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Category: Housing market updates

Feb

Wondering What’s Going on with Home Prices?

The recent changes in home prices are top of mind for many as the housing market begins gearing up for spring. It can be hard to navigate misleading headlines and confusing data, so here’s what you should know about today’s home prices.

Local price trends still vary by market. But looking at national data, Nataliya Polkovnichenko, Ph.D., Supervisory Economist at the Federal Housing Finance Agency (FHFA), explains:

“U.S. house prices were largely unchanged in the last four months and remained near the peak levels reached over the summer of 2022. While higher mortgage rates have suppressed demand, low inventories of homes for sale have helped maintain relatively flat house prices.”

Month-over-month home price changes can be seen in the chart below. The data also shows that price depreciation peaked around August. Since then, any depreciation has been even milder. In other words, today’s home prices aren’t in a freefall.

Wondering What’s Going on with Home Prices? | Simplifying The Market

What Does This Mean for You?
If you currently own your house, you may be concerned about even the smallest decline in prices. But keep in mind how much home values grew over the last few years. Compared to that growth, any declines we’re seeing nationally are likely to be minimal. Selma Hepp, Chief Economist at CoreLogic, shares:

“. . . while prices continued to fall from November, the rate of decline was lower than that seen in the summer and still adds up to only a 3% cumulative drop in prices since last spring’s peak.”

It’s also important to remember that every local market is different. That’s why it’s essential to lean on an expert for the latest information on the home prices in your area if you’re planning to make a move this spring.

Bottom Line
To understand what’s going on with home prices in your market and how they could impact your goals, contact us today!

Jan

Why it makes sense to move before spring

Spring is usually the busiest season in the housing market. Many buyers wait until then to make their move, believing it’s the best time to find a home. However, that isn’t always the case when you factor in the competition you could face with other buyers at that time of year. If you’re ready to buy a home, here’s why it makes sense to move before the spring market picks up.

Spring Should Bring a Wave of Buyers to the Market
In most years, the housing market goes through predictable seasonal trends in activity. Winter is typically a quiet point in the year, while spring sees a surge of buyers begin their search. And experts project that this year will be no exception.

Right now, buyer demand is low due to a combination of normal seasonal trends and a reaction to last year’s rise in mortgage rates. But rates have started to come down since last November, which has more and more potential buyers planning to jump into the market. That means right now is a sweet spot if you’re in a good position to buy, before more buyers reappear. Affordability is beginning to improve, but demand is still low — for now. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), shares:

“. . . expect sales to pick up again soon since mortgage rates have markedly declined after peaking late last year.”

If you’re ready to buy a home, right now is the best time to do so before your competition grows and more buyers enter the market.

Today’s Sellers Are Motivated
Low demand from buyers often means sellers are more motivated to work with you, and that can set you up to buy a home on your terms. In fact, sellers have been more willing to negotiate this winter because there are fewer buyers in the market. According to a recent article from Forbes:

“. . . sellers gave concessions to buyers in 41.9% of home sales in the fourth quarter of last year.”

But keep in mind, the advantages buyers have this winter won’t last forever. The competition you face could be greater if you wait until spring to make a move, and increased buyer demand means sellers will have less motivation to negotiate with you. Be sure to work with a trusted real estate professional to learn what you can expect in your local market right now.

Bottom Line
If you’re in a position to buy a home, it may make sense to move before spring. Working with your team of expert real estate advisors is the best way to learn about the current market and what it means for you. Connect with a professional today to determine the best plan to achieve your homebuying goals.

Jan

Preapproval in 2023…what you need to know

One of the first steps in your home-buying journey is getting pre-approved. To understand why it’s such an important step, you need to understand what pre-approval is and what it does for you. Business Insider explains:

“In a preapproval [sic], the lender tells you which types of loans you may be eligible to take out, how much you may be approved to borrow, and what your rate could be.”

Basically, pre-approval gives you critical information about the home-buying process that’ll help you understand your options and what you may be able to borrow.

How does it work? As part of the pre-approval process, a lender will look at your finances to determine what they’d be willing to loan you. From there, your lender will give you a pre-approval letter to help you understand how much money you can borrow. That can make it easier when you set out to search for homes because you’ll know your overall numbers. And with higher mortgage rates impacting affordability for many buyers today, a solid understanding of your numbers is even more important.

Pre-Approval Helps Show You’re a Serious Buyer
Another added benefit is pre-approval can help a seller feel more confident in your offer because it shows you’re serious about buying their house. A recent article from Forbes notes:

“From the seller’s perspective, a preapproval [sic] letter from a reputable local lender often can make the difference between accepting and rejecting an offer.”

