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If Mortgage Rates Remain at 7%, Home Prices Won’t Fall Significantly. However, They Could Rise Slightly in 2023.

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According to Lawrence Yun, Chief Economist at NAR, severe shortages of housing inventory will keep large price drops from most of the country next fiscal year, despite high inflation, rising mortgage rates, and slowing sales activity.

Yun shared his outlook for 2023 at 2022 NAR NXT, The Realtor , Orlando, Florida.

Yun stated that home prices have been stable in most areas of the country because there is very little inventory. Some areas are experiencing price increases, while others, most notably California, are seeing prices drop.”

Yun said that the market conditions today are fundamentally different from those during the Great Recession.

Yun stated that the housing inventory was only about 25% of 2008’s. Yun said that distressed property sales are nearly non-existent at 2% and not near the 30% mark during the housing crash. Because of the substantial price appreciation over the past two years, short sales are nearly impossible.”

Yun explained that the extraordinary rate at which mortgage rates rose in 2022, from 3% in Jan to around 7% today, has caused a downturn in housing market.

Yun stated that the decline in home sales and home construction has “brought down GDP.” GDP would be positive if the housing market were stabilizing and not falling.

Yun said that there are signs suggesting that mortgage rates will rise, especially since October’s consumer price index showed an inflation decline. However, he expressed concern over the spread between federal funds rates and mortgage rates.

Yun stated that the gap between the 30-year fixed rate mortgage rate and government borrowing rate today is larger than it was in the past. If there wasn’t this gap, mortgage rates would not be 7%. They would be 5.8%. Normal spreads would help revive the economy. If inflation is eliminated, we will see less anxiety in the financial markets, and lower interest rates which will allow owners to refinance.

Yun predicts that home sales will decline by 7% in 2023. However, the median national home price will rise by 1%. Some markets may experience price increases while others see price drops.

He projects a strong housing rebound in 2024 with a 10% increase in home sales and an additional 5% in the median home price.

The National Association of Realtors represents more than 1.5million members in America’s residential and commercial realty industries.

 

Original Blog: https://realtytimes.com/real-industry-news-articles/item/1045981-nar-s-lawrence-yun-predicts-us-home-prices-won-t-experience-major-decline-could-possibly-rise-slightly-in-2023-if-mortgage-rates-remain-at-7?rtmpage=

Holiday Real Estate For Sellers

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Are you looking to sell your house during the holiday season? Perhaps you have had to move quickly or your job has changed. You can do it. These are some tips that will make it easy to sell.

This time of year there are fewer buyers, so an overcrowded open house or panic that leads to multiple offers is unlikely. Although no agent can predict when or how much a property will sell, they are able to provide market information. You should be able to anticipate what you can expect from an agent who has done extensive research. You will be able to set realistic expectations.

While the listing price is important in any season, there is more flexibility during spring and summer. A reduced buyer pool means that pricing your home for sale is more important than ever. This could mean that the home might sell for less than you expected. Your agent will know more about the market than you do, regardless of how you feel about it or how much you have invested in it. Listen to them. They are only interested in selling your house so that you can move on.

To appeal to buyers, you don’t need to spend a lot of money or make a huge home. The best staging tips don’t have to cost anything. Depersonalizing and decluttering are at the top of this list. These activities will allow buyers to see themselves in their home, rather than get caught up in all the stuff.

It is important to focus your efforts only on the most important spaces. Moving.com stated that not all rooms can be considered equal in home staging. com. The living room, master bedroom and kitchen are the most important rooms for buyers. You don’t need to worry about rooms with less importance, like guest bedrooms, bedrooms for children, and bathrooms.

This time of year, it might be harder to sell to families because many are already settled and the kids are in school. However, you do not need a lot of buyers. You only need one. It’s possible to relocate, so it’s not uncommon.

If you live in a family-oriented neighborhood, and are trying to appeal to families with children, it’s a good idea to highlight the family aspects of the area. Perhaps you could create a flyer that can be left behind with information about the school district, local parks and even babysitters in your neighborhood.

