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Blog by KM Realty Group LLC, Chicago, Illinois The Biggest Mistakes Sellers Are Making Right Now The housing market is going through a transition. Higher  mortgage rates  are causing more moderate buyer activity, and at the same time, the supply of homes for sale is growing. You may not realize that if you aren’t working with an agent. Here’s the downside: If you’re not informed, you can’t adjust your strategy or expectations to today’s market, which can lead to a number of costly mistakes. Here’s a look at some of the most common ones — and how an agent can help you avoid them when you sell. 1. Overpricing Your House Many sellers set their asking price too high, so there’s an uptick in homes with price reductions today. An unrealistic price will deter potential buyers, cause an  appraisal   issue, or lead to your house sitting on the market longer. An article from the  National Association of Realtors  (NAR)   explains : “Some sellers are pricing thei...

  Infographic by KM Realty Group LLC, Chicago, Illinois Unlocking the Benefits of Your Home’s Equity Equity  is the difference between what your house is worth and what you still owe on your mortgage. The typical homeowner gained  $28,000  over the past year and has a grand total of  $305,000  in equity. And there are a lot of great ways you can use that equity. Want to know how much equity you have? Let’s connect so you can get a Professional Equity Assessment Report (PEAR).

Blog by KM Realty Group LLC, Chicago, Illinois Today’s headlines and news stories about home prices are confusing and make it tough to know what’s happening. Some say home prices are heading for a correction, but what do the facts say? Well, it helps to start by looking at what a correction means. Here’s what Danielle Hale, Chief Economist at  Realtor.com ,  says : “In stock market terms, a correction is generally referred to as a 10 to 20% drop in prices . . . We don’t have the same established definitions in the housing market.” In the context of today’s housing market, it doesn’t mean home prices are going to fall dramatically. It only means prices, which have been increasing rapidly over the last few years, are normalizing. In other words, they’re now growing at a slower pace. Prices vary a lot by local market, but a significant drop-off isn’t what’s happening at a national level. The Real Estate Market Is Normalizing From 2020 to 2022, home prices skyrocketed. That rapid ...

As someone thinking about buying or selling a home, you’re probably paying close attention to mortgage rates — and wondering what’s ahead. One thing that can affect  mortgage rates  is the Federal Funds Rate, which influences how much it costs banks to borrow money from each other. While the  Federal Reserve  (the Fed) doesn’t directly control mortgage rates, they control the Federal Funds Rate. The relationship between the two is why people have been watching closely to see when the Fed might lower the Federal Funds Rate. Whenever they do, that’ll put downward pressure on mortgage rates. The Fed meets next week, and three of the most important metrics they’ll look at as they make their decision are: The Rate of Inflation How Many Jobs the Economy Is Adding The Unemployment Rate Here’s the latest data on all three. 1. The Rate of Inflation You’ve probably heard a lot about  inflation  over the past year or two — and you’ve likely felt it whenever you’ve gon...

  Blog by KM Realty Group LLC, Chicago, Illinois If you’re in the market to   buy a home , there’s some exciting news for you. Many people assume that newly built homes are more expensive than existing ones (houses already lived in), but that’s not always the case. Exploring newly built homes can sometimes lead to more cost-effective options, especially today. Hard to believe. But the data doesn’t lie. Here are two key reasons why working with your agent to investigate  new home  construction could help you find a more budget-friendly option. Reason 1: Lower Median Prices for Newly Built Homes The median sales price for newly built homes is lower than that for existing homes today. This might seem surprising, but it’s true according to the latest data from the  Census  and the  National Association of Realtors  (NAR): Why is that? Builders are focused on building what they can sell. And right now, there’s a real need for smaller and more affordabl...

Blog by KM Realty Group LLC, Chicago, Illinois Even though data shows inflation is cooling, many people still feel the pinch on their wallets. And those high costs on everything from gas to groceries fuel unnecessary concerns that more people will have trouble making their mortgage payments. But does that mean there’s a big wave of foreclosures coming? Here’s why the data and the experts say that won’t happen. There Aren’t Many Homeowners Who Are Seriously Behind on Their Mortgages One of the main reasons there were so many foreclosures during the last housing crash was that relaxed lending standards made it easy for people to take out mortgages, even when they couldn’t show they’d be able to repay them. At that time, lenders weren’t as strict when looking at applicant credit scores, income levels, employment status, and debt-to-income ratio. But since then, lending standards have gotten much tighter. Lenders have become much more diligent when assessing applicants for home loans. That...

Blog by KM Realty Group LLC, Chicago, Illinois An interesting   trend   is happening in the  housing market . People are increasingly moving to more affordable areas, and remote or hybrid work is helping them do it. Consider Moving to a More Affordable Area Today’s high mortgage rates combined with continually rising  home prices  mean it’s tough for many people to afford a home. That’s why many interested buyers are moving to places where  homes   are less expensive, and the cost of living is lower. As Orphe Divounguy, Senior Economist at  Zillow ,  explains : “housing affordability has always mattered . . . and you’re seeing it across the country. housing affordability is reshaping migration trends.” If you’re hoping to   buy a home  soon, it might make sense to broaden your search area to include places where homes that fit your needs are more affordable. That’s what many other people are doing right now to find a home within the...

There’s no arguing this past year has been difficult for homebuyers. And if you’re someone who has started the process of searching for a home, maybe you put your search on hold because the challenges in today’s market   felt like too much to tackle. You’re not alone in that. A   Bright MLS   study   found some of the top reasons buyers paused their search in late 2023 and early 2024 were: They couldn’t find anything in their price range They didn’t have any successful offers or had difficulty competing They couldn’t find the right home If any of these sound like why you stopped looking, here’s what you need to know. The housing market is in a transition in the second half of 2024. Here are four reasons why this may be your chance to jump back in. 1. The Supply of Homes for Sale Is Growing One of the most significant shifts in the market this year is how the months’ supply of homes for sale has increased. If you look at  data  from the  National Associ...