Realty Executives Midwest
If you’re thinking about buying a home today, there’s welcome news. Even though it’s still a sellers’ market, it’s a more moderate sellers’ market than last year. And the days of feeling like you may need to waive contingencies or pay drastically over asking price to get your offer considered may be coming to a close.
Today, you should have less competition and more negotiating power as a buyer. That’s because the intensity of buyer demand and bidding wars is easing this year. So, if bidding wars were the biggest factor that had you sitting on the sidelines, here are two trends that may be just what you need to re-enter the market.
Over the last two years, more buyers were willing to skip important steps in the homebuying process, like the appraisal or inspection, to try to win a bidding war. But now, fewer people are waiving the inspection and appraisal.
The latest data from the National Association of Realtors (NAR) shows the percentage of buyers waiving their home inspection and appraisal is declining. And a recent survey from realtor.com confirms more sellers are accepting offers that include these conditions today. According to their August study:
This goes to show buyers are more able to include these conditions in their offers today and negotiate as needed based on the outcome of the inspection.
Generally, closing costs range between 2% and 5% of the purchase price for the home. Before the pandemic, it was a common negotiation tactic for sellers to cover some of the buyer’s closing costs to sweeten the deal. This didn’t happen as much during the peak buyer frenzy over the past two years.
Today, as the market shifts and demand slows, data from realtor.com suggests this is making a comeback. A recent article shows 32% of sellers paid some or all of their buyer’s closing costs. This may be a negotiation tool you’ll see as you go to purchase a home. Just keep in mind, limits on closing cost credits are set by your lender and can vary by state and loan type. Work closely with your loan advisor to understand how much a seller can contribute to closing costs in your area.
Regardless of the extremely competitive housing market of the past several years, today’s data suggests negotiations are starting to come back on the table. This is good news if you’re planning to enter the housing market. To find out how the market is shifting in your area, connect with your local real estate advisor today.
Source: Keeping Current Matters
Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com
The summer months are coming to a close, meaning fall is soon upon us. Some may be disappointed over the end of fun in the sun, while others celebrate cooler temperatures and seasonal delights such as Halloween and pumpkin spice lattes. No matter your stance, your lawn and outdoor spaces need some maintenance. Here are some tasks to check off to prep the outdoors for fall.
Don’t put your mower in the shed yet. Continue regular mowing until your grass stops growing past its standard height. Once it has stopped growing, perform a maintenance check before putting your mower away.
Maintenance can depend on your mower, so consult your manual. However, you might need to consider sharpening your blades, changing plugs, and changing the air filter. If you have an electric mower, you might not need to do as much maintenance, but check your manual for instructions. You will want your mower in good working order when it’s time to use it!
If you don’t know what aeration is, it involves removing soil plugs from your yard to let air and water access grassroots. During the summer, the soil compacts, causing the grass to be thin or brown. When you aerate, you let valuable nutrients return to the grass where it belongs. We recommend using machinery designed for aeration or calling a professional.
Additionally, we recommend that you fertilize your lawn. During the winter, your grass might not get the proper nutrition it needs. Purchasing fertilizer high in nitrogen and applying it after you aerate can help your lawn last.
Summer could have killed your grass, so seeding your lawn during fall is smart. With seeding, it would be best if you overseeded your yard to fill in any bare or thin spots. Overseeding works well for fall because the ground is warm and the nights are cool.
Look for seeds resistant to droughts or other challenges that could come during the fall. In addition, you might want to rent a power seeder to get the seeds on the lawn properly. One route you can take is contacting a professional who can take care of the seeding and other lawn maintenance.
While fall brings forth less evaporation and your lawn will require less watering, you will still need to do so. Give your yard an inch weekly and run any sprinklers you have until the freezing temperatures hit. If you have irrigation systems, flush them so your pipes do not freeze.
You love the fall because playing in the leaves reminds you of great times in childhood. However, as an adult, you’ll soon realize the trouble that comes if you don’t remove leaves as quickly as possible. Leaves can trap moisture and prevent your grass from getting sunlight. As you probably have guessed, both are disadvantageous to a lawn and could possibly damage it.