This goes to show, even though you may not face the intense bidding wars you saw if you tried to buy during the pandemic, pre-approval is still an important part of making a strong offer. In fact, Christy Bieber, Personal Finance Writer at The Motley Fool explains it may be the most important part of making an offer:

“Pre-approval maximizes the chances you’ll be able to actually close the deal – and sellers want to see that.

The fact that a pre-approval gives you a better chance of getting your offer accepted is undoubtedly the most important reason to complete this step . . .”

Bottom Line
Getting pre-approved is an important first step toward buying a home. It lets you know what you can borrow and shows sellers you’re serious about purchasing their home. Connect with a local real estate professional and a trusted lender so you have the tools you need to purchase a home in today’s market.

Dec

Confused About What’s Going on in the Housing Market? Lean on a Professional.

If you’re thinking about buying or selling a home, you probably want to know what’s really happening with home prices, mortgage rates, housing supply, and more. That’s not an easy task considering how sensationalized headlines are today. Jay Thompson, Real Estate Industry Consultant, explains:

“Housing market headlines are everywhere. Many are quite sensational, ending with exclamation points or predicting impending doom for the industry. Clickbait, the sensationalizing of headlines and content, has been an issue since the dawn of the internet, and housing news is not immune to it.”

Unfortunately, when information in the media isn’t clear, it can generate a lot of fear and uncertainty in the market. As Jason Lewris, Cofounder and Chief Data Officer at Parcl, says:

“In the absence of trustworthy, up-to-date information, real estate decisions are increasingly being driven by fear, uncertainty, and doubt.”

But it doesn’t have to be that way. Buying or selling a home is a big decision, and it should be one you feel confident making. To help you separate fact from fiction and get the answers you need, lean on a local real estate advisor.

A trusted expert is your best resource to understand what’s happening at the national and local levels. They’ll be able to debunk the headlines using data you can trust. And using their in-depth knowledge of the industry, they’ll provide context so you know how current trends compare to the normal ebbs and flows in the industry, historical data, and more.

Then, to make sure you have the full picture, they’ll tell you if your local area is following the national trend or if they’re seeing something different in your market. Together, you’ll use all of that information to make the best possible decision for you.

After all, making a move is a potentially life-changing milestone. It should be something you feel ready for and excited about. And that’s where an agent comes in.

Bottom Line
If you have questions about the headlines or what’s happening in the housing market today, connect with a real estate professional for expert insights and advice.

Oct

Mistakes to Avoid During Your Home Inspection

Before buying a home, you need to make sure it’s not going to fall apart days after you move in. The first way to do this is to walk through a potential home. The most reliable method, however, is to have a home inspection. After all, a walkthrough can be quick and unreliable, while bringing in a professional is trustworthy. However, there are some mistakes you can make even when it comes to home inspections. And when it comes to making sure a potential home is safe, you need to be specific. So, to help you out, we’ve put together a list of mistakes to avoid during your home inspection, and we hope you find it helpful.

Not looking into the inspector

One of the mistakes to avoid during your home inspection is neglecting to research your inspector before hiring them. Just like with any profession, some inspectors are much worse than others. That can be due to a lack of experience or the wrong inspector. Either way, you shouldn’t take any chances regarding your and your home’s safety. Take the time to look into your inspector’s work experience; check if there were problems or complaints about their work. If you spot a few too many issues, you should probably consider a different home inspector. Remember, this is something you shouldn’t take any risks with, so be thorough. Additionally, when it comes to the home itself, you should look into how to know you’ve found your dream house. After all, that’s not something that happens often, so pay attention when looking.

One of the mistakes to avoid during your home inspection is not doing a background check on the inspector.

Refusing to get a presale inspection

On the flip side, if you’re selling the home, not getting an inspection before selling it can be a big mistake. That is because buyers usually get a home inspection done to ensure no issues are present. And if there are issues, buyers tend to give up on the property, which isn’t good for you. So, getting a presale inspection allows you to fix potential problems ahead of time, ensuring buyers don’t lose interest. Additionally, if you do this before listing the home, you could get away with listing the house for a higher price. All in all, getting a presale home inspection only benefits you as a seller. And if you’re buying and selling at the same time, consider some useful tips for buying and selling a house at the same time.

Not being present for the inspection

Being present for the home inspection has a lot of benefits for you. Firstly, you get to see the problems for yourself, if there are any. Second, you can ask your inspector as many questions about the home as you like. Home inspectors will often take the time to explain everything they’ve seen to homeowners if they’re present for the inspection. Also, reading the inspection report isn’t enough to give you a good idea of the situation. So, getting to see it in person is the best call, especially if you’re buying a home. That said, inspections can take quite a bit of time, so make sure to set aside the time. Additionally, make sure to plan for your move; experts from helixmoveva.com note that planning a move can take a lot of time, and you should be prepared for it ahead of time.