It’s not the right time to allow leaves to accumulate on your lawn. It can be difficult to keep your front yard tidy in fall and winter. However, it is a must-do for selling. You should be prepared for unexpected showings. Make it a habit of looking at your home from the street every day so that you can see the inside and help buyers clean up any clutter.

Tastefully decorated homes will be noticed for all the right reasons. Your home shouldn’t be remembered just for its Christmas decorations. The Balance advised that you should reduce the number of decorations. Too many decorations can become overwhelming and distracting. Do not assume buyers will see past it. Agents often say that the eye buys.

Selling your home during the holidays can be difficult because you have to be available to show it to potential buyers. This means you will have to limit holiday gatherings at your home and make sure that the house is spotless and clean. It is even more difficult when the kids are not in school. Flexibility is important because you never know when you might get a call asking for a showing. Ask your agent to schedule a virtual open house.

 

Original Blog: https://realtytimes.com/archives/item/1034639-holiday-real-estate-a-seller-s-guide?rtmpage=

Why Indoor Air Quality Is Important

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Air quality, both indoor and outdoor, is a topic that is becoming more prominent. Experts are discussing how to combat wildfires and smog, and what steps to take to make sure that our air quality is healthy and sustainable. Indoor air quality is something that many people have neglected in the past.

Indoor air quality is still an important part of a healthy home. This is why you should be concerned about it for your clients as well. We don’t have weather apps or meteorologists monitoring indoor air quality to tell us when it’s safe for us to go outside. It’s crucial to be familiar with indoor air quality so that you can educate your clients and yourself.

The air quality index measures the overall quality of air in a particular area or place. The air quality index ranges between 0 and 500. Higher numbers indicate poorer air quality. Each company’s device registered our home as having a good overall air quality index. However, there were external factors such as construction and seasonal allergens that warranted more detailed measurements.

During winter testing these sensors, one of the first things we noticed was that the house’s air was dry at 20% humidity. According to the Mayo Clinic, indoor humidity should be between 30%- 50%. Low levels can lead to dry skin and irritation of the nose. People can feel congested if they have high levels. High levels of humidity can lead to serious health issues like mold.

Our home now has a constant humidity of 45% throughout the year since we installed a humidifier. All three sensors were able to track and update humidity changes, and they were all on the same page.

A large number of volatile organic compounds (VOCs) can volatilize in the air at room temperatures. VOCs can be harmful to the air quality in homes. They are found in household staples like air fresheners and cleaners as well as new furniture and carpeting.

PM2.5 refers to fine particles that have a diameter less than 2.5. This includes bacteria, fungi, and emissions from oil, gas, and coal combustion. PM 10, which is the largest particle typically monitored by air quality monitor systems, has a diameter of 10 to 20 microns. It also includes pollutants such as pollen and pet hair.

Radon is the second most common cause of lung cancer. Many states now require passive radon mitigation systems to be installed during new home construction. When buying a home, buyers are advised to run a radon test.

The EPA (link is external). considers a level above 4 pCi/L (picocuries/liter) to be high and requires mitigation. However, the agency also stated that radon exposure levels are not safe at this time. Therefore, any home with levels above 4 pCi/L must be addressed.

Airthings, the only consumer-grade air quality monitoring system, detects radon over time and graphs it. Airthings recommends that you wait 30 days before you take any action based upon the results. Our home was built 3.5 years ago. It has a passive mitigation system so our radon levels have been reduced. However, many clients have found elevated levels that have been corrected with mitigation systems. Mitigation costs approximately $1,200 in Minnesota.

Carbon dioxide doesn’t have to be a bad thing. It’s actually a necessary component of the air we inhale. When CO2 levels exceed the oxygen level in a given space, it can become a problem. Too much CO2 can make you feel tired, sleepy, or less focused. It can cause serious health problems if it is too high. We tested three systems and found that Airthings’ View Plus (link is external) model shows CO2 levels in parts-per-million. It will alert the user if they are too high.

There are many invisible factors that can impact the quality of your air, including allergens and pollutants. A monitor is a worthwhile investment.

An air quality monitor can give you the information you need in order to correct any air quality problems that may exist in your home. Your home will be more comfortable and safer if you can address any air quality problems. You can determine the best solution based on data from your monitor.

