaping and fencing not included in the builder’s cost can significantly affect the final price.”

Bottom Line

New builds can be a great choice today, but you want to be sure you have all the information you need to make an informed decision on such a big purchase. That’s where my expertise and experience is extra important.

Would you consider a newly built home? Why or why not? 

Is an Accessory Dwelling Unit Right for You? Here’s What To Know

Are you having a hard time finding the right home in your budget? Or maybe you already own a home but could use some extra income or a designated space for aging loved ones. Either way, accessory dwelling units (ADUs) could be the smart solution you’ve been looking for in today’s market.

What Is an ADU?

According to Fannie Mae, an ADU is a small, separate living space that’s on the same lot as a single-family home. It must include its own areas for living, sleeping, cooking, and bathrooms independent of the main house. And they can take shape in a few different ways. Fannie Mae adds, an ADU can be:

• Within a main home, such as a basement apartment

• Attached to a main home, such as a living area over a garage

• Detached from the home entirely; it could even be a manufactured home

The Benefits of ADUs

ADUs are growing in popularity as more people discover why they’re so practical. In fact, a recent survey shows that 24% of agents say an ADU, such as a mother-in-law house, is one of the most desired features buyers are looking for right now.

The growing appeal makes sense. With rising costs all around you, an ADU can help supplement your income and ease some of the strain on your wallet. Whether you buy a home that has one already or you add one on, it gives you the option to rent out that portion of your home to help pay your mortgage.

Here are some of the other top benefits of ADUs, according to Freddie Mac and the AARP:

• Living Close, But Still Separate: You get the best of both worlds — more quality time together, plus privacy when you want it. If that sounds like a win, it might be worth looking for a home with an ADU or adding one to your home.

• Aging in Place: Similarly, ADUs allow older people to be close to loved ones who can help them if they need it as they age. It’s a sweet spot that offers independence and support from loved ones. For example, if your parents are getting older and you want them nearby, this could be a great option for you.

• Built-In Childcare: If your family’s living in the ADU, you may be able to use them for childcare, which can also be a big cost savings. Plus, it gives your kids more time with their grandparents.

It’s worth noting that since an ADU exists on a single-family lot as a secondary dwelling, it typically can’t be sold separately from the primary residence. And while that’s changing in some states, regulations vary by location. So, connect with a local real estate expert for the most up-to-date guidance.

Bottom Line

In today’s market, buying a home with an ADU or adding one to your current house could be worth considering. Just be sure to talk with a real estate agent who can explain local codes and regulations for this type of housing and what’s available in your area.

What’s your motivation for exploring ADUs?

Buying a Home May Help Shield You from Inflation

It feels like everything is getting more expensive these days. That’s because inflation has remained higher than normal for longer than expected – and that’s impacting the costs of goods, services, and more. And with rising costs all around you, you’re probably questioning: is now really the right time to buy a home?

Here’s the good news. Owning a home is actually one of the best ways to protect yourself from the rising costs that come with inflation.

A Fixed Mortgage Protects You from Rising Housing Costs

One of the key benefits of homeownership is that when you buy a home with a fixed-rate mortgage, your biggest monthly expense — your mortgage payment — stabilizes. Sure, your payment could rise slightly as your homeowner’s insurance and property taxes shift. But no matter what happens with inflation, your principal and interest payments won’t change.

That’s not the case if you rent. Rent tends to rise over time, and it usually goes up even faster than the rate of inflation. Just look at the data from the Bureau of Economic Analysis (BEA) and the Census Bureau (see graph below):

So, while renters face higher costs year after year, homeowners with a fixed mortgage rate lock in their monthly payments, making it easier to budget no matter what happens with inflation.

Home Prices Typically Rise Faster Than Inflation

Another big reason homeownership is a great hedge against inflation is that home values tend to appreciate over time — often at a higher rate than inflation, according to data from the BEA and Fannie Mae (see graph below):

That makes real estate one of the strongest long-term investments during times of rising prices. While inflation can chip away at the value of cash savings, real estate typically holds or grows in value, allowing you to build wealth.

On the other hand, renting offers no protection against inflation. In fact, it does the opposite — when inflation drives up costs, landlords often pass those increases onto tenants through higher rents.

That means as a renter, you’re continually paying more without gaining any financial benefit. But as a homeowner, rising prices work in your favor by increasing the value of your home and growing your equity over time.

And with experts forecasting continued home price growth, that means you’re making an investment that usually grows in value and should outperform inflation in the years ahead.

In short, a fixed-rate mortgage protects your budget, and home price appreciation grows your net worth. That’s why homeownership is a strong hedge against inflation.

Bottom Line

Inflation can make everyday expenses unpredictable, but owning a home gives you stability. Unlike rent, your monthly mortgage payment stays pretty much the same over time. Plus, the value of your home is likely to increase after you buy.

How would having a fixed housing payment change the way you budget for the future?

A Record Percent of Buyers Are Planning To Move in 2025 – Are You?

This could be the year to sell your house – and here’s why. According to a recent NerdWallet survey, 15% of people are planning to buy a home this year. That’s actually a record high for this survey (see graph below):

Here's why this is such a big deal. The percentage has been hovering between 9-11% since 2020. This recent increase shows buyer demand hasn’t disappeared – if anything, it indicates there’s pent-up demand ready to come back to the market.

