Why Use a Realtor? • February 5, 2025

2025 Housing Market Forecast: Growth, Challenges, and Wild Cards Ahead

by Steve Vavrek

The 2025 housing market is shaping up to be an interesting one—steady growth, more inventory, and a bit of breathing room for buyers. But let’s be real: behind every steady forecast lies a handful of wild cards that could shift the game.

From unexpected mortgage rate swings to federal policies that could either boost supply or throw a wrench in the system, there’s plenty to keep an eye on this year. Let’s break it all down—what the experts predict and what could really shake things up.

The Big Picture: What Experts Are Saying About 2025

Before diving into the wild cards, let’s take a look at what the forecasts say about home prices, sales, inventory, and mortgage rates.

1. Home Prices: Modest Increases Ahead

Analysts forecast modest home price growth in 2025, with projections ranging from 2% to nearly 5% increase.

While home prices are still climbing, the pace is slower compared to recent years. This is good news for buyers facing affordability challenges, although slight increases still favor sellers who can expect equity gains.

2. Home Sales: Slight Rebound in Activity

After a sluggish 2023 and 2024, existing home sales are projected to recover slightly in 2025.

Higher sales activity signals a healthier market, but the pace will depend on mortgage rates and inventory growth. Sellers may benefit from increased demand, while buyers will appreciate slightly more options.

3. Inventory: A Step Toward Balance

Economists agree—we can expect an increase in national housing inventory in the double digits:

Inventory is finally improving, giving buyers more options and a bit more negotiating power. However, we’re still not back to pre-pandemic levels, so don’t expect the competition to disappear completely.

4. Mortgage Rates: A Wild Ride Ahead

Mortgage rates are the biggest question mark. Most analysts predict rates hovering around 6%, but fluctuations throughout the year could create opportunities for those who act quickly.

Buyers can be on the lookout for rate dips to lock in better terms. For sellers, rates might limit what buyers can afford, so pricing smartly will be key.

The Wild Cards That Could Shake Things Up

Now for unpredictable factors that could throw the market forecasts into disarray. Here’s what you need to keep an eye on, according to Realtor.com.

1. Mortgage Rate Surprises

While forecasts suggest mortgage rates will hover around 6%, unexpected factors could lead to volatility. Economic growth, inflationary pressures, and Federal Reserve policy decisions will all play a role in determining where rates go.

The Trump administration’s fiscal policies—including deficit-funded tax cuts and increased spending—could drive inflation higher, keeping mortgage rates elevated. Conversely, successful efforts to curb inflation might stabilize rates or lead to a gradual decline.

What It Means for You:

Buyers: Stay flexible and prepared to lock in a rate during any dips.
Sellers: Be ready to adjust your pricing strategy if rates rise and buyer budgets shrink.

2. Federal Housing Policies

With a Republican sweep of the presidency and Congress, new policies could either bolster the housing market or add to its challenges. President Trump has proposed initiatives to decrease building costs and increase supply, including opening federal land for homebuilding and reducing regulatory costs.

However, other policies—such as stricter immigration laws and increased tariffs—could raise construction costs and slow the progress of new home development.

What It Means for You:

If supply increases, buyers may see more affordable options, easing competition.
However, higher construction costs could offset these benefits, keeping affordability out of reach for many.

Real estate is always full of surprises, but that’s what makes it exciting. Want to know how these trends could impact you locally? Let’s connect soon and strategize for your 2025 goals.

Why Use a Realtor? • February 3, 2025

Silent Signs Your House Has a Serious Problem

by Steve Vavrek

The key to staying ahead of major home repairs is to catch them before they become major. Turning a deaf ear to your house’s cries for help will only lead them to worsen with time. So, whether you want to improve your own home or rule out potential problems in a home you’re purchasing, here are some important signs to look for.

1. A Cracked Foundation

A cracked foundation isn’t uncommon, even on relatively newer homes—and it’s not always a serious indicator that future damage is expected. Small cracks are usually the result of normal settling that occurs after the home is built.

