SPRING MARKET UPDATE
The housing market is not crashing.
In fact, we are in the strongest real estate economy where 48% of homes are equity rich with at least 50% equity. 63% of mortgages originated are below 4%.
Of note:
- Interest rates are fluctuating based on economic factors right now. Rates 6.5% - 7% mean limited buyer demand. Rates 7%-7.5% mean weak buyer demand. Lawrence Yun, chief economist of the Nat’l Assoc. of Realtors (NAR), expects rates to fall to 5.5% by mid-2023. Fannie Mae predicts 6.8% and Freddie Mac is 6.4%.
- Home prices will vary depending on location. Overheated markets are depreciating; others are appreciating. In NH, prices are up 5% thru Feb. 2023. The Home Price Forecast 2023 shows, for example, Realtor.com projecting +5.4%, CoreLogic +3.1%, NAR -1.6%, Fannie Mae -4.2%. Prices are expected to increase and reach more normal levels of 3%-4% annually starting in 2025.
- The biggest challenge is low inventory. The number of homes for sale in the US is 47.4% lower than it was before the pandemic. In NH, new listings are down 20.3% in Feb. 2023 vs. 2022. The lack of homes for sale has kept prices from falling. Fourteen years of underbuilding is one of the major reasons for this low supply.
Don’t let false information stop you from buying or selling. Contact me for the straight scoop on the real estate market.
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Donna ForestListing Broker
Contact me today!O: 605.526.4116
donna@donnaforest.com |
Photo by micheile henderson on Unsplash
Part 1 of Our Two-Part Series:
According to the National Association of Realtors, the most difficult step for buyers is saving for a down payment.
20% down is the market standard- although you may qualify for as little as 3.5% (FHA). It’s still a daunting challenge for many buyers to save even that 3.5% for a $300,000 purchase - which would amount to $10,500.
So, what do you do?
Here are The Milestone Team’s first five tips to get you on the road to home ownership and your own special place in the world:
- Create a vision board. Using a corkboard – or even your refrigerator! – display images of beautiful living spaces, décor you love, gardens you would want. The inspiration helps you prioritize saving for your special place versus spending impulsively.
- Get on a budget.Review and reduce your spending to maximize your monthly savings. Some ideas:
- Choose a “staycation:” Vacations can cost $2000 or more for a typical family. Check out local events, places to explore & stay, and put that extra cash towards your downpayment!
- Try a no-spend challenge. Each month, only spend on necessities and a few dollars for fun-money.
- Pay yourself first. Financial experts recommend “paying” yourself by setting aside 20% from each paycheck. Automate your savings by setting up an automatic transferwith your bank.
- Pay off debt. This seems counter-intuitive – “Shouldn’t I be saving every dollar towards my downpayment?” Every dollar that’s not costing you, yes. Paying off high-interest credit cards and auto loans not only saves you on interest each month, but also reduces your debt-to-income ratio and increases your credit score – which will help you qualify for your mortgage.
- Bank your next raise or tax refund. Yes, you really want that new flat screen television – but making the temporary sacrifice adds those extra funds to your down payment account!
Want more expert advice to save for your dream home? See our Part 2 later this month!
Photo courtesy of Keeping Current Matters
How much is my home worth?
This question is the most important asked of The Milestone Team Realtors. The answer is not as simple as “the neighbor’s house sold for X” or “I want to sell it for Y.” You want your home priced right – from the start. Too low, buyers will think “something is wrong.” Too high, buyers will be deterred – and your home may sit on the market for too long, also raising the “something is wrong” concern. Worse, priced too high can result in those incremental price adjustments – which is a buyer red-flag. Pricing a home correctly is one of the reasons to engage an experienced Realtor. Do you know that sellers who do not use a Realtor sell for significantly less than those sellers who wisely choose a Realtor from the start? Your local Milestone Team member knows the market, the neighborhoods, current trends – and how to price your home correctly so you attract strong offers and a quicker sale!
Photo by Greg Rosenke on Unsplash
Out & About in New Hampshire - Quirky New Hampshire
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The center of New Hampshire is almost entirely under water! And while New Hampshire has a mere 13 miles of coastline, its over 800 lakes and ponds and 19,000 miles of rivers and streams provide plenty of swimming and fishing spots!
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The state insect is the Ladybug since 1977.
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In Portsmouth in 1961, Betty and Barney Hill claimed to have been abducted by aliens.
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In 2005, Killington, Vermont proposed succession to become part of New Hampshire for the tax savings! (We can note that Killington is in the middle of Vermont, 25 miles east of New Hampshire...)
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New Hampshire has four nicknames: Mother of Rivers, White Mountain State, Switzerland of America, and The Granite State (the most popular).
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#Realtor, #TheMilestoneTeam, #TheBestTeamInTown, #shouldIsell, #realestateagent, #homesale, #NewHampshire, #newhampshirelife #nature #newhampshireoutdoors #visitnh #granitestate #livefreeordie
To rent or to sell?
The Milestone Team has advice for you!
Should you sell your home? Should you rent your home? These are serious questions that require serious answers and expert advice. The Milestone Team is your trusted Realtor advisor to help you answer those questions! Merrimack County, and its vacation-friendly seasons, offer property owners the opportunity to rent long and short-term. Many homeowners consider offering their home as a long-term, short-term, or Airbnb rental. Before taking the leap, consider the work it takes to be a landlord:
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Do you have the time to manage the property? Or: Do you have the resources to hire a professional property manager? (Bankrate)
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Are you able to make repairs – and willing to be on-call for your tenants?
