Don’t Let These Two Worries Stop You from Selling Your Home
Thinking about selling your home but feeling hesitant? It’s common to have questions holding you back. Perhaps you’re wondering if moving right now is a smart decision, or maybe you’re concerned about finding the perfect place to call home. Let’s address these two key worries and show you how to move forward with confidence. Is Now the Right Time To Move? If you’re a homeowner, the idea of selling might feel daunting—especially if you’re worried about higher mortgage rates for your next home. But your move may be more achievable than you think, thanks to the equity you’ve built. What’s equity? It’s the difference between your home’s current market value and the remaining balance on your mortgage. Over the past few years, rapid home appreciation has significantly boosted homeowners’ equity. Consider this: According to CoreLogic’s Chief Economist, Dr. Selma Hepp: “Persistent home price growth has continued to fuel home equity gains for existing homeowners who now average about $315,000 in equity and almost $129,000 more than at the onset of the pandemic.” This equity can be a game-changer. You can use it as a larger down payment on your next home, reducing how much you need to finance. In some cases, it could even enable you to buy your next home outright, sidestepping higher mortgage rates altogether. The takeaway: Your equity could be the key to making your next move affordable and realistic. Will I Be Able To Find a Home I Love? Low housing inventory in recent years made finding the right home a challenge. If you’re worried about this, there’s good news: inventory levels are improving. Recent data from Realtor.com reveals that the number of homes for sale has grown significantly—up nearly 30% compared to this time last year. While inventory hasn’t fully returned to pre-pandemic levels, it’s the highest it’s been in quite a while. This means more options for buyers like you. However, the balance between supply and demand varies across local markets. That’s why working with a trusted real estate agent is essential. They’ll provide insight into the inventory trends in your area and help you navigate the options. Bottom Line Don’t let concerns about timing or availability hold you back from selling your home. Your equity and improving inventory could make this the right time to make your move. Let’s connect so I can help you explore your options and guide you through the process with confidence.
More Homes, Slower Price Growth: What Buyers Need to Know
The current real estate market has a surprising twist – there are more homes for sale now than in previous years, and this shift could be a game-changer for prospective buyers. Here’s why this matters and what it could mean for your home search. More Choices Than Before One of the biggest perks of today’s market is the variety available. According to Realtor.com: “There were 29.2% more homes actively for sale on a typical day in October compared with the same time in 2023, marking the twelfth consecutive month of annual inventory growth and the highest count since December 2019.” While the number of homes on the market hasn't fully returned to pre-pandemic levels, this rise in inventory is a step in the right direction. With a larger selection, you’re more likely to find a home that fits your needs. The buying process may also feel less rushed, with fewer buyers competing for each home. Hannah Jones, Senior Economic Research Analyst at Realtor.com, adds: “Though still lower than pre-pandemic, burgeoning home supply means buyers have more options…” This shift means less pressure and more time for you to explore homes that meet your unique requirements without feeling hurried by intense competition. Slower Home Price Growth Over the past few years, low inventory drove fierce competition, leading to sharp price increases. However, as more homes come on the market, this trend is easing. In certain areas, inventory levels have even surpassed pre-pandemic counts, and home price growth has slowed or leveled off. Lance Lambert, Co-Founder of ResiClub, notes: “Generally speaking, housing markets where active inventory has returned to pre-pandemic 2019 levels have seen home price growth soften or even decline outright from their 2022 peak.” Slower price growth may help make homes more affordable. Dr. Anju Vajja, Deputy Director at the Federal Housing Finance Agency (FHFA), explains: “For the third consecutive month U.S. house prices showed little movement . . . relatively flat house prices may improve housing affordability.” Remember, though, that market conditions and price trends can vary from one location to another. Having an experienced real estate agent who understands your local market can help you navigate these dynamics effectively and make the most of these new opportunities. Bottom Line With more homes to choose from and slowing price growth, now might be a great time to find a home that aligns with your needs and budget. Reach out to discuss the expanding options available in today’s market and see how we can help make your home search a success.
Renting vs. Buying: The Net Worth Gap That May Surprise You
Deciding between renting or buying a home? One significant factor that could help guide your decision is the impact homeownership can have on your net worth. Every three years, the Federal Reserve Board publishes the Survey of Consumer Finances (SCF), which sheds light on the wealth gap between homeowners and renters – and the difference is substantial. According to recent data, a homeowner’s net worth is, on average, nearly 40 times greater than that of a renter. Take a look at the numbers to see this contrast: Why Homeowner Wealth Outpaces Renting In a past SCF report, the typical homeowner’s net worth was approximately $255,000, while the average renter’s was around $6,300. This was already a large disparity, but in the most recent survey, the gap widened further as homeownership wealth increased (see updated graph below). The SCF noted that: “. . . 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 major reason for this increase is home equity. Home equity represents the difference between a home’s market value and the outstanding mortgage balance. As you pay down your mortgage, or as your property appreciates, your equity grows. Over recent years, home prices have risen due to limited supply and high demand, translating into greater home equity and net worth for owners. Should You Rent or Buy? If you’re weighing the decision between renting and buying, here’s something to keep in mind: While inventory has improved in 2024, demand still generally outstrips supply. As a result, experts predict moderate price appreciation in the coming year, which could mean additional equity gains for buyers who act now. This isn’t the unprecedented appreciation seen during the pandemic, but it does point to steady value growth for those looking to build wealth. Economist Ksenia Potapov from First American emphasizes: “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.” Of course, price trends and availability vary by area, which is why consulting a local real estate expert is key. They can share valuable insights about your specific market and help you understand both the financial and lifestyle benefits of homeownership. As Bankrate advises: “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, speaking with a knowledgeable local real estate agent can help you weigh your options and make a more informed decision.” Bottom Line If you’re uncertain about whether renting or buying is right for you, remember that homeownership could significantly increase your net worth over time. And if affordability is a concern, let’s discuss available programs that might bring homeownership within reach.
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