The Latest Builder Trend: Smaller, Less Expensive HomesEven though affordability is improving, buying a home can still feel tough right now. But here’s some good news: builders are focusing their efforts on building smaller homes, and they’re offering key incentives to buyers. And both of these things can be a big help if you're worried about finding a home that’s right for your budget.
Builders Are Building Smaller HomesDuring the pandemic, homebuyers were looking for larger homes—and many could afford them. Builders responded to that demand and created bigger spaces to help people with things like working from home, setting up home gyms, and having extra rooms for virtual school.
Now, with affordability as tight as it is, builders are turning their focus to smaller single-family homes. Data from the Census shows how significant this trend toward smaller new homes has been over the last couple of years (see graph below):
But why would builders want to build smaller homes right now? At the end of the day, builders are going to focus on building homes that meet current market demand – because they want to build what they know will sell. And the number one thing homebuyers are looking for right now is better affordability. Since smaller homes typically come with smaller price tags, both buyers and builders have shifted their focus to homes with less square footage. The National Association of Home Builders (NAHB) reports:
“. . . home buyers are looking for homes around 2,070 square feet, compared to 2,260 20 years ago.”
And according to Orphe Divounguy, Senior Economist at Zillow:
“Not only are cash-strapped buyers continually seeking out lower-cost options, but developers are changing what type and size of home they're producing to try and meet that need."
How a Newly Built Home Can Help You Achieve Your Homebuying GoalsSo, if you’re having a hard time finding something in your budget, it may be time to look at brand-new homes that have a smaller footprint. When you do, you may get a few other fringe benefits that can help on the affordability front – like price reductions or mortgage rate buy-downs.
According to the most recent data from Zonda, more than half of builders are offering incentives, some of which are mortgage rate buydowns. And those perks could help lower your future monthly housing payment too. John Burns, CEO of John Burns Research & Consulting, shares:
“The monthly payment matters more than anything else and builders have responded with smaller, more efficient homes.”
Not to mention, with new home construction, you’ll also get brand new everything, have fewer maintenance needs, and get some of the latest features available. That’s worth looking into, right?
Bottom LineWith builders focusing on smaller homes, you may have more budget-friendly options when it matters most. If you're thinking about buying a home soon, let’s connect and see what’s available where you want to live.
Mortgage Rates Drop to Lowest Level in over a Year and a HalfMortgage rates have hit their lowest point in over a year and a half. And that’s big news if you’ve been sitting on the homebuying sidelines waiting for this moment.
Even a small decline in rates could help you get a better monthly payment than you would expect on your next home. And the drop that’s happened recently isn’t small. As Sam Khater, Chief Economist at Freddie Mac, says:
“Mortgage rates have fallen more than half a percent . . . and are at their lowest level since February 2023.”
But if you want to see it to really believe it, here’s how the math shakes out. Take a closer look at the impact on your monthly payment.
The chart below shows what a monthly payment (principal and interest) would look like on a $400K home loan if you purchased a house back in April (this year’s mortgage rate high), versus what it could look like if you buy a home now (see below):
Going from 7.5% just a few months ago to the low 6s has a big impact on your bottom line. In just a few months’ time, the anticipated monthly payment on a $400K loan has come down by over $370. That’s hundreds of dollars less per month.
Bottom LineWith the recent drop in mortgage rates, the purchasing power you have right now is better than it’s been in almost two years. Let’s talk about your options and how you can make the most of this moment you’ve been waiting for.
Getting your house ready to sell? Here’s a few tips on what you may want to do to prepare. Focus on making it inviting, showing it’s cared for, and boosting your curb appeal. If you want specific advice to help your house stand out in our local market, let’s connect.
Why Pre-Approval Should Be at the Top of Your Homebuying To-Do ListSince the supply of homes for sale is growing and mortgage rates are coming down, you may be thinking it’s finally your moment to jump into the market. To make sure you’re ready, you need to get pre-approved for a mortgage.
That’s when a lender looks at your finances, including things like your W-2, tax returns, credit score, and bank statements, to figure out what they’re willing to loan you. After that process, you’ll get a pre-approval letter to show what you can borrow. Here are two reasons why this is essential in today’s market.
Pre-Approval Helps You Know Your NumbersWhile home affordability is finally starting to show signs of improving, it’s still tight. So, it’s a good idea to talk to a lender about your loan options and how today’s changing mortgage rates will impact your monthly payment. The pre-approval process is the perfect time for that. In addition to determining the maximum amount you can borrow, pre-approval also helps you understand this piece of the puzzle. As Investopedia says:
“Consulting with a lender and obtaining a pre-approval letter allows you to discuss loan options and budgeting with the lender; this step can clarify your total house-hunting budget and the monthly mortgage payment you can afford.”
