"The 30-year fixed-rate mortgage was 2.9% in the third quarter of 2021. We forecast mortgage rates to increase slightly through the remainder of the year and reach 3.0%, rising to 3.5% for full year 2022."
If you're thinking of buying a home, here are a few things to keep in mind so you can succeed even as mortgage rates rise.
Mortgage rates play a significant role in your home search. As rates go up, your monthly mortgage payment increases if you're buying a home, directly affecting how much you can afford. And even the smallest increase can have a large impact on your monthly payment (see chart below):With mortgage rates on the rise, you've likely seen your purchasing power impacted already. Instead of waiting and hoping rates will fall, today's rates should motivate you to purchase now before rates increase more.
You can use your newfound motivation to energize your search and plan your next steps accordingly so you're prepared to act no matter what happens with mortgage rates. One way to do that: take rising rates into consideration as part of your budget.
Danielle Hale, Chief Economist at realtor.com, puts it best, saying:
"Smart buyers should consider calculating a monthly payment not only at today's rates, but also at rates that are a bit higher so that they won't be derailed by a sudden upward move. . . ."
You should also be ready to act when you find the home that meets your needs. That means getting pre-approved with a lender so there won't be any delays when the time arrives.
The best way to prepare is to work with a trusted real estate advisor now. An agent can connect you with a lender, help you adjust your search based on your budget, and be ready to act quickly when it's time to make an offer.
Serious buyers should approach rising rates as a motivating factor to buy sooner, not a reason to wait. Waiting will cost you more in the long run. Let's connect today so you can better understand your budget and be prepared to buy your home even before rates climb higher.
Your equity is a powerful tool that can help you achieve your goals as a homeowner. And chances are, your equity grew substantially over the past year. According to the latest Equity Insights Report from CoreLogic, homeowners gained an average of $51,500 in equity over the past year.
If you're looking for the best ways to use your growing equity, here are four options:
If you're finding you no longer have the space you need, it might be time to move into a larger home. Or, it's possible you have too much space and would like something smaller. No matter the situation, consider using your equity to power a move into a home that fits your changing lifestyle. Moving into a larger home can provide extra space for remote work or loved ones. Downsizing, on the other hand, may mean saving time and money by caring for a smaller home.
If the size of your home isn't a challenge but your current location is, it could be time to relocate to a new area. Maybe you enjoy vacationing in the mountains, at the beach, or another area, and you're dreaming of living there year-round. Or perhaps the distance between you and your loved ones is greater than you'd like, and you want to close the gap. No matter what, your home equity can fuel your move to the location where you really want to live.
If you're not ready to move into a new home, you can use your equity to invest in a new business venture. As the U.S. Small Business Administration Office of Advocacy says:
"There is an estimate of 31.7 million small business owners in the United States, many of them started their business with the equity they had in their home."
While it's not recommended that homeowners use their equity for unnecessary spending, leveraging your equity to start a business that you're passionate about can potentially grow your nest egg further.
Whether you have a loved one preparing to head off to college or you're planning to go back to school yourself, the thought of paying for higher education can be daunting. In either situation, using a portion of your growing equity can help with those costs, so you can make an investment in someone's future.
Your equity can help you achieve your goals. If you're unsure how much equity you have in your home, let's connect today so you can start planning your next move.
Hindsight is 20/20, especially when it comes to selling your home. There is a lot of pressure involved in a home sale, and it's very common for sellers to look back and wish they did things a bit differently. Every stage of the selling process plays a large role in determining your final sale price, and simple mistakes can ultimately cost you thousands in the end.
The good news is most real estate agents have extensive experience working through the challenges of a home sale and can help you avoid costly errors. If you're planning to sell your home this year and want to get the best return, be careful to avoid these mistakes:
It's easy to make mistakes when selling a house, but by doing your homework ahead of time, you can avoid these common pitfalls. If you are ready to sell your home, let's connect to ensure you don't make these common mistakes!
As a renter, you're constantly faced with the same dilemma: keep renting for another year or purchase a home? Your answer depends on your current situation and future plans, but there are a number of benefits to homeownership every renter needs to consider.
Here are a few things you should think about before you settle on renting for another year.