Being present during the home inspection has a lot of benefits.

Not preparing the home before the inspection

Another one of the mistakes to avoid during your home inspection which sellers make is not preparing the home ahead of time. The last thing you want is for your inspector to have to empty a closet to get into the attic. Ensure the home inspector has easy access to the house before arriving. Home inspections last a while anyway, so ensure you clear out everything so your home inspector doesn’t have to spend extra time just trying to get somewhere. Unlock the utility closet, shed, or basement, and make sure all access points are usable. Your home inspector will appreciate it, and you will save time. Also, when looking into buying a new home, consider the neighborhood amenities to look for when buying a home. You want to make sure your new home has everything you need.

Not reading the inspection report

Even if you’re present for the home inspection, you should take the time to read the inspection reports. Although your home inspector should verbally explain all the issues they find, reading through the report is still an excellent idea. There could be something they forgot to mention in the report, and you might as well read through it since you paid for it. Additionally, you can use the report when hiring experts to do repairs, as you can give them detailed descriptions of the problems. All in all, even if you’re sure you understood everything regarding the inspection, take the time to read the report anyway. As we already mentioned, the safety of your home isn’t something you should take chances with. So, ensuring nothing got glossed over is vital after any home inspection.

Once you receive the report, make sure to read through it.

Mistakes to avoid during your home inspection – wrap up

There are a lot of mistakes one can make when getting a home inspection. And this can be not nice since your home’s safety should always be taken seriously, and you can’t afford to take any chances with it. So, being there in person and asking specific questions is very important, as well as reading the report afterward. If you’re the one selling the home, remember that there are a lot of benefits to getting a home inspection done before listing the home. We hope this list of mistakes to avoid during your home inspection helps you, and we wish you a good day.

Photos used from Pexels

Jun

Useful tips for buying and selling a house at the same time

When it comes to buying and selling a house, the process can be daunting. Attempting both at the same time adds a new level of difficulty. As a buyer and a seller, you’ll have to negotiate in a seller’s market that’s particularly hot. The process of purchasing or selling a home cannot be completely predicted. However, planning your preferred strategy can make the ups and downs a little easier to navigate. Because of this, it’s essential to think ahead to avoid any problems that may develop. Here are a few pointers to help answer some of your most pressing issues about purchasing and selling a home at once.

1. Presentation is key

For the sake of the potential purchasers that walk through your door, you want your property to look its utmost best. Home staging can help with that. When you put your property on the market, you want buyers to visualize what it would be like to live there. When done correctly, selling a home quickly should not be an issue. One of the critical goals of home staging is to assist potential buyers in seeing the space as their potential home. The best method is to start with a completely blank canvas. You want your house to have a specific look and feel, but you don’t want it to have any personal touches. Keeping everything super clean is a no-brainer when selling your house. You should also provide as much natural light as possible.

2. Make sure you work with a seasoned real estate agent

The process of buying and selling a home at the same time can be complicated, which is why it is best to work with a professional. Additionally, an experienced local realtor can advise you on the best time to sell your home, in addition to assisting you in determining its market value. As well as designing a strategy, they can also help you with the negotiation of different components of the process.

3. Pay attention to the neighborhood

Most individuals prefer to live near the necessities of daily living, such as places to shop, parks, and places to eat. There are many other things to consider, such as accessibility, proximity to public transport, schools, and of course, healthcare. This is very important both when buying and selling a property because it will give you an idea of the right price. Make sure you always scout out the amenities in the area.

4. Consider a short-term loan

A “bridge loan” is an option if you don’t have enough money for a down payment. It’s a short-term loan that takes advantage of the equity in your present home to make the down payment you need to buy a new property. Taking on two mortgage payments for up to six months or a year, which is the standard duration for bridge loans, is the only way to go about this.

5. Pay attention to the price

Your home’s selling price is one of the few elements that you have control over during the process. If you undervalue your property, you will have less money towards your next down payment. However, if you price your home too expensive, you risk the buyers passing on your property. For the best chance of receiving multiple offers, you can attempt selling the home at or slightly below market value and then selecting the most attractive offer among them.

6. Consider your leasing options

A “back rent” agreement with the buyer of your present house is a possibility you might want to consider. Homeowners frequently require additional time after closing to either relocate or find a new residence. Moving into a rental property before making a final decision is another possibility. For those going to a new city, this technique is typical because they don’t have much time to buy a house first. It’s best to find a single-family home if you can sign a month-to-month lease. It’s best to advise your landlord or leasing agency upfront if you plan to vacate the property after a certain period. As a result, your options may be limited, and the monthly charge may be increased. It’s better than breaking a 12-month lease and incurring fees.

