Blog

HOW BIG OF A HOME DO YOU NEED?

Tv Fireplace Couch Chairs Living Room Furniture

When buying a new house, it’s easy to get distracted by size and think that bigger is better. However, depending on your situation, the opposite may be true.

So how can you determine if your new home is too small, too big, or “just right?” You’ll want to consider these elements.

What’s Your Long-Term Goal? How many years do you see yourself in this house? Is this the place where you want to raise your kids and retire? If not, then size shouldn’t be as crucial as you think. Consider the fact that you will likely move again, which means that you can upgrade in the future if necessary.

What’s Your Financial Limit? For the most part, you don’t want more home than you can truly afford. While you may be getting that promotion in a couple of months, you can’t buy now expecting to have more money in the bank later. Overextending your financial reach is always a bad move, so it’s best to avoid putting yourself (or your family) in that position.

How Many People are Living Here? In a perfect world, everyone would be able to have their own bedrooms, but when you have kids, that’s not always possible. When thinking about this situation, consider how imperative it is to have sufficient space for everyone, and what it will do to your budget.

Overall, buying a home should be about your current needs and how you plan to grow into space in the future, while staying within a reasonable budget.

THREE WAYS TO EASE YOUR FEARS ABOUT MAKING A MOVE

With low inventory in many markets throughout the country, many homeowners are afraid to sell their homes because they’re concerned that they may not be able to find a new one.
This can be a real problem, but if you are seeking to sell—whether to upgrade or find a new neighborhood—there are a few ways to combat the low inventory.


1. Look to buy first
In most markets it is a real mistake to put your home up for sale before you start looking for your new property, especially in a low inventory market.
Identify the geographic area where you are interested in buying. Work with your Realtor who can help you look for the right home.
2. Think outside the box
Be proactive! Keep in mind that there are probably many people like you who want to make a move but are afraid as well. Have your Realtor send a letter to the neighborhoods in the geographic areas where you want to live. The letter should be heartfelt and personal while announcing that you are ready to buy a home in that neighborhood. You could find a home to buy that may not even be currently listed or for sale.
3. Protect yourself legally
Each state varies in how the purchase process is conducted. Talk to your Realtor about adding a clause in the purchase contract for the home you are selling that will enable you to not sell the home if you cannot find a suitable home to buy.


A Remarkable Recovery for the Housing Market

For months now the vast majority of Americans have been asking the same question: When will the economy turn around? Many experts have been saying the housing market will lead the way to a recovery, and today we’re seeing signs of that coming to light. With record-low mortgage rates driving high demand from potential buyers, homes are being purchased at an accelerating pace, and it’s keeping the housing market and the economy moving.Here’s a look at what a few of the experts have to say about today’s astonishing recovery. In more than one instance, it’s being noted as truly remarkable.Ali Wolf, Chief Economist, Meyers Research“The housing recovery has been nothing short of remarkable…The expectation was that housing would be crushed. It was—for about two months—and then it came roaring back.”Fannie Mae“Recent home purchase measures have continued to show remarkable strength, leading us to revise upward our home sales forecast, particularly over the third quarter. Similarly, we bumped up our expectations for home price growth and purchase mortgage originations.”Javier Vivas, Director of Economic Research for realtor.com“All-time low mortgage rates and easing job losses have boosted buyer confidence back to pre-pandemic levels.”James Knightley, Chief International Economist, ING“At face value this is remarkable given the scale of joblessness in the economy and the ongoing uncertainty relating to the path of Covid-19…The outlook for housing transactions, construction activity and employment in the sector is looking much better than what looked possible just a couple of months ago.”

Bottom Line

The strength of the housing market is a bright spark in the economy and leading the way to what is truly being called a remarkable recovery throughout this country. If you’re thinking of buying or selling a home, maybe this is your year to make a move after all.

Home Sales Hit a Record-Setting Rebound

With a worldwide health crisis that drove a pause in the economy this year, the housing market was greatly impacted. Many have been eagerly awaiting some bright signs of a recovery. Based on the latest Existing Home Sales Report from the National Association of Realtors (NAR), June hit a much-anticipated record-setting rebound to ignite that spark.According to NARhome sales jumped 20.7% from May to a seasonally-adjusted annual rate of 4.72 million in June:“Existing-home sales rebounded at a record pace in June, showing strong signs of a market turnaround after three straight months of sales declines caused by the ongoing pandemic…Each of the four major regions achieved month-over-month growth.”

Home Sales Hit a Record-Setting Rebound | Keeping Current Matters

This significant rebound is a major boost for the housing market and the U.S. economy. According to Lawrence Yun, Chief Economist for NAR, the momentum has the potential to continue on, too:“The sales recovery is strong, as buyers were eager to purchase homes and properties that they had been eyeing during the shutdown…This revitalization looks to be sustainable for many months ahead as long as mortgage rates remain low and job gains continue.”With mortgage rates hitting an all-time low, dropping below 3% for the first time last week, potential homebuyers are poised to continue taking advantage of this historic opportunity to buy. This fierce competition among buyers is contributing to home price increases as well, as more buyers are finding themselves in bidding wars in this environment. The report also notes:“The median existing-home price for all housing types in June was $295,300, up 3.5% from June 2019 ($285,400), as prices rose in every region. June’s national price increase marks 100 straight months of year-over-year gains.”

Home Sales Hit a Record-Setting Rebound | Keeping Current Matters

The graph below shows home price increases by region, powered by low interest rates, pent-up demand, and a decline in inventory on the market:Yun also indicates:“Home prices rose during the lockdown and could rise even further due to heavy buyer competition and a significant shortage of supply.”

Bottom Line

Buyers returning to the market is a great sign for the economy, as housing is still leading the way toward a recovery. If you’re ready to buy a home this year, reach out to a local real estate professional to make sure you have the best possible guide with you each step of the way.

Source: Keeping Current Matters.