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In This Issue: August 2023
August 15, 2023

In This Issue

"When you have a dream, you've got to grab it and never let go." - Carol Burnett


When purchasing a new home, you might prefer to live in the excitement of the city or the quiet solitude of the country. In this issue, we'll discuss how to decide where to buy, as well as the following:


What to Watch - The big question will be whether or not the Federal Reserve will continue to hike rates for the remainder of 2023 to fight inflation.


Urban, Suburban, or Rural Area: Where To Buy - Among urban, suburban, and rural properties, each have their own pros and cons to consider before purchasing a home.


DIY Tile Tips for Homeowners - You don't have to be a professional to install a stunning new tile floor in your bathroom with these simple tips.


Q&A: How Can You Add Value to a Home? - Knowing what improvements add the most value to a home can help you choose the projects you want to do.


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

What To Watch


The Fed and Inflation


Consumers have seen the closely watched inflation reading Consumer Price Index (CPI) fall from a 40+ year high of 9% in June 2022 to the recent read of 3% on a year-over-year basis.


Inflation measures how much more expensive a set of goods and services has become over a certain period, usually a year. It may be one of the most familiar words in economics.


That has been a big relief but could inflation reverse course and begin to head higher once again? Since the beginning of July energy prices have risen which is inflationary data. Oil prices rose to $82 at the end of July, up from $70 early in the month. We know inflation is the arch-enemy of bonds and borrowing costs.


Further inflation pressures are seen as the S&P Goldman Sachs Commodity Index has been on the rise signaling higher commodity prices. Cotton prices have risen while food prices remain high. Shelter costs continue to run high. It looks like future readings of inflation data could see an uptick and is something the markets as well as the mortgage market will have to closely watch.


The big question will be whether or not the Federal Reserve will continue to hike rates for the remainder of 2023 to fight inflation. Will the Fed allow the policy lag of 200+ basis points in hikes to the Fed Funds Rate to seep into the economy? These are the answers we'll be looking for inside of two CPI reports and a Core Personal Consumption Expenditure (PCE), the Favorite inflation gauge, before the September Fed meeting.


Bottom line: Whether or not the Fed hikes rates or inflation rises, Americans still need shelter. Families form daily and renters look to be homeowners so the need for housing will always be a constant.


Source: Mortgage Market Guide

Housing News


Urban, Suburban, or Rural Area: Where To Buy


When deciding where to buy, you have many options, from densely populated cities to wide-open country spaces. Learn the pros and cons of each option to decide what's best for you.


Urban. If you enjoy the hustle and bustle of the city, look for a home in an urban area. Many people move to cities for a greater variety of job opportunities. In a city, you have access to public transportation and key amenities, like road services and trash collection. The downsides of city living include pricier homes and higher crime rates.


Suburban. Life in the 'burbs offers a great compromise for people who enjoy city amenities but want lower living costs. You'll usually get more house for your money in a suburb. In addition, many families choose to move to the suburbs because of their reputation for quality schools. However, you might have a longer commute, and some suburban communities may have homeowners associations with rules about what you can do with your home.


Rural. Those who crave wide-open spaces will feel most at home in a rural area. In the country, you can find homes with plenty of land, where your nearest neighbors may be miles away. You will enjoy cleaner air and statistically lower crime rates than city residents. But rural areas may have fewer job opportunities, and some may not enjoy the slower lifestyle.


Whether you prefer the lights of the city or the quiet of the country, there's a place for you to feel at home. Do your research to decide the best space for you and your family to live.


Sources: Hansenteampensacola.com, Moneycrashers.com

Home Improvement


DIY Tile Tips for Homeowners


Installing a new tile floor in the bathroom can instantly transform and update the space. Here are some tips if you want to try laying the new tile yourself.


Estimate the cost. Measure the floor to determine the square footage. Round up the measurement to the nearest foot and add 10% to make sure you purchase enough tile. Usually, you can find tile for $5 to $15 per square foot, though some options may be cheaper.


Prep the floor. In most cases, you can remove the existing floor before installing the new tile. If you have a concrete subfloor, you can lay the tile directly over it. Make sure the floor is free of adhesives or other residues, and patch areas as needed so it's smooth. For wood floors, use a backer board to prepare the floor for the tile.


Lay out tile before installing. To make sure you like the design, lay out the tile before installing. Plan where you need to make cuts. Use chalk lines on the floor to make a guide you can follow as you install the tile.


Grout the joints. Once you've laid the tile, grout the joints using a single-component grout that doesn't require mixing. Test the grout first by filling tile joints on a small piece of backboard. Press hard to get the grout into the joints and wipe away the excess.


With some preparation, you can install new tile yourself to save hundreds of dollars, if not more, on the cost of hiring a professional. Use these tips and follow all product instructions to lay a beautiful new tile floor in your bathroom.


Sources: Familyhandyman.com, Chieftain.com, Orlandosentinel.com

Q&A


How Can You Add Value to a Home?


QUESTION: Which types of home improvements can add the most value to a home?


ANSWER: There are many projects you can do in your home. While some add value, others may actually cost you money when you're ready to sell. Knowing what projects increase your home's value can help you decide whether they're worth doing.


In general, kitchen and bathroom improvements tend to increase the value of your home. Remodeling these rooms may involve updating light fixtures, installing new fixtures, and painting cabinets or vanities. These small changes can all add up to big resale value.


Here are some other projects that can add substantial value to your home:


Replace garage doors. Installing a new garage door can be a cost-effective way to boost your home's value. Choose garage doors made from steel, wood composites, or aluminum, since they're the most weather-resistant.


Add a deck. Building a deck for your home's exterior may be costlier than other projects, but it can have a high return on investment. A wood deck increases the living area of your home, making it a popular feature with buyers.


Update siding and windows. Your home's siding can make an instant impression on buyers, so make sure it's a good one. Replace old or damaged siding and update the trim. You can also upgrade your windows to enhance the look of your home. Choose energy-efficient windows for the greatest return on investment.


When deciding what projects to do in your home, consider the impact they may have on its resale value. Choosing projects that increase your home's value can have positive effects on a future sale.


Sources: Seattlecu.com, Bankrate.com, Moving.com

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