Buyers • General • Real Estate • July 8, 2023

Why Homeownership Wins in the Long Run

by Stephanie Cox

Today’s higher mortgage rates, inflationary pressures, and concerns about a potential recession have some people questioning: should I still buy a home this year? While it’s true this year has unique challenges for homebuyers, it’s important to think about the long-term benefits of homeownership when making your decision.

Consider this: if you know people who bought a home 5, 10, or even 30 years ago, you’re probably going to have a hard time finding someone who regrets their decision. Why is that? The reason is tied to how home values grow with time and how, by extension, that grows your own wealth. That may be why, in a recent Fannie Mae survey, 70% of respondents say they believe buying a home is a safe investment.

Here’s a look at how just the home price appreciation piece can really add up over the years.

Home Price Growth over Time

The map below uses data from the Federal Housing Finance Agency (FHFA) to show just how noteworthy price gains have been over the last five years. And, since home prices vary by area, the map is broken out regionally to help convey larger market trends.

If you look at the percent change in home prices, you can see home prices grew on average by just over 56% nationwide over a five-year period.

Some regions are slightly above or below that average, but overall, home prices gained solid ground in a short time.And if you expand that time frame even more, the benefit of homeownership and the drastic gains homeowners made over the years become even clearer (see map below):

The second map shows, nationwide, home prices appreciated by an average of over 290% over a roughly 30-year span.

This nationwide average tells you the typical homeowner who bought a house 30 years ago saw their home almost triple in value over that time. That’s a key factor in why so many homeowners who bought their homes years ago are still happy with their decision.

And while you may have heard talk in late 2022 that home prices would crash, it didn’t happen. Even though home prices have moderated from the record peak we saw during the ‘unicorn’ years, prices are already rebounding in many areas today. That means, in most markets, your home should grow in value over the next year.

The alternative to buying a home is renting, and rental prices have been climbing for decades. So why rent and deal with annual lease hikes for no long-term financial benefit? Instead, consider buying a home.

Bottom Line

If you’re questioning if it still makes sense to buy a home today, remember the incredible long-term benefits of homeownership. If you’re ready to start the conversation, reach out to a real estate professional today.

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Buyers • General • Real Estate • Sellers • July 8, 2023

Real Estate Updates | Area Reports | May 2023

by Stephanie Cox

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Real Estate Updates | Area Reports | May 2023

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Stephanie Cox

PSA

Cell: 513-262-9189

stephanie.cox@cbws.com

Agent Website

Lic. #: OH-2013001354

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Buyers • General • Real Estate • Sellers • June 6, 2023

Real Estate Updates | Area Reports | March 2023

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Try these fun outdoor staycation ideas to make your home the best vaca…

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Real Estate Updates | Area Reports | March 2023

Butler County

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Clermont County

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Hamilton County

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Stephanie Cox

PSA

Cell: 513-262-9189

stephanie.cox@cbws.com

Agent Website

Lic. #: OH-2013001354

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Buyers • Real Estate • Sellers • November 7, 2022

Key Factors Affecting Home Affordability Today

by Stephanie Cox

Every time there’s a news segment about the housing market, we hear about the affordability challenges buyers are facing today. Those headlines are focused on how much mortgage rates have climbed this year. And while it’s true rates have risen dramatically, it’s important to remember they aren’t the only factor in the affordability equation.

Here are three measures used to establish home affordability: home prices, mortgage rates, and wages. Let’s look closely at each one.

1. Mortgage Rates

This is the factor most people are focused on when they talk about homebuying conditions today. So far, current rates are almost four full percentage points higher than they were at the beginning of the year. As Len Kiefer, Deputy Chief Economist at Freddie Mac, explains:

“U.S. 30-year fixed mortgage rates have increased 3.83 percentage points since the end of last year. That’s the biggest year-to-date increase in rates in over 50 years.”

That increase in mortgage rates is impacting how much it costs to finance a home purchase, creating a challenge for many buyers that’s pricing some out of the market. While the current global uncertainty makes it difficult to project where mortgage rates will go in the future, experts do say that rates will likely remain high as long as inflation does.

2. Home Prices

The second factor at play is home prices. Home prices have made headlines over the past few years because they skyrocketed during the pandemic. Now, the most recent Home Price Index from S&P Case-Shiller shows home values continued to decelerate for a fifth consecutive month (shown in green in the graph below):

This deceleration is happening because higher mortgage rates are moderating demand, and as a result, easing the buyer competition and bidding wars that previously drove prices up.

What’s worth noting though, is how much higher home prices still are than they were before the pandemic (shown in blue in the graph above). Even now, we have a long way to go to get to more normal levels of home price appreciation, which is historically closer to 4%. When both mortgage rates and home prices are high, affordability and your purchasing power become a greater challenge.

