The link between financial security and homeownership is especially important today as&nbsp;<a href="https://www.mykcm.com/2022/01/11/why-inflation-shouldnt-stop-you-from-buying-a-home-in-2022/">inflation</a>&nbsp;rises.&nbsp; But many people may not realize just how much owning a home contributes to your overall&nbsp;<a href="https://www.mykcm.com/2022/02/21/real-estate-voted-the-best-investment-eight-years-in-a-row/">net worth</a>. As Leslie Rouda Smith, President of the&nbsp;National Association of Realtors&nbsp;(NAR),&nbsp;<a href="https://www.nar.realtor/newsroom/middle-income-households-gain-2-1-trillion-in-housing-wealth-in-a-decade" target="_blank" rel="noopener noreferrer">says</a>:<blockquote>“Homeownership is rewarding in so many ways and can serve as a vital component in achieving financial stability.”</blockquote>Here are just a few reasons why, if you’re looking to increase your financial stability, homeownership is a worthwhile goal.<h4>Owning a Home Is a Building Block for Financial Success</h4>A recent NAR&nbsp;<a href="https://cdn.nar.realtor/sites/default/files/documents/2022-snapshot-of-race-and-home-buying-in-the-us-report-02-23-2022_0.pdf" target="_blank" rel="noopener noreferrer">report</a>&nbsp;details several homeownership trends and statistics, including the difference in net worth between homeowners and&nbsp;<a href="https://www.mykcm.com/2022/02/25/the-difference-between-renting-and-owning-infographic/">renters</a>. It finds:“. . . the net worth of a homeowner was about&nbsp;$300,000 while that of a renter’s was $8,000 in 2021.”To put that into perspective, the average homeowner’s net worth is roughly 40 times that of a renter&nbsp;(see visual below):<div class="se-component se-image-container __se__float-" contenteditable="false"><figure style="margin: 0px; width: 700px;"><img class="aligncenter wp-image-101625" src="https://files.mykcm.com/2022/03/24150344/20220328-MEM-Eng.png" alt="A Key To Building Wealth Is Homeownership | MyKCM" data-origin="700,450" data-proportion="true" data-size="700px,450px" data-align="" data-index="0" data-file-name="20220328-MEM-Eng.png" data-file-size="0" style="width: 700px; height: 450px;"></figure></div>The results from this report show that owning a home is a key piece to the puzzle when building your overall net worth.<h4>Equity Gains Can Substantially Boost a Homeowner’s Net Worth</h4>The net worth gap between owners and renters exists in large part because homeowners build&nbsp;<a href="https://www.mykcm.com/2022/03/21/the-average-homeowner-gained-more-than-55k-in-equity-over-the-past-year/">equity</a>. As a homeowner, your equity grows as your home&nbsp;<a href="https://www.mykcm.com/2022/03/03/are-home-prices-continuing-to-rise/">appreciates</a>&nbsp;in value and you make your mortgage payments each month.In other words, when you own your home, you have the benefit of your mortgage payment acting as a contribution to a forced savings account. And when you sell, any equity you’ve built up comes back to you.&nbsp;As a&nbsp;<a href="https://www.mykcm.com/2022/01/31/owning-is-more-affordable-than-renting-in-the-majority-of-the-country/">renter</a>, you’ll never see a return on the money you pay out in rent every month.To sum it up, NAR says it&nbsp;<a href="https://cdn.nar.realtor/sites/default/files/documents/2022-snapshot-of-race-and-home-buying-in-the-us-report-02-23-2022_0.pdf" target="_blank" rel="noopener noreferrer">simply</a>:<blockquote>“Homeownership has always been an important way to build wealth.”</blockquote><h3>Bottom Line</h3>The gap between a homeowner’s net worth and a renter’s shows how truly foundational homeownership is to wealth-building. If you’re ready to start on your journey to homeownership, let’s connect today.

Build Wealth Through Home Ownership

Are you thinking about selling your home this year? You’ll want to balance getting the most out of the sale with making the&nbsp;<a href="https://www.mykcm.com/2022/01/21/americans-choose-real-estate-as-the-best-investment-infographic/">best investment</a>&nbsp;when you buy your next one. Here are four reasons why this spring may be your golden window of opportunity.<h4> </h4><h4>1. The Number of Homes on the Market Is Still Low</h4>Today’s&nbsp;<a href="https://www.mykcm.com/2022/01/20/buyers-want-to-know-why-is-housing-supply-still-so-low/">limited supply</a>&nbsp;of houses for sale is putting sellers in the driver’s seat. There are far&nbsp;<a href="https://www.mykcm.com/2022/02/18/whats-driving-todays-high-buyer-demand-infographic/">more buyers</a>&nbsp;in the market today than there are&nbsp;<a href="https://www.mykcm.com/2022/02/24/the-1-reason-to-sell-your-house-today/">homes available</a>.&nbsp;That means purchasers are eagerly waiting for your house.Listing your house now makes it the center of attention. And if you work with a real estate professional to price your house correctly, you can expect it to sell quickly and likely get multiple&nbsp;strong offers&nbsp;this season.<h4> </h4><h4>2. Your Equity Is Growing in Record Amounts</h4>According to the most recent&nbsp;<a href="https://www.corelogic.com/intelligence/homeowner-equity-insights/" target="_blank" rel="noopener noreferrer">Homeowner Equity Insight</a>&nbsp;report from&nbsp;CoreLogic, homeowners are sitting on record amounts of&nbsp;equity&nbsp;thanks to recent home price appreciation. The report finds that the average homeowner has gained $55,300 in equity over the past year.That much equity can open doors for you to make a move. If you’ve been holding off on selling because you’re worried about how rising prices will impact your next&nbsp;home search, rest assured your equity can help fuel your move. It may be just what you need to cover a large portion – if not all – of the&nbsp;down payment&nbsp;on your next home.<h4> </h4><h4>3. Mortgage Rates Are Increasing</h4>While it’s true mortgage rates have already been climbing this year, current mortgage rates are still below what they’ve been in&nbsp;<a href="https://www.freddiemac.com/pmms/archive" target="_blank" rel="noopener noreferrer">recent decades</a>. In the 2000s, the average mortgage rate was 6.27%. In the 1990s, the average rate was 8.12%.For context, the current average 30-year fixed mortgage rate, according to&nbsp;Freddie Mac,&nbsp;is 3.85%. And while recent&nbsp;<a href="https://www.mykcm.com/2022/03/08/how-global-uncertainty-is-impacting-mortgage-rates/">global uncertainty</a>&nbsp;caused rates to dip slightly in the near-term, experts project rates will rise in the months ahead. Doug Duncan, Senior Vice President and Chief Economist at&nbsp;Fannie Mae,&nbsp;<a href="https://www.fanniemae.com/newsroom/fannie-mae-news/economic-growth-expected-slow-fed-wrangles-inflation" target="_blank" rel="noopener noreferrer">says</a>:<blockquote>“For homebuyers, we believe that borrowing costs will likely rise with the increase in mortgage rates….”</blockquote>When that happens, it’ll&nbsp;cost you more&nbsp;to purchase your next home. That’s why it’s important to act now if you’re ready to sell.&nbsp;Work with a trusted advisor to kickstart the process so you can take key steps to making your next purchase before rates climb further.<h4> </h4><h4>4. Home Prices Are Climbing Too</h4><a href="https://www.mykcm.com/2022/03/03/are-home-prices-continuing-to-rise/">Home prices</a>&nbsp;have been skyrocketing in recent years because of the imbalance of supply and demand. And as long as that imbalance continues, so will the rise in home values.What does that mean for you? If you’re selling so you can move into the home of your dreams or downsize into something that better suits your current needs, you have an opportunity to get ahead of the curve by leveraging your growing equity and purchasing your next home before prices climb higher.And, once you make your purchase, you can find&nbsp;<a href="https://www.mykcm.com/2022/01/11/why-inflation-shouldnt-stop-you-from-buying-a-home-in-2022/">peace of mind</a>&nbsp;in knowing ongoing home price appreciation is growing the value of your new investment.<h3> </h3><h3>Bottom Line</h3>This spring may afford you the best opportunity for a win-win situation. Let’s connect so you have the insights you need to take advantage of today’s incredible market.

