In This Issue: September 2023

September 21, 2023

In This Issue

"Our greatest weakness lies in giving up. The most certain way to succeed is always to try just one more time." - Thomas A. Edison

In a housing market with more demand than supply, you might have to get creative to compete with other buyers for a home. In this issue, we'll cover how to purchase a home in a tough market, along with the following:

What to Watch - Rental prices decline as low supply and high borrowing costs continue to plague home sales.

Tips for Purchasing a Home in a Tough Market - When your offer may be just one of many, consider the ways you can stand out from other buyers.

How To Beautify Your Kitchen on a Budget - You might not have your dream kitchen yet, but you can make simple, affordable changes to update the space.

Q&A: How Can Home Buyers Negotiate the Price? - As a buyer, there are ways you can negotiate to get the best deal on a home.

Please feel free to forward this newsletter to friends, family or co-workers who may find it helpful.

What to Watch

Rentals and Home Sales

In recent years both home prices and rental prices surged but that trend may be cooling off, at least in the rental space.

A report by Apartment List showed that for the first time since the beginning of the pandemic, year-over-year rent growth turned negative in August. Today it stands at -1.2%, meaning that on average, apartments across the country are 1.2% cheaper today than they were one year ago. This is a major plunge from recent years when annual rent growth was up 18% nationally and surged to over 40% in some cities.

One major reason for the decline in rental prices is the big supply of new multiple-dwelling listings constructed over the past year to the tune of 460,000 units, a 50-year high. Looking ahead, rental supply should remain on the high end which could push prices even lower through 2025.

In the housing sector, low supply and high borrowing costs continue to plague the purchase market. But there have been some positive signs. Mortgage originations rose in Q2 2023 to $393 billion after $344 billion in Q1 which was the lowest total since Q2 2014. And this from the NAR's Lawrence Yun, "Home sales are essentially bottoming out this year ... before an anticipated upturn going into next year. But this is contingent on mortgage rates falling."

Many housing experts don't see a crash in the housing market so don't think that prices will fall substantially in the next year or two. The housing market in 2023 is much different than in 2008 with many mortgage holders currently having positive equity across the nation.

The bottom line is that if you are secure in your job and feel that you can easily obtain a new job, the path to homeownership can be challenging but yet not hard to obtain.

Source: Mortgage Market Guide

Housing News

4 Tips for Purchasing a Home in a Tough Market

In a housing market with less inventory, you might compete with several other buyers â€” or more â€” for your dream house. Follow these tips to improve your chances of having your offer accepted.

Get preapproved. In a competitive housing market, sellers know they have the upper hand. But unless they get an all-cash offer, they're often going to prioritize the offers with the highest chances of closing on time. A mortgage preapproval shows the seller you meet a lender's requirements for income, down payment, and credit. Speak with your loan officer about how to get preapproved.

Identify wants versus needs. Sure, a three-car garage would be nice, but do you need it? Before you start visiting open houses, make a list of both "must-haves" and "nice-to-haves" for your next home. This list can help you move quickly on a home in a limited inventory market. Once you determine it meets your essential needs, you can consider whether it has enough features from your wish list to be worth an offer.

Make a competitive offer. When you're ready to make an offer, think about the ways you can stand out from other buyers. For example, you might offer a higher price than what the seller is asking. You can also make a larger down payment or negotiate the closing date to benefit the seller. Find ways to sweeten the deal so the seller takes notice of your offer.

In a housing market with a lot of competition, purchasing a home often comes down to the offer you make. Follow these strategies to be competitive so you can buy the right house for you.

Sources. NAR.realtor, Rightbyyoumortgage.com

Home Improvement

How To Beautify Your Kitchen on a Budget

If your kitchen would look more at home in the last millennium, there are ways you can modernize the space without breaking the bank.

Here are some simple ways to beautify your kitchen on a budget.

Paint the cabinets. Paint can instantly transform your kitchen while updating your cabinets at the same time. Choose a bright color for a modern look, or go with white cabinets for a classic style. Since you have to remove the hardware to paint anyway, add new knobs or handles to the cabinets. You can even spray-paint the current hardware for a budget-friendly update.

Swap out the light fixture. A new light fixture can make a bold statement in your kitchen. Search for affordable options online or through big-box retailers. Natural textures, like rattan, tend to be inexpensive, and they can add texture and warmth to your kitchen.

Add accessories. The kitchen may not be the first room you think to accessorize, but you can easily inject some style with a few touches here and there. Search thrift stores to find ceramic jars, wooden cutting boards, or porcelain mugs you can display on the countertops or open shelves. Choose pieces that are stylish as well as functional to get the most value for your money.

Making subtle changes in your kitchen can give you a new appreciation for the space. Use these tips to beautify your kitchen while you save up for a remodel.

Sources: Makeitright.ca, BHG.com, Realhomes.com

Q&A

How Can Home Buyers Negotiate the Price?

QUESTION: How do you negotiate the price of a house?

ANSWER: When buying a home, you might feel like you have less room for negotiation than the seller. After all, you're the one trying to purchase their house. But even as the buyer, there are ways you can negotiate the price of your next home.

Work with a real estate agent. While you can find homes on your own, working with a real estate agent is one of the best ways to negotiate the price of a home. A real estate agent has no personal investment in your home purchase, so they can be an impartial negotiator on your behalf. They also understand the housing market in your area, along with interest rates, property values, and taxes.

Write a letter. Appeal to the seller's emotions with a personal letter as part of your offer. In your letter, explain why you want to live in the home. Add some details about what you plan to do in the home. For example, you might write about your plans to get a dog who can play in the spacious backyard.

Get an inspection. You can negotiate the final selling price after a home inspection, especially if the inspector finds some problems. An inspector will check the foundation, roof, and major systems, like plumbing and electrical. If they alert you to issues, you can negotiate with the seller for a lower price on the home. You can also ask the seller to make those repairs or pay some of your closing costs.

When you're ready to make an offer on a home, plan ways you can negotiate with the seller. By using these tips, you can feel confident you're getting the best deal.

Sources: Lendingtree.com, Bankrate.com

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