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Date Archives: February 2022

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February
28

The #1 Reason To Sell Your House Today

The #1 Reason To Sell Your House Today | MyKCM

Almost every industry is currently struggling with supply chain disruptions. This also applies to the current U.S. housing market, where buyer demand far exceeds housing supply.

Purchaser demand is very strong right now. The National Association of Realtors (NAR) just released their latest Existing Home Sales Report which reveals that sales surged in January. Existing home sales rose to a seasonally adjusted annual rate of 6.5 million – an increase of 6.7% from the prior month, with sales up in all regions. However, there's one big challenge.

Inventory Is at an All-Time Low

Because purchaser demand is so high, the market is running out of available homes for sale. The above-mentioned report states that the current months' supply of inventory of homes for sale has fallen to 1.6 months. This prompts Lawrence Yun, Chief Economist at NAR, to say:

"The inventory of homes on the market remains woefully depleted, and in fact is currently at an all-time low."

Earlier this month, realtor.com released their inventory data for January. It helps confirm this point. Here's a graph comparing inventory levels for January over the last six years:

The #1 Reason To Sell Your House Today | MyKCM

As the graph shows, new listings coming on the market have decreased over the last four years (shown in blue in the graph). The graph also reveals that carry-over inventory has plummeted in recent years. This is because listings are now sold so quickly, they don't stay on the market long enough to carry over month-to-month (shown in green in the graph). In other words, homes are not staying on the market for months as they had prior to the pandemic. In the report mentioned above, NAR reveals that:

"Seventy-nine percent of homes sold in January 2022 were on the market for less than a month."

Odeta Kushi, Deputy Chief Economist at First American, explains it like this:

"A higher velocity of sales (lower [Days on Market]) helps to explain a housing market characterized by both higher sales & lower inventory. Many resale transactions are happening so quickly that they 'flow' in & then out of the 'stock' between the fixed monthly measurement of inventory."

What Does This Mean for Sellers?

Anyone thinking of putting their home on the market shouldn't wait. A seller will always negotiate the best deal when demand is high and supply is limited. That's exactly the situation in the real estate market today.

Later this year, inventory (and by extension, your competition) will increase as many homeowners are waiting to put their homes on the market in the spring and early summer.

In addition, Len Kiefer, Deputy Chief Economist at Freddie Mac, says:

"Housing starts start off 2022 strong, just edging out 2021 for most in January since 2006."

As these newly built homes are completed, they will also become competition for your house. This gives you a tremendous opportunity right now. Don't wait for that increase in competition in your area. If you want to sell in 2022 and are ready to start the process, today is the day to list your house.

Bottom Line

If you're ready to sell, let's connect to get your house on the market while today's inventory situation is in your favor.

February
23

How Supply and Demand Can Impact Your Buying and Selling Goals

How Supply and Demand Can Impact Your Buying and Selling Goals | MyKCM

In today's housing market, there are far more buyers looking for homes than sellers listing their houses. Based on the concept of supply and demand, this means home prices will naturally rise. Why is that? When there are more people trying to buy an item than there are making that item available for sale, that drives prices up. And that's exactly the case in today's housing market. So, knowing what's happening with the inventory of homes for sale and the demand for housing is crucial for today's buyers and sellers.

Nationally, Demand Is High and Supply Is Very Low

The latest buyer and seller activity data from the National Association of Realtors (NAR) indicates buyer traffic heavily outweighs seller traffic today, as shown in the maps below. There are far darker blues (strong buyer activity) on the left and much lighter blues (weak seller activity) on the right. In other words, this shows how the demand for homes is significantly greater than what's available to purchase.

How Supply and Demand Can Impact Your Buying and Selling Goals | MyKCM

What Does This Mean if You're a Seller?

Supply is struggling to keep pace with demand. In fact, the inventory of homes for sale recently hit an all-time low. That gives you an incredible advantage when you sell your house. With so few listings, it's likely more potential buyers will view your house – especially if you work with an agent to price it right. That means there's a high chance you'll receive multiple offers or buyers will enter a bidding war for your house. And that dynamic can drive the sale price of your home up.

What Does This Mean if You're a Buyer?

As a buyer with fewer options available, you're likely to see more competition, so you need to be strategic to win. First, make sure you have a trusted professional on your side. Your real estate agent will help you understand your local market and work with you to act quickly when the time is right. Even when it's challenging to find a home, you can still succeed as a buyer today if you have a trusted advisor on your side every step of the way.

Bottom Line

Whether you're a homebuyer, seller, or both, knowledge truly is power. Let's connect today so you can better understand what's happening in our local market and achieve your homebuying and selling goals this year.

February
22

The Perks of Owning More Than One Home

The Perks of Owning More Than One Home | MyKCM

Many things have changed over the past couple of years, and real estate is no exception. One impact is an increased desire to own more than one home. According to the recent Luxury Market Report from Luxury Home Marketing:

"As trends such as remote working and flexi-hours took hold in 2021, so too did the flexibility of relocating as well as the growth of second homeownership."