IT'S SPRING!!!

If you're searching for your next home in the market today, chances are, you already know there is a shortage of homes available.&nbsp; As a buyer,&nbsp;<a href="https://www.mykcm.com/2022/01/20/buyers-want-to-know-why-is-housing-supply-still-so-low/">low housing supply</a>&nbsp;coupled with high buyer demand means you should be prepared to navigate a highly&nbsp;<a href="https://www.mykcm.com/2022/02/11/how-to-win-as-a-buyer-in-a-sellers-market-infographic/">competitive market</a>&nbsp;where homes sell fast and get multiple offers.&nbsp;Realtor.com&nbsp;has this to&nbsp;<a href="https://www.realtor.com/news/trends/today-housing-market-compared-with-before-covid-19-pandemic/" target="_blank" rel="noopener noreferrer">say</a>: <blockquote>“Homes also flew off the market at record pace as buyers put offers in the moment properties came up for sale….”</blockquote> In a bidding war situation like this, doing everything you can to get ahead of the competition is a wise move. That’s because when you find a house and submit an offer, it’ll likely be up against strong offers from other buyers. According to the latest&nbsp;<a href="https://cdn.nar.realtor/sites/default/files/documents/2022-01-realtors-confidence-index-02-18-2022.pdf" target="_blank" rel="noopener noreferrer">Realtors&nbsp;Confidence Index</a>&nbsp;from the&nbsp;National Association of Realtors&nbsp;(NAR), homes today are receiving an average of 3.9 offers. That’s the most offers we’ve seen in January for the last 5 years (see graph below): <div class="se-component se-image-container __se__float-" contenteditable="false"><figure style="margin: 0px; width: 700px;"><img class="aligncenter wp-image-101455" src="https://files.mykcm.com/2022/03/09113406/20220310-MEM-Eng.png" alt="How To Navigate a Market Where Multiple Offers Is the New Normal | MyKCM" data-origin="700,450" data-proportion="true" data-size="700px,450px" data-align="" data-index="0" data-file-name="20220310-MEM-Eng.png" data-file-size="0" style="width: 700px; height: 450px;"></figure></div> To help you navigate bidding wars with multiple offers, an expert real estate advisor is key. They know what’s worked for other buyers, what sellers are looking for, and how to help you prepare when it comes time to make an offer. Here are three tips to keep in mind that will help you make the best offer possible.<h4> </h4><h4>1. Know Your Numbers?</h4>Knowing your budget and what you can afford is critical to your&nbsp;<a href="https://www.mykcm.com/2022/01/07/how-to-hit-your-homebuying-goals-this-year-infographic/">success as a homebuyer</a>. The best way to understand your numbers is to work with a lender so you can get pre-approved for a loan.&nbsp;<a href="https://www.mykcm.com/2022/01/24/why-pre-approval-is-key-for-homebuyers-in-2022/">Pre-approval</a>&nbsp;shows sellers you’re serious, which can give you a competitive edge. You should also know making an offer at the home’s asking price may not be&nbsp;enough.&nbsp;Homes today often sell for more than their listing price. An agent can help you understand the market value of the home and what other homes are selling for in your area.<h4> </h4><h4>2. Be Ready To Move Fast?</h4>Speed and the pace of sales are contributing factors to today’s competitive housing market. When homes are selling fast, it’s important to stay on top of the market and be ready to move quickly. Your agent will help you stay up to date on the latest listings and help you put together your best offer as soon as you find the home you want to buy. This means that waiting or thinking about a home for even a day or two could mean that someone else will snag the home.&nbsp;<h4> </h4><h4>3. Make a Strong but Fair Offer?</h4>?When you’re up against other offers, putting your best offer forward from the start is key. Lean on your agent to write a strong offer and use their expertise on which levers you can pull to make your offer as enticing as possible. One option is to wave some of your contract contingencies&nbsp;(conditions you set that the seller must meet for the purchase to be&nbsp;finalized). Just remember there are certain contingencies you don’t want to&nbsp;give up, like the&nbsp;<a href="https://www.mykcm.com/2022/01/28/why-your-home-inspection-matters-infographic/">home inspection</a>. Bottom LineNo matter what, your agent is your best resource for making an offer that stands out in a competitive market. Let’s connect and discuss!