Rent increasing each year isn't new. Looking back at Census data confirms rental prices have gone up consistently for decades (see graph below):If you're a renter, you're faced with payments that continue to climb each year. Realtor.com recently shared the September Rental Report, and it shows price increases accelerating from August to September (see graph below):As the graph shows, rents are still on the rise. It's important to keep this in mind when the time comes for you to sign a new lease, as your monthly rental payment may increase substantially when you do.
One of the most significant advantages of buying a home is the wealth you build through equity. This year alone, homeowners gained a substantial amount of equity, which, in turn, grew their net worth. As a renter, you miss out on this wealth-building tool that can be used to fund your retirement, buy a bigger home, downsize, or even achieve personal goals like paying for an education or starting a new business.
This is a big decision-making point if you want to be able to paint, renovate, and make home upgrades. In many cases, your property owner determines these selections and prefers you don't alter them as a renter. As a homeowner, you have the freedom to decorate and personalize your home to truly make it your own.
You may choose to rent because you feel it provides greater flexibility if you need to move for any reason. While it's true that selling a home may take more time than finding a new rental, it's important to note how quickly houses are selling in today's market. According to the National Association of Realtors (NAR), the average home is only on the market for 17 days. That means you may have more flexibility than you think if you need to relocate as a homeowner.
Deciding if it's the right time for you to buy is a personal decision, and the timing is different for everyone. However, if you'd like to learn more about the benefits of homeownership, let's connect so you can make a confident, informed decision and have a trusted advisor along the way.
BEAUFORT, SC -- Berkshire Hathaway HomeServices Bay Street Realty Group is excited to announce the hiring of Realtor Angela Thomas-Jackson. In this role, she will assist her clients in purchasing and selling properties. She will advise them on market conditions, conduct walkthroughs, and guide them through the real estate process.
Angela is no stranger to real estate, she joins Bay Street Realty Group with more than six years of experience as a Realtor in Tennessee. In addition, she is organized and committed to bettering other businesses each and everyday, as she serves as the owner of ATJ Business Services. Her business is responsible for full charge bookkeeping and providing small business consulting services. Prior to that, Angela worked as the Director of Finance and Operations for Polaris Tech Charter School in Ridgeland, South Carolina. Originally from Nashville, Tennessee, Angela attended Nashville State Community College, where she studied Accounting. She has also served as the Accounting and Operations Manager for the Beaufort Regional Chamber of Commerce and prior to that she was the business owner of Jackson Insurance Group, in Ashland City, Tennessee.
In her free time, you can find her cheering her children on at their sporting events and school activities. Bay Street Realty Group is honored to have her organizational expertise and business experience, and they're excited to have her share her love for this region with prospective buyers and sellers.
Becoming a homeowner doesn't equip you with the basics of household know-how, although time and experience will likely teach you how to tighten up a leaky faucet. But technicians say that up to 30 percent of their service calls require nothing more than the flip of a switch or the push of a button to 'repair' the stated problem.
To save you from such an embarrassing experience—not to mention the cost of a service call—Readers Digest offers tips to help every homeowner recognize and 'fix' common issues:
BEAUFORT, SC -- Berkshire Hathaway HomeServices Bay Street Realty Group is excited to announce the hiring of Gabrielle Horry as Realtor. She is beginning her career in real estate as an assistant to Denise Horry, with a focus on homesales for Forino Homes. She will guide home buyers and sellers through the process, advise clients and stay on top of market trends.
Gabrielle has a Bachelor's Degree in Elementary Education from College of Charleston. Prior to real estate, she served as a role model and 4th grade educator in Charleston, South Carolina. Her years in education brought out her thoughtfulness, innovative spirit and dedication to her work, which we are thrilled to have her bring to the Bay Street Realty Group team.
Gabrielle now resides in Ridgeland, South Carolina, where she grew up. Bay Street Realty Group is excited for her to share her love of the area with so many potential buyers and sellers.
For more information, visit www.baystreetrealtygroup.com.
Attract homebuyers during the holidays with these tips.
When most people think about the holidays, they think about family gatherings, turkey dinners, and gift-giving. Selling their home during the holidays isn't something they usually imagine. No one sells their home during this time of the year ... Right? Wrong!