That doesn’t mean the floodgates are opening and that there’s going to be a huge wave of buyers like we saw a few years ago. But this does signal there’ll be more activity this year than last.

At least some of the buyers who put their plans on hold over the past few years will jump back in. Whether they’re feeling more confident about moving, they’ve finally saved up enough to buy, or they simply can’t wait any longer – this is the year they’re aiming to take the plunge.

And, according to that same NerdWallet survey, more than half (54%) of those potential buyers have already started looking at homes online.

That’s a good indicator that a number of these buyers will be looking during the peak homebuying season this spring. So, if you find the right agent to make sure your house is prepped, priced, and marketed well, you can get your house in front of them.

Bottom Line

More people are going to move this year, and with the right strategy, you can make sure your house is one of the first they look at.

What do you think these buyers will love most about your house?

Let’s talk it over and make sure it’s front and center in your listing.

Buyer Bright Spot: There Are More Homes on the Market

The past few years have been challenging for homebuyers, especially with higher home prices and mortgage rates. And if you’re trying to buy a home, it’s easy to worry you won’t be able to find something in your budget.

But here’s what you need to know. The number of homes for sale has grown a whole lot lately and that’s true for both existing (previously lived-in) and newly built homes. Here’s a look at those two bright spots for buyers right now and why they may make it a bit easier to find the home you’re been looking for.

1. There Are 22% More Existing Homes for Sale

Data from Realtor.com says the number of existing homes for sale improved by an impressive 22% in 2024. And experts say your pool of options is expected to get even better this year. Forecasts show inventory is projected to grow another 11-15% by the end of this year (see graph below):

Here’s why this is so good for your search. If you haven’t seen a house with all the features you need, just know that, as the number of homes for sale grows, you’ll have more options to choose from. That means a better chance of finding a home that checks all your boxes. As Ralph McLaughlin, Senior Economist at Realtor.com, says:

“It could be a particularly good time to get out into the market . . . you're going to have more choice. And that's not something that buyers have really had much over the past several years.”

2. There Are More Newly Built Homes on the Market

According to data from the Census and the National Association of Realtors (NAR), 31.1%, or roughly 1 in 3, homes on the market right now are newly built homes. That’s more than the norm (see charts below). But don't worry, that's not because builders are overdoing it – it’s just that they’re trying to catch up after years of underbuilding.

And the best part is, since builders have been focusing on smaller homes with lower price points, you may actually find out new builds are less expensive than you’d expect. So, while a lot of people write off new construction because it’s easy to assume the costs are way higher, lately, that price gap isn’t as big as you’d think. As CNET says:

“If you live in an area where there's a lot of new construction happening . . . you might be able to purchase a new house for a price similar to or even less than a pre-owned one.”

If you haven’t been able to find a home that’s in your budget, it’s time to ask your agent about new builds. If you don’t, you may have been cutting your pool of options by about a third.

Bottom Line

More choices could be the key to unlocking your homebuying goals in 2025. Reach out if you want to see what’s available in and around our area.

What features are you looking for in your next home? Let me know and I’ll put together a list of homes you’d love.

How Home Equity Can Help Fuel Your Retirement

If retirement is on the horizon, now’s the time to start thinking about your next chapter. And you probably want to make sure you’re set up to feel comfortable financially to live the life you want in retirement.

What you may not realize is you likely have a hidden goldmine of cash you’re not thinking about — and that’s your home. Data from the Federal Housing Finance Agency (FHFA) shows that home values have gone up nearly 60% over the last 5 years alone (see graph below):

And that appreciation gave your net worth a big boost. According to Freddie Mac, over the same five-year period:

“ . . . Boomer overall wealth increased by $19 trillion, or $486,000 per household, half of which is due to house price appreciation.”

So if you’ve been in your house ever longer than that, chances are you have even more equity in your home. If you want to have access to more of the wealth you’ve built up throughout the years, it’s worth thinking about selling your house to downsize.

Why Downsizing Might Be the Right Move

Selling now so you can downsize into a smaller home, or maybe one in a more affordable area, could free up your home equity so you can use a portion of it to help you feel confident retiring. Whether you want to travel, spend more time with family, or just feel financially secure, accessing the equity in your home can make a huge difference. As Chase says:

“Retirement is an exciting time. Selling your home to take advantage of the equity or to downsize to a more affordable home can open up additional options for your future.”

Here are just a few of the ways a smaller home can fuel your retirement:

1. Cut Your Cost of Living

Data from the AARP shows the number one reason adults 50 and older move is to reduce their cost of living. Downsizing to a smaller house or relocating to a more affordable area can help you lower your monthly expenses — like utilities, property taxes, and maintenance costs.

2. Simplify Your Life

A smaller home often means less upkeep and fewer responsibilities. That can free up your time and energy to focus on the things that matter most in your retirement.

3. Boost Your Financial Flexibility

Selling your current house gives you access to your equity, turning it into cash you can use however you like. Whether it’s investing, paying off debt, or creating a financial cushion, it can open up new opportunities for your future.