 

Original Blog: https://www.nar.realtor/magazine/real-estate-news/technology/manage-indoor-air-quality

Loan Estimate

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After applying for a mortgage, you will receive a loan estimate. Lenders must give you a loan estimate within three days of receiving your application.

The loan estimate provides details about the loan that you are requesting. This form was created in 2015.

The information you get with a loan estimate may include the following: Monthly payments, estimated interest rates and total closing costs.

Information about insurance and taxes will be provided. You can also find out how interest rates and payments could change at any given time. You will also be informed about the special features of your loan through this form. It will inform you if your loan has a prepayment penalty. If applicable, the loan estimate will also include negative amortization. Even if your payments are on time, negative amortization can increase your mortgage loan balance.

The description of your loan product will include the negative amortization option.

As the title suggests, this document contains preliminary information that is not final. Although it is an estimate, it can help determine the loan you should apply for and make a commitment to.

Buyers will be provided with a loan estimate that includes prepaid interest, third-party fees and closing costs. The buyer will also receive a detailed estimate payment to get a full picture of the transaction’s costs. It is easy to compare and see the costs of different lenders as all will use the same document.

Lenders cannot hide fees with loan estimates, which can also be a useful comparison tool.

Lenders are required to give you a loan estimate within three business days after you submit your mortgage application. Before they can provide you with a loan estimate, lenders will need some information, such as your legal name, social security number and proof of income. They also require proof of desired property address, price, and loan amount.

You’ll find the following information in the first page and section of a loan estimate:

  • * The term of your loan is usually 30 years. However, other terms may be possible.
    * Product refers to the type of mortgage that you are applying for such as a fixed-rate mortgage or an adjustable-rate mortgage.
    * What loan type is it? For example, is it a conventional or VA loan? It could be an FHA loan or VA loan.
    * A rate lock is when your lender locks down the interest rate on your mortgage and the expiration date.

Information is provided in the second section.

  • * How much you can borrow and how it can be increased
    * The interest rate is a percentage and can be increased.
    * Monthly principal and interest is the monthly mortgage payment, excluding homeowners’ insurance and property taxes.
    * A prepayment penalty is a fee you may have to pay if your loan was not repaid by the due date or you made an additional payment.
    * If there is a balloon payment. This is a lump sum that you must pay at the end your loan term

Information is included in the third and fourth sections.

  • * Payment calculation: Breaking down your monthly mortgage payment, principal and interest, private Mortgage Insurance Premiums, if applicable, as well as escrow amounts
    * Monthly estimated payment
    * Estimated taxes and insurance.
    * Mortgage closing costs estimates
    * Cash to close is the estimated cash amount, which includes closing costs and any other charges you may have upfront

The second page of a loan estimation includes three major elements: loan costs, other charges, and cash to close.

The second page should focus on the origination fees and any fees that you will be charged for items you cannot shop for. These charges vary from one lender to the next, so it is important to compare them. Other charges are not subject to much variation between lenders. You can search for the services needed to close a mortgage. This includes how much they cost. You can’t shop services such as an appraisal or credit check.

The name of the loan officer or lender will be included on page three. This information is useful for comparing loan estimates. The first will show you how much of your loan principal your loan will pay off over the first five year. It’ll also show your annual percentage rate (APR), and total interest percentage.

It’s a great time to review your loan estimate and ask any questions that you may have.

 

Original Blog: https://realtytimes.com/archives/item/1045883-what-is-a-loan-estimate?rtmpage=

Signs You’re About to Make an Offer on the Wrong House

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Buyers today’s housing market can be difficult. Real estate inventory is very limited and home prices are still high. This means that buyers have to make compromises in order to buy a home of their choice.

Flexibleness is one thing, but it’s another. This could mean that you accept a smaller home than you expected or that you have to do some renovations.

There is no such thing as being too compromise when purchasing a home. These signs may indicate that you might not be able to offer on the property you are considering.

If you have a $350,000 home-buying budget, but find the perfect property for $360,000, then it is possible to get a great deal. You might argue that it is worth paying more for a home in such a situation.

If your initial budget is $350,000 you should not be willing to increase it to $400,000 or $425,000. This could lead to financial stress.