Navigating A Busy Market

Today's buyers face more challenges than those in years past regarding affordability and supply. You can’t read an article about residential real estate without the author mentioning one of the two. There’s no doubt homes are less affordable today than they were in the past, but that doesn’t mean homes are now unaffordable.There are three measures used to establish home affordability: home prices, mortgage rates, and wages. Let’s look closely at each of these components and dig into what the data is actually telling us.<h4> </h4><h4>1. Home Prices</h4>The most recent&nbsp;<a href="https://www.corelogic.com/intelligence/u-s-home-price-insights/" target="_blank" rel="noopener noreferrer">Home Price Insights</a>&nbsp;report by&nbsp;CoreLogic&nbsp;shows home values have increased by 19.1% from last January to this January. That was one reason affordability declined over the past year.<h4> </h4><h4>2. Mortgage Rates</h4>While the current&nbsp;<a href="https://www.mykcm.com/2022/03/08/how-global-uncertainty-is-impacting-mortgage-rates/">global uncertainty</a>&nbsp;makes it difficult to project mortgage rates, we do know current rates are almost one full percentage point higher than they were last year. According to&nbsp;<a href="https://www.freddiemac.com/pmms/pmms30" target="_blank" rel="noopener noreferrer">Freddie Mac</a>, the average monthly rate for last February was 2.81%. This February it was 3.76%. That increase in the mortgage rate also contributes to homes being less affordable than they were last year. However, data over the last 20 years shows us that the rates are still historically low. <div class="se-component se-image-container __se__float-none" contenteditable="false"><figure style="margin: 0px;"><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20220309033942.png" alt="Key Factors That Impact Affordability Today | MyKCM" data-rotate="" data-proportion="true" data-rotatex="" data-rotatey="" data-size="," data-align="none" data-percentage="auto,auto" data-index="2" data-file-name="image.png" data-file-size="139472" data-origin="," style=""></figure></div><h4> </h4><h4>3. Wages</h4>The one big, positive component in the affordability equation is an increase in American wages. In a&nbsp;<a href="https://www.realtytrac.com/blog/can-real-estate-prices-go-even-higher/" target="_blank" rel="noopener noreferrer">recent article</a>&nbsp;by&nbsp;RealtyTrac, Peter Miller addresses that point:<blockquote>“Prices are up, but what about wages? ADP reports that job holder incomes increased 5.9% last year but rose 8.0% for those who switched employers.&nbsp;In effect, some of the higher cost to buy a home has been offset by more cash income.”</blockquote>The&nbsp;National Association of Realtors&nbsp;(NAR) also recently released information that looks at income and affordability. The NAR&nbsp;<a href="https://www.nar.realtor/blogs/economists-outlook/housing-affordability-conditions-fade-in-December" target="_blank" rel="noopener noreferrer">data</a>&nbsp;provides a comparison of the current median family income versus the qualifying income for a median-priced home in each region of the country. Here’s a graph of their findings: <div class="se-component se-image-container __se__float-" contenteditable="false"><figure style="margin: 0px; width: 700px;"><img class="aligncenter wp-image-101389" src="https://files.mykcm.com/2022/03/08130724/20220309-MEM-Eng-1.png" alt="Key Factors That Impact Affordability Today | MyKCM" data-origin="700,450" data-proportion="true" data-size="700px,450px" data-align="" data-index="0" data-file-name="20220309-MEM-Eng-1.png" data-file-size="0" style="width: 700px; height: 450px;"></figure></div> As the graph shows, the median family income (shown in blue on the graph) is greater than the qualifying income needed to buy a median-priced home (shown in green on the graph) in all four regions of the country. While those figures may vary in certain locations within each region, it’s important to note that, in most of the country, homes are still affordable.So, when you think about affordability, remember that the picture includes more than just&nbsp;<a href="https://www.mykcm.com/2022/03/03/are-home-prices-continuing-to-rise/">home prices</a>&nbsp;and&nbsp;<a href="https://www.mykcm.com/2022/02/02/the-top-indicator-if-you-want-to-know-where-mortgage-rates-are-heading/">mortgage rates</a>. When prices rise and rates rise, it does impact affordability, and experts project both of those things will climb in the months ahead. That’s why it’s less affordable to buy a home than it was over the past two years when prices and rates were lower than they are today. But wages need to be factored into affordability as well. Because wages have been rising, they’re a big reason that, while less affordable,&nbsp;homes are not unaffordable today.<h3> </h3><h3>Bottom Line</h3>To find out more about affordability in our local area, let’s discuss where home prices are locally, what’s happening with mortgage rates, and get you in contact with a lender so you can make an informed financial decision. Remember, while less affordable, homes are not unaffordable, which still gives you an opportunity to buy today.

What About Affordability?