In fact, selling your home during the holidays has its advantages. Since fewer homes are on the market, there is less competition. And home buyers are usually more serious and ready to buy.
How do you make the most of this selling season? Here are ten tips to get you started.
Although selling a house during the holiday season will definitely keep you busy, don't forget to take the time to enjoy the season too.
Many people have questions about home prices right now. How much have prices risen over the past 12 months? What's happening with home values right now? What's projected for next year? Here's a look at the answers to all three of these questions.
According to the latest Home Price Index from CoreLogic, home values have increased by 18.1% compared to this time last year. Additionally, prices have gone up at an accelerated pace for each of the last eight months (see graph below):The increase in the rate of appreciation that's shown by CoreLogic coincides with data from the other two main home price indices: the FHFA Home Price Index and the S&P Case Shiller Index.
The last year has shown tremendous home price appreciation, which is resulting in a major gain in wealth for homeowners through rising equity.
All three indices mentioned above also show that while appreciation is in the high double digits right now, that price acceleration is beginning to level off (see graph below):Year-over-year appreciation is still close to 20%, but it's clearly plateauing at that rate. Many experts believe it will drop below 15% by the end of the year.
Keep in mind, that doesn't mean home values will depreciate. It means the rate of appreciation will slow, yet stay well above the 25-year average of 5.1%.
The recent surge in prices is the result of heavy buyer demand and a shortage of homes available for sale. Most experts believe that as more housing inventory comes to market (both new construction and existing homes), the supply and demand for housing will come more into balance. That balance will bring a lower rate of appreciation in 2022. Here's a look at home price forecasts from six major entities, and they all project future appreciation:
While the projected rate of appreciation varies among the experts, due to things like supply chain challenges, virus variants, and more, it's clear that home values will continue to appreciate next year.
There have been historic levels of home price appreciation over the last year. That pace will slow as we finish 2021 and enter into 2022. Prices will still rise in value, just at a much more moderate pace, which is good news for the housing market. Let's connect when you are ready to buy or sell!
In today's housing market, the number of homes for sale is much lower than the strong buyer demand. As a result, homeowners ready to sell have a significant advantage. Here are three ways today's low inventory will set you up for a win when you sell this season.
With so many more buyers in the market than homes available for sale, homebuyers are frequently getting into bidding wars for the houses they want to purchase. According to the latest data from the National Association of Realtors (NAR), homes are receiving an average of 3.7 offers in today's market. This buyer competition drives home prices up. As a seller, this certainly works to your advantage, potentially netting you more for your house when you close the deal.
Rising prices mean homes are also gaining value, which increases the equity you have in your home. In the latest Homeowner Equity Insights Report, CoreLogic explains:
"In the second quarter of 2021, the average homeowner gained approximately $51,500 in equity during the past year."
This year-over-year growth in equity gives you the ability to sell your house and then put that money toward a down payment on your next home, or to keep it as extra savings.
In a sellers' market like we have today, you're in the driver's seat if you make a move. You have the power to sell on your terms, and buyers are more likely to work with you if it means they can finally land their dream home.
Yes, especially if you want to sell on your terms. Moving now while inventory is so low is key to maximizing your opportunities.
If you're interested in taking advantage of the current sellers' market, let's connect today to determine your best move.
The change of seasons is a perfect time to take a moment to pause, reflect and recharge. In addition to updating your decor and bringing out cooler weather clothing, giving yourself a seasonal refresh is a perfect way to greet a new season. Prepare for the season ahead by taking some for yourself by recharging from the comfort of home. Consider the below activities, so you can head into autumn with a clearer head and lighter heart.
At-Home Spa Day
Bring the spa to you by hiring a team who can come to your home and treat you to a full spa menu. Whether you indulge in a massage, facial, manicure, pedicure or all of the above, a spa day in the comfort of your own home is a guaranteed way to unplug so you feel rejuvenated to face the more hectic pace of fall and the upcoming holiday season. In addition, keeping a massage table in your home gym will make it easier and more compelling to make this at-home service a regular indulgence.
Take the night off from cooking by bringing a home chef into your house for the evening. You can benefit from a home-cooked, gourmet meal while relaxing in your most comfortable loungewear. You can enjoy the experience of a night out without having to worry about making a reservation or selecting the perfect outfit.
