Don’t Let These Two Concerns Hold You Back from Selling Your House
If you’re debating whether or not you want to sell right now, it might be because you’ve got some unanswered questions, like if moving really makes sense in today’s market. Maybe you’re wondering if it’s even a good idea to move right now. Or you’re stressed because you think you won't find a house you like.To put your mind at ease, here’s how to tackle these two concerns head-on.Is It Even a Good Idea To Move Right Now?If you own a home already, you may have been holding off because you don’t want to sell and take on a higher mortgage rate on your next house. But your move may be a lot more feasible than you think, and that’s because of your equity.Equity is the current market value of your home minus what you still owe on your loan. And thanks to the rapid appreciation we saw over the past few years, your equity has gotten a big boost. Just how much are we talking about? See for yourself. As Dr. Selma Hepp, Chief Economist at CoreLogic, explains:“Persistent home price growth has continued to fuel home equity gains for existing homeowners who now average about $315,000 in equity and almost $129,000 more than at the onset of the pandemic.”Here’s why this can be such a game-changer when you sell. You can use that equity to put down a larger amount on your next home, which means financing less at today’s mortgage rate. And in some cases, you may even be able to buy your next home in cash, avoiding mortgage rates altogether.The bottom line? Your equity could be the key to making your next move possible.Will I Be Able To Find a Home I Like?If this is on your mind, it’s probably because you remember just how low the supply of homes for sale got over the past few years. It felt nearly impossible to find a home to buy because there were so few available.But finding a home in today’s market isn’t as challenging. That’s because the number of homes for sale is growing, giving you more options to choose from. Data from Realtor.com shows just how much inventory has increased – it's up almost 30% year-over-year (see graph below):And even though inventory is still below pre-pandemic levels, this is the highest it’s been in quite a while. That means you have more options for your move, but your house should still stand out to buyers at the same time. That’s a sweet spot for you.It’s important to note, though, that this balance varies by local market. Some places may have more homes for sale than others, so working with a local real estate agent is the best way to see what inventory trends look like in your area. Bottom LineIf you’re thinking about selling, hopefully these concerns haven’t kept you up at night. With this information, you should realize you don’t have to let the what-if’s delay your move anymore.Let’s connect so you have the data and the local perspective you need to move forward. Reach me at https://linktr.ee/brianeastwoodrealtor. It can be overwhelming, but I’m here to help.
Buyers: You May Be a First-Time Home-buyer and Not Know It, Greater Phoenix is a Buyer's Market Again, For Now
Are you a first time home buyer? The definition isn't as cut and dried as it used to be, so even if you've owned a home before you may qualify for first time home buyer benefits - true story! Much of the Valley is now looking to favor buyers in the marketplace, but that's not expected to last long as rates come down we'll have more competition in the marketplace. Early 2025 is going to be a prime time for Sellers to finally get some value out of the market. But, don't just take my word for it, hear what our smart economists at the Cromford Report have to say about each segment, and as we approach market balance - let's have a solid plan in place whether your goal is to buy or sell; let's get the most value for you no matter what your goal. For Buyers:Newsweek released an article on November 6th announcing that the average age of a first-time home-buyer is now 38 years old, an all-time high (1). One may assume that the increase is due to poor affordability, which is reasonable, but complicating the matter is HUD’s unique definition of a first-time home-buyer.According to the HUD HOC Reference Guide (2), a first-time home-buyer is an individual who meets any of the following criteria:- An individual who has had no ownership in a principal residence during the 3-year period ending on the date of purchase of the property. This includes a spouse (if either meets the above test, they are considered first-time home-buyers).- A single parent who has only owned with a former spouse while married.- An individual who is a displaced homemaker and has only owned with a spouse.- An individual who has only owned a principal residence not permanently affixed to a permanent foundation in accordance with applicable regulations.