April 2023: The Latest Market Trends

Spring Buying Season

As the nation comes out of its winter hibernation, potential home buyers will now zero in on the spring buying season, now almost in full bloom and there are some positive signs.

The National Association of REALTORS® (NAR) recently reported that properties typically remained on the market for 34 days in February, up from 33 days in January and 18 days in February 2022. And though still in the winter months, after 12 months of declines, February Existing Home Sales jumped from January. Also, the total housing inventory at the end of February was up solidly, though small, from a month and a year ago. However, low inventories continue to plague the sector.

And speaking of inventories, after five straight months of declines, total Housing Starts surged in February from January.

Home borrowing costs have come down from the multi-year highs seen last November though still double what they were in January of 2022. NAR Chief Economist Lawrence Yun said, "Conscious of changing mortgage rates, home buyers are taking advantage of any rate declines. Moreover, we're seeing stronger sales gains in areas where home prices are decreasing and the local economies are adding jobs."

The Mortgage Bankers Association said applications for new home purchases in February were also up monthly and from a year ago. The NAR went on to say that median home prices for existing homes fell ever so slightly year-over-year in February, ending a streak of 131 consecutive months of year-over-year increases, the longest on record.

Bottom line: Yes, there are some positive signs but aside from that, buying a home also gives you a feeling of gratification and is your sacred space. And historically, purchasing a home is a good investment for the long run.

Source: Mortgage Market Guide

Unconventional Ways to Find Home Listings

If you find yourself searching for your dream home, you might automatically assume you can only find them on traditional real estate websites.

However, there are other ways to find homes, but it might take a little more creativity and sleuthing to try to find them.

Ask around. If you're walking or driving around a neighborhood you're interested in, don't be afraid to ask homeowners who are outside if they know of any homes that might be on the market soon. You might be able to work out a deal directly with the seller.

Advertise your interest. Similarly to walking through neighborhoods, you could try a mass mailing to those people living in your desired neighborhood.

Go online. Use non-MLS websites such as ones that list properties that are for sale by owner or classifieds from local newspapers and look for homes for sale. Again, you might be able to work out a deal directly with the seller with this option.

Contact homeowner's associations (HOAs). Contact these associations to see if any residents are getting ready to sell their homes. These neighborhoods might use a social media platform, so see if you can join to learn about soon-to-be-listed homes.

When you begin your unconventional home listing search, make sure you're ready to carry through with your inquiries. Speak with a mortgage professional to understand your financing options so you're prepared to purchase your new home.

Sources: Dashhomeloans.com, Investopedia.com, Isoldmyhouse.com

How to Choose an Interior Paint Type

One of the easiest ways to spruce up your interior is to apply a fresh coat of paint. Color isn't the only way to add character to the room, you'll also need to consider the paint's finish. The six most common types of finishes include the following:

Eggshell. This popular finish gives off a slight sheen and is a medium that sits between matte and glossy. It's typically used in high-traffic areas such as bathrooms, hallways, and children's bedrooms.

Flat. Use this finish if you want to hide any bumps or scratches on the wall's surface. Flat paint soaks up the light, but it's also the hardest to clean. It's best for low-traffic rooms.

Glossy. Glossy paint reflects light and creates a bold impact. Use this finish if you want to elevate the space since it creates a vibe that you're entering a special place.

Matte. This option absorbs light and causes a velvety effect. Use a matte finish if you want other pieces of decor to play a part in the space's design.

Satin. A satin finish is ideal if you want a durable paint finish. It hides imperfections and is easy to clean. It's best suited for humid areas that don't receive a lot of sunlight such as a basement.

Semi-gloss. A sleek and elegant finish, semi-gloss is known for its radiance. However, it has a heightened sheen so it shows off imperfections easily. Use it in high-traffic areas or on crown moldings to accentuate them. .

Regardless of whatever interior paint finish you select, it can completely transform a room. You might need to sample a few types to get the look you desire.

Sources: Mydomaine.com, Housebeautiful.com, Washgingtonpost.com

What Are the Pros and Cons of Using Owner Financing?

QUESTION: Is owner financing a good idea?

ANSWER: While a traditional mortgage is the most common way to secure financing for a home, not everyone qualifies. Owner financing can be another option if you're struggling to find a lender who can provide a mortgage for you. Owner financing eliminates the need for a lender, appraisal, and inspection. Keep in mind, no matter what financing you choose, it's always a good idea to have a trusted real estate professional to guide you through the process.

Also known as seller financing, owner financing is an alternative that allows you to keep the dream of homeownership alive. With this option, the seller finances the purchase, often at an interest rate higher than a traditional mortgage, and can include a balloon payment due after at least five years.

Similarly to a conventional mortgage, owner financing involves the buyer making a down payment on the piece of property and making payments over the years. However, it's often a more expensive option and could require refinancing in as few as five years.

Once the buyer and seller agree to use owner financing, the two parties determine a payback schedule. Depending on the type of agreement, the buyer might face a rather large lump-sum payment at the end of the term. Also, unlike a conventional mortgage, owner financing usually doesn't include taxes and insurance payments so the buyer is also responsible for making those payments separately

Buyers benefit from this option because it allows them to finance a home that might not qualify otherwise and it can expedite the home-buying process. However, it often involves higher interest rates than traditional mortgages and might require them to pay off the entire mortgage before selling the home.

Knowing what to expect with owner financing can help you decide if this option works best for you. If you have any further questions about what to expect, don't be afraid to reach out to a trusted real estate professional.

Sources: Forbes.com, Investopedia.com, Lifehacker.com

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