But while prices are still elevated in many markets, some areas are seeing slight declines. It all depends on your local market. For insight into what’s happening in your area, reach out to a trusted real estate professional.

3. Wages

The one big, positive component in the affordability equation is the increase in American wages. The graph below uses data from the Bureau of Labor Statistics (BLS) to show how wages have grown over time. This year is no exception.

As the Bureau of Labor Statistics (BLS) reports:

“Median weekly earnings of the nation’s 120.2 million full-time wage and salary workers were $1,070 in the third quarter of 2022 (not seasonally adjusted), the U.S. Bureau of Labor Statistics reported…This was 6.9 percent higher than a year earlier…”

So, when you think about affordability, remember the full picture includes more than just mortgage rates. Home prices and wages need to be factored in as well. Because wages have been rising, they’re a big reason why serious buyers are still purchasing homes this year.

If you have questions or want to learn more, reach out to a trusted advisor who can explain how all of these variables work together and what’s happening in your area. As Leslie Rouda Smith, President of the National Association of Realtors (NAR), says:

“Buying or selling a home involves a series of requirements and variables, and it’s important to have someone in your corner from start to finish to make the process as smooth as possible… and objectivity to deliver trusted expertise to consumers in every U.S. ZIP code.”

Bottom Line

To learn more, reach out to a trusted real estate professional and a local lender so you’re able to make an informed decision if you’re planning to buy or sell a home right now.

Source: Keeping Current Matters

NOVEMBER 7, 2022/ BY KCM CREW

Real Estate • November 7, 2022

10 HORRIFYING HOME DESIGN TRENDS OF 2022

by Stephanie Cox

THE CLASSIC FARMHOUSE LOOK
Many designers have called for the modern farmhouse trend to be put out to pasture, especially for homes that are nowhere near a farm. This look embraces overly distressed and white-washed furnishings and décor. It’s all about kitschy signs like ‘live, laugh, love’ or ‘gather’. Shiplap walls lead to barn doors, burlap, buffalo check overload and mason jars. Keep a few antique touches from the style, but committing too hard to farmhouse décor could be aging your home.

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VESSWEL BOWL SINKS
These sinks sit on top of the bathroom vanity counter. They may be a round bowl or a modern square in marble or even copper. They were once a favorite for modernizing an outdated bathroom, offering a unique touch to the typical under-mount sink. But they’ve lost their luster—and they can be a pain to clean. Water and dirt can get stuck between the base of the vessel sink and the counter. The edge of the sinks are also exposed and can be prone to cracks and damage.

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MATCHING FURNITURE SETS
Avoid getting too match-y with your furnishings and fixtures. It’s trendy not to match. A beige sofa with perfectly coordinated beige chairs and a complementary coffee table—sold as a set—is essentially the furniture version of a “bed in a bag.” Free yourself from having to pair everything in the same color. Contrast can add dimension to a room, designers say.

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COWHIDE PRINTS
Over the last decade, a cowhide rug was viewed as the ultimate modern accessory. But animal prints are becoming passé. Try other ways to channel the trendy white-and-black color scheme. When it comes to inspiration, take it from the designers: don’t involve cows.

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RAINFALL SHOWER HEADS
These shower heads have been a popular accessory for creating the feel of a luxury spa in the home. But their hype is starting to wane due to the lack of practicality.

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VENETIAN PLASTER WALLS
Plaster wall finishes are still trendy right now, so we’re calling this one early. This is because of the pain it could be to remove one day if you ever grow tired of this look. Some home remodelers say they’ve had to remove an entire wall to get rid of this heavy paint finish.

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WALLPAPER MURALS
At least we know there’s a simple exit strategy with this one. The peel-and-stick types of wallpaper can be easy to remove.

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TILE COUNTERTOPS
Square tile countertops had their heyday in kitchens and bathrooms in the 1970s and ’80s. Now, they’re considered one of the worst home décor styles of the past 50 years. This is according to a survey from the home furnishing company Empire Today. Cleaning the grout can be a chore, and tile can be prone to chipping.

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A JUNGLE OF GREENERY
We love greenery, but it doesn’t need to be in every single corner of your home. If the dining table has a giant plant that you can’t see over, you’ve gone too far. Buy a greenhouse to store all the extra plants.

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THE “CLOFFICE”
The pandemic-driven trend of turning closets into home offices seemed like a practical solution in a sudden work-from-home culture. However, homeowners are rolling out of the closet after too many months of being tucked away. Instead, they’re preferring a dedicated workspace with more room and light. Plus, they really want to take back their closets and extra storage space. Where else are they going to put all those pandemic-inspired splurges they don’t need anymore?

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