This may be because the pandemic has altered how we think about our homes. Where we live has become, more than ever, our safe space and our getaway. And with the rise in remote work, more people are reconsidering where they want to live and buying second homes to give them greater flexibility. If you fall in that category, here are just a few of the perks you'll enjoy, and how owning a second home may be a great decision for your lifestyle and your future.

Enjoy a Change in Scenery (or Weather)

When you have two homes, you can alternate between them as the weather changes or as you crave different scenery. Do you want to live in an area with a particular season? Would alternating between a resort and a suburban setting be ideal? With two homes, you have those options. Being able to move between homes based on which location best suits you at the time gives you added flexibility and variety that can help increase your happiness.

Build Your Wealth Faster

You may have heard that home equity is skyrocketing, thanks to ongoing home price appreciation. CoreLogic reports that the average homeowner gained $56,700 in equity over the last year. With home prices projected to continue rising, if you purchase a second home, you could benefit from rising equity on both properties to build your wealth (and your net worth) even faster.

Be Closer to Loved Ones

The pandemic has also reignited the importance of being near our loved ones. One option worth exploring is whether you want your second home to be near the people who matter most in your life. This makes it easier to see your loved ones but still gives you your own dedicated, private space so you can be nearby for major life events or longer visits.

Lock in Your Expenses

Buying a second home today and locking in your mortgage rate may be a good option if you're looking to stabilize your housing costs for the long haul. If you're approaching retirement or are looking to use your second home as your permanent residence in the future, buying that house now with today's rate and price may be a good financial decision. That way, no matter what happens with rates and prices in years ahead, your monthly payment is locked in for the next 15-30 years.

Bottom Line

Having multiple homes has considerable benefits. If owning a second home is something you're interested in, let's connect to explore your options, discuss the benefits, and take the next step to start your home search.

February
21

Real Estate Voted the Best Investment Eight Years in a Row

Real Estate Voted the Best Investment Eight Years in a Row | MyKCM

In an annual Gallup poll, Americans chose real estate as the best long-term investment. And it's not the first time it's topped the list, either. Real estate has been on a winning streak for the past eight years, consistently gaining traction as the best long-term investment (see graph below):

Real Estate Voted the Best Investment Eight Years in a Row | MyKCMIf you're thinking about purchasing a home this year, this poll should reassure you. Even when inflation is rising like it is today, Americans agree an investment like real estate truly shines.

Why Is Real Estate a Great Investment During Times of High Inflation?

With inflation reaching its highest level in 40 years, it's more important than ever to understand the financial benefits of homeownership. Rising inflation means prices are increasing across the board. That includes goods, services, housing costs, and more. But when you purchase your home, you lock in your monthly housing payments, effectively shielding yourself from increasing housing payments. James Royal, Senior Wealth Management Reporter at Bankrate, explains it like this:

"A fixed-rate mortgage allows you to maintain the biggest portion of housing expenses at the same payment. Sure, property taxes will rise and other expenses may creep up, but your monthly housing payment remains the same."

If you're a renter, you don't have that same benefit, and you aren't protected from increases in your housing costs, especially rising rents.

History Shows During Inflationary Periods, Home Prices Rise as Well

As a homeowner, your house is an asset that typically increases in value over time, even during inflation. That's because, as prices rise, the value of your home does, too. And that makes buying a home a great hedge during periods of high inflation. Natalie Campisi, Advisor Staff for Forbes, notes:

"Tangible assets like real estate get more valuable over time, which makes buying a home a good way to spend your money during inflationary times."

Bottom Line

Housing truly is a strong investment, especially when inflation is high. When you lock in a mortgage payment, you're shielded from housing cost increases, and you own an asset that typically gains value with time. If you want to better understand how buying a home could be a great investment for you, let's connect today.

February
18

What's Driving Today's High Buyer Demand? [INFOGRAPHIC]

What's Driving Today's High Buyer Demand? [INFOGRAPHIC] | MyKCM

Some Highlights

  • There's an influx of buyers looking for homes today, and that means your house is in high demand. Here are a few reasons why so many people are looking to buy a home.
  • Buyers are motivated to beat rising mortgage rates, and many want to escape rising rents. There's also additional demand from millennials who are reaching peak homebuying age.
  • If you're thinking about selling your house, today's demand is great news. Let's connect to begin the process of listing your house while buyers are ready to purchase.
February
17

3 Things New Homeowners Don't Know

Becoming a new homeowner is an exciting milestone. It can also be an overwhelming process full of decision-making, seemingly endless paperwork and new responsibilities. When the dust settles and you officially sign for your new home, your work doesn't end there. Many new homeowners don't realize these important things. Don't be caught unaware, be sure you understand these important tips.