You should use this information to tailor your home search to what you’re actually comfortable with budget-wise. Since mortgage rates have inched down some lately, you may find you’re able to afford a bit more than you’d expect for your monthly payment, but you still want to avoid overextending. As CNET explains:
“In many cases, a lender may preapprove you for more than you need to spend on a home. And while it can be tempting to look at houses outside your budget, it won’t help you in the long run. Before you start touring homes, figure out how much you can realistically afford and stick to your budget.”
Pre-Approval Makes Your Offer More AppealingAnd once you do find a home you want in your budget, pre-approval has another big perk. It not only makes your offer stronger, it also shows sellers you’ve already undergone a credit and financial check. When a seller sees you as a serious buyer, they may be more attracted to your offer because it seems more likely to go through. As Greg McBride, Chief Financial Analyst at Bankrate, says:
“Preapproval carries more weight because it means lenders have actually done more than a cursory review of your credit and your finances, but have instead reviewed your pay stubs, tax returns and bank statements. A preapproval means you’ve cleared the hurdles necessary to be approved for a mortgage up to a certain dollar amount.”
As mortgage rates trend down, more buyers are going to be ready to jump back into the market. And while demand is still limited right now, there’s the potential for competition to pick back up, especially in hot markets. So, why not stack the deck in your favor and make sure you’re putting yourself in the best position possible when you find a home you love?
Bottom LineIf you’re planning on buying a home, don’t forget to get pre-approved early in the process. It can help you get a more in-depth understanding of what you can borrow and shows sellers you mean business.
Have you noticed damp spots or musty odors in your home? These could be signs of excessive moisture, an often overlooked yet formidable adversary for homeowners.
Leaky roofs, cracked foundations, and poorly sealed windows all invite unwanted moisture. High humidity levels in certain climates further exacerbate this issue, as does improper ventilation in areas like bathrooms and kitchens.
While a little moisture might seem harmless, it can wreak havoc in ways you might not expect. From structural damage to health risks, understanding the surprising ways excessive moisture can damage your home is crucial to maintaining your sanctuary’s integrity.
Structural Impact: Damage to Walls, Floors, and CeilingsExcessive moisture can compromise your home’s structural integrity. It seeps into walls, floors, and ceilings, leading to rot and weakening of these elements. For instance, excessive moisture is one of the top causes of warping in hardwood floors. Maintaining optimal indoor humidity levels and promptly addressing any leaks or drips can protect your investment and prevent costly repairs.
Health Hazards: Mold, Mildew, and Respiratory IssuesWhen moisture lingers, mold and mildew quickly follow. These fungi thrive in damp environments, spreading across walls and ceilings, and even embedding themselves in carpets. Beyond the unsightly stains, mold spores pose significant health risks, particularly for people with asthma or allergies. Reducing indoor humidity and ensuring proper ventilation can help keep these unwanted guests at bay.
Pests: Insects and Rodents Love MoistureMoisture doesn’t only attract mold; it also invites pests. Critters like termites, cockroaches, and rodents are drawn to damp environments. These pests can cause extensive damage and create a secondary problem of infestation. Regular maintenance and dehumidification efforts can keep your home dry and less appealing to these critters.
Energy Efficiency: How Moisture Affects Your Home’s EfficiencyA moisture-laden home is an inefficient one. Excessive moisture can strain your HVAC system, causing it to work harder and consume more energy to maintain comfortable conditions. Sealing leaks and ensuring adequate insulation can enhance your home’s energy efficiency, saving you money on utility bills.
Prevention and Solutions: Practical Steps for a Dry HomeUnderstanding the surprising ways excessive moisture can damage your home helps you take proactive measures. Combatting moisture begins with regular inspections, utilizing dehumidifiers, and improving ventilation in key areas. Don’t forget to seal leaks promptly and consider waterproofing solutions for especially vulnerable parts of your home. By knowing the risks and solutions, you can safeguard your home against moisture and maintain a safe, healthy living environment.
Falling Mortgage Rates Are Bringing Buyers BackIf you’ve been hesitant to list your house because you’re worried no one’s buying, here’s your sign it may be time to talk with an agent.