However, large cracks (bigger than 1/8-inch), horizontal cracks, stair-step cracks, or foundation cracks paired with other issues like stuck doors and windows, bowing walls, and sloped floors, could indicate a serious issue.

Solution: Have a foundation expert inspect the damage and assess the integrity of your home’s foundation. They’ll add insight into whether the cracks are concerning or are the expected result of normal settling.

2. Cracks in the Walls and Ceiling

Just like cracks in your foundation, cracks in your home’s walls and ceiling could indicate that the house is settling. However, it could also suggest there’s too much weight above the walls and ceiling, such as in the attic.

Solution: If the cracks in your walls or ceiling are larger than 1/8-inch, it’s wise to consult a professional who knows exactly what to look for to determine the root of the issue.

When was the last time you cleaned your gutters? Clogged gutters can allow water to penetrate your home’s walls, causing bubbling paint, cracks, and more extensive structural damage. Most homes can benefit from a semi-annual gutter cleaning, while homes surrounded by large trees need it even more frequently.

3. Drafty Doors and Windows

Drafty doors and windows could be caused by poor installation, old age, or weather stripping that needs to be replaced. However, if you have multiple windows and doors that are suddenly drafty with no clear cause, it could be a sign that your home is shifting and settling.

Solution: If you’ve ruled out any minor causes of the drafts, have a foundation expert assess your home’s foundation.

4. Bubbling in Your Ceiling

A bubbling ceiling is almost always a sign of moisture, which could be from leaky pipes, a leaky roof, or other sources of moisture.

Solution: If possible, head to your attic and inspect the area above the bubbling ceiling. If you have pipes in your attic, check them thoroughly to rule out any water leakage. Next, check the roof for possible leaks.

5. Soft and Squishy Floors

Soft and squishy floors can indicate rot and decay in the floor system, which could be caused by water damage, termite damage, or more.

Solution: The best way to uncover the cause of your soft floors is to go under your house and inspect the floor system. If you’re having trouble locating the soft spot, have someone stand above you and knock on the floor until you find it.

6. Increased Energy Bills

Suddenly increased energy bills that aren’t associated with utility rate price hikes are usually caused by your home’s HVAC system running more and struggling to maintain your desired temperature. This could be due to drafty windows and doors, missing insulation, or the development of gaps and cracks in your home.

Solution: Before you assume the worst, monitor your energy usage. Compare your past statements from your utility company to isolate the increased usage. Consider any recent changes, such as weather changes or new appliances. If you still can’t find a reasonable cause, pay close attention to how often your HVAC system runs.

7. Sticking Doors and Windows

Sticking doors and windows are a telltale sign that your home is shifting, which causes the doors and windows to be misaligned with their frames. It could also indicate that your home has a moisture problem.

Solution: Check for leaks or sources of moisture. Use a hygrometer to track your home’s relative humidity. If you’ve ruled out a moisture issue, contact a foundation expert to assess your home’s foundation integrity.

8. Cracks in the Chimney

Cracks in your chimney might seem like surface issues that aren’t of much concern, but they could be signs of deeper issues. Not only can cracks in any home surface indicate serious settling and shifting, but cracks in the chimney can allow water to penetrate, which can wreak havoc on other areas of your home and exacerbate the problem.

Solution: Even if you rule out any serious causes of your chimney cracking, you should still promptly repair the cracks to prevent further damage.

Beyond allowing water in, cracked chimneys can worsen with time, dropping bricks and other materials on your roof, which poses potential damage and a safety risk to anyone around your home.

Use a Realtor • February 1, 2025

How to Budget for Home Repairs and Avoid Unexpected Costs

by Steve Vavrek

What if I told you that, over 30 years, the average homeowner will spend over $180,000 on repairs and maintenance?

Sounds crazy, right? But when you break it down, it’s simple math: Homeowners spend an average of $6,087 per year on unexpected fixes, according to a recent survey conducted by Real Estate Witch. That’s more than most people’s annual property taxes or homeowners insurance.