The First Step Toward Your Next Chapter

If you think you may be interested in downsizing, working with a real estate agent is your next step. Your agent will help you understand how much equity to have and how you can use it. But they’ll do more than that. They’ll also help you navigate the entire process of selling your current home and finding a new one, so you can transition smoothly into a new home and a new phase of life.

Bottom Line

If you’re planning to retire in 2025, now may be the perfect time to downsize and unlock the equity you’ve built up in your home. Let’s start planning your move now, so you’re set up to make every day feel like a Saturday.

The Truth About Credit Scores and Buying a Home

Your credit score plays a big role in the homebuying process. It’s one of the key factors lenders look at to determine which loan options you qualify for and what your terms might be. But there’s a myth about credit scores that may be holding some buyers back.

The Myth: You Need To Have Perfect Credit

According to Fannie Mae, only 32% of potential homebuyers have a good idea of what credit score lenders actually require.

That means two-thirds of buyers don’t actually know what lenders are looking for – and most overestimate the minimum credit score needed.

The Reality: Perfect Isn’t Necessary

But the truth is, you don’t need perfect credit to become a homeowner. To see the average score, by loan type, for recent homebuyers check out the graph below:

There is no set cut-off score across the board. As FICO explains:

“While many lenders use credit scores like FICO Scores to help them make lending decisions, each lender has its own strategy, including the level of risk it finds acceptable. There is no single “cutoff score” used by all lenders, and there are many additional factors that lenders may use . . .”

So, even if your credit score isn’t as high as you’d like, you may still be able to get a home loan. Just know that, even though you don’t need perfect credit to buy a home, your score can have an impact on your loan options and the terms you’re able to get.

Work with a trusted lender who can walk you through what you’d qualify for.

Simple Tips To Improve Your Credit Score

If you want to open up your options a bit more after talking to a lender, here are a few tips from Experian and Freddie Mac that can help give your score a boost:

1. Pay Your Bills on Time

This includes everything from credit cards to utilities and other monthly payments. A track record of on-time payments shows lenders you’re responsible and reliable.

2. Pay Down Outstanding Debt

Reducing your overall debt not only improves your credit utilization ratio (how much credit you’re using compared to your total limit) but also makes you a lower-risk borrower in the eyes of lenders. That makes them more likely to approve a loan with better terms.

3. Hold Off on Applying for New Credit

While opening new credit accounts might seem like a quick way to boost your score, too many applications in a short period can have the opposite effect. Focus on improving your existing accounts instead.

Bottom Line

Your credit score doesn’t have to be perfect to qualify for a home loan. The best way to know where you stand? Work with a trusted lender to explore your options.

How Much Home Equity Have You Gained? The Answer Might Surprise You

Have you ever stopped to think about how much wealth you’ve built up just from being a homeowner? As home values rise, so does your net worth. And, if you’ve been in your house for a few years (or longer), there’s a good chance you’re sitting on a pile of equity — maybe even more than you realize.

What Is Home Equity?

Home equity is the difference between what your house is worth and what you owe on your mortgage. For example, if your house is worth $500,000 and you still owe $200,000 on your home loan, you have $300,000 in equity. It’s essentially the wealth you’ve built through homeownership. Right now, homeowners across the country are seeing record amounts of equity.

According to Intercontinental Exchange (ICE), the average homeowner with a mortgage has $319,000 in home equity.

Why Have Homeowners Gained So Much Equity?

The rise in home equity over the years can be credited to two key factors:

1. Significant Home Price Growth

Home prices have climbed dramatically in recent years. In fact, according to the Federal Housing Finance Agency (FHFA), over the past five years, home prices nationwide have risen by 57.4% (see map below):

This appreciation means your house is likely worth much more now than when you first bought it.

2. Longer Tenure in Homes

Data from the National Association of Realtors (NAR) shows people are staying in their homes for a decade (see graph below):

This increased tenure means homeowners benefit even more from home values growing over time. That’s because the longer someone has lived in their house, the more that home’s value has grown, which directly increases equity.

And if you’re one of those people who’s been in their home for 10 years or more, know this – according to NAR:

“Over the past decade, the typical homeowner has accumulated $201,600 in wealth solely from price appreciation.”

The Benefits of Having Home Equity

What does that mean for you? It means your house might be your biggest financial asset — and it could open up some exciting opportunities for your future. Let’s break it down.

• Moving to Your Next Home

Your equity could help you cover the down payment for your next home. In some cases, it might even mean you can buy your next house all cash.

• Financing Home Improvements

Thinking about upgrading your kitchen, adding a home office, or tackling other projects? Your equity can provide the funds to make those improvements happen, increasing your home’s value and making it more enjoyable to live in too.

• Getting a Business Going

If you’ve been dreaming about starting your own business, your equity could be the kickstart you need. Whether it’s for startup costs, equipment, or marketing, leveraging your home’s value can help bring your entrepreneurial goals to life.

Bottom Line

Whether you’re thinking about selling, upgrading, or simply want to understand your options, your home equity is a powerful resource. If you’re wondering how much equity you’ve built or how you can use it to meet your goals, let’s connect and explore the possibilities.

Expert Forecasts for the 2025 Housing Market

Wondering what’s in store for the housing market this year? And more specifically, what it all means for you if you plan to buy or sell a home? The best way to get that information is to lean on the pros.