7. Prepare for the move

You’ll have a long checklist for your residential move when buying and selling a house at the same time. With a bit of forethought and organization, you’ll be able to do everything and still have time to unwind. Make sure you list everything you need to do and take one step at a time to avoid unnecessary stress. You might also want to do a pre-move and post-move checklist. Detailed planning can make all the difference! If you organize your move well, you won’t be too stressed out to enjoy this huge step in your life.

8. Mind the curb

Everyone, including potential homebuyers, will want to see what’s inside if the outside creates a good first impression. On a day, week or month, you can make significant changes. One of the most effective methods to improve the look of your home’s exterior is to add some lush greenery. Plant some flowers and trim the grass in front of your house. Paint your fence, replace the shabby mailbox with a shiny new one, and make your home look pristine from the outside! This is a failproof way of attracting potential buyers to your property.

Closing words

Buying and selling a house should always be a very gratifying experience, even if it is a challenging process. If you work with reputable professionals, it will be easier to do this with less risk and difficulties. Check to see that you are well-prepared and have lots of patience. And remember to keep a positive attitude! Best of luck with your relocation!
Meta description: Buying and selling a house at the same time can be a hard and scary process. These tips will help you to skip the stress and get right to success!

Photos used:
https://unsplash.com/photos/rgJ1J8SDEAY
https://unsplash.com/photos/OtXADkUh3-I
https://unsplash.com/photos/eBWzFKahEaU
https://unsplash.com/photos/uOYak90r4L0

May

Turning Your Home’s Garage into the Ideal Home Office in 5 Easy and Creative Steps

If you’re a remote worker needing a dedicated space to get your work done, you may be able to create your ideal home office in an unexpected space – your garage! Although your garage might be the last place that crossed your mind to use as an office, the fact of the matter is you can easily adapt your current garage for your work needs. Whether you’re based in Naperville, Illinois, or Bakersfield, California, you can adjust your garage in just five quick steps.

1. Make Sure Your Space Contains Functional Storage and a Practical Work Area
One of the first steps to take when converting your garage into an office is making sure it’s functional for your work. This generally means establishing a designated work area and installing storage space.

For example, you could build shelves into the wall to keep materials organized. You may also want to place your desk and work supplies in a well-lit corner.

2. Insulate the Garage Properly and Bring in Natural Light for Your Own Comfort
According to one study, getting enough natural light during the workday is the key to avoiding stress, frustration, and work-related headaches. If you have the budget for it, you may want to renovate your garage to ensure it’s a comfortable and supportive physical environment. For instance, you may wish to:
• Install larger windows
• Insulate the garage to keep out the heat or cold
• Install air conditioning or central heating

3. Spruce Up Your Garage’s Wall Space to Add an Aesthetic and Practical Touch
Although your main focus when converting the garage may not be on what to do with the empty wall space, sprucing up your walls can make a major difference for both the aesthetics of the garage and even its practical value. For instance, you could paint the walls for a quick visual overhaul. You could also hang up practical charts relating to your job, or other helpful visuals, such as a world map, to create a more https://www.bestar.ca/enhance-office-experience-8-ways-create-inviting-office/professional feel.

One easy option you shouldn’t overlook is putting up wallpaper. This route can be easily customized, and wallpaper may be surprisingly durable, classy, and attractive in its design. If you’ve never worked with wallpaper before, you may want to go the peel-and-stick route. This unique wallpaper type is repositionable and can even be taken down with minimal effort. If you want to up the stakes and create a luxurious feel in your office, opt for grasscloth wallpaper for your home for a rich, elegant look and a pleasing texture.

4. Create a High-Tech Workspace by Upgrading to a Few Modern Amenities
For a true home office feel, having some high-tech, modern workplace amenities is essential. Depending on what your budget will allow, you may wish to rewire your garage to include a few pieces of tech. These could include:
• A built-in webcam
• Dual monitors
• A standing desk
• Built-in loudspeakers

5. Keep Your Garage Clean by Decluttering at Least Once a Month
Lastly, if you’re like most people, there’s a good chance that your garage is currently mostly used as storage space. A once-monthly cleaning and decluttering session can help you maintain a professional office feel. You should:
• Dust off your office furniture
• Clean up clutter from the floors
• Run the vacuum

If you work at home and you need dedicated office space, look no further than your own garage. This unlikely space could be transformed into the ideal home office in just a few easy and creative steps.