After months of high rates keeping buyers on the sidelines, things are starting to shift. Rates are already coming down due to a number of economic factors. And yesterday the Federal Reserve cut the Federal Funds Rate for the first time since they began raising that rate in March 2022. And while they don’t control mortgage rates, this sets the stage for mortgage rates to fall even further than they already have – especially since more cuts from the Fed are expected into next year. And lower mortgage rates are bringing more buyers back into the market. Lisa Sturtevant, Chief Economist at Bright MLS, says:
“A drop in the cost of borrowing will help fuel more homebuyer demand . . . Falling rates will also bring more sellers into the market.”
The best part? You can take advantage of that renewed buyer interest.
As Rates Fall, Buyer Activity Goes UpThe graph below illustrates the relationship between falling mortgage rates and rising buyer activity. The orange line represents the average 30-year fixed mortgage rate, while the blue line shows the Mortgage Bankers Association (MBA) Mortgage Application Index, which tracks the number of mortgage applications.
As you can see, as mortgage rates (orange) come down, the Mortgage Application Index (blue) rises, showing more people start to re-engage in the process (see graph below):
What This Means for YouAccording to the National Association of Realtors (NAR), home sales increased in July, which was a welcome shift after four straight months of declines. If you're a homeowner thinking about selling, this uptick in buyer activity works in your favor.
More buyers means more competition, which can lead to higher offers and shorter time on the market for your house. And, according to Edward Seiler, AVP of Housing Economics at the Mortgage Bankers Association (MBA), this trend is expected to continue:
“MBA is expecting that slower home-price appreciation, coupled with lower rates, will ease affordability constraints and lead to increased activity in the housing market.”
All in all, the market is becoming more accessible to a wider range of buyers, which could result in even more people looking to purchase a house like yours.
With more buyers entering the market, now’s the time to start getting your house ready to sell.
Bottom LineThe recent decline in mortgage rates is already driving more buyers into the market, and experts project this trend will continue. Let’s work together to take advantage of this increased buyer demand and get your house ready to sell.
Summer is almost over in most parts of the country. Soon, the leaves will turn all sorts of lovely colors and a cool breeze will fill the air. For homeowners, fall is also the time to do some crucial lawn and yard maintenance.
Cleaning up your yard in the fall can provide a plethora of benefits—from keeping unwanted pests away to giving your lawn and landscaping a lush head start come spring. Use this checklist as your guide to help you tackle a couple of tasks a day. And if you can get started early and do them regularly, it'll be for the better to avoid getting overwhelmed when the busy holiday season draws neare
Rake fallen leaves regularly.
Raking leaves may seem endless, especially with fresh layers piling up on the ground every minute. But it's probably the only crucial task to do even just a little bit every day before winter. Dead leaves, acorns, and other debris that sit on your lawn for too long can smother the grass, prevent growth, or cause a build-up of mold or bacteria that can cause damage. If left over the winter, they can become a heavy, wet barrier that promotes rot and prevents your grass from breathing properly. Also, mice and other pests can find a safe haven under those leaves and weeds. Staying on top of raking will not only make the job much less stressful but will also prevent problems with your yard’s drainage.
Clear out garden beds and put away plant accessories.
Fall cleanup is a great way to get your garden ready for winter, so don't forget to clean out your garden and flower beds. Remove all plant debris before the ground freezes or after the final harvest of the year to help prevent insects and diseases from returning even stronger the following spring. As you clear out all leaves and weeds, put away garden items such as labels, stakes, cages, and trellises, as well. Clean them to kill any infections and store them so they’ll be ready to reuse next year.
Remove weeds thoroughly.
Common lawn weeds are tough and will start proliferating as the temperatures cool off in the fall. And any that didn't die during the winter months will just come back stronger and more stubborn next spring. Make sure you thoroughly and regularly weed your garden and other landscaped areas so you will have fewer to deal with next spring.
Add a fresh layer of mulch.
Once you're done cleaning your garden beds, applying a healthy layer of mulch on your plant beds and around trees, shrubs, perennials, and annuals will help keep them healthy through the winter. It helps the plants stay warmer and give their root systems extra protection against the cold elements. Adding mulch to your plants also helps prevent soil erosion and suppress weeds. You can opt for organic mulch such as straw, grass clippings, mulched leaves, and even pine needles to save money and add essential nutrients back into the soil.
Keep your trees and shrubs hydrated.
Winter conditions can be harsh and dry. Providing plenty of water for your trees and shrubs, whether newly planted or already established, will help them better withstand the harsh winter and avoid sustaining serious damage to their roots. If there is no snow on the ground or there hasn't been any decent rain, keep them well-hydrated so they can come back faster and stronger in the spring.
