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.

Pinterest

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.

Pinterest

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.

Pinterest

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.

Pinterest

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.

Pinterest

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.

Pinterest

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.

Pinterest

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.

Pinterest

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.

Pinterest

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?

For more, visit nar.com

Buyers • General • Real Estate • Sellers • October 3, 2022

Fire Prevention Week | Do you and your love ones have a plan in place?

by Stephanie Cox

Fire Prevention Week is observed each year during the week of October 9th.
Source: Fire-Prevention-Week/About

Today’s homes burn faster than ever. You may have as little as two minutes (or even less time) to safely escape a home fire from the time the smoke alarm sounds. Your ability to get out of a home during a fire depends on early warning from smoke alarms and advance planning.

Here’s more fire safety information you can use:

Home Escape Plan Grid (Printable)

Family Action Plan Checklist (Printable)

Home fire escape planning and practicing

It is important for everyone to plan and practice a home fire escape. Everyone needs to be prepared in advance, so that they know what to do when the smoke alarm sounds. Given that every home is different, every home fire escape plan will also be different.

Have a plan for everyone in the home. Children, older adults, and people with disabilities may need assistance to wake up and get out. Make sure that someone will help them!

Smoke alarms

Smoke alarms sense smoke well before you can, alerting you to danger. Smoke alarms need to be in every bedroom, outside of the sleeping areas (like a hallway), and on each level (including the basement) of your home. Do not put smoke alarms in your kitchen or bathrooms.

Choose an alarm that is listed with a testing laboratory, meaning it has met certain standards for protection.

For the best protection, use combination smoke and carbon monoxide alarms that are interconnected throughout the home. These can be installed by a qualified electrician, so that when one sounds, they all sound. This ensures you can hear the alarm no matter where in your home the alarm originates.

Importance of fire prevention

In a fire, mere seconds can mean the difference between a safe escape and a tragedy. Fire safety education isn’t just for school children. Teenagers, adults, and the elderly are also at risk in fires, making it important for every member of the community to take some time every October during Fire Prevention Week to make sure they understand how to stay safe in case of a fire.

On this site, you’ll find loads of educational resources to make sure that every person knows what to do in case of a fire. We have everything from apps to videos to printables and much more, to make sure you have the resources you need to keep your family, your community, and your city safe.

About Fire Prevention Week

Since 1922, the NFPA has sponsored the public observance of Fire Prevention Week. In 1925, President Calvin Coolidge proclaimed Fire Prevention Week a national observance, making it the longest-running public health observance in our country. During Fire Prevention Week, children, adults, and teachers learn how to stay safe in case of a fire. Firefighters provide lifesaving public education in an effort to drastically decrease casualties caused by fires.

Fire Prevention Week is observed each year during the week of October 9th in commemoration of the Great Chicago Fire, which began on October 8, 1871, and caused devastating damage. This horrific conflagration killed more than 250 people, left 100,000 homeless, destroyed more than 17,400 structures, and burned more than 2,000 acres of land.

Real Estate • Sellers • September 17, 2022

RealVitalize: Goodbye Stress, Hello Earnings

by Stephanie Cox

RealVitalize: Goodbye Stress, Hello Earnings

Author: Athena Snow, written July 20, 2021, full article click here

Homes are flying off the market just as quickly as they are listed, but sellers can still miss out on getting top dollar if they decide not to upgrade – or upgrade poorly. Additionally, from upgrades to inspection and moving costs, the entire process can be overwhelming for the seller. Coldwell Banker recently commissioned a survey, conducted by The Harris Poll, exploring the difficulties of the home selling and buying process as well as the challenges around home renovations during those processes.

The survey found:

-89% who have sold their homes in the past three years reported that they made upgrades before selling.
-Over a quarter (28%) of those who have renovated their homes in the past three years were unsure how to get the most out of their improvements.
-Gen Zers and Millennials were more likely to say they struggled to find the money to make updates (34% and 31%) compared to Gen Xers and Boomers (14% and 4%).
-One in five homeowners (21%) said that they plan to sell their current home in the next 12 months.

Thankfully Coldwell Banker affiliated real estate agents can help sellers get the best value for their homes with RealVitalize, a program that allows home sellers to make improvements and repairs with no upfront costs. With more than 20 years of real estate experience, Rose Sklar of Coldwell Banker Realty is an expert at using RealVitalize to help her clients maximize their sale price. Below, we share some of her best tips for anyone hoping to take advantage of the program.

TIP #1 – Advise your clients: Talk to your agent first.

Americans of all generations are taking advantage of making upgrades to get more bang for their buck – 89% who have sold their homes in the past three years reported that they made upgrades before selling. However, 28% said they had the money to make updates before listing but struggled to understand the best updates to make to get the most return on investment.

Here’s where Rose and RealVitalize come in. With two decades of real estate knowledge, she has insight into the must-haves in renovation and upgrades because she sees what sells the fastest and what doesn’t. She follows the latest design trends to coach her clients on what buyers want – updated landscaping, minimalist furniture, modern cabinet knobs (“Spend some $$ here!” she says) and the most neutral wall colors. Then she’s able to help them take advantage of RealVitalize and the program’s network of home professionals to make those upgrades.