- An individual who has only owned a property that was not in compliance with state, local or model building codes and which cannot be brought into compliance for less than the cost of constructing a permanent structure.So even though someone may have purchased their first home with a spouse in their 20’s, had kids, and divorced in their late 30’s, that individual would still qualify as a first-time home-buyer. Or if they sold their home and rented for 3 years, they’re considered a first-time home buyer again. Due to this definition, it’s not surprising that the average age has risen. Why does this matter?There are specific national, state, and local grant programs that provide closing cost assistance, down payment assistance, and interest rate relief specifically to those who qualify as first-time home-buyers (3). In the past, it was incredibly difficult to convince sellers to accept an offer from a buyer utilizing these aid programs due to the extraordinary competition for homes. However, now the landscape has changed. Greater Phoenix has moved into a buyer’s market now and more sellers are willing to consider accepting offers utilizing these programs in the absence of multiple offers.Buyer’s markets are rare in Greater Phoenix. While the last one was in 2022, it only lasted 4 weeks. Before that, 2014 fell just short of reaching a buyer’s market, but maintained a slight buyer’s advantage for 4 months. Before that, the last buyer’s market was in 2010, which also lasted 4 months. This time around, it depends on whether mortgage rates stagnate or decline once again. If they drop below 6.5% like they did in September and stabilize, then the market could improve for sellers again within a matter of weeks and the buyer’s market would be over.For Sellers: Mortgage rates took an unexpected turn over the past month and popped up from the mid-6% to over 7% once again. As of this writing, they have only slightly dropped to 6.9%. Since rates became excessively volatile in 2022, the housing market has proven time and time again that when they stagnate in the high-6% range or more, it strangles demand. This has pushed Greater Phoenix out of a balanced market and into a buyer’s market over the past 2 weeks. To make things worse, it happened during the 4th quarter, which is typically the lowest time for sellers seasonally.How long this buyer’s market lasts depends mostly on how long mortgage rates remain elevated. Sellers with less urgency may want to consider listing in the 1st quarter of 2025 as buyer activity picks up from January through May. In the meantime, if they must compete in this marketplace, property condition and competitive pricing at the onset is highly important to ensure a contract. Budget to pick up the buyer’s closing costs, rate buy down, and repairs. Then hunker down for the next 30-60 days as longer marketing times are expected over the holidays.
The Majority of Veterans Are Unaware of a Key VA Loan Benefit
For over 79 years, Veterans Affairs (VA) home loans have helped countless Veterans achieve the dream of homeownership. But according to Veterans United, only 3 in 10 Veterans realize they may be able to buy a home without needing a down payment (see visual below):That’s why it’s so important for Veterans – and anyone who cares about a Veteran – to be aware of this valuable program. Knowing about the resources available can make the path to homeownership easier and keep life-changing plans from being put on hold. As Veterans United explains:“The ability to buy with 0% down is the signature advantage of this nearly 80-year-old benefit program. Eligible Veterans can buy as much house as they can afford, all without the need to spend years saving for a down payment.”The Advantages of VA Home LoansVA home loans are designed to make homeownership a reality for those who have served our country. These loans come with the following benefits according to the Department of Veterans Affairs:1. Options for No Down Payment: One of the biggest perks is that many Veterans can buy a home with no down payment at all, making it simpler to get started on your homebuying journey.2. Limited Closing Costs: With VA loans, there are limits on the types of closing costs Veterans have to pay. This helps keep more money in your pocket when you’re ready to finalize the sale.3. No Private Mortgage Insurance (PMI): Unlike many other loan types, VA loans don’t require PMI, even with lower down payments. This means lower monthly payments, which adds up to big savings over time.Your team of expert real estate professionals, including a local agent and a trusted lender, are the best resource to understand all the options and advantages available to help you achieve your homebuying goals.Bottom LineOwning a home is a key part of the American Dream, and VA home loans are a powerful benefit for those who’ve served our country. Let’s connect to make sure you have everything you need to make confident decisions in the housing market. Reach me at https://linktr.ee/brianeastwoodrealtor. It can be overwhelming, but I’m here to help.
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