Feb

Want Top Dollar for your home? List now!

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.

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.

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.

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, contact to discuss listing your house today.

Jan

Downsizing as a Single Parent: General Tips and Tech to Help

After deciding to downsize to a smaller home, there is a lot to think about. You must get your home ready for a quick sale. You have to find the right home for your family to move to and make a smooth transition. This process requires many small tasks that can overwhelm even the most easygoing going of us. And when you’re a single parent, things can get even more intense!

Fear not—Bill White Homes is here with some tips and resources to help you plan for a fast, painless downsize!

Prep Your Home
First of all, you will want to diligently prep your home for a quick and profitable sale.

● Pare down your belongings, selling or donating any items you will not take with you to the new home.
● Stage your home to impress potential buyers, which might include rearranging furniture, upgrading the decor, and depersonalizing each space.
● Look into the various websites and mobile apps that provide design ideas for your upgrades.
● Consider hiring a professional interior designer or home stager to transform your home before you put it on the market.

Find a New Home
When it comes time to zero in on the ideal home for your family, keep these tips in mind:

● Assess the layout of any home you’re considering to ensure it will meet the needs of your family.
● Also, research the neighborhood to get a feel for the safety and convenience it can add to your life.
● Use real estate sites to browse the housing market, which will allow you to see the home prices and features available in the area.
● Work with an expert realty team like Bill White Homes to make your entire home selling and buying process less stressful!

Move Smoothly
On moving day, you’ll be glad you took the time to put the pieces in place for a smooth transition!

● Start packing up your old home as early as possible, and pack all of your items so that you can efficiently unpack them in your new home.
● Use software to merge PDF files to have fewer paper documents to take with you.
● Arrange for professional movers to transport your possessions from A to B.
● Consider hiring a babysitter if you need help keeping your children safe and occupied on moving day. There are lots of excellent apps for finding reputable local babysitters!

Who says that a single parent has to go through the downsizing process overwhelmed? By planning out your steps beforehand, you can set yourself and your family up for a smooth experience. Keep the tips above in mind as you get your home ready to sell, look for a new home, and arrange the moving day details. You and your kids will be settling comfortably into your new home and life together in no time!

Are you looking for an experienced realty team in Naperville? Contact Bill White Homes today!

Sep

If you’re a buyer, is offering asking price enough?

In today’s real estate market, buyers shouldn’t shop for a home with the expectation they’ll be able to negotiate a lower sales price. In a typical housing market, buyers try to determine how much less than the asking price they can offer and still get the home. From there, the buyer and seller typically negotiate and agree on a revised price somewhere in the middle.

Things Are Different Today
Today’s housing market is anything but normal. According to the National Association of Realtors (NAR), homes today are:

Receiving an average of 3.8 offers
Selling in just 17 days
Homes selling quickly and receiving multiple offers highlights how competitive the housing market is right now. This is due, in large part, to the low supply of homes for sale. Low supply and high demand mean homes often sell for more than the asking price. In some cases, they sell for a lot more. Selma Hepp, Deputy Chief Economist at CoreLogic, explains how these stats can impact buyers:

“The imbalance between robust demand and dismal availability of for-sale homes has led to a continual bidding over asking prices, which reached record levels in recent months. Now, almost 6 in 10 homes listed are selling over the asking price.”

You May Need To Rethink How You Look at a Home’s Asking Price
What does that mean for you? If you’ve found your dream home, you need to be realistic about today’s housing market and how that impacts the offer you’ll make. Offering below or even at a home’s asking price may not cut it. In today’s market, the highest bidder often wins the home, much like at an auction.

Currently, the asking price is often the floor of the negotiation rather than the ceiling. If you really love a home, it may ultimately sell for more than the sellers are asking. That’s important to keep in mind as you work with your agent to craft an offer.

Understand An Appraisal Gap Can Happen
Because of today’s home price appreciation and the auction-like atmosphere in the selling process, appraisal gaps – the gap between the price of your contract and the appraisal for the house – are more frequent.

According to data from CoreLogic:

“Beginning in January 2020, nationally, 7% of purchase transactions had a contract price above the appraisal, but by May 2021, the frequency had increased to 19% of purchase transactions.”

When this happens, your lender won’t loan you more than the home’s appraised value, and the seller may ask you to make up the difference out of pocket. Buyers in today’s market need to be prepared for this possibility. Know your budget, know what you can afford, and work with a trusted advisor who can offer expert advice along the way.

Bottom Line
Bidding wars and today’s auction-like atmosphere mean buyers need to rethink how they look at the asking price of a home. Work with a real estate professional who can advise you on the current market and help determine what the market value is on your dream home.