Realty Executives Midwest
After almost two years of double-digit increases, many experts thought home price appreciation would decelerate or happen at a slower pace in the last quarter of 2021. However, the latest Home Price Insights Report from CoreLogic indicates while prices may have plateaued, appreciation has definitely not slowed. The following graph shows year-over-year appreciation throughout 2021. December data has not yet been released.
As the graph shows, appreciation has remained steady at around 18% over the last five months.
In addition, the latest S&P Case-Shiller Price Index and the FHFA Price Index show a slight deceleration from the same time last year – it’s just not at the level that was expected. However, they also both indicate there’s continued strong price growth throughout the country. FHFA reports all nine regions of the country still experienced double-digit appreciation. The Case-Shiller 20-City Index reveals all 20 metros had double-digit appreciation.
Experts had projected the supply of housing inventory would increase in the last half of 2021 and buyer demand would decrease, as it historically does later in the year. Since all pricing is subject to supply and demand, it seemed that appreciation would wane under those conditions.
Buyer demand, however, did not slow as much as expected, and the number of listings available for sale dropped instead of improved. The graph below uses data from realtor.com to show the number of available listings for sale each month, including the decline in listings at the end of the year.
Here are three reasons why the number of active listings didn’t increase as expected:
1. There hasn’t been a surge of foreclosures as the forbearance program comes to an end.
2. New construction slowed considerably because of supply chain challenges.
3. Many believed more sellers would put their houses on the market once the concerns about the pandemic began to ease. However, those concerns have not yet disappeared. A recent article published by com explains:
“Before the omicron variant of COVID-19 appeared on the scene, the 2021 housing market was rebounding healthily from previous waves of the pandemic and turned downright bullish as the end of the year approached. . . . And then the new omicron strain hit in November, followed by a December dip in new listings. Was this sudden drop due to omicron, or just the typical holiday season lull?”
No one knows for sure, but it does seem possible.
Home price appreciation might slow (or decelerate) in 2022. However, based on supply and demand, you shouldn’t expect the deceleration to be swift or deep.
Source: Keeping Current Matters
Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com
Going bankrupt is one of the most distressing things that can happen to a person. Some of the common causes of bankruptcy include burdening medical expenses, job losses, excessive spending on credit, divorce or separation, and heavy expenses due to unforeseen events.
All of these can be quite taxing on your mental and physical health, as well as your financial outlook. On top of that, you may also be worried that you won’t be able to buy a home for yourself and your family anymore, which is an added burden. This article covers everything you need to know about buying a home after filing for bankruptcy.
Let us put your mind at ease by telling you that it isn’t impossible for you to buy a home after bankruptcy. When you file for bankruptcy, there is no restriction or law that prohibits you from buying a house, but it will make the process much more difficult. Not only will you have to follow certain steps, but you will also have to wait for some time before you can apply for a loan or mortgage.
Once you are cleared from bankruptcy, you will be able to qualify for a home loan and apply for it. However, it won’t be as easy as applying for a loan if you hadn’t filed for bankruptcy.
When you are planning to buy a home after the bankruptcy status has been cleared, there are some issues that you will need to address before you can go about it. Let’s have a look at the post-bankruptcy issues that you will have to go through.
First and foremost, there is a certain mandated waiting period that you need to complete after you have been discharged from bankruptcy before you can apply for a loan. The waiting period can differ according to several factors, such as the lenders and creditors you have approached, the laws of the state, etc.
Bankruptcy can damage your credit score and credit report significantly, and this hampers your ability to secure a loan to buy a home. When you file for bankruptcy, it may cause your very good credit score to drop by as much as 200 points. Moreover, if you have a fairly good credit score, it may even drop by 150-160 points. Therefore, you will have to repair your credit score before you can even qualify for a mortgage.
Another issue that you need to address is the requirement of finding a mortgage that is fair and represents your circumstances, financial condition, and requirements. There are several companies and financial institutions that provide you with mortgage loans with different types of interest rates and conditions, and you will have to review all of them before you make a decision.
Lastly, you will also have to recognize the filing rules that apply to your situation, and these depend on where you live, the amount of loan that you need, your credit score, and several other factors.
The waiting period that you must spend before applying for a loan depends on several factors, including the type of loan you want and the type of bankruptcy that you have filed for. Some of the types include Chapter 7 and Chapter 13 bankruptcy. Let’s have a look at both scenarios in greater detail.
Chapter 7 bankruptcy, or liquidation bankruptcy, is the most common type of bankruptcy, and it causes most of your debts to be wiped away. However, it has a more severe impact on your credit report, and it reflects in the report for up to 10 years.