Your Insurance Needs to Be Updated
Your home loan likely will require you to have adequate insurance on your house itself. This guarantees that in the event of an unpredictable situation, your lender will be protected. After all, if your house burns in a fire and is uninsured, the owner is unlikely to pay off the loan. 

However, this is not all you need. If you and a partner purchased the home together, you will need to look into an updated life insurance policy. In the event of a death, the other person must be able to continue house payments, and the correct life insurance policy can help make that possible. Consult a financial advisor to see how you can best prepare for the unexpected.

You Should Hone Your Handyman Skills
Between maintenance tasks, small updates, and routine fixes, you will likely spend a lot of cash if you don't learn how to DIY a few projects as a homeowner. Be sure you know your way around basic tools, and make certain you understand what annual maintenance needs to be completed to keep your home in its top form.

Shadow a friend or family member as they complete odd jobs around their home. Be willing to help them and you may learn some skills and get a worker the next time you need assistance. If this isn't an option, or you have a specific task you need to learn, consider signing up for a class at your local hardware store.

You Should Keep Your Renovation Receipts
While general repairs do not count, update and renovation costs to increase your home's basis. This means if you keep the receipts for any improvements to your home, you could find yourself saving some funds when you go to sell your home. This is because money spent on capital improvements can help lower your tax bill when you sell your home. Consult a tax professional to navigate this process. A higher cost basis reduces your total profit (or capital gain) and will result in paying fewer taxes at the time the seller purchases. For this reason, you will want to be sure to keep those receipts and save!

February
16

The Biggest Myths Of Selling A Home

Selling a home is a relatively rare life event for most people, so it's normal not to know what to expect. When seeking advice from neighbors, friends, or family, it might seem like everyone thinks they're an expert on real estate transactions. It's also common to hear myths and tall tales about the market or the selling process. 

As a first-time seller, don't believe everything you hear. Getting caught up in real estate myths can lead to bad decisions that ultimately cost you money in the long run. If you're planning on selling your home soon, be cognizant of these five myths of selling a home:

  • Renovations And Staging Aren't Important
    One of the biggest myths we hear in a hot seller's market is that staging and renovations aren't necessary because buyers are so eager to make an offer. This is simply untrue. Even though the market is incredibly competitive, a home in bad shape is still going to be unattractive to buyers.  Making renovations and staging your home is still your best bet for generating the best return. Just because the market isn't hot doesn't mean sellers should be lazy or skip the important parts.

  • You Can Save Money By Selling Your Home Yourself
    While it's certainly possible to sell a home on your own, you'll likely need to have experience, skills, and a lot of time on your hands in order to pull it off. While it may save you from paying an agent commission, there is also a good chance you'll leave money on the table.

    Real estate agents perform a number of tasks that provide tremendous value by helping you achieve a higher sale price. Staging, marketing, and negotiating are all important pieces. Without an expert in your corner, you might not get the best return.

  • Setting A High Price Leaves Room For Negotiation
    Many sellers think setting the bar high will leave more room for negotiation, but the truth is, many buyers won't even consider a home priced well above its value. By setting a high asking price, you're ultimately putting yourself in a position where you'll likely have to reduce the price after a few weeks, which may lead to buyer suspicions about potential problems.

  • Open Houses Don't Sell Homes
    Open houses have been a home selling tactic for decades, and they didn't disappear during the pandemic. While many people assume real estate agents hold open houses to drum up new business, they can actually be a very effective sales tactic. Open houses are likely to generate quick exposure to the market and can attract a higher number of interested buyers in a short period of time.

  • The Market Will Continue To Rise
    With the exception of two recent economic downturns, home values have consistently been on the rise for many years.  However, these recent recessions have proven that real estate is not a risk-free investment. The myth that home values will continue to rise year after year may influence a seller's decision to list their home. However, the truth is home values can and do fall, and they will fall again.

Selling a home isn't always easy, so arming yourself with the most accurate information is the best way to make decisions that lead to a good return. Of course, experienced real estate agents are often the best source of reliable information about the market. Let's connect when you are ready to learn more about today's market!

February
15

Rent-Back Agreements Explained

Buying and selling a home at the same time can be an intimidating experience. Lining up a buyer and a new home within a short timeframe requires tons of planning and a bit of luck. However, selling your home before closing on a new one doesn't mean you have to be left without a place to live. Sellers usually have a few different options to explore, including a rent-back agreement.

A rent-back agreement is a good way to buy yourself some extra time after a home sale. However, like most real estate negotiations, they come with benefits and risks. Below we'll explain everything you need to know about how these agreements work and why you might consider one:

What Is A Rent-Back Agreement?

A rent-back agreement is an arrangement that allows the seller to continue to live at a property as a tenant after the closing date. During this period, the buyer assumes the responsibility of a landlord. The purpose of a rent-back agreement is to give the seller extra time to find a place to live following the home sale.