Prune dead branches and limbs.
Another important aspect of fall yard cleanup is removing dead or damaged branches from plants and trees. Dead branches can be a liability in the winter as heavy snow can cause them to break and cause more damage than if the limb had been pruned. They can even fall on your property in the event of extreme weather or wind. While you don't want to remove the branches too late in the season, it’s recommended to wait until after the leaves have fallen off your trees completely. Inspect your trees for any damaged or compromised branches, trim any overgrowth, and cut cracked, loose, or diseased limbs close to the trunk. Fall is also the time to prune spring-blooming perennials like lilacs, as well as shrubs that are prone to ice damage. Just take care not to prune any live or healthy branches so as not to damage your plants.
Continue mowing your lawn.
Summer might be ending, but it doesn't mean the same when it comes to mowing your lawn. Fall is the best time to mow your lawn to help it finish strong for the year and grow lush in the spring. Frequent mowing helps to thicken up the lawn, control weeds, and prevent it from matting, which makes it prone to fungus, such as snow mold.
Empty porch pots and containers.
The winter months can cause certain containers to chip and crack. Terra cotta pots, in particular, are easily susceptible to the freeze and thaw cycle. After cleaning your pots, store them in a dry, protected area, such as a shed or garage. If you do not have the extra space indoors, empty the pots, store them upside-down against the side of your house, and cover them with a tarp to keep the moisture out.
Clean and organize your gardening tools and gear.
Gardening season is almost over and you're preparing for a well-deserved break. But before cozying up indoors to enjoy a cup of your homemade pumpkin spice latte or warm hot chocolate, don’t forget to give your tools and equipment some TLC before you stow them away. Remove dirt from hand tools such as garden trowels, weeders, as well as shovels and spades. Empty and wash out spraying equipment. Sharpen the blades of pruners and mower blades, then coat them with a bit of vegetable oil to prevent rust. Making sure that all of your gardening tools are properly cleaned and stowed for the winter will prevent them from becoming dull, worn, or defective when you’re itching to get back to gardening in the spring.
Drain hoses and irrigation systems.
Lastly, before the freezing weather sets in, drain water from hoses, sprinklers, and drip irrigation systems. Standing water inside hoses and pipes can freeze, causing them to split or crack as they are incapable of handling the pressure of water freezing and expanding. This can cause water to seep down near your home's foundation or cause other structural problems that are challenging and costly to fix.
Hoarding and Its Impact on Neighbors: How It Affects Your CommunityHoarding is a widespread issue that doesn't just affect the person dealing with it but also has significant consequences for their neighbors and community. In this article, we will examine the various ways in which hoarding can impact the surrounding neighborhood, from property values to safety concerns.
Table of Contents
What is Hoarding?
The Effects of Hoarding on Neighbors
How Hoarding Impacts Property Values in the Neighborhood
Health and Safety Risks for Neighbors
How to Address Hoarding in Your Neighborhood
Conclusion
What is Hoarding?Hoarding is a psychological disorder where individuals have extreme difficulty in discarding possessions, leading to a buildup of clutter that often overflows into living spaces. This condition can result in homes being filled with an excessive number of items, leading to hazardous living conditions for the hoarder and potential problems for neighbors.
The Effects of Hoarding on NeighborsLiving near a hoarder can present many challenges for neighbors. Hoarding behaviors often lead to unsightly surroundings, strange smells, and sometimes pests, all of which can disrupt the neighborhood’s atmosphere.
Visual Pollution: Hoarded items can spill outside the home, leading to cluttered yards or blocked pathways, which can ruin the appearance of a neighborhood. A poorly maintained property sticks out like a sore thumb, lowering the overall aesthetic appeal of the area.
Odor Issues: Rotting food, mildew, or mold can produce foul smells that drift into neighboring homes, making it unpleasant for people to spend time outdoors or keep their windows open.
Noise Complaints: Hoarding can sometimes involve collecting animals or running equipment in the home, creating noise that can disturb the peace of a normally quiet residential area.
How Hoarding Impacts Property Values in the NeighborhoodHoarding doesn't just affect the appearance of a single property—it can negatively impact the entire neighborhood’s real estate value. Here are some of the ways hoarding affects local property values:
Decreased Buyer Interest: Potential buyers may be hesitant to invest in a neighborhood where one or more properties are visibly cluttered or neglected due to hoarding. This reluctance to buy can reduce demand and drive property prices down.
Appraisal Issues: The presence of a hoarded home in a neighborhood can lead to lower property appraisals for surrounding homes, as the clutter and damage may suggest a less desirable area.