Experts are constantly updating and revising their forecasts, so here’s the latest on two of the biggest factors expected to shape the year ahead: mortgage rates and home prices.

Will Mortgage Rates Come Down?

Everyone’s keeping an eye on mortgage rates and waiting for them to come down. So, the question is really: how far and how fast? The good news is they’re projected to ease a bit in 2025. But that doesn’t mean you should expect to see a return of 3-4% mortgage rates. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:

 “Are we going to go back to 4%? Per my forecast, unfortunately, we will not. It’s more likely that we’ll go back to 6%.”

And the other experts agree. They’re forecasting rates could settle in the mid-to-low 6% range by the end of the year (see chart below):

But you should remember, this will continue to change as new information becomes available. Expert forecasts are based on what they know right now. And since everything from inflation to economic drivers have an impact on where rates go from here, some ups and downs are still very likely. So, don’t get caught up in the exact numbers here and try to time the market. Instead, focus on the overall trend and on what you can actually control.

A trusted lender and an agent partner will make sure you’ve always got the latest data and the context on what it really means for you and your bottom line. With their help, you’ll see even a small decline can help bring down your future mortgage payment.

Will Home Prices Fall?

The short answer? Not likely. While mortgage rates are expected to ease, home prices are projected to keep climbing in most areas – just at a slower, more normal pace. If you average the expert forecasts together, you’ll see prices are expected to go up roughly 3% next year, with most of them hitting somewhere in the 3 to 4% range. And that’s a much more typical and sustainable rise in prices (see graph below):

So don’t expect a sudden drop that’ll score you a big deal if you’re thinking of buying this year. While that may sound disappointing if you’re hoping prices will come down, refocus on this. It means you won’t have to deal with the steep increases we saw in recent years, and you’ll also likely see any home you do buy go up in value after you get the keys in hand. And that’s actually a good thing. 

And if you’re wondering how it’s even possible prices are still rising, here’s your answer. It all comes down to supply and demand. Even though there are more homes for sale now than there were a year ago, it’s still not enough to keep up with all the buyers out there. As Redfin explains:

“Prices will rise at a pace similar to that of the second half of 2024 because we don’t expect there to be enough new inventory to meet demand.”

Keep in mind, though, the housing market is hyper-local. So, this will vary by area. Some markets will see even higher prices. And some may see prices level off or even dip a little if inventory is up in that area. In most places though, prices will continue to rise (as they usually do).

If you want to find out what’s happening where you live, you need to lean on an agent who can explain the latest trends and what they mean for your plans.

Bottom Line

The housing market is always shifting, and 2025 will be no different. With rates likely to ease a bit and prices rising at a more normal and sustainable pace, it’s all about staying informed and making a plan that works for you.

Let’s connect so you can get the scoop on what’s happening in our area and advice on how to make your next move a smart one.

How Co-Buying a Home Helps with Affordability Today

Buying a home in today’s market can feel like an uphill battle – especially with home prices and mortgage rates putting pressure on your budget. If you’re feeling stuck, co-buying could be one way to help you get your foot in the door. Freddie Mac says:

“If you are an aspiring homeowner, buying a home with your family or friends could be an option.”

But there are some things you'll want to consider first. Let’s explore why co-buying is gaining popularity right now among some buyers and see if it may make sense for you too.

What Is Co-Buying?

Co-buying means buying a home with someone like a friend, sibling, or even a group of people. And, with today’s high home prices and mortgage rates, it’s an option more people are turning to.

According to a survey done by JW Surety Bonds, nearly 15% of Americans have already co-purchased a home with someone, and another 48% would consider doing it.

Why Consider Co-Buying?

The same survey also asked people about the perks of co-buying a home. Here are some of the top responses (see graph below):

Sharing Costs (67%): From saving for a down payment to managing monthly payments, buying a home is a big financial step. When you co-buy, you split these costs, making it easier to afford a home.

Affording a Better Home (56%): By pooling your financial resources, you may also be able to afford a larger or higher-quality home than you could have on your own. This may mean getting that extra bedroom, a bigger backyard, or living in a more desirable neighborhood.

Investment Opportunity (54%): Co-buying a home can also be an investment. You could buy a house with someone so you can rent out, which could help generate passive income.

Sharing Responsibilities (48%): Owning a home comes with a lot of responsibilities, including maintenance and upkeep and more. When you co-buy, you share these commitments, which can lighten the load for everyone involved.

Other Co-Buying Considerations

While co-buying has its benefits, there’s something else you need to consider before deciding if this approach is right for you. As Rocket Mortgage says:

“Buying a house with a friend or multiple friends might be a great way for you to achieve homeownership, but it’s not a decision you should make lightly. Before diving in, make sure you understand the financial and logistical hurdles you’ll face, as well as the human and emotional elements that might affect the purchase or, more importantly, your relationship.”

Basically, make sure you and your co-buyer are on the same page about things like how costs will be split, who will handle what responsibilities, and what will happen if one of you wants to sell your share of the home in the future. Leaning on an expert can help you weigh the pros and cons to make that conversation easier.

Bottom Line

If you're looking to get your foot in the door but are having a tough time with today’s affordability challenges, co-buying could be an option to make your move happen. But, it’s important to plan carefully and make sure all parties are clear on the details. To figure out if co-buying makes sense for you, let’s connect.

