2024 Homeownership Goals

 

3 Keys To Hitting Your Homeownership Goals in 2024

If buying or selling a home is your goal for 2024, it’s important to understand today’s housing market, know your why, and work with industry experts to bring your homeownership vision for the new year into focus.

Over the last year, the economy had a big impact on the housing market, and likely on your wallet too. That’s why it’s critical to have a clear picture of not just the market today, but also on what you want out of it when you buy or sell a home. Danielle Hale, Chief Economist at Realtor.com, explains:

“The key to making a good decision in this challenging housing market is to be laser focused on what you need now and in the years ahead, so that you can stay in your home long enough that buying is a sound financial decision.”

Here are a few things to think through as you define your goals for 2024.

1. Know Your Why

You’re dreaming about making a move for a reason – what is it? No matter what’s happening in the market, there are still many compelling reasons to buy a home today. Your needs may have changed in a way your current house can’t address, or you could be ready to step into homeownership for the first time. Use your why and your motivation as a guidepost in partnership with an expert advisor to make sure your move gives you a lasting sense of accomplishment.

2. Figure Out What Your Next Home Needs To Look Like

You know you want to move, but how would you describe your dream home? The number of homes for sale has grown recently, and that could mean more options to choose from when you buy. But overall housing supply is still lower than more normal years in the market, so you’ll have to work closely with a pro to find what you’re looking for. Just be sure to keep your budget in mind as you balance your wants and needs. The better you understand what’s essential and where you can be flexible, the easier it will be to find a home that’s right for you.

3. Determine if You’re Ready To Buy

Getting clear on your budget and available savings is essential before you get too far into the process. Partnering with a local agent and a lender early is the best way to make sure you’re in a good position to buy. This could include planning how much to save for a down payment, getting pre-approved for a home loan, and assessing your current home equity if you’re selling your existing house.

A Professional Will Guide You Through Every Step of the Process

Buying or selling a home takes expertise to navigate. If that feels a bit overwhelming, that’s normal. Don’t let uncertainty hold you back from your goals this year. A trusted expert will help you bridge that gap and give you the facts and advice you need about today’s housing market.

Bottom Line

Let’s connect to plan how to make your homeownership dreams a reality in 2024.

Inflation and Interest Rates on the Rise

 

Experts Project Mortgage Rates Will Continue To Rise in 2022

Mortgage rates are one of several factors that impact how much you can afford if you’re buying a home. When rates are low, they help you get more house for your money. Have you heard anyone in the news or housing industry say "money is on sale"? Within the last year, mortgage rates have hit the lowest point ever recorded, and they’ve hovered in the historic-low territory. But even over the past few weeks, rates have started to rise. This past week, the average 30-year fixed rate was 3.14%.

What does this mean if you’re thinking about making a move? For a buyer this could mean waiting until next year will cost you more in the long run. If you are a seller, buyers are still out there with pressure to buy at the lowest rate they can get which means if you position your home correctly, you can get the best price for your home right now. As rates go up, the pool of buyers who can afford your home gets smaller. Here’s a look at what several experts project for mortgage rates going into 2022.

Freddie Mac:

“The average 30-year fixed-rate mortgage (FRM) is expected to be 3.0 percent in 2021 and 3.5 percent in 2022.”

Doug Duncan, Senior VP & Chief Economist, Fannie Mae:

“Right now, we forecast mortgage rates to average 3.3 percent in 2022, which, though slightly higher than 2020 and 2021, by historical standards remains extremely low and supportive of mortgage demand and affordability.” 

First American:

“Consensus forecasts predict that mortgage rates will hit 3.2 percent by the end of the year, and 3.7 percent by the end of 2022.”

If rates rise even a half-point percentage over the next year, it will impact what you pay each month over the life of your loan – and that can really add up. So, the reality is, as prices and mortgage rates rise, it will cost more to purchase a home.

As you can see from the quotes above, industry experts project rates will rise in the months ahead. Here’s a table that compares other expert views and gives an average of those projections:Whether you’re thinking about buying your first home, moving up to your dream home, or downsizing because your needs have changed, purchasing before mortgage rates rise even higher will help you take advantage of today’s homebuying affordability. That could be just the game-changer you need to achieve your homeownership goals.