Low mortgage rates have been enticing new buyers and moving/refinancing owners for the two years. But now, rates have begun climbing, especially since January of this year. And just a few weeks ago, the 30-year fixed mortgage rate from&nbsp;<a href="https://www.freddiemac.com/pmms/archive" target="_blank" rel="noopener noreferrer">Freddie Mac</a>&nbsp;approached 4% for the first time since&nbsp;<a href="https://freddiemac.gcs-web.com/node/24906/pdf" target="_blank" rel="noopener noreferrer">May of 2019</a>. But that climb has dropped slightly over the past few weeks (see graph below): <div class="se-component se-image-container __se__float-" contenteditable="false"><figure style="margin: 0px; width: 700px;"><img class="aligncenter wp-image-101383" src="https://files.mykcm.com/2022/03/07135324/20220308-MEM-Eng-1.png" alt="How Global Uncertainty Is Impacting Mortgage Rates | MyKCM" data-origin="700,450" data-proportion="true" data-size="700px,450px" data-align="" data-index="0" data-file-name="20220308-MEM-Eng-1.png" data-file-size="0" style="width: 700px; height: 450px;"></figure></div> The recent decline in mortgage rates is primarily due to growing uncertainty around Russia and Ukraine. But experts say it’s to be expected.<h4> </h4><h4>Here’s a look at how industry leaders are explaining the impact global uncertainty has on mortgage rates:</h4>Odeta Kushi, Deputy Chief Economist at&nbsp;First American,&nbsp;<a href="https://www.housingwire.com/articles/ukraine-conflict-could-lead-to-lower-mortgage-rates-in-short-term/" target="_blank" rel="noopener noreferrer">says</a>:<blockquote>“While mortgage rates trended upward in 2022, one unintended side effect of global uncertainty is that it often results in downward pressure on mortgage rates.”</blockquote>In&nbsp;<a href="https://nationalmortgageprofessional.com/news/russia-ukraine-conflict-may-dampen-us-mortgage-rates" target="_blank" rel="noopener noreferrer">another interview</a>, Kushi adds:<blockquote>“Geopolitical events play an important role in impacting the long end of the yield curve and mortgage rates. For example, in the weeks following the ‘Brexit’ vote in 2016, the U.S. Treasury bond yield declined and led to a corresponding decline in mortgage rates.”</blockquote>Kushi’s insights are a reminder that, historically, economic uncertainty can impact the&nbsp;<a href="https://www.mykcm.com/2022/02/02/the-top-indicator-if-you-want-to-know-where-mortgage-rates-are-heading/">10-year treasury yield</a>&nbsp;– which has a long-standing relationship with mortgage rates and is often considered a leading indicator of where rates are headed. Basically, events overseas can have an impact on mortgage rates here, and that’s what we’re seeing today.<h4> </h4><h4>Will Mortgage Rates Stay Down?</h4>While no one has a crystal ball to predict exactly what will happen with rates in the future, experts agree this slight decline is temporary. Sam Khater, Chief Economist at&nbsp;Freddie Mac, echoes Kushi’s sentiment, but&nbsp;<a href="https://freddiemac.gcs-web.com/node/24976/pdf" target="_blank" rel="noopener noreferrer">adds</a>&nbsp;that the decline in rates won’t last:<blockquote>“Geopolitical tensions caused U.S. Treasury yields to recede this week . . . leading to a drop in mortgage rates. While inflationary pressures remain, the cascading impacts of the war in Ukraine have created market uncertainty. Consequently,&nbsp;rates are expected to stay low in the short-term but will likely increase in the coming months.”&nbsp;</blockquote>Rates will likely fluctuate in the short-term based on what’s happening globally. But before long, experts project rates will renew their climb. If you’re in the market to buy a home, doing so before rates start to rise again may be your most affordable option.<h3> </h3><h3>Bottom Line</h3>Mortgage rates are an important piece of the puzzle because they help determine how much you’ll owe on your monthly mortgage payment in your next home. Let’s connect so you have&nbsp;<a href="https://www.mykcm.com/2022/03/01/an-expert-advisor-will-give-you-the-best-advice-in-todays-market/">up-to-date information</a>&nbsp;on rates and trusted advice on how to time your next move.

What About the Rates?

For many homebuyers, the thought of saving for a down payment can feel daunting, especially in today’s market. That’s why, when asked what they find most difficult in the homebuying process, some buyers say it’s one of the hardest steps on the path to homeownership. Data from the&nbsp;<a href="https://cdn.nar.realtor/sites/default/files/documents/2021-highlights-from-the-profile-of-home-buyers-and-sellers-11-11-2021.pdf" target="_blank" rel="noopener noreferrer">National Association of Realtors</a>&nbsp;(NAR) shows:<blockquote>“For first-time home buyers,&nbsp;29 percent said saving for a downpayment&nbsp;[sic]&nbsp;was the most difficult step in the process.”</blockquote>If you’re finding that your down payment is your biggest hurdle, the good news is there are&nbsp;many down payment assistance programs available that can help you achieve your goals.&nbsp;The key is understanding where to look and learning what options are available. Here’s some information that can help. <h4>First-Time and Repeat Buyers Are Often Eligible</h4>According to&nbsp;<a href="https://downpaymentresource.com/" target="_blank" rel="noopener noreferrer">downpaymentresource.com</a>,&nbsp;there are thousands of financial assistance programs available for homebuyers, like affordable mortgage options for&nbsp;<a href="https://www.mykcm.com/2021/12/14/advice-for-first-generation-homebuyers/">first-time buyers</a>. But, of the many programs that are available, down payment assistance options make up the large majority. They say 73% of the assistance available to homebuyers is there to help you with your down payment.And it’s not just first-time homebuyers that are eligible for these programs.&nbsp;Downpaymentresource.com&nbsp;notes:<blockquote>“You don’t have to be a first-time buyer.&nbsp;Over 38% of all programs are for repeat homebuyers who have owned a home in the last 3 years.”</blockquote>That means no matter where you are in your&nbsp;<a href="https://www.mykcm.com/2022/02/21/real-estate-voted-the-best-investment-eight-years-in-a-row/">homeownership</a>&nbsp;journey, there could be an option available for you. <h4>There Are Local Programs and Specialized Programs for Public Servants</h4>There are also multiple down payment assistance resources designed to help those who serve our communities.&nbsp;<a href="https://www.teachernextdoor.us/FAQs#What%20is%20Teacher%20Next%20Door?" target="_blank" rel="noopener noreferrer">Teacher Next Door</a>&nbsp;is one of those programs:<blockquote>“The Teacher Next Door Program was designed to increase home ownership among teachers and other public servants, support community development and increase access to affordable housing free from discrimination.”</blockquote><a href="https://www.teachernextdoor.us/Home" target="_blank" rel="noopener noreferrer">Teacher Next Door</a>&nbsp;is just one program that seeks to help teachers, first responders, health providers, government employees,&nbsp;<a href="https://www.mykcm.com/2021/11/11/va-loans-helping-veterans-achieve-their-homeownership-dreams/">active-duty military</a>&nbsp;personnel, and veterans reach their down payment goals.And, most importantly, even if you don’t qualify for these types of specialized programs, there are many federal, state, and local programs available for you to explore. And the best way to do that is to connect with a local real estate professional to learn more about what’s available in your area.<h3> </h3><h3>Bottom Line</h3>If saving for a down payment seems daunting, there are programs available that can help. And if you work to serve our community, there may be even more opportunities available to you. To learn more about your options, let’s connect so you can start your homebuying journey today.