Renting vs. Buying: The Net Worth Gap You Need To See

Trying to decide between renting or buying a home? One key factor that could help you choose is just how much homeownership can grow your net worth.

Every three years, the Federal Reserve Board shares a report called the Survey of Consumer Finances (SCF). It shows how much wealth homeowners and renters have – and the difference is significant.

On average, a homeowner’s net worth is nearly 40 times higher than a renter’s. Check out the graph below to see the difference for yourself:

Why Homeowner Wealth Is So High

In the previous version of that report, the average homeowner’s net worth was about $255,000, while the average renter’s was just $6,300. That’s still a big gap. But in the most recent update, the spread got even bigger as homeowner wealth grew even more (see graph below):

As the SCF report says:

“. . . the 2019-2022 growth in median net worth was the largest three-year increase over the history of the modern SCF, more than double the next-largest one on record.”

One big reason why homeowner wealth shot up is home equity.

Equity is the difference between your home’s value and what you owe on your mortgage. You gain equity by paying down your mortgage and when your home’s value goes up.

Over the past few years, home prices have gone up a lot. That’s because there weren’t enough available homes for all the people who wanted one. This supply-demand imbalance pushed home prices up – and that translated into faster equity gains and even more net worth for homeowners.

If you’re still torn between whether to rent or buy, here’s what you should know. While inventory has grown this year, in most places, there’s still not enough to go around. That’s why expert forecasts show prices are expected to go up again next year nationally. It’ll just be at a more moderate pace.

While that’s not the sky-high appreciation we saw during the pandemic, it still means potential equity gains for you if you buy now. As Ksenia Potapov, Economist at First American, explains:

“Despite the risk of volatility in the housing market, homeownership remains an important driver of wealth accumulation and the largest source of total wealth among most households.”

But prices and inventory are going to vary by area. So, lean on a local real estate agent. They’ll be able to give you the local trends and speak to the other financial and lifestyle benefits that come with owning a home. That crucial information will help you decide the best move for you right now. As Bankrate explains:

“Deciding between renting and buying a home isn’t just about cost — the decision also involves long-term financial strategies and personal circumstances. If you’re on the fence about which is right for you, it may be helpful to speak with a local real estate agent who knows your market well. An experienced agent can help you weigh your options and make a more informed decision.”

Bottom Line

If you’re not sure if you should rent or buy, keep in mind that if you can make the numbers work, owning a home can really grow your wealth over time.

And if homeownership feels out of reach, let’s connect so we can explore programs that may make buying possible. 

Buying Beats Renting in 22 Major U.S. Cities

That’s right—according to a recent study from Zillow, in 22 of the 50 largest metro areas, monthly mortgage payments are now lower than rent payments (see chart below):

As mortgage rates have eased off their recent peak, home prices have moderated, and inventory has ticked up, affordability has improved significantly. When you add all of that up, it’s getting less expensive to buy a home than to rent one in many parts of the country.

This is a big deal if you’ve been renting for a while now. But if you don’t see your city on this list, don’t sweat it. Things are moving fast, and your area might be joining these top metros soon.

You see, talking with a local real estate agent about what’s happening in your market before this happens in your ideal neighborhood could really change the game for you. It’s all about being informed by a true expert, and understanding what was out of reach before might actually be getting more affordable than you think. 

Now, while this study compares monthly rent to principal and interest on a mortgage payment (not the whole monthly payment), let’s think through this. As Zillow notes, what you can’t ignore when you buy a home are things like taxes, insurance, utilities, and maintenance that should also be factored into your budget and your monthly payment.

But remember – renters pay extra fees too, like renters’ insurance, utilities, parking, and more. And while doing the math may feel like a drag, this equation could be a much more exciting one to work through today.

So, grab your calculator and your agent because the big takeaway is this: it may be time to determine if you’re in a spot to afford what you couldn’t just a few months ago.

As Orphe Divounguy, Senior Economist at Zillow, says:

“… for those who can make it work, homeownership may come with lower monthly costs and the ability to build long-term wealth in the form of home equity — something you lose out on as a renter. With mortgage rates dropping, it's a great time to see how your affordability has changed and if it makes more sense to buy than rent.”

Whether you live in one of these budget-friendly metros where the scales have already tipped in your favor, or any town in-between, it’s time to connect with a local real estate agent to get the conversation started.

With mortgage rates coming down and more homes hitting the market, you’ll want to be ready to jump back into your search – before everyone else does.

Bottom Line

If you’re tired of renting and ready to find out what it takes to purchase a home in our area now that the landscape may be shifting, let’s do the math together to see if buying a home makes sense for you now or sometime soon.

Don’t Fall for These Real Estate Agent Myths

When it’s time to buy or sell a home, one of the most important decisions you’ll make is who you’ll work with as your agent. That choice will have an impact on your entire experience and how smoothly it goes.

As you figure out who you’ll partner with, it’s important to know what to expect and what to look for. Unfortunately, there may be some myths holding you back from making the best decision possible. So, let’s take some time to address those, and make sure you have the information you need to find the right agent for you.