Bottom Line

If you’re thinking of buying or selling over the next year, it may be wise to make your move sooner rather than later – before mortgage rates climb higher.

Waiting to Buy a Home WILL Cost You

 

Are you waiting until this "crazy market" cools down?

Some Highlights

• If you’re thinking of buying a home but wondering if waiting a few years will save you in the long run, think again.
• The longer the wait, the more you’ll pay, especially when mortgage rates and home prices rise. Even the slightest change in the mortgage rate can have a big impact on your buying power no matter your price point.
• If you have a home to sell, now is the perfect time to market it.
• Don’t assume waiting will save you money. Let’s connect to set the ball into motion today while mortgage rates are hovering near historic lows.

If you have been thinking of buying or selling in Maryland and have any questions, please don’t hesitate to reach out for a consultation. Want to stay put but refinance to a better rate? I have a mortgage advisor on my Weichert team who would be happy to talk with you as well.

Will Moving Make You Happy?

 

Recently realtor.com put out an article about this question and it made me pause. If you know me and my husband, we are always thinking about moving – we have only moved twice in 20 years, but we are always talking about it and have come close to moving a couple of times since our last move. We call ourselves “long-term flippers”. Both homes we have purchased have required top-to-bottom re-imagining. We are for some reason really drawn to houses in sad shape but with great bones – it makes us happy to imagine how to bring neglected homes back to life. So, this happens to be a key question for me. There are a lot of factors to look at in making that decision and it does boil down to net happiness (meaning how much happiness is left after the financial stress, time and effort are spent!). As an agent, my number one goal for my clients is that they are happy – happy with me, happy with the process of selling, happy with the home they purchase.

The article makes the point, and I’m paraphrasing: that if you aren’t satisfied in life, you might be projecting that onto your home, so maybe it’s not the home that is the problem. I think this is absolutely valid. It’s so important to examine what the impetus is for deciding to move. General dissatisfaction might not be the best reason. Moving is time consuming and stressful no matter how smooth it goes. Perhaps the old adage “the grass is always greener…” is also at play?  OR Has it been part of your 5 or 10 year plan all along, do you need more space, less space? How about commute time? Do you even commute anymore? Commute time has always been a big deciding factor as people think about moving, but now, does it matter for you? Are you going to be working from home more? Well perhaps that means you need a more professional workspace in your home. A good friend of mine has been commuting over an hour every day for years, and she actually still has to go to work as she’s in the medical profession – rather than moving, she made the decision to change jobs. When asked how she was liking her new job? “Life changing!”

Maybe you have kids? How much longer will they need extra space at home for virtual learning? Has the pandemic refocused anything else for you? Do you wish you had more usable outdoor space? Do you wish you were closer to walking/biking trails? Before Covid, a pool in this area was not necessarily a selling feature, but post-covid, they are in high demand! Houses are selling really fast right now, but houses with pools are scooped up, well, faster than fast. I would argue that if these things are contributing to your quality of life (or lack thereof), moving might actually make you happier because quality of life is where it’s at.

Have you heard this phrase yet? “Money is on Sale!” In my business, I’ve been hearing it a lot in the past six months. The mortgage market right now is making it so easy to “move-up” with the ability to buy more house because of how low the rates are right now. The flip side to that is that for those people who have already taken advantage of purchasing a home at 2.5% or 2.75%– those people are going to want to hold on to those mortgages because in all likelihood we won’t be seeing these rates again. (historic lows people!) This could cause people to stay in their homes longer than the 5-7 year average contributing to continuing low inventory. If you are trying to downsize, now might be the perfect time to cash out of your home. Inventory is low, making it a great time to offer a property for sale. With the rules of supply and demand in play, we are seeing homes appreciate at amazing rates.

 

If you are thinking of selling or buying and have any questions, please don’t hesitate to reach out for a consultation. I’d be happy to help you figure out if moving would make you happy! Want to stay put but refinance to a better rate? I have a mortgage advisor on my Weichert team who would be happy to talk with you as well.