Once your bankruptcy case is discharged, the lenders have a mandatory waiting period between two to four years, after which you can apply for a mortgage. More specifically, VA or FHA mortgage programs require two years, whereas a USDA loan requires a three-year waiting period. Any conventional loan can be applied for after a waiting period of four years.
This type of bankruptcy filing is also known as reorganization bankruptcy, and it involves periodic payments to clear the debt. Since you are paying the debt eventually, this doesn’t harm your credit score as much as Chapter 7 bankruptcy does. Also, the waiting period to apply for loans is also lower in this type of bankruptcy.
If the bankruptcy court rules against you, you will have to wait four years from the date at which the judgment was announced. On the other hand, if your case is discharged, you must wait four years from the filing date and two years from the discharge date before you can apply for a conventional loan. Otherwise, you can apply for a USDA loan within one year, and the FHA and VA loan programs have no waiting period.
In a nutshell, you can buy a home after filing for bankruptcy, and you can do it through a home loan or mortgage. However, there might be several hurdles along the way, especially regarding the bad credit score and the long waiting period. Therefore, it is best if you consult with a professional who can provide you with sound bankruptcy advice before you make this decision.
Source: Realty Executives
Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com
The sense of pride you’ll feel when you purchase a home can’t be overstated. For first-generation homebuyers, that feeling of accomplishment is even greater. That’s because the pride of homeownership for first-generation buyers extends far beyond the homebuyer. AJ Barkley, Head of Neighborhood and Community Lending for Bank of America, says:
“Achieving this goal can create a sense of pride and accomplishment that resonates both for the buyer and those closest to them, including their parents and future generations.”
In other words, your dream of homeownership has far-reaching impacts. If you’re about to be the first person in your family to buy a home, let that motivate you throughout the process. As you begin your journey, here are three helpful tips to make that dream come true.
It’s important to reach out to a trusted advisor early in your homebuying process. Not only can an agent help you find the right home, but they’ll serve as your expert advisor and answer any questions you might have along the way.
The latest Profile of Home Buyers and Sellers from the National Association of Realtors (NAR) surveyed first-time homebuyers to see how their agent helped them with their home purchase (see chart below):
As the graph shows, your agent is a great source of information throughout the process. They’ll help you understand what’s happening, assess a home’s condition, and negotiate a contract that has the best possible terms for you. These are just some of the reasons having an expert in your corner is critical as you navigate one of the most significant purchases of your life.
The second piece of advice for first-generation homebuyers is practical: do your research so you know what you can afford. That means getting your finances in order, reviewing your budget, and getting pre-approved through a lender. It also means learning the ins and outs of what it takes to pay for your home, including what you’ll need for a down payment.
Many homebuyers believe the common misconception that you can’t purchase a home without coming up with a 20% for a down payment. As Freddie Mac says:
“The most damaging down payment myth—since it stops the homebuying process before it can start—is the belief that 20% is necessary.”
The chart below shows what recent homebuyers have actually put down on their purchases:
On average, first-time buyers only put 7% down on their home purchase. That’s far less than the 20% many people believe is necessary. That means your down payment, and your home purchase, may be in closer reach than you realize. Keep that in mind as you work with a real estate professional to better understand what you’ll need for your purchase.
Finally, it’s important keep in mind why you’re searching for a home to begin with. Overwhelmingly, first-generation homeowners recognize the financial and non-financial benefits of owning a home. In fact, in a recent survey:
As AJ Barkley explains:
“For many first-generation homeowners and their families, homeownership has a unique importance, given the collective efforts to overcome financial challenges that can often span generations…”
If you’re a first-generation homebuyer, being prepared and working with a trusted expert is key to achieving your dream. Connect with a real estate professional in your local area today to get started on your path to homeownership.
Source: Keeping Current Matters
Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com
When the seasons begin to transition from fall to winter, you know it’s time to dress the entire home into something more toasty and comfy. While a holiday makeover sounds like it’s a lot of work to pull off in a very short amount of time, it doesn’t have to be stressful.
You don’t have to make it perfect and you can always decorate on a budget. What’s important is that you capture the holiday spirit the way you know how.
That said, here are six tips to help you get started if you’re feeling a little overwhelmed about making your home merry and bright this holiday season.
Before you begin decorating your entire home for the holidays, it’s always a good idea to declutter and clean everything first. If there are any items that you haven’t used in the past year, you can either toss them, sell them, or donate them. Doing this will help you organize more effectively and decorate more easily as there’s less stuff in the way.