Rake leaves as soon as possible or use a leaf blower. The sooner you can rake all leaves and remove them from your lawn, the better. With that said, there is an alternative to removal that you might want to consider.
One thing you might want to do with your leaves is to mulch. Mulching leaves involves mowing or shredding them into many pieces. When you mulch, you turn your leaves into compost, which significantly benefits your lawn. It can be less hassle than raking them, particularly if you have a more expansive yard or physical issues. Consider mulching to save time and energy.
While looking at your lawn, look to your gutters nearby. Gutters can become clogged with leaves and other debris that could have gathered during the summertime. If left unattended, the gutters may overflow, or the debris could rot inside.
Therefore, cleaning your gutters should be a regular occurrence with your other lawn maintenance activities.
One mistake you may make approaching the fall is assuming that the pests will disappear due to the cooler weather. While you’re not going to encounter as many mosquitoes and flies, many pests that live in the ground will damage your lawn. Grubs, ticks, and chinch bugs are three examples of this. Of course, the pests you’ll experience will depend on where you live. Do your research, treat your lawn accordingly, or contact a pest control company.
If you have outdoor furniture or other lawn essentials, you will need to take steps to prevent damage from the elements. For smaller pieces that don’t do well in cold or wet weather, start moving it into storage. For larger items, consider waterproof furniture covers.
Where did you stash your holiday décor? As fall approaches, it is a great time to bring out your Halloween and fall decorations. If you need updated décor, look for early bird discounts for fall decorations, particularly at hobby stores. This tip isn’t a requirement, but what better way to get in the fall spirit than decorating?
While you don’t need to complete all these tasks in a time crunch, be mindful of timing when checking maintenance items off your list. For example, if you wait too long in the season, it becomes too cold for fertilizer to work. On the other hand, if you aerate too early, you can develop weeds.
The answer to the right time to do something can depend on where you live. In general, you should start doing everything in this article once summer temperatures begin cooling down. However, you may want to consult your local lawn care professionals to determine the right time for your location.
Fall is a fantastic time of year, but it does require you to do some maintenance for your home to survive what lies ahead. Plan a list of chores you need to do, and then get on them. If you don’t have the time or desire to tackle it on your own, there are always professionals available to help get your lawn and outdoor spaces into tip-top shape for fall.
Source: Realty Executives
Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com
If you’re thinking about buying a home, you likely have a lot of factors on your mind. You’re weighing your own needs against higher mortgage rates, today’s home prices, and more to try to decide if you want to jump into the market. While some buyers may wait things out, there’s a reason serious buyers are making moves right now, and that’s the growing number of homes for sale.
So far this year, housing inventory has been increasing and that’s making the prospect of finding your dream home less difficult. While there are always reasons you could delay making a big decision, there are also always reasons to consider moving forward. And having a growing number of options for your home search may be exactly what you needed to feel more confident in making a move.
As new data comes out, we’re getting an updated picture of why housing supply is increasing so much this year. As Bill McBride, Author of Calculated Risk, explains:
“We are seeing a significant change in inventory, but no pickup in new listings. Most of the increase in inventory so far has been due to softer demand – likely because of higher mortgage rates.”
Basically, the inventory growth is primarily from homes staying on the market a bit longer (known as active listings). And that’s happening because higher mortgage rates and home prices have helped moderate the peak frenzy of buyer demand.
The graph below uses data from realtor.com to show how much active listings have risen over the past five months as a result (shown in green):
Regardless of the source, the increase in available housing supply is good for buyers. More housing supply actively for sale means you have more options as your search for your next home. A recent article from realtor.com explains just how significant the inventory growth has been and why it’s good news for your plans to buy:
“Nationally, the inventory of homes actively for sale on a typical day in July increased by 30.7% over the past year, the largest increase in inventory in the data history and higher than last month’s growth rate of 18.7% which was itself record-breaking. This amounted to 176,000 more homes actively for sale on a typical day in July compared to the previous year and more choice for buyers who are still looking for a new home.”
The growth this year is certainly good news for you, especially if you’ve had trouble finding a home that meets your needs. If you start your search today, those additional options should make it less difficult to find a home than it would have been over the past two years.
If you’re ready to jump into the market and take advantage of the increasing supply of homes for sale, connect with a real estate professional today. The opportunity is knocking, will you answer?