Get Help With Your Down Payment

Can't get the new furniture you ordered until next Christmas, there's no meat on the grocery store shelves, and new cars come to the dealership just 3 at a time. Almost every industry is currently struggling with supply chain disruptions. This also applies to the current U.S. housing market, where buyer demand far exceeds housing supply.The&nbsp;National Association of Realtors&nbsp;(NAR) just released their latest&nbsp;<a href="https://www.nar.realtor/newsroom/existing-home-sales-surge-6-7-in-january" target="_blank" rel="noopener noreferrer">Existing Home Sales Report</a>&nbsp;which reveals that sales surged in January. Existing home sales rose to a seasonally adjusted annual rate of 6.5 million – an increase of 6.7% from the prior month, with sales up in all regions. However, there’s one big challenge.<h4> </h4><h4>Inventory Is at an All-Time Low</h4>Because purchaser demand is so high, the market is running out of available homes for sale. The above-mentioned report states that the current months’ supply of inventory of homes for sale has fallen to 1.6 months. This prompts Lawrence Yun, Chief Economist at NAR, to say: <blockquote>“The inventory of homes on the market remains woefully depleted, and in fact is&nbsp;currently&nbsp;at an all-time low.”</blockquote>Earlier this month,&nbsp;realtor.com&nbsp;released their&nbsp;<a href="https://www.realtor.com/research/data/" target="_blank" rel="noopener noreferrer">inventory data</a>&nbsp;for January. It helps confirm this point. Here’s a graph comparing inventory levels for January over the last six years: <div class="se-component se-image-container __se__float-" contenteditable="false"><figure style="margin: 0px; width: 700px;"><img class="aligncenter wp-image-101263" src="https://files.mykcm.com/2022/02/23123141/20220224-MEM-Eng-1.png" alt="The #1 Reason To Sell Your House Today | MyKCM" data-origin="700,450" data-proportion="true" data-size="700px,450px" data-align="" data-index="0" data-file-name="20220224-MEM-Eng-1.png" data-file-size="0" style="width: 700px; height: 450px;"></figure></div> As the graph shows, new listings coming on the market have decreased over the last four years (shown in blue in the graph). The graph also reveals that carry-over inventory has plummeted in recent years. This is because listings are now sold so quickly, they don’t stay on the market long enough to carry over month-to-month (shown in green in the graph). In other words, homes are not staying on the market for months as they had prior to the pandemic. In the report mentioned above, NAR reveals that:<blockquote>“Seventy-nine percent of homes sold in January 2022 were&nbsp;on the market for less than a month.”</blockquote>Odeta Kushi, Deputy Chief Economist at&nbsp;First American,&nbsp;<a href="https://twitter.com/odetakushi/status/1494695509486936067" target="_blank" rel="noopener noreferrer">explains</a>&nbsp;it like this:<blockquote>“A higher velocity of sales (lower [Days on Market]) helps to explain a housing market characterized by both higher sales &amp; lower inventory. Many resale transactions are happening so quickly that they ‘flow’ in &amp; then out of the ‘stock’ between the fixed monthly measurement of inventory.”</blockquote><h4> </h4><h4>What Does This Mean for Sellers?</h4>Anyone thinking of putting their home on the market shouldn’t wait. A seller will always negotiate the best deal when demand is high and supply is limited. That’s exactly the situation in the real estate market today.Later this year, inventory (and by extension, your competition) will increase as many homeowners are waiting to put their homes on the market in the spring and early summer.In addition, Len Kiefer, Deputy Chief Economist at&nbsp;Freddie Mac,&nbsp;<a href="https://twitter.com/lenkiefer/status/1494423003224059914" target="_blank" rel="noopener noreferrer">says</a>:<blockquote>“Housing starts start off 2022 strong, just edging out 2021 for most in January since 2006.”</blockquote>As these newly built homes are completed, they will also become competition for your house. This gives you a tremendous opportunity right now.&nbsp;Don’t wait for that increase in competition in your area.&nbsp;If you want to sell in 2022 and are ready to start the process, today is the day to list your house. <h3>Bottom Line</h3>If you’re ready to sell, let’s connect to get your house on the market while today’s inventory situation is in your favor.

Don't Miss Out!

Do you have to wait until you’ve paid off your student loans before you can buy your first home? Or could you qualify for a home loan with that debt?Let’s take a look at what recent data shows. That way, you know what to expect and what to do next to achieve your&nbsp;<a href="https://www.mykcm.com/2022/01/17/achieving-the-dream-of-homeownership/" rel="noopener noreferrer" target="_blank">dream</a>&nbsp;of becoming a homeowner. While everyone’s situation is unique, your goal may be more within your reach than you realize. <h4>Do you have to delay your plans because of student loans?</h4>If you’re worried your student loans mean you have to put your&nbsp;<a href="https://www.mykcm.com/2022/01/07/how-to-hit-your-homebuying-goals-this-year-infographic/" rel="noopener noreferrer" target="_blank">homeownership goals</a>&nbsp;on hold, you’re not alone. In fact, many&nbsp;<a href="https://www.mykcm.com/2022/01/25/the-next-generation-of-homebuyers-is-here/" rel="noopener noreferrer" target="_blank">first-time buyers</a>&nbsp;believe they have to delay their plans. According to&nbsp;<a href="https://cdn.nar.realtor/sites/default/files/documents/2021-the-impact-of-student-loan-debt-report-executive-summary-09-14-2021.pdf" rel="noopener noreferrer" target="_blank">data</a>&nbsp;from the&nbsp;National Association of Realtors&nbsp;(NAR):<blockquote>“When asked specifically about purchasing a home,&nbsp;half of nonhomeowners say student loan debt is delaying them from purchasing a home&nbsp;(51%).”</blockquote>When asked why their student loans are putting their plans on the back burner, three key themes emerged:<ul><li>47%&nbsp;say their student loans make it harder to save for a&nbsp;<a href="https://www.mykcm.com/2022/01/03/how-much-do-you-need-for-your-down-payment/" rel="noopener noreferrer" target="_blank">down payment</a></li><li>45%&nbsp;say they think they can’t qualify for a&nbsp;<a href="https://www.mykcm.com/2022/01/24/why-pre-approval-is-key-for-homebuyers-in-2022/" rel="noopener noreferrer" target="_blank">home loan</a>&nbsp;because of existing debt</li><li>43%&nbsp;say they believe the delay is necessary even though they’ve never&nbsp;<a href="https://www.mykcm.com/2021/12/27/key-things-to-avoid-after-applying-for-a-mortgage/" rel="noopener noreferrer" target="_blank">applied</a>&nbsp;for a mortgage</li></ul> No matter which reason resonates most with you, you should know a delay may not be necessary. Here’s why.<h4> </h4><h4>Can you qualify for a home loan if you have student loans?</h4>In the same NAR report, data shows many current homeowners have student loan debt themselves:<blockquote>“Nearly one-quarter of all home buyers, and 37% of first-time buyers, had student debt, with a typical amount of $30,000.”</blockquote>That means other people in a similar situation were able to qualify for and&nbsp;<a href="https://www.mykcm.com/2022/01/12/two-ways-homebuyers-can-win-in-todays-market/" rel="noopener noreferrer" target="_blank">buy a home</a>&nbsp;even though they also had student loan debt. You may be able to do the same, especially if you have a steady source of income.&nbsp;Apartment Therapy&nbsp;<a href="https://www.apartmenttherapy.com/how-to-buy-a-house-with-student-loans-36755886" rel="noopener noreferrer" target="_blank">drives</a>&nbsp;this point home:<blockquote>“. . .&nbsp;buying a home with student loans is possible, experts say.&nbsp;The proof is in the numbers, too: Some 40 percent of first-time homebuyers have student loan debt, according to the NAR study.”</blockquote><h4> </h4><h4>The key takeaway is, for many people, homeownership is achievable even with student loans.&nbsp;</h4>The best way to find out if this is possible for your situation, is to call in a professional. As your real estate advisor, I work with professionals in the mortgage industry and am happy to refer you to someone who can walk you through the process of applying. They are then able to assess which loans are right for you, discuss with you the mortgage payment you are comfortable with, and, if needed, talk over ways to help improve your credit or debt to income ratio so that you can qualify in the near future. <h3> </h3><h3>Bottom Line</h3>Many other buyers with student loan debt are already achieving their homeownership dreams. Maybe it’s time to take the next step toward making yours a reality. Let’s connect to discuss your options and find out how close you are to achieving your goal.