The details of a rent-back agreement can be negotiated during the closing process. You'll need to work with the buyer to determine monthly payment, security deposit, agreement length, and utility responsibilities. The buyer's home insurance should cover the rent-back period. It's important to always consult with your real estate agent, lender, and attorney when negotiating the terms.

Rent-Back Agreements Can Have Many Benefits

Depending on the terms and situation, sellers can benefit from a rent-back agreement in a number of ways. For one, it can give you the flexibility to accept a strong offer before having a new home lined up. It can also give you more time to find your dream home as opposed to simply settling for a property out of necessity. 

Rent-back agreements can also be helpful if you have kids in school and would like them to finish out the school year before moving or changing districts. 

Rent-back agreements have obvious benefits for buyers too — as they can provide supplemental income that can help offset a small bit of the cost of the new home.

Disadvantages Of Rent-Back Agreements

Rent-back agreements are generally short, as most lenders only allow a rent-back period of 60 days. While the added time can be a huge benefit, it's not a long-term solution. During the rent-back period, sellers will need to abide by the lease terms set forth by the buyer.

The buyer will also need to assume the responsibility of the landlord. The arrangement may also be less appealing to buyers who are eager to move in quickly after closing.

The major risk of a rent-back agreement comes in the form of determining liability. Determining who has liability for damage or unforeseen circumstances is often part of the negotiation. Usually, the buyer's homeowners policy should cover the rent-back period; however, the seller may want to explore a short-term rental insurance policy to cover personal property.

Rent-back agreements are a common way for sellers to buy more time, but the true benefits will ultimately depend on your unique situation. Not all buyers will offer them, but sellers often have the leverage to ask for them in a hot market.

February
14

How to Fall in Love With a New Neighborhood

Falling in love with a neighborhood can be equally as important as the house when you're home searching. Whether you're looking to socialize with neighbors or you prefer to keep to yourself, selecting a neighborhood you love is essential to your overall contentment. Read on to determine the factors to consider as you search for a new home in a new neighborhood.

Commute Time
Suppose you regularly commute to your place of employment—this distance and time matters. Whether you drive or take the train, knowing the average daily commute time is an essential factor to consider. If you drive, calculate how long the drive will take, and if you take the train, make sure that the local train stop offers express trains.

Recreational Activities
Whether it's a country club, golf club, fitness center or pool, living near the amenities you use regularly is essential. It will result in less commuting time, less stress and afford you more time to engage in the recreational activities you love.

School Ratings
Regardless of if you have school-aged children or not, living near a highly-rated school should be an essential part of the home searching process. In addition to how the schools are rated on sites such as greatschools.org, you can review the school's state test scores, school programming options such as Advanced Placement (AP) classes, extracurricular activities, athletic programs and the Parent Teacher Association.

Access to Nature
If having access to nature is important to you, research the nearby parks, walking trails and hiking areas that are close to the neighborhood. If you enjoy taking long walks closer to home, ensuring the area has sidewalks or walking trails may be necessary.

Quantity and Age of the Trees
Tree-lined streets are an important part of a neighborhood to many home buyers. They signify a more established area and offer a certain charm that newer communities lack. They also provide health benefits, as they clean the air.

Neighborhood Amenities and HOA
Depending on your stance on homeowner's associations (HOA's), they may entice or deter you. For example, if you're looking for a neighborhood with a community feel and amenities such as a pool, clubhouse and other shared spaces, it likely means the neighborhood will have an HOA. On the other hand, an HOA's regulations may be too restrictive. Review the neighborhood's HOA bylaws before making an offer to ensure you're comfortable with the requirements that are in place.

Walkability
If you're someone who enjoys an early morning walk to get your coffee, making sure the local coffee shop is a quick walk away is one of the minor aspects that add up to your overall quality of life. Likewise, suppose you want the ability to walk into town to grab lunch, go shopping or for your hair appointment. In that case, ensuring your neighborhood is close to the town's central business district is an essential factor to add to your list.

Ultimately, the elements of a great neighborhood are the most important factors to you. Whether it's having a short commute time, highly rated schools or tree-lined streets, your requirements are all part of your unique home buying process.

February
11

Berkshire Hathaway HomeServices Bay Street Realty Group is excited to announce the hiring of veteran Realtor, Lisa Evans. In this role, she will continue her passion for helping others buy and sell real estate in the Beaufort area. Evans has been a licensed real estate agent in South Carolina since 2004. The Habersham community has always been her place of focus, but the entire Lowcountry is special to her. Prior to working in real estate, she worked as an independent sales representative for various companies in both North and South Carolina. Originally from Columbia, she graduated from Columbia College. She now lives in downtown Beaufort on the intracoastal waterway. In her free time, she loves walking downtown, enjoying great restaurants, shopping, gardening and spending time with family, friends and her pets. Bay Street Realty Group is excited for Lisa Evans to join their sales team in South Carolina, and to continue sharing her love for this region.