From HVAC failures to foundation cracks, home repairs aren’t just expensive—they’re inevitable. Yet almost half of homeowners admit they don’t actively budget for them.

That’s why, of those surveyed, 59% said they wouldn’t be able to cover a $5,000 emergency repair without going into credit card debt. And 23% would need to use credit for a $1,000 repair.

So, how much should you save? And what can you do today to avoid going into debt when disaster strikes? Let’s dive in.

The Cost of Home Repairs

Homeowners spend an average of $6,087 per year on maintenance and repairs—and that doesn’t include planned renovations. Some of the most common (and costly) repairs include:

HVAC repairs or replacements: $5,000 – $10,000
Roof repairs or replacement: $3,000 – $15,000
Plumbing issues (burst pipes, sewer line problems): $2,000 – $10,000
Foundation repairs: $5,000 – $25,000
Electrical system repairs: $2,000 – $6,000

Without proper planning, these unexpected expenses can derail your finances. But with a solid emergency savings plan, you can handle home repairs without panic—or piling up debt.

How Much Should Homeowners Save for Emergencies?

A good rule of thumb is to set aside 1% to 3% of your home’s value annually for regular maintenance and unexpected repairs. For a $400,000 home, this means saving between $4,000-$12,000 per year.

For older homes (20+ years) or properties in areas prone to natural disasters, consider saving on the higher end of this range.

How to Build Your Home Emergency Fund (Even on a Tight Budget)

If you don’t have savings set aside yet, don’t worry—it’s never too late to start. Follow these steps to build a solid emergency fund:

1. Start Small and Stay Consistent

Set a goal: Aim for at least $5,000 in emergency savings.
Automate savings: Set up an automatic transfer of $50-$200 per month into a separate account.
Round up transactions: Use apps like Acorns or Qapital to round up purchases and save spare change.

2. Cut Unnecessary Expenses

Look for small expenses you can trim to free up cash for your emergency fund:

Cancel unused subscriptions (Streaming services, gym memberships, etc.)
Reduce dining out and cook at home more often
Negotiate lower rates on insurance, phone bills, or utilities

3. Boost Income with Side Hustles

Consider boosting your savings with extra income sources:

Freelancing or gig work (Uber, DoorDash, freelance writing, etc.)
Selling unused items (Facebook Marketplace, eBay, Poshmark)
Allocating tax refunds or bonuses to your emergency fund

4. Open a Separate High-Yield Savings Account

A dedicated emergency fund in a high-yield account keeps your money accessible but separate from daily spending.

What to Do When a Home Repair Emergency Happens

Even with the best planning, emergencies still happen. Here’s how to handle them without financial panic:

Assess the Urgency: Is this a must-fix-now issue (like a broken furnace in winter) or something you can plan for?
Get Multiple Quotes: Compare prices from two or three contractors before committing to a repair.
Negotiate and Ask for Discounts: Many service providers offer discounts for upfront cash payments or seasonal promotions.
Consider a Home Warranty (If Worth It): Some homeowners benefit from home warranty plans, but read the fine print to avoid unnecessary costs.
Use a Low-Interest Emergency Loan as a Last Resort: If you must borrow, look for low-interest personal loans instead of high-interest credit cards.

Final Thoughts

Homeownership comes with unexpected surprises, but having a financial plan ensures they don’t turn into financial disasters. When looking to buy, make sure your budget includes not just mortgage payments, but also savings for routine maintenance and emergency repairs. By planning ahead, you can handle unexpected costs with confidence.

Buying a Home • January 27, 2025

3 Reasons To Buy a Home Before Spring

by Steve Vavrek

Let’s face it — buying a home can feel like a challenge with today’s mortgage rates. You might even be thinking, “Should I just wait until spring when more homes hit the market and rates might be lower?”

But here’s the thing, no one knows for sure where mortgage rates will go from here, and waiting could mean facing more competition, higher prices, and a lot more stress.

What if buying now — before the spring rush — might actually give you the upper hand? Here are three reasons why that just might be the case.