Myth #1: All Real Estate Agents Are the Same

You might think all agents are the same – so it doesn’t matter who you work with. But, in reality, agents have varying levels of experience, specialties, and market knowledge, which can have a big impact on your results. For example: you'll get much better service and advice from someone who is a true expert in their field. As Business Insider explains:

“If you were planning to get your hair done for a special event, you'd want to visit a stylist who specifically has experience doing that type of work — you wouldn't make an appointment with someone who primarily does kids' hair. The same concept applies to finding a real estate agent. If you have a smaller budget, you probably don't want to work with an agent who exclusively sells multimillion-dollar properties.”

Take some time to talk with each agent you’re considering. Ask about their experience level and what they specialize in. This will help you find the one that’s the best fit for your search.

Myth #2: You Can Save Money by Not Using an Agent

As a seller, you may think you can save money by not working with a pro. However, the expertise, negotiation skills, and market knowledge an agent provides generally saves you money and helps you avoid making costly mistakes. Without that guidance, you could find yourself doing something like overpricing your house. And that’s a misstep that’ll cost you when it sits on the market for far too long. That’s why U.S. News Real Estate says:

“When it comes to buying or selling your home, hiring a professional to guide you through the process can save you money and headaches. It pays to have someone on your side who's well-versed in the nuances of the market and can help ensure you get the best possible deal.”

Myth #3: Agents Will Push You To Spend More

You may also be worried an agent will push you to buy a more expensive house in order to increase their commission. But that’s not how that should go. A good agent will respect your budget and work hard to find a home that truly fits your financial situation and needs. With their market know-how, they’ll point you toward the best option for you, rather than try to pad their own pockets on your dime. As NerdWallet explains:

“Among other things, a good buyer’s agent will find homes for sale. A buyer's agent will help you understand the type of home you can afford in the current market, find listed homes that match your needs and price range, and then help you narrow the options to the properties worth considering.”

Myth #4: Market Conditions Are the Same Everywhere, So Why Do I Need a Pro?

Maybe you believe housing market conditions are the same no matter where you are. But that couldn’t be further from the truth. Real estate markets are highly localized, and conditions can vary widely from one area to another. This is why you can’t pick just anyone you find online. You should choose an agent who’s an expert on your specific local market. As a recent article from Bankrate says:

“Real estate is very localized, and you want someone who’s extremely knowledgeable about the market in your specific area.”

You’ll know you’ve found the right person when they can explain the national trends and how your area stacks up too. That way you’re guaranteed to get the full picture when you ask: “how’s the market?”

Bottom Line

Don’t let myths keep you from the expert guidance you deserve. With market knowledge and top resources, a trusted local real estate agent isn't just helpful, they’re invaluable.

In what could be one of the biggest financial decisions of your life, having the right pro by your side is a game changer. Let’s connect and make sure you get the best outcome possible.

Solano County Market Snapshot for August 2024

The August 2024 Solano County Market Snapshot

August’s market snapshot for Solano County is here!

Below, I'm sharing the latest data on our local real estate market compared to this same time last month.

That way you can see what's really going on in our market to make better-informed decisions.

It's important to me to share this kind of data as the real estate market has definitely been making headlines lately!

So, it's important we take a look at what's going on on our local level.

Looking for more statistics on specific areas? Here’s where I got the equity stats:
Fairfield | Suisun City | Vacaville | Dixon

Average Sales Price = $603K

This price is down compared to last month. This indicates that the average price of homes sold has decreased since 2023. If you've been thinking about buying, this could be good news for you!

Days on Market = 43 Days

“Days on market” is how long a home is actively for sale before it goes under contract. Currently, our days on market have remained the same since last month. Overall homes are taking 53.6% longer to sell compared to this time last year.

# of Homes for Sale = 722 homes

The “number of homes for sale” is an important stat to monitor because it indicates the availability of inventory. Currently, we are down over the last month.

# of Homes Sold = 349 homes

Last month, the number of homes sold is down compared to the month before. At this time last year, the number of homes sold is down by 2.4%.

Average Home Value = $346 per sqft

This is the average in our area to close out Augst for ALL homes. If you're a homeowner, I recommend we closely examine how the market impacted your home's value. Let me know if you'd like a complimentary value estimation for your home!

Estimated Home Value 12-Month Change = +2.2%

Overall home values are up over last year. In fact, we're seeing an increase of 2.2%. To put that into perspective, for the past 30 years, we've seen an average appreciation rate of about +4%.

And if you'd like my signature "Real Estate Market Recap" for a different area, please send me an email at michelleperez@sellwithmichelle.com and let me know where!

The information I’m sharing includes:

• Data Source: BAREIS MLS

• Timeframe: Jun 2023 to Aug 2024

• Housing Type: Residential Homes in Solano County

• Click here to see the graphs for this month’s report. To see the stats for estimated home value, see: Solano County

And if you'd like to take a look at another area or have a deeper conversation about whether now's a good time to buy or sell, please reach out to me at (707) 208-2557. I'm only a call/text away and happy to help!

Thank you!

Thank you for joining me this month! As we gear up for the next year, I look forward to bringing you even more tips, trends, and local insights in my email newsletter (subscribe here to get on the list). And as always, if you or someone you know has a real estate need or question, I am always here to help!