February
10

Want Top Dollar for Your House? Now's the Time To List It.

Want Top Dollar for Your House? Now's the Time To List It. | MyKCM

When you're selling any item, you usually want to sell it for the greatest profit possible. That happens when there's a strong demand and a limited supply for that item. In the real estate market, that time is right now. If you're thinking of selling your house this year, here are two reasons why now's the time to list.

1. Demand Is Very Strong This Winter

A recent article in Inman News explains:

"Spring, the hottest time of year for homebuyers and sellers, has started early, according to economists. . . . 'Home shopping season appears to already be in full swing!'"

And they aren't the only ones saying buyers are already out in full force. That claim is backed up with data released last week by ShowingTime. The ShowingTime Showing Index tracks the average number of monthly buyer showings on active residential properties, which is a highly reliable leading indicator of current and future trends for buyer demand. The latest index reveals this December was the most active December in five years (see graph below):

Want Top Dollar for Your House? Now's the Time To List It. | MyKCM

As the data indicates, buyers are very active this winter. Last December saw even more showings than December of 2020, which was already a stronger-than-usual winter. And remember – you want to sell something when there's a strong demand for that item. That time is now.

2. Housing Supply Is Extremely Low

Each month, realtor.com releases data on the number of active residential real estate listings (listings currently for sale). Their most recent report reveals the latest monthly number is the lowest we've seen in any January since 2017 (see graph below):

Want Top Dollar for Your House? Now's the Time To List It. | MyKCM

And don't forget, the best time to sell an item is when there's a limited supply of it available. This graph clearly shows how extremely low housing supply is today.

Even Though Supply Is at a Historic Low, Home Sales Are at a 15-Year High

According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), existing-home sales totaled 6.12 million in 2021 – the highest annual level since 2006. This means the market is hot and homeowners are in a great place to sell now while sales are so strong.

NAR also reports available listings by calculating the current months' supply of inventory. They explain:

"Months' supply refers to the number of months it would take for the current inventory of homes on the market to sell given the current sales pace."

The current 1.8-months' supply is the lowest ever reported. Here are the December numbers over the last five years (see graph below):

Want Top Dollar for Your House? Now's the Time To List It. | MyKCM

The ratio of buyers to sellers favors homeowners right now to a greater degree than at any other time in history. Buyer demand is high, and supply is low. That gives sellers like you an incredible opportunity.

Bottom Line

If you agree the best time to sell anything is when demand is high and supply is low, let's connect to begin discussing the process of listing your house today.

February
9

Don't Let Student Loans Delay Your Homeownership Dreams

Don't Let Student Loans Delay Your Homeownership Dreams | MyKCM

If you're looking to buy a home, you may be wondering how your student loan debt could impact those plans. Do you have to wait until you've paid off your student loans before you can buy your first home? Or could you qualify for a home loan with that debt?

To give you the answers you're searching for, let's take a look at what recent data shows. That way, you know what to expect and what to do next to achieve your dream of becoming a homeowner. While everyone's situation is unique, your goal may be more within your reach than you realize.

Do you have to delay your plans because of student loans?

If you're worried your student loans mean you have to put your homeownership goals on hold, you're not alone. In fact, many first-time buyers believe they have to delay their plans. According to data from the National Association of Realtors (NAR):

"When asked specifically about purchasing a home, half of nonhomeowners say student loan debt is delaying them from purchasing a home (51%)."

When asked why their student loans are putting their plans on the back burner, three key themes emerged:

  • 47% say their student loans make it harder to save for a down payment
  • 45% say they think they can't qualify for a home loan because of existing debt
  • 43% say they believe the delay is necessary even though they've never applied for a mortgage

No matter which reason resonates most with you, you should know a delay may not be necessary. Here's why.

Can you qualify for a home loan if you have student loans?

In the same NAR report, data shows many current homeowners have student loan debt themselves:

"Nearly one-quarter of all home buyers, and 37% of first-time buyers, had student debt, with a typical amount of $30,000."

That means other people in a similar situation were able to qualify for and buy a home even though they also had student loan debt. You may be able to do the same, especially if you have a steady source of income. Apartment Therapy drives this point home:

". . . buying a home with student loans is possible, experts say. The proof is in the numbers, too: Some 40 percent of first-time homebuyers have student loan debt, according to the NAR study."

The key takeaway is, for many people, homeownership is achievable even with student loans. 

The best way to make a decision about your goals and next steps is to talk to the professionals. A real estate advisor can walk you through your specific situation, your options, and what has worked for other buyers like you. They can also connect you with other professionals in the industry who can help. You don't have to figure this out on your own – lean on the experts so you have the information you need to make an informed, confident decision.

Bottom Line

Many other buyers with student loan debt are already achieving their homeownership dreams. Maybe it's time to take the next step toward making yours a reality. Let's connect to discuss your options and find out how close you are to achieving your goal.