1. Less Competition from Other Buyers

The winter months tend to be quieter in the real estate market. Fewer people are actively looking for homes, which means you’ll likely face less competition when you make an offer. This makes the process feel less rushed and less stressful.

According to the National Association of Realtors (NAR), homes sit on the market longer in winter compared to spring and summer (see graph below):

Fewer buyers in the market means you’ll likely have more time to make thoughtful decisions. It also means you may have more negotiating power. According to the Alabama Association of Realtors:

“A significant benefit of buying a home in winter is the reduced competition. Because of the perceived benefits of spring, many buyers delay the start of their house hunt. As a result, you will find fewer people competing for the same properties during winter. Less demand can translate into more negotiating power as sellers may be more willing to entertain offers or agree to concessions to get a deal closed quickly.”

2. More Negotiating Power

With homes staying on the market longer, sellers may be more willing to negotiate. This can lead to better deals for you as a buyer, whether that means a lower price or added incentives, like sellers covering closing costs or making repairs. As Chen Zhao, an Economist at Redfin, points out:

“. . . buying during the off season means less competition from other buyers. That means potentially negotiating a better deal.”

Plus, when demand is lower, sellers often feel more pressure to work with serious buyers. This could give you an edge to negotiate terms that work best for your situation.

3. Lock in Today’s Prices Before They Rise

Historically, home prices tend to be at their lowest point in the winter months, too. According to data from NAR, home prices last year were at their lowest in January, February, and March — right before the spring buying season kicked in (see graph below):

This trend isn’t new — Bright MLS shows between 2010 and 2024, home prices in January and February were, on average, 15% lower than during the month of peak home prices (typically June). Buying in the off-season means you’re more likely to avoid paying the premium prices that come with the high demand of spring.

On top of that, home prices generally appreciate over time, meaning they tend to go up year after year. That means if you’re ready to buy and you can make it happen, you’re not only taking advantage of what might be the lowest prices of the year, but you’re also locking in today’s price before it increases in the future.

Bottom Line

While spring may seem like the obvious time to buy, moving before the peak season can give you significant advantages, like less competition, more negotiation power, and lower prices.

If you’re ready to explore your options, I will always be there to help and listen to your Real Estate needs.

Buying a Home • January 14, 2025

The Truth About Credit Scores and Buying a Home

by Steve Vavrek

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.

Use a Realtor • January 6, 2025

Time in the Market Beats Timing the Market

by Steve Vavrek

Trying to decide whether it makes more sense to buy a home now or wait? There’s a lot to consider, from what’s happening in the market to your changing needs. But generally speaking, aiming to time the market isn’t a good strategy – there are too many factors at play for that to even be possible.

That’s why experts usually say time in the market is better than timing the market.

In other words, if you want to buy a home and you’re able to make the numbers work, doing it sooner rather than later is usually worth it. Bankrate explains why:

“No matter which way the real estate market is leaning, though, buying now means you can start building equity immediately.”

Here’s some data to break this down so you can really see the benefit of buying now versus later – if you’re able to. Each quarter, Fannie Mae releases the Home Price Expectations Survey. It asks over one hundred economists, real estate experts, and investment and market strategists what they forecast for home prices over the next five years. In the latest release, experts are projecting home prices will continue to rise through at least 2029 – just at a slower, more normal pace than they did over the past few years (see the graph below):

But what does that really mean for you? To give these numbers context, the graph below uses a typical home value to show how it could appreciate over the next few years using those HPES projections (see graph below). This is what you could start to earn in equity if you buy a home in early 2025.

In this example, let’s say you go ahead and buy a $400,000 home this January. Based on the expert forecasts from the HPES, you could gain more than $83,000 in household wealth over the next five years. That’s not a small number. If you keep on renting, you’re losing out on this equity gain.

And while today’s market has its fair share of challenges, this is why buying is going to be worth it in the long run. If you want to buy a home, don’t give up. There are creative ways we can make your purchase possible. From looking at more affordable areas, to considering condos or townhomes, or even checking out down payment assistance programs, there are options to help you make it happen.

