Tag: moving

People often wonder if the “bubble” is going to burst, making home prices tumble.

Sellers worry because it could mean one of (if not the) biggest asset they own could take a beating. Buyers on the other hand hope for some glimmer of deals on the horizon, and maybe a little less competition in the market.

Well, according to a recent article from Yahoo, home prices will drop in the near future and “cause some pain.”

At face value, that sounds like good news for buyers, and painful news for sellers. But let’s unpack what’s being said in that article a little bit more thoroughly. Economist Robert Shiller is cited in the article saying:

• Prices will eventually drop, and that “They’ll come back down, not overnight, but enough to cause some pain.” (Key words being “eventually” and “some”.)
• He also stated that there’s no clear explanation for the “hot” market, but “expects it to continue for another year or two.”
• Lastly, he said that the current market is different from the crisis that caused the last bubble: “So it’s not the same as 2003. It could be stronger. I think we have better protections, we have better supervision of lenders. So I don’t know if we should be worried about 2007, 2008, 2009 happening again.”

In a nutshell, he’s saying prices will eventually come down, but not for a while, and maybe not all that much.

So, how does this affect you, and what should you do?!

• If you’re a homeowner who wants to sell your home and cash in on your equity for good (i.e. move in with family, to a retirement home, assisted living, or rent), you might want to consider selling in the next year or so, before a dip in prices may occur.
• If you’re a homeowner and have no plans on moving in the near future, say 5-7 years, none of this matters really. Historically, prices go down and then back up and ultimately higher than before. So, no worries.
• If you’re a buyer thinking about waiting for prices to drop, you may want to re-evaluate that approach. Rates are still historically low, and prices may not drop for another couple of years. And, when they do drop, who’s to say they won’t drop below the prices you’re seeing now? They could just drop to levels we haven’t even reached yet, but will see in 2022 or 2023.

**Ryan Wheeler is an expert real estate agent and military veteran serving buyers and sellers of homes in the Shreveport-Bossier City area.  Connect With Me Here

Barksdale AFB Spouses Movers Group | Facebook

With a new year comes new housing trends

But what, exactly, will those trends be in 2022?

A recent article from realtor.com outlined their team’s predictions for 2022’s major housing trends, including:

• Continued demand for suburban housing. 2020 and 2021 saw many people opting out of city life for more space and privacy in the suburbs—a trend the team at realtor.com expect will continue into 2022.
• Challenges for first-time homebuyers. In 2021, low inventory and high prices have made it hard for many first-time homebuyers to get into the market. And while available inventory is expected to increase in 2022, prices are expected to stay high—and, when paired with rising mortgage rates, it may present challenges for many potential buyers hoping to purchase a home for the first time.
• A rise in demand for smaller homes. While many buyers want to buy large homes, affordability challenges may make some of those buyers rethink their strategy in 2022, increasing the demand for smaller homes—particularly for first-time buyers.

**Ryan Wheeler is an expert real estate agent and military veteran serving buyers and sellers of homes in the Shreveport-Bossier City area.  Connect With Me Here

Barksdale AFB Spouses Movers Group | Facebook

When you renovate your home, you want to know that those renovations will actually add value to your property. But when it comes to kitchen renovations, which upgrades will provide the best ROI—and can help you fetch a higher price if you decide to sell your home down the line?

A recent video from realtor.com outlined the kitchen renovations that add the most value in the long term, including:

• Upgrading appliances. New appliances can have a major impact on potential buyers—so even though appliances can be pricey, swapping out old, outdated appliances for new, modern ones will pay off in the long run.
• Refreshing cabinets. Refreshing your cabinets can add major value to your home—and you don’t even need to completely replace them to generate that value! If your cabinets are in good shape, a fresh coat of paint and new hardware can be all you need to transform your kitchen.
• Replacing countertops. Replacing your countertops may be pricey, but new countertops can completely change the look and feel of your kitchen, making it feel more modern and fresh—which can be a major draw for prospective buyers.

**Ryan Wheeler is an expert real estate agent and military veteran serving buyers and sellers of homes in the Shreveport-Bossier City area.  Connect With Me Here

Barksdale AFB Spouses Movers Group | Facebook

Whether you’re at a party, family get-together, work, or just talking to a neighbor, there’s a good chance you’ll hear people talking about how crazy the real estate market’s been. And you’ll probably hear people’s opinions on whether it’s a good time to buy or sell a house.

But what are they basing their opinion on?

Sometimes it’s just based on what they’ve heard second (or third) hand from a friend or family member. But a lot of times it’s “backed up” by what they’ve read or heard in the news, which is often just from a headline like, “Home Price Growth Is Finally Decelerating—and It’s Just the Start”, which Fortune recently published.

Someone who only read that headline could easily take that as a sign that prices aren’t going to go up as much in 2022, and that’s just the start! So, it’s an easy leap to think that must mean prices may even go down next year. That could easily cause a homeowner to sell in a hurry before prices drop. Or, it could cause a buyer to wait for prices to come down and miss out on a house that would’ve been perfect for them, only to find nothing changed, or (worse!) prices went up even higher.

If you actually read the Fortune article, it doesn’t entirely prove out the headline, or at least how most people would interpret it. In fact, the “deceleration” they refer to in the headline is a 0.3% dip in home prices between September 2020 and September 2021. It went from an all-time high of 19.8% year-over-year gain, down to a 19.5% gain. Okay, to be fair, that is a “start” as they said in the headline…but how much more deceleration should we expect if that’s just the beginning?!

Well, the predictions they cite in the article are all over the place for the next year:

• Zillow predicts prices will rise 13.6%
• Goldman Sachs predicts a rise of 13.5%
• Fannie Mae expects a 7.9% increase
• Freddie Mac thinks it’ll be a 7% bump up
• Redfin is predicting price growth will only be 3%
• CoreLogic sees it slowing to 1.9%
• And the Mortgage Bankers Association is the only one cited with any amount of a decrease at 2.5%

To sum it up, according to the sources they cite, sure there may very well be a deceleration in prices, but that doesn’t mean prices will fall. Other than one source, they all predict that prices will continue to go up. More than half of them anticipate the growth rate to be higher than average…

…not quite what you may have thought if you just read the headline alone.

The Takeaway:

That’s just one example of a headline that could be misleading and cause you to judge whether it’s a good time for you to buy or sell a house. Much of what you see, hear, or read about the market tends to be too broad to make an informed decision, and the headlines can often be misleading. If you want a true read on the market and advice on whether it makes sense for you to buy or sell, your best bet is to speak to an agent who knows the local market.

**Ryan Wheeler is an expert real estate agent and military veteran serving buyers and sellers of homes in the Shreveport-Bossier City area.  Connect With Me Here