February
7

2021's Surging Real Estate Market Expected to Stabilize in 2022

By: Will Thurman

Berkshire Hathaway Bay Street Realty Group

Steady demand and continued short supply are expected to keep the real estate market sizzling in 2022 although it will not be as steamy as 2021.

The National Association of Realtors (NAR) recently reported that 2021 was the strongest real estate market in 15 years. Sales were expected to top 6 million for the year rivaling the 6.48 million sold in 2006. Fueled by the lowest mortgage rates in 50 years (below 3 percent for most of 2021), existing home sales rose 11 percent compared to 2020 causing home inventory levels (both new and existing) to drop 12 percent lower than the year before, a recent NAR report stated. The existing supply of homes dropped to historic lows of 1.9 months at the start of the year, according to NAR data. Although inventory rose to 2.4 months by October, that level is still far below the generally accepted balanced market inventory of 6 months' supply.

With building materials and skilled labor still scarce, inventory is expected to remain tight, but expanding. Builders are expected to add more new homes to the market this year than last. Prices are projected to continue to rise, although not at the same pace as 2021. While home prices reached double digit increases in 2021 in 99 percent of metro markets, according to NAR, this year prices are expected to rise 3 percent to 4 percent. Affordability will remain a top issue – especially for first-time homebuyers, even though mortgage rates are expected to remain historically low (3.6-3.8 percent). The increase in mortgage rates is not expected to impact the luxury market, which looks to remain strong for the foreseeable future.

The double-digit price increases in 2021 created an influx of offers from foreign buyers and investors looking for stable investments. With home prices stabilizing, speculators are expected to pull back decreasing competition for primary home buyers. Although this will provide a welcome relief to home buyers compared to the whirlwind that was 2021, it will still be a seller's market.

With tight supply, homes are projected to continue selling swiftly. In 2021 the average home sold in 18 days, according to NAR. In a fast-paced and competitive market, investors and other cash buyers will continue to have the advantage. The share of all-cash sales rose to 23 percent in 2021 compared to 18 percent in 2020, the NAR report stated.

On the commercial side, the outlook is also positive for the coming year. The strongest sector remains the industrial market due to booming business at the Port of Savannah. The warehouse vacancy rate dropped to 2.4 percent last year spurring a whopping 4 million square feet of warehouse and distribution center construction projects currently underway increasing capacity by nearly 10 percent.

Tourism-related business will continue to drive the retail market downtown, with a discernible trend from national tenants to local and regional tenants. The thriving restaurant business has prompted the renovation of a significant number of downtown businesses for opening in 2022. Pooler will see continuous retail expansion, with the addition of big box outlets increasing traffic.

Savannah area business and professional firms added 1,000 new workers in the second half of 2021, which bodes well for the office sector for 2022. As there is very little new construction underway – only about 30,000 square feet – vacancy will continue to drop, and rents will probably increase another 3 percent to 5 percent. Most of the market demand is for small to mid-sized suites, and the tight inventory downtown and on the westside should propel renters back to the southside this year.

Finally, the multi-family boom in Savannah has continued through the pandemic, and the outlook remains strong for this year. There are a number of projects in the advanced planning stages, and with new residents coming into the market from other regions, vacancy rates will remain low. Area rents increased by 19 percent in 2021, mostly due to new inventory at the top end of the market.

Increasing rents will push young adults into the first-time homebuyer market. With the increase in remote work options, young, first-time buyers may benefit from buying in less competitive, less populated markets or taking on "projects" that older buyers may not want to tackle. Buying a fixer upper may be a good way to get into the market, but with continued supply chain disruptions, and busy contractors, buyers may need to be wary of which projects need to be addressed immediately and which ones can wait. A good deal on a house with cosmetic or non-essential issues could be a great way to break into the market. A good real estate agent can advise you on which contractors to contact for necessary renovations.

Although home prices are rising, Savannah is still a hot market and one of the best valued markets in the southeast. Buyers from other markets continue to be shocked at how much they can buy in this region.

2022 is sure to be a fireball of a year in the real estate market. Getting the best price as a buyer or seller requires a professional who knows the market. For help buying or selling your home, make sure to contact a trusted real estate professional.

February
7

Consumers Agree: It's a Good Time To Sell

Consumers Agree: It's a Good Time To Sell | MyKCM

In today's sellers' market, many homeowners are weighing their options and trying to decide if they should sell their house. If you're in that group, you may be balancing things like the ongoing health crisis, rising mortgage rates, and your own changing needs to determine your best time to make a move.

However, recent data shows that time may already be here. According to the latest Home Purchase Sentiment Index (HPSI) by Fannie Mae76% of consumers believe now is a good time to sell.

Looking back over the past few years, its clear consumers are incredibly optimistic today. The graph below shows the percent of survey respondents who say it's a good time to sell a house, and their positive outlook is on the rise. The big dip near the middle of the chart indicates how consumer sentiment about selling dropped at the beginning of the pandemic as uncertainty about the health crisis and its impact grew. The good news is, the trend today shows a continued, drastic improvement, and people are feeling more and more confident with time about selling a home.