So sure, you could wait. But if you’re just waiting it out to perfectly time the market, this is what you’re missing out on. And that decision is up to you.

Bottom Line

If you’re torn between buying now or waiting, don’t forget that it’s time in the market, not timing the market that truly matters. Connect with me TODAY, if you want to talk about what you need to do to get the process started today.

Use a Realtor • December 11, 2024

Why Moving to a More Affordable Area Makes Sense

by Steve Vavrek

Moving to a more affordable area could be the fresh start you need to get ahead financially. While some markets are certainly more affordable than others, know that working with a trusted real estate agent to find what fits your budget and your desired location – no matter where you want to be – is always the best plan. And with the rising cost of living, many people are rethinking where they live and looking for ways to cut expenses.

There are areas well known for lower housing costs, reduced insurance premiums, and more budget-friendly daily living expenses – but they’re not the only places to find a hidden gem. If you’re open to relocating, you might discover the savings you’re looking for.

Why Move to a Lower-Cost Area?

Life is getting more expensive by the day. From rising home prices to higher grocery bills, it feels like everything costs more than it used to. Housing, the largest expense for most people, has become especially costly.

In fact, according to data from Case-Shiller, home prices increased 3.9% from September 2023 to September 2024. And data from GOBankingRates shows insurance costs are up too, with home insurance premiums averaging $2,151 annually – a significant jump compared to recent years.

These rising costs can feel like a lot to handle. That’s why more people are considering lower-cost areas. An article from the National Association of Realtors (NAR) says:

“With the past decade of rising home prices, buyers are looking for more affordable areas . . . As housing affordability continues to shape migration patterns, these areas may provide an opportunity . . . for those looking for more cost-effective alternatives to the nation’s larger, pricier metropolitan areas.”

Lower-cost areas typically offer more affordable housing, less expensive home insurance, and reduced costs for daily living like groceries and gas. Transportation expenses and car insurance premiums also tend to be lower. For anyone feeling stretched thin, moving to a less expensive area can provide meaningful financial relief.

Planning Your Big Move

Whether it’s finding a home that fits your budget or cutting down on other expenses, making the right move in any market can bring significant financial relief. Of course, moving isn’t a decision to take lightly.

Whether you’re moving just a few towns over or to a completely different state, there’s a lot to consider. From job opportunities, to schools, to local amenities – it all has an impact on finding the right home for you.

This is why a knowledgeable local real estate agent can be your best resource. Not only can we help you navigate the housing market in your new or desired area, but we’ll also guide you to neighborhoods that balance affordability with your needs.

As your real estate agent, I can still help you identify budget-friendly options wherever you need to be.

Bottom Line

If the rising cost of living has you feeling stuck, know that you have options. Moving to a more affordable area could be the fresh start you need to get ahead financially and improve your quality of life.

But don’t try to tackle the process alone. With my help, you’ll be well-prepared to make a move. When you’re ready to take the first step, reach out to me and I will listen to your needs and get you in the right home.

Why Use a Realtor? • December 9, 2024

Why More Sellers Are Hiring Real Estate Agents

by Steve Vavrek

Putting your house for sale on your own – often called “For Sale by Owner” or FSBO – might be on your mind. But you should know that it gets complicated very quickly, especially in today’s complex market.

That’s why data from the National Association of Realtors (NAR) shows a record low number are going the route of selling on their own.

Instead, more and more homeowners are choosing to work with a real estate agent (see graph below):

And here’s why partnering with an expert is the go-to choice. Selling your home is a big deal, and while FSBO might seem like a way to save time or money, it comes with a lot of responsibilities.

The selling process requires setting the right price, navigating a growing amount of legal paperwork, and creating a solid strategy to attract buyers. And going it alone often means taking on more than you bargained for.

Let’s look at two big reasons why working with a realtor can make all the difference.