  Don’t Let Student Loans Delay Your Homeownership Dreams

One key question that’s top of mind for homebuyers this year is:&nbsp;why is it so hard to find a house to buy?&nbsp;The truth is, real estate is&nbsp;<a href="https://www.mykcm.com/2021/12/28/5-tips-for-making-your-best-offer-on-a-home/" rel="noopener noreferrer" target="_blank">ultra-competitive</a>&nbsp;for buyers right now. The number of buyers searching for a home greatly outweighs how many homes are available for sale.While low inventory in the housing market isn’t new, it’s a challenge that continues to grow over time. Here’s a look at two reasons why today’s housing supply is low and what that means for you. <h4>1. New Home Construction Fell Behind for Several Years</h4>The graph below shows&nbsp;<a href="https://www.mykcm.com/2021/12/08/struggling-to-find-a-home-to-buy-new-construction-may-be-an-option/" rel="noopener noreferrer" target="_blank">new home construction</a>&nbsp;for single-family homes over the past five decades, including the long-term average for housing units completed. Builders exceeded that average during the housing bubble (shown in red on the graph). The result was an oversupply of homes on the market, so home values declined. That was one of the factors that led to the housing crash back in 2008.Since then, the level of new home construction has fallen off. For the last 13 straight years, builders haven’t been able to construct enough homes to meet the historical average (as illustrated in green on the graph). That underbuilding left us with a multi-year inventory deficit going into the pandemic. <a href="https://files.mykcm.com/2022/01/19111710/20220120-MEM-Eng-1.png" rel="noopener noreferrer" target="_blank"><img src="https://files.mykcm.com/2022/01/19111710/20220120-MEM-Eng-1.png"></a><h4> </h4><h4>2. The Pandemic’s Impact on the Housing Market</h4>Then, when the pandemic hit, it fueled a renewed&nbsp;<a href="https://www.mykcm.com/2021/11/30/home-is-where-the-heart-is-more-than-ever-this-year/" rel="noopener noreferrer" target="_blank">appreciation</a>&nbsp;and focus on the meaning of home. Having a safe space to live, work, school, and exercise became even more important for Americans throughout the country. So, as mortgage rates dropped to at or below 3%, buyers eagerly entered the market looking to capitalize on those low rates to secure a home that would fulfill their changing needs. At the same time, sellers hesitated to put their houses on the market as concerns about the pandemic mounted.The result? The number of homes available for sale dropped even further. A recent article from&nbsp;realtor.com&nbsp;<a href="https://www.realtor.com/news/trends/today-housing-market-compared-with-before-covid-19-pandemic/" rel="noopener noreferrer" target="_blank">explains</a>:<blockquote>“Last month, the number of home listings dropped 26.8% compared with the same time a year earlier.&nbsp;This meant there were about 177,000 fewer homes listed in what’s already typically a slower month due to the holidays and colder weather. . . .”</blockquote><h4> </h4><h4>What Does All of This Mean for You?</h4>For a buyer, low inventory can be a challenge. You want to find the home of your dreams, and you don’t want to settle. But what if there just aren’t that many homes to choose from?There is some good news. Experts are projecting more homes will soon become available thanks to sellers re-entering the market. Danielle Hale, Chief Economist at&nbsp;realtor.com,&nbsp;shares this hope, but offers&nbsp;<a href="https://www.realtor.com/news/trends/today-housing-market-compared-with-before-covid-19-pandemic/" rel="noopener noreferrer" target="_blank">perspective</a>:<blockquote>“We expect that we’ll start to see a turnaround and inventory will stabilize and start to go up . . . But that means we’re looking at inventory levels of roughly half of what we saw before the pandemic.&nbsp;For buyers, the market is likely to continue to move fast. If you see a home you like, you want to jump on it right away.”</blockquote> Basically, inventory is still low, even though more homes are coming. But you shouldn’t put your plans on hold because you’re waiting for those additional houses to hit the market.&nbsp;Instead, stick with your search and persevere through today’s low inventory. You can find your next home if you’re patient and focused.Remember&nbsp;<a href="https://www.mykcm.com/2022/01/07/how-to-hit-your-homebuying-goals-this-year-infographic/" rel="noopener noreferrer" target="_blank">your goals</a>&nbsp;and why finding a home is so important. Those things should be the driving force behind your search. Share them with your agent and be clear about your priorities. Your trusted advisor is your greatest support as you navigate today’s low housing supply to find the home of your dreams.<h3> </h3><h3>Bottom Line&nbsp;</h3>If you’re planning to buy this year, the key to success will be patience given today’s low inventory and readiness to pull the trigger when you see the right one. Let’s connect to discuss what’s happening in our area, what homes are available, and why it’s still worthwhile to prioritize your home search today.

Low Inventory?

