We continue to see a downward trend in the median house price. It is down again from last month's number:  $496K, which is down from a high of $550K early this summer. However, even at $470K, homeowners are seeing a 5% year over year appreciation rate. 

You will notice our months of inventory is also greatly increasing. We have increased to 3.1 months of inventory, up again from last month's 2.9 months and almost triple what it was a year ago, in September 2021.

That said, people are still listing their home for sale and buyers have more options to choose from. If you have a home and are thinking about selling, or if you want to buy, now may be the time.

Have questions or want more information - contact me today to discuss!

If you're in the market for buying a new home you may have been hearing all the buzz around a 2-1 buydown.  What is it exactly?

A 2-1 buydown is pre-paying the interest upfront for 2 years on your mortgage. This reduces your monthly payment via a 2% rate decrease in year 1 and then a 1% rate decrease in year 2.  Your payment goes back up to your stated rate in years 3-30. The expectation is that at some point you will be able to refinance the loan in or before year 3. See the graphic for an example of a $540K listing.  

Does the 2-1 buydown make sense for your situation? Is this temporary (2 year) buydown more or less beneficial than a permanent buydown?  The answer is - it depends. But if the seller is paying for it, it is likely a great tool to use to help keep your monthly mortgage payments more affordable. Give me a call today to discuss this option and how it might benefit you.

With today’s runaway inflation and rising interest rates, it may seem like a good idea to put your remodeling plans on hold. Or, maybe not.

According to the Leading Indicator of Remodeling Activity (LIRA) by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University,  remodeling expenditures are expected to cool down from 17.4 percent in 2022 to 10.1 percent by Q2-2023, citing steep slowdowns in homebuilding, retail sales of building materials, and renovation permits. While that may appear ominous, researchers say remodeling expenditures should reach $450 billion, well above the five percent historical average.

As existing and new home sales decelerate, so will the need for contractors and materials. BusinessInsider.com reports that lumber prices are already down to $604.50 per thousand board feet in July 2022, falling 47% year-to-date, and 65% off from the 2021 high of $1,733 per thousand board feet. Inventories are starting to pile up at both sawmills and home improvement stores, making contractors more affordable and available. As the cost to build declines, inflationary pressures on the housing market should subside.

But as long as overall inflation is still a problem, the Federal Reserve will keep raising overnight borrowing rates to banks, increasing the likelihood of a recession. Economists polled by Bloomberg.com say that over the next 12 months, a mild, brief recession is 47.5% likely.

If you decide to remodel, it’s wise to stay in your home for at least five years to comfortably weather any housing market volatility.

Have you ever wondered what the formula is to make money in real estate? Guidelines or rules can help you gauge profitability and improve your results before you invest in a home to flip and resell quickly, or a rental home.

Home flippers use the 70% rule, meaning that the maximum price you pay for a property to flip should be no more than 70% of the home’s after-repair value (ARV) minus the costs of improvements. Rocketmortgage.comsuggests you determine the maximum selling price by studying comparable area homes in similar condition to your planned renovations. Use this calculation: The After-repair value (ARV) ✕ .70 − Estimated repair costs = Maximum buying price.

For real estate rental properties, the 1% rule and the 50% rule are quick ways to determine if a property is a good buy-and-hold investment. The 1% rule means you should be able to charge no less than one percent of a property’s purchase price: $300,000 purchase price = $3,000 gross monthly rent.

To help you determine cash slow, Smartasset.com suggests that a property’s operating expenses should be roughly 50% of its gross income. If the property generates $3,000 a month in gross rent, the 50% rule is that you earmark $1,500 for expenses, excluding mortgage payments, HOA fees and property management costs. Whatever remains is your net operating income.

These percentage rules are only guidelines. Investors should research market conditions and plan for vacancies, unexpected repairs, and the possibility of rising operating costs.

Your home can reflect your personality and taste in unique ways by designing your own peel-and-stick wallpaper. But there’s a lot to consider – pattern size and scale, how to repeat the design; colorways; and of course, choosing which walls you want to accent.

Start with a search on the Internet of motifs you like, such as geometrics, abstracts, flowers, or landscapes. Redraw them yourself on paper, play with the styles, colors and designs you like best, take a picture on your phone, and then upload it to the device you want to use. Or, download a free drawing app like Autodesk Sketchbook or Krita directly from Techjunkie.com to your mobile device.

Once you have a design you like, save it to the cloud, then contact a customizer such as Tempaper.com to help you “see” your design. You can also get design assistance from the site for $75 per hour. Sites like Spoonflower.com and Zazzle.com can also help, and you can use your designs on art prints, stationery, and other paper or fabric goods.

Wallpaper is sold by the square foot, so you’ll need to measure the height and width of the wall you want to embellish. Upload your image file and add it to the cart where you can order a sample to see how it will look. Because the custom papers are digitally printed, you won’t be able to order textured or metallic finishes.

The design process can be lengthy, but it’s worth it to personalize your décor.