Source: Keeping Current Matters
Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com
According to a recent survey from the Wall Street Journal, the percentage of economists who believe we’ll see a recession in the next 12 months is growing. When surveyed in July 2021, only 12% of economists consulted thought there’d be a recession by now. But this July, when polled, 49% believe we will see a recession in the coming 12 months.
And as more recession talk fills the air, one concern many people have is: should I delay my homeownership plans if there’s a recession?
Here’s a look at historical data to show what happened in real estate during previous recessions to help prove why you shouldn’t be afraid of what a recession would mean for the housing market today.
To show that home prices don’t fall every time there’s a recession, it helps to turn to historical data. As the graph below illustrates, looking at the recessions going all the way back to 1980, home prices appreciated in four of the last six recessions. So, historically, when the economy slows down, it doesn’t mean home values will fall.
Most people remember the housing crisis in 2008 (the larger of the two red bars in the graph above) and think another recession would repeat what happened then. But this housing market isn’t about to crash. The fundamentals are very different today than they were in 2008. So, don’t assume we’re heading down the same path.
Research also helps paint the picture of how a recession could impact the cost of financing a home. As the chart below shows, historically, each time the economy slowed down, mortgage rates decreased.
Fortune explains that mortgage rates typically fall during an economic slowdown:
“Over the past five recessions, mortgage rates have fallen an average of 1.8 percentage points from the peak seen during the recession to the trough. And in many cases, they continued to fall after the fact as it takes some time to turn things around even when the recession is technically over.”
And while history doesn’t always repeat itself, we can learn from and find comfort in the historical data.
There’s no doubt everyone remembers what happened in the housing market in 2008. But you don’t need to fear the word recession if you’re planning to buy or sell a home. According to historical data, in most recessions, home price gains have stayed strong, and mortgage rates have declined.
If you’re thinking about buying or selling a home, you can make the best decision by working with a trusted real estate professional. That way you have expert advice on what’s happening in the housing market and what that means for your homeownership goals.
Source: Keeping Current Matters
Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com
If you tried to buy a home during the pandemic, you know the limited supply of homes for sale was a considerable challenge. It created intense bidding wars which drove home prices up as buyers competed with one another to be the winning offer.
But what was once your greatest challenge may now be your greatest opportunity. Today, data shows buyer demand is moderating in the wake of higher mortgage rates. Here are a few reasons why this shift in the housing market is good news for your homebuying plans.
There were many reasons for the limited number of homes on the market during the pandemic, including a history of underbuilding new homes since the market crash in 2008. As the graph below shows, housing supply is well below what the market has seen for most of the past 10 years (see graph below):
But that graph also shows a trend back up in the right direction this year. That’s because moderating demand is slowing the pace of home sales and that’s one of the reasons housing supply is finally able to grow. For you, that means you’ll have more options to choose from, so it shouldn’t be as difficult to find your next home as it has been recently.
And having more options may also lead to less intense bidding wars. Data from the Realtors Confidence Index from the National Association of Realtors (NAR) shows this trend has already begun. In their recent reports, bidding wars are easing month-over-month (see graph below):
If you’ve been outbid before or you’ve struggled to find a home that meets your needs, breathe a welcome sigh of relief. The big takeaway here is you have more options and less competition today.
Just remember, while easing, data shows multiple-offer scenarios are still happening – they’re just not as intense as they were over the past year. You should still lean on an agent to guide you through the process and help you make your strongest offer up front.
If you’re still looking to make a move, it may be time to pick your home search back up today. Partner with a real estate professional to kick off the homebuying process.
Source: Keeping Current Matters
Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com
Realty Executives agents are real estate experts. They have the education and expertise you need to navigate through the process of buying or selling a home. From listing at the right price to making the best offer, our Executives have witnessed the best - and most regrettable - decisions homeowners and homebuyers can make. Every day, they are immersed in every aspect of real estate that includes comparable home price analysis, property surveys, credit reports, open houses, HOA agreements, lenders, title companies, homeowners’ insurance, walk-throughs, terms of sale or purchase, repairs, concessions and closing documents. Let our accomplished Executives help navigate you through the process of buying or selling a home.