If your needs are changing, you may be thinking about sharing a home with additional loved ones, such as grandparents, adult children, or other extended family members. Whether it’s for financial or health-related circumstances, or simply because you’ve reached a new phase of life, you might be wondering if living with multiple generations under the same roof is a good move for you. Many people have found themselves in a similar situation and they’ve already made the choice to live in a&nbsp;<a href="https://www.mykcm.com/2021/04/09/multigenerational-housing-is-gaining-momentum-infographic/" rel="noopener noreferrer" target="_blank">multigenerational home</a>. <h4>What Is a Multigenerational Home?</h4>The&nbsp;<a href="https://www.pewresearch.org/fact-tank/2018/04/05/a-record-64-million-americans-live-in-multigenerational-households/" rel="noopener noreferrer" target="_blank">Pew Research Center</a>&nbsp;defines a multigenerational household as a home with two or more adult generations. They include households with grandparents and grandchildren under the age of 25. As you weigh your options and decide if multigenerational living is right for you, here’s some helpful information highlighted by other homeowners living with additional loved ones. <h4>The Benefits of Multigenerational Living</h4>A recent&nbsp;<a href="https://www.gu.org/app/uploads/2021/04/21-MG-Family-Report-WEB.pdf" rel="noopener noreferrer" target="_blank">report</a>&nbsp;from&nbsp;Generations United&nbsp;surveyed individuals living in a multigenerational setting and asked them about the key benefits of this housing arrangement. It says:<blockquote>“Nearly all Americans who live in a multigenerational household (98%) feel their household functions successfully, citing various aspects of home design, family relationships and interactions, and supports and services influencing their success.”</blockquote>The study identifies some of the top benefits of this lifestyle as an improved financial situation, better mental and physical health, strengthened bonds with loved ones, and more (see chart below): <a href="https://files.mykcm.com/2022/01/31150909/20220202-MEM-Eng-1.png" rel="noopener noreferrer" target="_blank"><img src="https://files.mykcm.com/2022/01/31150909/20220202-MEM-Eng-1.png"></a> Those are just some of the reasons why most people who decide to live in this situation find it worthwhile. As Donna Butts, Executive Director at&nbsp;Generations United, says:<blockquote>“Families may come together from need, but they are staying together by choice.&nbsp;Indeed, more than 7 in 10 (72 percent) of those currently living in a multigenerational household plan to continue doing so long-term.”</blockquote><h4> </h4><h4>With More Adults Living Under One Roof, You May Need More Space</h4>If you decide to look for a multigenerational home, it’s important to understand what everyone will need to make the arrangement work to its fullest. Something that often makes the top of the list for homeowners living with multiple generations is additional&nbsp;<a href="https://www.mykcm.com/2021/12/23/when-a-house-becomes-a-home/" rel="noopener noreferrer" target="_blank">space</a>&nbsp;for privacy. This could mean more bedrooms and bathrooms or features like an in-law suite or a basement.If you’re realizing your current house doesn’t provide the room you need for multigenerational living, an expert real estate advisor can help you navigate the process to find the right home that works for you and your loved ones.<h3> </h3><h3>Bottom Line</h3>Living in a multigenerational household has real and impactful benefits. If you’re interested in learning more about these options in our area, let’s connect so you can find a home that fits your changing needs. #oklahoma #oklahomarealestate #tulsa #tulsarealestate #homesinoklahoma #pryor #pryorrealestate #claremore #claremorerealestate #buyinok

Many are Discovering the Benefits of Multigenerational Homes

Mortgage rates have increased significantly since the beginning of the year. Each Thursday,&nbsp;Freddie Mac&nbsp;releases its&nbsp;<a href="http://www.freddiemac.com/pmms/" rel="noopener noreferrer" target="_blank">Primary Mortgage Market Survey</a>. According to the latest survey, the average 30-year fixed-rate mortgage has risen from 3.22% at the start of the year to 3.55% as of last week. This is important to note because any increase in mortgage rates changes what a purchaser can afford. To give you an idea of how rising mortgage rates impact your purchasing power, see the table below: <a href="https://files.mykcm.com/2022/02/01171602/20220202-MEM-Eng-1.png" rel="noopener noreferrer" target="_blank"><img src="https://files.mykcm.com/2022/02/01171602/20220202-MEM-Eng-1.png"></a> <h4>How Can You Know Where Mortgage Rates Are Headed?</h4>While it’s always difficult to know exactly where mortgage rates will go, a great indicator of where they may head is by looking at the 50-year history of the 10-year treasury yield, and then following its path. Understanding the mechanics of the&nbsp;<a href="https://www.investopedia.com/ask/answers/062315/which-economic-factors-impact-treasury-yields.asp" rel="noopener noreferrer" target="_blank">treasury yield</a>&nbsp;isn’t as important as knowing that there’s a correlation between how it moves and how mortgage rates follow. Here’s a graph showing that relationship over the last 50 years: <a href="https://files.mykcm.com/2022/02/01171606/20220202-MEM-Eng-2.png" rel="noopener noreferrer" target="_blank"><img src="https://files.mykcm.com/2022/02/01171606/20220202-MEM-Eng-2.png"></a> This correlation has continued into the new year. The treasury yield has started to climb, and that’s driven rates up. As of last Thursday, the treasury yield was 1.81%. That’s 1.74% below the mortgage rate reported the same day (3.55%) and is very close to the average spread we see between the two numbers (average spread is 1.7).<h4>Where Will the Treasury Yield Head in the Future?</h4>With this information in mind, a 10-year treasury-yield forecast would be a good indicator of where mortgage rates may be headed. The&nbsp;Wall Street Journal&nbsp;just&nbsp;<a href="https://www.wsj.com/articles/economic-forecasting-survey-archive-11617814998" rel="noopener noreferrer" target="_blank">surveyed</a>&nbsp;a panel of over 75 academic, business, and financial economists asking them to forecast the treasury yield over the next few years. The consensus was that experts project the treasury yield will climb to 2.84% by the end of 2024. Based on the 50-year history of following this yield, that would likely put mortgage rates at about 4.5% in three years.While the correlation between the 30-year fixed mortgage rate and the 10-year treasury yield is clear in the data shown above for the past 50 years, it shouldn’t be used as an exact indicator. They’re both hard to forecast, especially in this unprecedented economic time driven by a global pandemic. Yet understanding the relationship can help you get an idea of where rates may be going. It appears, based on the information we have now, that mortgage rates will continue to rise over the next few years. If that’s the case, your best bet may be to purchase a home sooner rather than later, if you’re able.<h3>Bottom Line</h3>Forecasting mortgage rates is very difficult. As Mark Fleming, Chief Economist at&nbsp;First American, once&nbsp;<a href="https://blog.firstam.com/economics/reconomy-podcast-2021-housing-market-outlook" rel="noopener noreferrer" target="_blank">said</a>:<blockquote>“You know, the fallacy of economic forecasting is don’t ever try and forecast interest rates and or, more specifically, if you’re a real estate economist mortgage rates, because you will always invariably be wrong.”</blockquote>However, if you’re either a first-time homebuyer or a current homeowner thinking of moving into a home that better fits your changing needs, understanding what’s happening with the 10-year treasury yield and mortgage rates can help you make an informed decision on the timing of your purchase.Let's chat about it! If you're thinking about buying a home, I'm happy to meet with you and talk about the process so that you can be confident in your decision to buy now or wait.#OklahomaRealEstate #TulsaRealEstate #ClaremoreRealEstate #PryorRealEstate #Oklahoma #Tulsa #Claremore #Pryor #BuyingAHome #HouseHunting #HomesInOklahoma