Your monthly housing costs should not exceed 30% of what you earn. This includes your mortgage payment and property taxes. If you find that you are spending more than your initial home-buying budget, it is best to hold off on the house you are considering and wait for a better deal.

It is common to purchase a home that needs work. There’s a big difference between making minor repairs and cosmetic changes to your home and having to completely gut it, replace major appliances, and upgrading all its electrical wiring. You might end up spending more money and doing more work if you consider the former.

You can renovate a kitchen that you have bought if it is outdated. You might also be able to expand a bathroom if your home has only one bathroom.

No amount of renovations can change the fact that you bought a home in a place you don’t like. If you value being close to a park, or having a walkable neighborhood, you might not be willing to compromise. If you have children and would like to live near a park, don’t offer to buy a house that is more than three miles from the closest one.

Flexibility is key in today’s tight housing market. However, don’t let this flexibility get too far. You might regret buying a home.

The mortgage rates are at their highest levels in many years and they will continue to rise. To get the best rate and minimize fees, it is important to compare rates with different lenders. A small change in your rate can make a huge difference in your monthly payments.

 

Original Blog: https://www.fool.com/the-ascent/mortgages/articles/3-signs-youre-about-to-make-an-offer-on-the-wrong-house/

Ways To Extend Your Outdoor Living Season

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Outdoor living isn’t just for summer. There are many other reasons to enjoy it. The beauty of autumn and the crisp, cool weather are two reasons to enjoy outdoor living beyond summer. You can save big on entertainment and dining out by enjoying great food, drinks and company at home.

While the sun sets earlier in fall on outdoor living spaces, it shouldn’t restrict the hours that you use your deck and patio. You can party and relax after dark by adding low-voltage or solar outside lighting fixtures. You can also use these fixtures to light up your dining tables and grill surfaces as well as underwater in swimming pool.

Low-voltage fixtures can be attached to a 12-volt cable that is connected to a transformer. The transformer plugs into a 120-volt outlet protected by GFCI. Light-sensitive controls, such as a timer, automatically turn lights on or off. A kit that includes eight LED step lights as well as 12 hardscape lights would cost around $3,000.

The only thing you need to connect solar outdoor lighting fixtures is a transformer and cables. After dark, they automatically turn on. Each fixture can be staked into the ground, or secured to an exterior surface or deck. The bulb is powered by a solar-charged battery, which will help you save energy. Six solar light fixtures are $188-$231 and cost between $167 and $271 to install.

A fire pit or portable fireplace can add warmth and style to your outdoor space. They are great for warming up, roasting marshmallows, or gathering around. There are many options available for fueling your fire, including gas, propane, wood, and gel cans.

A fire pit can be described as an open dish, pan, or bowl that measures 24″ x 40″. You can find a fire pit on a stand, some with wheels, or nestled into a tiled top. To prevent flyaway sparks, choose a model that has screening. Wood-burning firepits typically cost $500 to $1,300, while gas firepits range from $900 to $31,800, including installation.
A portable outdoor fireplace (104-488) has a chimney that allows smoke to be vented up to the sky. Some portable fireplaces allow 360-degree viewing of the fire.

Popular choices include the smokeless stove or fire pit. Although they don’t produce as much smoke as a wood-burning firepit, they do not emit as much ash. They cost between $90 and $600.

A portable patio heater can increase the temperature of your outdoor living space by up to 15-25 degrees in the spring and fall.

Freestanding units resemble large floor lamps. They can be placed anywhere that is suitable for their height (7- to 8-foot). Some models come with wheels to make them more mobile. Depending on the fuel source and heat output, you can expect to pay $153-$887.

A tabletop patio heater is placed on top of a bench, table or garden wall. These units produce less heat than taller, freestanding models. The prices range from $72 to $148.

Wall-mount or ceiling-mounted patio heaters are ideal for freeing up floor space and table space. They emit heat through a halogen light. Prices range from $112 to $866.

Consider how much outdoor living space you have and whether you would like a model that runs on electricity, natural gas, or with a propane tank. This will allow you to move around.

 

Original Blog: https://www.houselogic.com/by-room/yard-patio/extend-outdoor-living-season/?site_ref=spotlight

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