MICHELLE PEREZ

REALTOR®
Michelle Perez & Associates, RE/MAX Gold

Phone: 707-208-2557
Email: michelleperez@sellwithmichelle.com
Website: sellwithmichelle.com

Mortgage Rates Drop to Lowest Level in over a Year and a Half

Mortgage rates have hit their lowest point in over a year and a half. And that’s big news if you’ve been sitting on the homebuying sidelines waiting for this moment.

Even a small decline in rates could help you get a better monthly payment than you would expect on your next home. And the drop that’s happened recently isn’t small. As Sam Khater, Chief Economist at Freddie Mac, says:

“Mortgage rates have fallen more than half a percent . . . and are at their lowest level since February 2023.”

But if you want to see it to really believe it, here’s how the math shakes out. Take a closer look at the impact on your monthly payment.

The chart below shows what a monthly payment (principal and interest) would look like on a $400K home loan if you purchased a house back in April (this year’s mortgage rate high), versus what it could look like if you buy a home now (see below):

Going from 7.5% just a few months ago to the low 6s has a big impact on your bottom line. In just a few months’ time, the anticipated monthly payment on a $400K loan has come down by over $370. That’s hundreds of dollars less per month.

Bottom Line

With the recent drop in mortgage rates, the purchasing power you have right now is better than it’s been in almost two years. Let’s talk about your options and how you can make the most of this moment you’ve been waiting for.

Could a 55+ Community Be Right for You?

If you’re thinking about downsizing, you may be hearing about 55+ communities and wondering if they’d be a good fit for you. Here’s some information that could help you make your decision.

What Is a 55+ Community?

It’s important to note that these communities aren’t just for people who need extra support – they can be pretty vibrant, too. Many people who are downsizing opt for this type of home because they’re looking to be surrounded by people in a similar season of life. U.S. News explains:

“The terms ‘55-plus community,’ ‘active adult community,’ ‘lifestyle communities’ and ‘planned communities’ refer to a setting that caters to the needs and preferences of adults over the age of 55. These communities are designed for seniors who are able to care for themselves but may be looking to downsize to a community with others their same age and with similar interests.”

Why It’s Worth Considering This Type of Home

If that sounds like something that may interest you, here's one thing to consider. You may find you’ve got a growing list of options if you look at this type of community. According to 55places.com, the number of listings tailored for homebuyers in this age group has increased by over 50% compared to last year.

And a bigger pool of options could make your move much less stressful because it’s easier to find something that’s specifically designed to meet your needs.

Other Benefits of 55+ Communities

On top of that, there are other benefits to seeking out this type of home. An article from 55places.com, highlights just a few:

• Lower-Maintenance Living: Tired of mowing the lawn or pulling weeds? Many of these communities take care of this for you. So, you can spend more time doing fun things, and less time on maintenance.

• On-Site Amenities: Some feature lifestyle amenities like a clubhouse, fitness center, and more, so it’s easy to stay active. Plus, others offer media rooms, libraries, spas, arts and craft studios, and more.

• Like-Minded Neighbors: Additionally, these types of homes usually offer clubs, outings, meet-ups, and more to foster a close-knit community.

• Accessible Floor Plans: Not to mention, many have first-floor living options, ample storage spaces, and modern floor plans so you can have a home tailored to this phase in your life.

Bottom Line

If this sounds appealing to you, let’s talk about what’s available in our area, and the unique amenities for each community. You may find a 55+ home is exactly what you’ve been searching for.

Mortgage Rates Down a Full Percent from Recent High

Mortgage rates have been one of the hottest topics in the housing market lately because of their impact on affordability. And if you’re someone who’s looking to make a move, you’ve probably been waiting eagerly for rates to come down for that very reason. Well, if the past few weeks are any indication, you may be getting your wish.

Mortgage Rates Trend Down in Recent Weeks

There’s big news for mortgage rates. After the latest reports on the economy, inflation, the unemployment rate, and the Federal Reserve’s recent comments, mortgage rates started dropping a bit. And according to Freddie Mac, they’re now at a level we haven’t seen since February. To help show the downward trend, check out the graph below:

Maybe you’re seeing this and wondering if you should ride the wave and see how low they’ll go. If that’s the case, here’s some important perspective. Remember, the record-low rates from the pandemic are a thing of the past. If you’re holding out hope to see a 3% mortgage rate again, you’re waiting for something experts agree won’t happen. As Greg McBride, Chief Financial Analyst at Bankrate, says: 

“The hopes for lower interest rates need the reality check that 'lower' doesn't mean we're going back to 3% mortgage rates. . . the best we may be able to hope for over the next year is 5.5 to 6%.”

And with the decrease in recent weeks, you’ve got a big opportunity in front of you right now. It may be enough for you to want to jump back in. 

The Relationship Between Rates and Demand 

If you wait for mortgage rates to drop further, you might find yourself dealing with more competition as other buyers re-ignite their home searches too.

In the housing market, there’s generally a relationship between mortgage rates and buyer demand. Typically, the higher rates are, the lower buyer demand is. But when rates start to come down, things change. Buyers who were on the fence over higher rates will resume their searches. Here’s what that means for you. As a recent article from Bankrate says:

“If you’re ready to buy, now might be the time to strike. Home prices have been rising primarily because of a longstanding shortage of homes for sale. That’s unlikely to change, and if mortgage rates do fall below 6%, it’s possible buyers would enter the market en masse, further pushing up prices and resurrecting bidding wars.”