After, you can do a thorough cleaning of your house to give it a fresh and pristine look right before you start creating a more festive atmosphere.
One of the best ways to have a consistent and cohesive look all over your home is to choose one or two festive accent colors and find a way to incorporate those in your decor. Think ribbons, patterned pillows, scented candles, fluffy blankets, and even your family’s Christmas stockings.
You can go for the traditional Christmas colors like the ever-present green and red pairing, or you can switch it up by mixing in hues from the same color families. For a more elevated and modern twist of this classic Christmas combination, try burgundy and chartreuse.
You can also do something completely different such as white and brown, black and gold, and blush and copper.
Make your home a little more inviting this holiday season by burning some wood-scented candles. Opt for warm, dim lighting to give an ambiance of coziness. Another way to make your house feel warm is through textures so bust out those chunky knits and velvets.
Keep guests comfy and warm with fleece throw pillows and blankets. You can also rearrange your furniture so that it faces your Christmas tree or fireplace. This can become the perfect gathering spot for the whole family and your guests as you enjoy some winter entertainment.
While the holiday season is known for its extravagance, you really don’t have to overwhelm yourself and your house with way too much decor and the price tag that comes with them.
Too many decorations will only result in every single one of them competing for attention, making it all look chaotic and cluttered. As with anything that involves home styling, keep it as simple as possible.
There’s nothing wrong with store-bought materials and ornaments, especially if you don’t have time to hand-knit your pillowcases and tree skirts. You can make inexpensive ornaments look elegant and festive just by grouping them together or arranging them in unique ways.
Alternatively, if you’ve collected more ornaments than you can count over the years, it’s the best time to use them. Place your spare multicolored balls and bulbs in apothecary jars or clear, decorative bowls of varying heights and use them in different areas of your home.
Aside from what you can see and what you can touch, another way to bring out a festive and wintry mood is through the sense of smell. Add a natural touch to your home with fragrant greenery such as boxwood cuttings, freshly cut white hydrangeas, and evergreen sprigs.
For your dinner table, you can add fresh holly and a few magnolia leaves to napkin rings or place cards. If you don’t have resources for these around you, a scented candle or a DIY holiday potpourri will do the trick.
It’s easy to get caught up in all the decorations and themes of the inside of your house, but don’t forget to match it all up outside as well. Whatever your aesthetic vision is for your interior styling should reflect on your home’s exterior.
This is especially important if you have huge windows that will peek into your home. The decorations inside should tie well into what you have on your front porch.
You can test this out easily by standing in your yard and seeing how it all comes together.
Creating a warm and cozy atmosphere through home styling isn’t an easy task, but it shouldn’t give you an overload of stress. After all, this time of the year is about getting to see the people you love and having a great time together.
So, take a deep breath as you make your home more festive and inviting for the ones who matter and enjoy the process.
source: Realty Executives
Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com
There’s no denying the financial benefits of homeownership, but what’s often overlooked are the feelings of gratitude, security, pride, and comfort we get from owning a home. This year, those emotions are stronger than ever. We’ve lived through a time that has truly changed our needs and who we are, and as a result, homeownership has a whole new meaning for many of us.
According to the 2021 State of the American Homeowner report by Unison:
“Last year, staying home became a necessity and that caused many homeowners to have renewed gratitude for the roof over their head.”
As a nation, we continue to work through the challenges of a pandemic that’s pushed us all to new limits. Over the past year and a half, we’ve spent more time than ever at home: working, eating, schooling, exercising, and more. The world around us changed almost overnight, and our homes were redefined. Our needs shifted, and our shelters became a place that protected us on a whole new level. The same study from Unison notes:
It’s no surprise this study also reveals that homeowners are now more emotionally attached to their homes as well:
As we’ve learned throughout this health crisis, homeownership can provide the safety and security we crave in a time of uncertainty. That sense of connection and emotional stability genuinely reaches beyond just the financial aspect of owning a home. As JD Esajian, President of CT Homes, LLC, says:
“Aside from the financial factors, there are several social benefits of homeownership and stable housing to consider. It has long been thought that buying a home contributes to a sense of accomplishment. Still, most individuals fail to realize that homeownership can benefit your mental health and the community around you.”
Whether you’re thinking of buying your first home, moving up to your dream home, or downsizing to something that better fits your changing lifestyle, take a moment to reflect on what Mark Fleming, Chief Economist at First American, notes:
“Buying a home is not just a financial decision. It’s also a lifestyle decision.”
If you’re considering buying a home, it’s not entirely about the dollars and cents. Don’t forget to weigh the non-financial benefits that may truly change your life when you need them most.
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.