In fact, survey respondents think it's an even better time to sell a house today than they did in the lead-up to the health crisis. The latest survey results indicate we're at one of the strongest peaks in seller sentiment since March of 2019, hitting highs when 77% of people thought it was a good time to sell only twice before in June and October of 2021.

Consumers Agree: It's a Good Time To Sell | MyKCM

Why Are Consumers So Optimistic About Today's Housing Market?

From record-high equity gains to record-low housing supply and significant buyer demand, homeowners have more motivation than ever to sell. There are more buyers in today's market than there are homes for sale, and that's driving home prices up, making it a great time to sell your house.

According to the National Association of Realtors (NAR), the current supply of homes for sale today is at a 1.8-month supply, which is an all-time low. When the supply of homes for sale is low, sellers will likely see more offers, which is exactly what's happening right now. As NAR notes:

"The average home for sale is receiving 3.8 offers today, up from 3.3 offers just one year ago."

Bottom Line

With the inventory of houses for sale so low today pushing home prices in an upward direction, it's no wonder consumers think it's a good time to sell. If you're ready to take advantage of today's favorable sellers' market, let's connect today.

February
6

Replacing Light Fixtures Can Help You Sell Your Home

When you're planning to put your home on the market, you have to look at it through the eyes of potential buyers. Things that don't bother you, or things that used to bother you, but you got used to, can be immediate turn offs for buyers. Replacing light fixtures can make your house more appealing.

Replace Fixtures That are Broken or Outdated
Buyers will notice light fixtures that don't work and may come away with a negative impression of your house as a whole. A broken light fixture can be more than an inconvenience; in some cases, it can be a symptom of a serious electrical problem. Buyers may wonder if the house has other maintenance issues that were overlooked.

Sometimes light fixtures work fine, but they're relics of a bygone era. Lighting that was stylish when it was installed may now make your house look dated. If that's the case, replacing those fixtures with more modern or timeless ones can make your home more attractive to prospective buyers. 

Think About Energy Efficiency
Buyers aren't just interested in a house's purchase price. They're also thinking about how much utilities and other expenses will cost them each month. If your house has light fixtures that aren't energy efficient, replace them with new, more efficient lighting that will save the future owners money on their electricity bills. 

Consider Increasing the Amount of Interior Lighting
Go through each room in your house, see how bright it is when all of the lights are on, and look for any areas that need additional lighting. It may be a good idea to add lighting in areas where you prepare food in the kitchen, in the bathroom above the sink, in closets or in places where people read, work and play. 

Evaluate the Exterior Lighting
When it comes to outdoor lighting, preventing accidents should be a top priority. Medical bills can be expensive. If a guest gets injured on the property, the homeowner may have to file an insurance claim and pay a deductible, as well as higher premiums later on. 

The walkway leading to the front door should be well lit so that family members and visitors don't trip and fall. Other outdoor areas, such as the driveway and patio, should have adequate lighting.

Look at your current outdoor lighting with security in mind. There should be enough lighting to deter burglars. If you don't already have motion-activated lights, consider installing some so that the future owner will know if anyone approaches the house at night. 

Ask Your Real Estate Agent for Advice
You may not be sure if you should replace specific light fixtures or add more lighting to a particular area. Your real estate agent understands what buyers are looking for and has seen many other houses in your area that are currently on the market. Your agent can advise you on whether you should install new light fixtures and may recommend specific styles or features.  

February
4

SAVANNAH, GA -- Berkshire Hathaway HomeServices Bay Street Realty Group is excited to announce the hiring of Stefanie W. Culbreth as Realtor. She joins the team with over five years of real estate experience and will continue to guide home buyers and sellers through the process, while also advising her clients on market trends. 

Culbreth previously worked as a Realtor for Southbridge Greater Savannah Realty, where she lived at the time, prior to moving to the Landings. Originally from Brunswick, Georgia, she has called Savannah home for over two decades and is excited to continue helping others find their forever home here. She has a passion for tennis, plays on several teams, is the President of Savannah Tennis League and the President of the Landings Women's Tennis League.

Culbreth has a 16 year old son, and now that he is grown, she looks forward to investing her time into her clients and growing her real estate business. Berkshire Hathaway HomeServices Bay Street Realty Group looks forward to bringing her experience to their growing team. 

February
4

How Remote Work Impacts Your Home Search [INFOGRAPHIC]

How Remote Work Impacts Your Home Search [INFOGRAPHIC] | MyKCM

Some Highlights

February
3

Millions of Americans Have Discovered the Benefits of Multigenerational Households

Millions of Americans Have Discovered the Benefits of Multigenerational Households | MyKCM

If your needs are changing, you may be thinking about sharing a home with additional loved ones, such as grandparents, adult children, or other extended family members. Whether it's for financial or health-related circumstances, or simply because you've reached a new phase of life, you might be wondering if living with multiple generations under the same roof is a good move for you. Many people have found themselves in a similar situation and they've already made the choice to live in a multigenerational home.