Bottom Line

If you’ve been waiting to make your move, the recent downward trend in mortgage rates may be enough to get you off the sidelines. Rates have hit their lowest point in months, and that gives you the opportunity to jump back in before all the other buyers do too.

If you’re ready and able to start the process, reach out and let’s get started.

Solano County Market Snapshot for June 2024

The June 2024 Solano County Market Snapshot

June's market snapshot for Solano County is here!

Below, I'm sharing the latest data on our local real estate market compared to this same time last month.

That way you can see what's really going on in our market to make better-informed decisions.

It's important to me to share this kind of data as the real estate market has definitely been making headlines lately!

So, it's important we take a look at what's going on on our local level.

Average Sales Price = $624K

This price is down compared to last month. This indicates that the average price of homes sold has increased since 2023. If you've been thinking about selling, this could be good news for you!

Days on Market = 36 Days

“Days on market” is how long a home is actively for sale before it goes under contract. Currently, our days on market have gone down since last month. Overall home are taking a little longer to sell compared to this time last year.

# of Homes for Sale = 722 homes

The “number of homes for sale” is an important stat to monitor because it indicates the availability of inventory. Currently, we are up over the last month.

# of Homes Sold = 349 homes

Last month, the number of homes sold is up compared to the month before. At this time last year, the number of homes sold is down by 8.6%.

Average Home Value = $356 per sqft

This is the average in our area to close out June for ALL homes. If you're a homeowner, I recommend we closely examine how the market impacted your home's value. Let me know if you'd like a complimentary value estimation for your home!

1-YR Value Change = 5.4%

Overall home values are up over last year. In fact, we're seeing an increase of 5%. To put that into perspective, for the past 30 years, we've seen an average appreciation rate of about +4%.

And if you'd like my signature "Real Estate Market Recap" for a different area, please send me an email at michelleperez@sellwithmichelle.com and let me know where!

The information I’m sharing includes:

• Data Source: BAREIS MLS

• Timeframe: Apr 2023 to June 2024

• Housing Type: Residential Homes in Solano County

• Click here to see the graphs for this month’s report.

And if you'd like to take a look at another area or have a deeper conversation about whether now's a good time to buy or sell, please reach out to me at (707) 208-2557. I'm only a call/text away and happy to help!

Thank you!

Thank you for joining me this month! As we gear up for the next year, I look forward to bringing you even more tips, trends, and local insights in my email newsletter (subscribe here to get on the list). And as always, if you or someone you know has a real estate need or question, I am always here to help!

MICHELLE PEREZ

REALTOR®
Michelle Perez & Associates, RE/MAX Gold

Phone: 707-208-2557
Email: michelleperez@sellwithmichelle.com
Website: sellwithmichelle.com

Solano County Market Snapshot for May 2024

The May 2024 Solano County Market Snapshot

May's market snapshot for Solano County is here!

Below, I'm sharing the latest data on our local real estate market compared to this same time last month.

That way you can see what's really going on in our market to make better-informed decisions.

It's important to me to share this kind of data as the real estate market has definitely been making headlines lately!

So, it's important we take a look at what's going on on our local level.

Average Sales Price = $626K

This price is up compared to last month. This indicates that the average price of homes sold has increased since 2023. If you've been thinking about selling, this could be good news for you!

Days on Market = 39 Days

“Days on market” is how long a home is actively for sale before it goes under contract. Currently, our days on market have gone down since last month. Overall home are taking a little longer to sell compared to this time last year.

# of Homes for Sale = 675 homes

The “number of homes for sale” is an important stat to monitor because it indicates the availability of inventory. Currently, we are up over the last month.

# of Homes Sold = 313 homes

Last month, the number of homes sold remained about the same compared to the month before. As with active listings, this stat can be impacted seasonally and by changes in the market. We’ll continue to monitor how it trends in 2024.

Average Home Value = $354 per sqft

This is the average in our area to close out May for ALL homes. If you're a homeowner, I recommend we closely examine how the market impacted your home's value. Let me know if you'd like a complimentary value estimation for your home!

1-YR Value Change = 5.4%

Overall home values are up over last year. In fact, we're seeing an increase of 5.4%. To put that into perspective, for the past 30 years, we've seen an average appreciation rate of about +4%.

And if you'd like my signature "Real Estate Market Recap" for a different area, please send me an email at michelleperez@sellwithmichelle.com and let me know where!

The information I’m sharing includes:

• Data Source: BAREIS MLS

• Timeframe: Mar 2023 to May 2024

• Housing Type: Residential Homes in Solano County

• Click here to see the graphs for this month’s report.

And if you'd like to take a look at another area or have a deeper conversation about whether now's a good time to buy or sell, please reach out to me at (707) 208-2557. I'm only a call/text away and happy to help!

Thank you!

Thank you for joining me this month! As we gear up for the next year, I look forward to bringing you even more tips, trends, and local insights in my email newsletter (subscribe here to get on the list). And as always, if you or someone you know has a real estate need or question, I am always here to help!

Michelle Perez

REALTOR®
Michelle Perez & Associates, RE/MAX Gold

Phone: 707-208-2557
Email: michelleperez@sellwithmichelle.com
Website: sellwithmichelle.com