1. Getting the Price Right

One of the biggest hurdles when selling a house on your own is figuring out the right price. It’s not as simple as picking a number that sounds good – you need to hit the bullseye. Price your home too high, and buyers may overlook your listing. Price it too low, and you could leave money on the table or even raise red flags about the condition of your home.

Real estate agents are experts in finding the right price for today’s market trends. As Zillow explains:

“Agents are pros when it comes to pricing properties and have their finger on the pulse of your local market. They understand current buying trends and can provide insight into how your home compares to others for sale nearby.”

With their knowledge of the local market, buyer behavior, and what homes like yours are selling for, an agent will help you make sure you set a price that’s competitive and that’ll draw in buyers. And it’s that perfectly strategic price that’ll set the stage for selling at top dollar.

2. Understanding and Managing the Paperwork

Another part of the process is dealing with a growing stack of paperwork, from disclosure forms to contracts. Each document needs to be completed accurately, and there are legal requirements to follow that can feel overwhelming if you’re not familiar with them.

This is another area where my expertise really shines. They’ve handled these documents countless times and know exactly what’s needed to keep everything on track. Your agent will guide you through the paperwork step by step, making sure it’s done right the first time and you understand what you’re signing. With their help, you can avoid unnecessary stress and mistakes that can lead to delays, legal complications, and more.

Bottom Line

Selling your house is a big decision, and having a trusted real estate agent on your side can make all the difference.

Connect with me today so you have a pro to help with everything from pricing your home to managing the details. That way it takes the guesswork out of the process and helps you sell with confidence.

Buying a Home • November 26, 2024

How Co-Buying a Home Helps with Affordability Today

by Steve Vavrek

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 at today’s rates and prices, co-buying could be an option to make your move happen. But, it’s important to plan carefully and make sure that all parties are clear on the details. To figure out if co-buying makes sense for you, connect with me as soon as you can.

Why Use a Realtor? • November 18, 2024

Don’t Let These Two Concerns Hold You Back from Selling Your House

by Steve Vavrek

If you’re debating whether or not you want to sell right now, it might be because you’ve got some unanswered questions, like if moving really makes sense in today’s market. Maybe you’re wondering if it’s even a good idea to move right now. Or you’re stressed because you think you won’t find a house you like.

To put your mind at ease, here’s how to tackle these two concerns head-on.

Is It Even a Good Idea To Move Right Now?

If you own a home already, you may have been holding off because you don’t want to sell and take on a higher mortgage rate on your next house. But your move may be a lot more feasible than you think, and that’s because of your equity.

Equity is the current market value of your home minus what you still owe on your loan. And thanks to the rapid appreciation we saw over the past few years, your equity has gotten a big boost. Just how much are we talking about? See for yourself. As Dr. Selma Hepp, Chief Economist at CoreLogic, explains:

“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.”

Here’s why this can be such a game-changer when you sell. You can use that equity to put down a larger amount on your next home, which means financing less at today’s mortgage rate. And in some cases, you may even be able to buy your next home in cash, avoiding mortgage rates altogether.

The bottom line? Your equity could be the key to making your next move possible.

Will I Be Able To Find a Home I Like?

If this is on your mind, it’s probably because you remember just how low the supply of homes for sale got over the past few years. It felt nearly impossible to find a home to buy because there were so few available.

But finding a home in today’s market isn’t as challenging. That’s because the number of homes for sale is growing, giving you more options to choose from. Data from Realtor.com shows just how much inventory has increased – it’s up almost 30% year-over-year (see graph below):

And even though inventory is still below pre-pandemic levels, this is the highest it’s been in quite a while. That means you have more options for your move, but your house should still stand out to buyers at the same time. That’s a sweet spot for you.

It’s important to note, though, that this balance varies by local market. Some places may have more homes for sale than others, so working with a local real estate agent is the best way to see what inventory trends look like in your area.

Bottom Line

If you’re thinking about selling, hopefully these concerns haven’t kept you up at night. With this information, you should realize you don’t have to let the what-if’s delay your move anymore.

Connect with me so you have the data and the local perspective you need to move forward.