What Is a Multigenerational Home?

The Pew Research Center defines a multigenerational household as a home with two or more adult generations. They include households with grandparents and grandchildren under the age of 25. As you weigh your options and decide if multigenerational living is right for you, here's some helpful information highlighted by other homeowners living with additional loved ones.

The Benefits of Multigenerational Living

A recent report from Generations United surveyed individuals living in a multigenerational setting and asked them about the key benefits of this housing arrangement. It says:

"Nearly all Americans who live in a multigenerational household (98%) feel their household functions successfully, citing various aspects of home design, family relationships and interactions, and supports and services influencing their success."

The study identifies some of the top benefits of this lifestyle as an improved financial situation, better mental and physical health, strengthened bonds with loved ones, and more (see chart below):

Millions of Americans Have Discovered the Benefits of Multigenerational Households | MyKCM

Those are just some of the reasons why most people who decide to live in this situation find it worthwhile. As Donna Butts, Executive Director at Generations United, says:

"Families may come together from need, but they are staying together by choice. Indeed, more than 7 in 10 (72 percent) of those currently living in a multigenerational household plan to continue doing so long-term."

With More Adults Living Under One Roof, You May Need More Space

If you decide to look for a multigenerational home, it's important to understand what everyone will need to make the arrangement work to its fullest. Something that often makes the top of the list for homeowners living with multiple generations is additional space for privacy. This could mean more bedrooms and bathrooms or features like an in-law suite or a basement.

If you're realizing your current house doesn't provide the room you need for multigenerational living, an expert real estate advisor can help you navigate the process to find the right home that works for you and your loved ones.

Bottom Line

Living in a multigenerational household has real and impactful benefits. If you're interested in learning more about these options in our local area, let's connect so you can find a home that fits your changing needs.

February
2

Americans Choose Real Estate as the Best Investment [INFOGRAPHIC]

Americans Choose Real Estate as the Best Investment [INFOGRAPHIC] | MyKCM

Some Highlights

  • According to a Gallup poll, real estate has been rated the best long-term investment for eight years in a row.
  • Real estate tops the list because you're not just buying a place to call home – you're investing in your future. Real estate is typically considered a stable and secure asset that can grow in value over time.
  • Let's connect today if you're ready to make real estate your best investment this year.
February
1

Why a Move Could Bring You More Happiness This Year

Why a Move Could Bring You More Happiness This Year | MyKCM

Over the past two years, we've lived through one of the most stressful periods in recent history. Because of the health crisis, many of us have spent more time at home and that's led us to re-evaluate both what we need in a house and how much we appreciate having a safe space. If you've found your current home isn't filling all your needs, you may be wondering if it's time to find a new one.

There's reason to believe a change of scenery could boost your happiness. Catherine Hartley, an Assistant Professor at New York University's Department of Psychology and co-author of a study on how new experiences impact happiness, says:

"Our results suggest that people feel happier when they have more variety in their daily routines—when they go to novel places and have a wider array of experiences."

A move could be exactly the new experience you've been looking for. If that's something you're considering to better your lifestyle, here are a few things to keep in mind.

Approach Your Decision Thoughtfully and Explore Your Options

Buying and selling a home is a major life change, and it's not a decision you should enter lightly. But, if you're questioning whether or not a move would bring you more happiness, it's important to explore if it's the right choice for you.

To find out more and discuss your options, reach out to a local real estate professional. They'll explain the process – including how to list your existing house and search for a new one – in clear and simple terms.

You should also think about your lifestyle and what you're hoping to get out of your move. What needs aren't being met in your current home? What features would bring you more joy and make your life easier? For example, are you now working remotely and need a home office? Do you crave more fresh air and open outdoor space to unwind in? Knowing the answers to these questions can help you get started and position your real estate advisor to work with you so you can find just the right home.

Consider a Location with Weather That Will Boost Your Mood

Home features aren't the only thing to consider. You should also weigh your options when it comes to location. Is the weather something that's important to you? Does it have a tendency to impact your mood? If it does, you may want to factor it into your next move. The World Population Review shares:

"What states have the best weather? When evaluating each state for temperature, rain, and sun, some states stand out. . . . Climate and weather preferences are personal and subjective. . . . "

Better weather can mean different things to different people. Some prefer the heat, others cooler temperatures, and some want to experience all four seasons. Think about what makes you feel happiest and prioritize that in your home search. If you're moving to a whole new location, your agent is a great resource with a strong network to support you along the way.

Bottom Line

Moving could provide you with a fresh beginning and the chance to find happiness in your new home. Let's connect today to talk about your goals and options in the current market.

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