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Are you staying local to be available to show the property, make repairs, or prepare the property for the next tenant?
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Do you need to “cash out” to purchase your new home? (Bankrate) Most homeowners are not interested in carrying two mortgages.
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Is your move temporary? (Bankrate) Renting your current home may be a wise choice – providing income while you are living elsewhere.
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Can what you earn in rent cover your costs? You will need to ready the property for tenants, advertise, and continue to pay your mortgage, taxes, HOA fees, and insurance. And: Realize rental income is counted as income.
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Can you handle the risks? According to Investopedia, you do risk theft or damage of your property - and carrying costs for an empty rental!
Renting your home is a decision not to be made lightly. If you are considering renting or selling, contact The Milestone Team to discuss the possibilities so you can make the best decision for you!
Photo by Priscilla Du Preez on Unsplash
PI Day. It’s not what you think!
March 14th – or 3.14 – is called PI Day because the date mirrors the mathematical quantity of PI – 3.14150… representing the ratio of a circle’s circumference to its diameter.
In honor of PI Day, The Milestone Team of Realtors hopes you enjoy this Old-Fashioned Apple Pie Recipe from our friends at Better Homes and Gardens. We also invite you to share photos of your pie with us!
See more Celebrations (aka excuses to make pie!) on our Community Calendar!
Pricing Your Home Is Not Magic
If you are thinking about selling, determining the right value is your number one priority. While sometimes it seems the price is picked out of thin air, there really are 3 methods for determining value. Below is a brief explanation of each.
- Market Analysis – Prepared by a real estate agent to provide an estimate of the probable selling price, expressed as a range. Using similar active and recently sold properties and factoring in the many characteristics that impact value, it is a guide to help the seller determine a listing price.
- Appraisal – A much more in-depth analysis done by a licensed appraiser. Typically appraisals are used in the loan process to ensure the value of the home is equal to or greater than the purchase price, thus protecting the lender’s interest.
- Automated Valuation – Used by Zillow and other companies, the value is calculated by software based on mathematical modeling. While convenient, it misses important price influences such as property condition and location (e.g., on a busy street).
Want to know your home’s value? It’s a complicated market with shifting impacts. Contact me and put my 29 years in the business to work for you!
Donna Forest, Broker - Realtor
Photo courtesy of Pantone
Meet Viva Magenta 18-1750, Pantone's color for 2023. This “nuanced crimson red tone” is “dynamic without being aggressive or overpowering.” Whether you choose to use Viva Magenta for a statement wall in your home or as a splash of color for a vase or place setting, expect compliments! Other decorating colors favored for 2023: Spanish Moss (Krylon), Raspberry Blush (Benjamin Moore), Terra Rosa (Dunn-Edwards), Redend Point (Sherwin-Williams), and Vining Ivy (Glidden). For those of us who prefer neutrals, 2023 brings us Blank Canvas (Behr) and Rustic Greige (Dutch Boy) . Valspar has chosen 12 versatile “livable” paint colors, including Southern Road and Gentle Violet. Better Homes & Gardens (at Walmart) has chosen Canyon Ridge as its color for 2023. We think it’s a perfect chose to freshen your kitchen – or even your living room!
Feel free to contact us and one of our Milestone Team members will explore ways to make your home market-ready!
If you own a three-bedroom, two-bath home, you have the most popular house for potential buyers. According to the 2022 National Association of Realtors Profile of Home Buyers and Sellers, your three-bedroom, two-bath gem is desirable. With the increase in residential sale prices (12.3% in Merrimack County since December 2021), now may be the time for you to list your home and downsize – or move closer to family and friends! In fact, according to the same report, the “typical home that was purchased was 1800 square feet, had three bedrooms and two bathrooms, and was built in 1986.” According to US News, demand is increasing (more buyers – especially Millennials entering the market). Yet inventory (the supply of homes for sale) is only slowly rebounding from the record lows of 2021 and early 2022. This increased demand – low supply market is an advantageous time to list your home – and The Milestone Team is prepared to discuss your home’s market value to help you decide if the time is right for you.
To Celebrate 2023 Women's History Month and International Women’s Day (March 8th), The Milestone Team honors the following amazing Granite State natives. Here's a partial list of accomplished and influential New Hampshire women:
Christa McAuliffe: NASA selected Concord native, Christa McAuliffe, was to be the first teacher in space! As you know, Christa was one of the victims of the Challenger tragedy. To honor her, in Concord we have The Christa McAuliffe Planetarium at the McAuliffe-Shepard Discovery Center.
Jeanne Shaheen: New Hampshire’s senior US Senator was the state’s first female senator – and New Hampshire’s first female governor!
Valerie Cunningham: Civil rights activist Valerie Cunningham is a writer, researcher, teacher, and founder of the Black Heritage Trail in Portsmouth. She served as the NAACP secretary and marched in Boston with Dr. Martin Luther King, Jr.
And...
Actors: Multi-talented, Mandy Moore & comic, Sarah Silverman
Authors and Journalists: Hanover resident, Jodi Picoult, NPR’s Heather King, and Miss New Hampshire 1994 Trish Regan
Artists: Missing Person’s Dale Bozzio
Athletes: Paralympic Swimmer, Victoria Arien & Olympic Medalist in Hockey, Kathryn King-Crowley
The all-women Milestone Team supports the missions of International Women’s Day: empowering women and building workplaces where women thrive!
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See more on our Community Calendar page!
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#Realtor, #TheMilestoneTeam, #TheBestTeamInTown, #InternationalWomensDay, #Women'sHistoryMonth