Drape yourself and furniture in an indulgent fabric, such as cashmere. Make sure your sitting areas have ample amounts of cashmere blankets to wrap yourself in while you unwind on the sofa. Invest in a cashmere robe or loungewear so you can spend an evening feeling like you're enveloped in a hug while you settle in with a good book or show.
Unplug for the Weekend
Spend a technology-free weekend to recharge your mind. Whether you spend your time enjoying spa services, exercising, baking or gardening, aim to engage in activities that calm your mind, rather than mindlessly scrolling through your social media feeds or incessantly checking your email. When Monday arrives, you will be able to kick off the week with a refreshing level of motivation.
At-Home Yoga Session
Bring a yoga instructor to your home to reap the mind and body benefits of yoga without commuting to a yoga studio. Whether you breathe in the fresh air in your private backyard or breathe deeply inside your home gym, an at-home yoga session should leave you with a clear head, a limber body and feeling rejuvenated.
The daily grind can take a toll on your headspace and body, so taking the time to check in with yourself and press the reset button is not only important to how you will feel in the moment but is also essential for long-term health benefits.
With mortgage rates climbing above 3% for the first time in months, serious buyers are more motivated than ever to find a home before the end of the year. Lawrence Yun, Chief Economist for the National Association of Realtors (NAR), puts it best, saying:
"Housing demand remains strong as buyers likely want to secure a home before mortgage rates increase even further next year."
"From one year ago, the inventory of unsold homes decreased 13%. . . ."
With buyers eager to purchase but so few homes available, sellers who list their houses this fall have a tremendous advantage – also known as leverage – when negotiating with buyers. That's because, in today's market, buyers want three things:
These three buyer needs give homeowners a leg up when selling their house. You might already realize this leverage enables you to sell at a good price, but it also means you can negotiate the best terms to suit your needs.
And since buyer demand is still high, there's a good chance you'll get offers from multiple buyers who are willing to compete for your house. When you do, look closely at the terms of each offer to find out which one has the best perks for you.
If you have questions about what's best for your situation, your trusted real estate advisor can help. They have the expertise and are skilled negotiators in all stages of the sales process.
Today's buyers are motivated to purchase a home this year, and that's great news if you're thinking of selling. Let's connect today to discuss how much leverage you have as a seller in today's market.
Whether you're hosting family and friends, or it's just your immediate family, the kitchen island is inevitably the place where people end up gathering. A kitchen island ends up being a communal spot to enjoy coffee, hors d'oeuvres, a glass of wine and tell stories. A traditional kitchen island layout will work in nearly any kitchen design. Expanding an island to offer more space for sitting, lounging and prepping food will bring additional comfort to your leisurely mornings or long nights gathered around the kitchen island. Here are some unique kitchen island configurations to choose from.
Built-In Table at the End of the Island
If you find your family spending many meals at the kitchen island instead of the dining table, consider building a kitchen table directly into the end of the island. Whether you build a round dining table at the end of the island or a square dining table, remember to account for ample seating. Don't shy away from going oversized to accommodate everyone comfortably and to make a design statement.
A double island can be invaluable if you frequently host gatherings. One island can be for cooking and prep work, and the other can remain the hub for gathering around. Depending on your kitchen's layout and space, the two islands can be next to each other or back to back.
A truly custom look, this layout is meant for kitchens with ample space. An oversized u-shaped kitchen island offers enough room in the middle for a built-in banquette and dining table. This layout can take the place of a breakfast nook. A u-shaped island invites friends and family to meet around the table for meals, snacks, cocktail hour and game nights while still being in the middle of the kitchen island action.
Building a banquette directly into the island is both a functional game-changer and a conversation starter. For example, adding a long banquette to the length of the island can be paired with a dining table as a place to gather around for meals. Or, a shorter banquette added to the end of the island can be paired with a smaller table, such as a tulip or pedestal table, for a more intimate space to enjoy your morning coffee.
If you don't have the space for two kitchen islands, but you want to have a separate food prep area and food serving area, a two-tiered island will let you use the top tier for preparing food and the bottom level to set out hors-d'oeuvres and for guests to set down their drinks and plates. In addition, using different counter materials, such as marble on the top and wood on the bottom, will add visual interest.