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House Heartbreak: Why Breaking Up with Your Home Might Be the Best Decision You’ll Ever Make As the real estate market continues to evolve and fluctuate, many homeowners are asking themselves the same question: Is now the time to sell my house? While there’s no one-size-fits-all answer, there are several factors to consider when making... Read More

Why the time to buy a home is NOW!

Kendall Caputo | BHGRE Synergy Logan Mohtasami’s presentation at Owner’s Retreat inspired me to create an essay that our agents can use as talking points with their buyers who are waiting for a market crash.  I thought I would share it here in case anyone else thinks it would be useful to share with their agents. Over the past several weeks we have seen a change in home buyer sentiment.  Buyers are taking much more time deliberating over their purchase decision.  Dire predictions from the national media about a housing crash understandably scares people.  No one wants to buy at the top of the market and no one wants to make a mistake.  But inaction has consequences too.   Every 1% increase in mortgage rates reduces a borrower’s purchasing power by 11%.  A buyer who started look for a home at the beginning of September could have closed on home with mortgage interest rate of about 5.25%.  By the end of October that same mortgage product would be over 7%. Home prices would have had to fall by roughly 25% to making waiting a good decision.   So what is the likelihood that prices will fall, and if they do by how much?  House prices don’t always fall during a recession, but they do drop more often than not. According to the Joint Center for Housing Studies at Harvard University, housing prices dropped in four out of five recessions that have occurred since 1980 but the average house price dip was only 5%.  Even in the Great Recession, the average home price drop was around 13%.  That still would not have made up for the increase mortgage rates over the past two months.   Let’s assume for a moment home prices will regress in 2023.  The question is by how much? Prospective buyers are hoping for a significant correction but here is why we don’t believe that will happen.   Banks learned their lesson and lending practices are much better today.  As the chart below will show there really are no “sub-prime” mortgages anymore.  The overwhelming majority of borrowers in recent years have credit score over 720 and there are almost no more originations for households with scores under 650.   As a result of better lending practices the number of borrowers who are currently delinquent on their mortgages is historically low. Less than one half of one percent of mortgages in the U.S. are more that 30 days late. If you need more evidence look at the number of new foreclosures and bankruptcies in the U.S.  They too are at historic lows. Based on all this data we are much more likely to believe that any home price regression in a possible 2023 recession will be on the low end of the historic range.   So if home pricing is not a reason to wait to purchase home are mortgage rates a good reason?  We say no.  Interest rates are cyclical.  You will have the chance to refinance your mortgage to a lower rate in the future when the federal reserve loosens monetary policy.  Most industry analysts we follow believe that will begin in late 2023 so you do not need a 30 year fixed rate mortgage.  Today you can get a 7 or 5 year adjustable rate mortgage at 6.25 or 6.00% respectively. Marry the house, date the rate! Read More

Pros and Cons of Selling Your Home Without A Real Estate Agent

Pros and Cons of Selling Your Home Without a Real Estate Agent Sure selling your home on you own sounds like a great option, especially in today’s HOT market. Why would you hire an agent when you can just sell the house on your own? Before you head off to Home Depot or search Amazon... Read More

Top Smart Home Features Buyers Are Looking For

Top Smart Home Features Buyers Are Looking For Homebuyers are becoming more and more interested in homes with smart features. There are numerous reasons these features are on the rise from making people’s lives easier to providing a sense of security. Inform your clients of the benefits of installing these features so they can attract buyers and sell their homes at a higher... Read More

Small-Space Home Offices

Spare bedrooms aren’t the only spaces that make great home offices. Now a closet, corner, hallway or even the kitchen island can become the perfect work space. You don’t need a lot of space to carve a spot out for a desk or workstation. Here are a few ideas for how to do it in... Read More

Making the Dream of Home Ownership a Reality in 2021

In 1963, Martin Luther King, Jr. inspired a powerful movement with his famous “I Have a Dream” speech. Through his passion and determination, he sparked interest, ambition, and courage in his audience. Today, reflecting on his message encourages many of us to think about our own dreams, goals, beliefs, and aspirations. For many Americans, one... Read More

Do These 3 Things to Sell Your Home This Year

It’s exciting to put a house on the market and to think about making new memories in new spaces. However, despite the anticipation of what’s to come, we can still have deep sentimental attachments to the home we’re leaving behind. Growing emotions can help or hinder a sale depending on how we manage them. When... Read More

Selling Your Home This Winter is a GREAT Idea

Around this time each year, many homeowners decide to wait until spring to sell their houses. Let’s unpack the top reasons why selling your house now is the best choice you can make. This year, buyers want to purchase homes before the spring and summer rush, and your house might be the perfect match. Here... Read More

3 Reasons to be Optimistic About Real Estate in 2021

This year will be remembered for many reasons, and optimism is one thing that’s been in short supply since the spring. We’re experiencing a global pandemic, social unrest, an economic downturn, and natural disasters, just to name a few. The challenges brought on by the health crisis have also forced many homeowners to reevaluate their... Read More

New Year • New Home

We are all excited to close the door on 2020 and look forward to a NEW year with great hopes of health, renewed happiness, and possibly a NEW home! So, as you welcome the new year and your thoughts and dreams of what lies ahead and you begin to search for a new home we... Read More