“I come into my clients’ homes before listing, and they tell me they just had fresh painting done. However, it’s often the wrong color – sometimes an ‘off’ cream that’s actually mustard, or a bright color that only they like. I always advise them – wait until your real estate agent weighs in before you start making updates,” counsels Rose.

Clients upgrading their homes is great – but only if they make the right upgrades. Utilizing the power of before and after photos, Rose and her team demonstrate the strength and potential that the RealVitalize program holds.

TIP #2: Inspect before you list.

Rose always recommends doing an inspection prior to listing. Fixing issues before potential buyers even walk through the door saves yourself and the client much added stress, those “what-if’s” and the possibility of the buyer asking for a price reduction when problems inevitably pop up.

Pre-inspections can also lessen the disconnect between the seller’s list of must-dos and the must-haves of potential homebuyers. According to our survey, features that would be must-haves for Americans if they were looking to buy a home include kitchen upgrades (45%), bathroom upgrades (44%) and updated HVAC, plumbing and electrical (43%). RealVitalize can help with updates – and convincing clients to perform a pre-inspection is easy when they understand the money doesn’t come out of pocket for these repairs.

TIP #3: Less Is More!

“Less is more!” says Rose, noting that home sellers often have trouble parting with beloved belongings. She understands their attachment, however, and shows empathy when working with these clients. However, when she shows them before and after pictures, that’s when they really start to understand how much more they could make if they use RealVitalize to pay for storage, hire moving and packing crews and bring in staging services.

While moving and storing items is stressful – according to our survey, among those who sold a home in the last three years, three fifths (61%) say it is at least somewhat stressful to move and store items – as Rose says, “It’s about helping clients realize: You can do this with RealVitalize.”

TIP #4: Sitting stale? RealVitalize.

Rose does her best to convince all her clients to use the RealVitalize program, whether they have big or small updates to make. “Gentle encouragement” is what she calls it.

Some clients can take more convincing, which is why Rose sometimes has to resort to a two-stage model in her encouragement approach. Stage 1 is listing without any upgrades and listing the house as-is. If the house sits stale on the market – which it almost always does, she notes – then she tells her client it’s time to move to stage 2. During the second stage, upgrades are made and new photos are taken. Once the house is relisted, she says she often sees the home close in record time.

Every client won’t understand right away the importance of renovations – but when RealVitalize is added to the picture, it makes agents’ jobs easier.

Goodbye Stress, Hello Earnings

From the first step out of the car, up the walkway to the front door, Rose knows that first impressions matter to potential buyers. The good news is, gone are the days of wondering what upgrades to make. Coldwell Banker affiliated agents guide sellers from start to finish – and when sellers use RealVitalize, high earnings, less stress and quick turnaround are almost guaranteed. A clean kitchen, a freshly painted door and killer landscaping can set potential buyers up for a wonderful walkthrough, potentially leading to a done deal at the end of the showing.

If you’re interested in the RealVitalize program you should reach out to a Coldwell Banker affiliated agent, Stephanie Cox 513-262-9189

Survey Methodology

This survey was conducted online within the United States by The Harris Poll on behalf of Coldwell Banker between June 22-24, 2021, among 2,037 adults ages 18+, among whom 1335 are homeowners and 432 sold a home in the past 3 years. This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be -calculated. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact Deanna Gorecki at dgorecki@gscommunications.com.

General • Real Estate • September 17, 2022

2022 Seven Star Certificate of Excellence at Broker★Agent Advisor

by Stephanie Cox

Thank you Cincinnati!

Stephanie Cox has met or exceeded criteria established by Broker Agent Advisor relevant to experience, reputation, and achievement… and having demonstrated every quality characteristic of a superior real estate professional is hereby recognized and honored for exemplary service to their community and as a credit to the real estate profession.

Local Real Estate Professional Brings Home National Certification
Broker★Agent Advisor Recognizes Achievement

Phoenix, Arizona 10/03/2022

Now in its 29th season, Broker★Agent Advisor celebrates success and accomplishment of the industry’s finest real estate professionals through its ‘Certificate of Excellence’ program.

Through proprietary criteria, formulas, and other valuable considerations, Stephanie Cox has been certified by Broker★Agent Advisor in the Seven Star category as one of the best in real estate based on achievement, potential, leadership, ethics, community value, experience, capability, and trust for their service during the calendar year of 2022.

“Stephanie Cox exemplifies the type of professional we designed this program for,” says Chad Golladay, Executive Publisher of Broker★Agent Advisor. “A true credit to their company, profession, and community; one with whom the honor is truly ours in being able to share our certification.”

There is no cost or fee required for this certification, and all applicant’s credentials are verified, which makes this honor one of the most genuine in the industry towards identifying those truly worthy of special recognition and distinction.

Stephanie now represents their market alongside the finest men and women in real estate in Broker★Agent Advisor’s national online directory of certified professionals here: https://www.brokeragentadvisor.com/referral

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Established in 1996 Broker★Agent Advisor is a real estate trade publication which provides information, tools, and resources to assist the modern real estate professional in achieving greater success through their real practice.

SOURCE: Broker★Agent Advisor

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