Lowered Curb Appeal: Neighbors who take pride in maintaining their homes may find it frustrating to see their efforts diminished by a neighboring hoarder’s disorganized property. This can reduce the appeal of the area for prospective buyers.
Health and Safety Risks for NeighborsHoarding is not just an eyesore; it can also pose health and safety risks to neighbors. These risks include:
Fire Hazards: The accumulation of items in a hoarder’s home can create significant fire hazards. Stacks of paper, furniture, or debris can fuel fires, which can easily spread to neighboring homes, putting other properties at risk.
Pest Infestations: Hoarding conditions often attract pests like rats, cockroaches, or other vermin, which can spread into nearby properties. Once pests establish themselves in one home, they can quickly move to neighboring residences.
Structural Damage: Overloading a home with items can cause structural issues like sagging floors, collapsing walls, or broken pipes. If a hoarder’s home suffers significant damage, it could impact neighboring properties as well.
How to Address Hoarding in Your NeighborhoodIf you’re living next to a hoarder, addressing the situation can be difficult, but there are steps you can take:
Communicate Compassionately: Approach your neighbor in a non-judgmental way. Hoarding is often rooted in mental health issues, and showing empathy can help foster a more constructive conversation.
Contact Authorities: In extreme cases, where hoarding presents an immediate safety risk, it may be necessary to contact local authorities, such as public health departments or fire safety inspectors. They can evaluate the situation and take appropriate action.
Seek Mediation Services: Some communities offer mediation services to help resolve disputes between neighbors. A third-party mediator can help facilitate a constructive conversation about the impact of hoarding.
Organize a Community Clean-Up: Some neighborhoods organize clean-up efforts to help maintain communal spaces. While this doesn’t directly address the inside of a hoarder’s home, it can reduce clutter in public areas.
Support Professional Help: Encourage your neighbor to seek professional help, whether through therapy or professional cleaning services. Addressing the root cause of hoarding requires mental health intervention, and they may not be able to resolve the problem on their own.
ConclusionHoarding can have a profound impact on the surrounding neighborhood, affecting property values, creating health and safety risks, and altering the community's atmosphere. However, by addressing the issue with compassion and taking practical steps, neighbors and local authorities can work together to mitigate the negative effects of hoarding.
The Best Time To Buy a Home This YearA shift is underway in the housing market this season. And if you’ve been sitting on the sidelines waiting for the right moment to jump back into your homebuying search, this is a great time to do it. That’s because the best week to buy a home this year is just around the corner. Your sweet spot is here.
The experts at Realtor.com study seasonal trends to figure out the ideal week for homebuyers:
“Nationally, the best time to buy in 2024 is the week of Sept. 29–Oct. 5. This week historically has shown the best balance of market conditions that favor buyers. Inventory tends to be high, prices are below peak levels, demand is waning, and the pace of the market slows to a more manageable speed.”
In addition to the historical trends and typical seasonality that Realtor.com looks at, there are also clear indicators in today’s market data that you’ll see better conditions right now than you would have over the last few years.
Mortgage rates just hit their lowest point in 19 months, and that goes a long way to help with your purchasing power and affordability. Andy Walden with Intercontinental Exchange Inc. (ICE) points out:
“Recent easing in mortgage rates brought some much-sought relief to prospective homebuyers. Along with a general cooling in home price growth, rates falling below 6.5 percent made August the most affordable month for housing since February.”
And Ralph McLaughlin, Senior Economist at Realtor.com, explains that it’s not just rates that have improved – inventory has too:
“The number of homes actively for sale continues to be elevated compared with last year, growing by 35.8%, a 10th straight month of growth, and now sits at the highest since May 2020.”
That should give you more options. At the same time, sellers now have to compete with each other for your attention. That means they’ll be more likely to negotiate because they know their house will sit on the market longer if they don’t. As Zillow says:
“Buyers waiting on the sidelines could find that early fall presents a ‘sweet spot,’ where there’s less competition from other buyers, more motivated sellers and lower interest rates to finance their purchases.”
Bottom LineIf you want to make sure you’re ready to take advantage of this sweet spot, let’s connect and start the prep work now. Maybe it’s time to get off the sidelines and into the action.
Mortgage rates are trending down and that’s great news for your bottom line. As rates drop, your monthly payment on your next home does too. Even a small change in mortgage rates can have a big impact on your purchasing power. If you put your search on hold when mortgage rates were higher, think about how much you could save now that rates are coming down