Where Are Mortgage Rates Heading?

If you were thinking about buying a home this year, but already pressed pause on your plans due to rising&nbsp;home prices&nbsp;and increasing&nbsp;mortgage rates, there’s something you should consider. According to the&nbsp;latest report&nbsp;from&nbsp;ATTOM Data, owning a home is more affordable than&nbsp;<a href="https://www.mykcm.com/2022/01/04/avoid-the-rental-trap-in-2022" rel="noopener noreferrer" target="_blank">renting</a>&nbsp;in the majority of the country. The&nbsp;2022 Rental Affordability Report&nbsp;says:<blockquote>“. . .&nbsp;Owning a median-priced home is more affordable than the average rent&nbsp;on a three-bedroom property&nbsp;in 58 percent, of the 1,154 U.S. counties analyzed for the report.&nbsp;That&nbsp;means&nbsp;major home ownership expenses consume a smaller portion of average local wages than renting.”</blockquote>Other experts in the industry offer additional perspectives on&nbsp;<a href="https://www.mykcm.com/2021/11/15/4-things-every-renter-needs-to-consider/" rel="noopener noreferrer" target="_blank">renting</a>&nbsp;today. In the latest&nbsp;<a href="https://www.corelogic.com/intelligence/single-family-annual-rent-growth-hits-sixth-consecutive-record/" rel="noopener noreferrer" target="_blank">Single-Family Rent Index</a>&nbsp;from&nbsp;CoreLogic, single-family rent saw the fastest year-over-year growth in over 16 years when comparing data for November each year (see graph below): <a href="https://files.mykcm.com/2022/01/28134936/20220131-MEM-Eng-1.png" rel="noopener noreferrer" target="_blank"><img src="https://files.mykcm.com/2022/01/28134936/20220131-MEM-Eng-1.png"></a> Molly Boesel, Principal Economist at&nbsp;CoreLogic, stresses the importance of what the data&nbsp;<a href="https://www.corelogic.com/intelligence/single-family-annual-rent-growth-hits-sixth-consecutive-record/" rel="noopener noreferrer" target="_blank">shows</a>:<blockquote>“Single-family rent growth hit its sixth consecutive record high. . . . Annual rent growth . . . was more than three times that of a year earlier.&nbsp;Rent growth should continue to be robust in the near term,&nbsp;especially as the labor market continues to improve.”</blockquote><h4> </h4><h4>What Does This Mean for You?</h4>While it’s true&nbsp;<a href="https://www.mykcm.com/2021/12/15/what-everyone-wants-to-know-will-home-prices-decline-in-2022/" rel="noopener noreferrer" target="_blank">home prices</a>&nbsp;and&nbsp;<a href="https://www.mykcm.com/2021/11/08/two-graphs-that-show-why-you-shouldnt-be-upset-about-3-mortgage-rates/" rel="noopener noreferrer" target="_blank">mortgage rates</a>&nbsp;are rising, so are monthly rents. As a prospective buyer, rising rates and prices shouldn’t be enough to keep you on the sideline, though. As the chart above shows, rents are skyrocketing. The big difference is, when you rent, that rising cost benefits your landlord’s investment strategy, but it doesn’t deliver any sort of return for you.In contrast, when you buy a home, your monthly mortgage payment serves as a form of forced savings. Over time, as you pay down your loan and as home values rise, you’re building&nbsp;<a href="https://www.mykcm.com/2021/12/21/the-average-homeowner-gained-56700-in-equity-over-the-past-year/" rel="noopener noreferrer" target="_blank">equity</a>&nbsp;(and by extension, your own&nbsp;<a href="https://www.mykcm.com/2021/08/30/the-difference-in-net-worth-between-homeowners-and-renters-is-widening/" rel="noopener noreferrer" target="_blank">net worth</a>). Not to mention, you’ll lock in your mortgage payment for the duration of your loan (typically 15 to 30 years) and give yourself a stable and reliable monthly payment.When asking yourself if you should keep&nbsp;<a href="https://www.mykcm.com/2021/10/01/reasons-renters-buy-infographic/" rel="noopener noreferrer" target="_blank">renting</a>&nbsp;or if it’s time to buy, think about what Todd Teta, Chief Product Officer at&nbsp;ATTOM Data,&nbsp;<a href="https://www.attomdata.com/news/market-trends/home-sales-prices/attom-2022-rental-affordability-report/" rel="noopener noreferrer" target="_blank">says</a>:“. . .&nbsp;Home ownership still remains the more affordable option&nbsp;for average workers in a majority of the country because it still takes up a smaller portion of their pay.”&nbsp;&nbsp;If buying takes up a smaller portion of your pay and has benefits renting can’t provide, the question really becomes:&nbsp;is renting really worth it?<h3>Bottom Line</h3>If you’re weighing your options between renting and buying, it’s important to look at the full picture. While buying a home can feel like a daunting process, having a trusted advisor on your side is key. Let’s connect to explore your options so you can learn more about the benefits of&nbsp;<a href="https://www.mykcm.com/2022/01/07/how-to-hit-your-homebuying-goals-this-year-infographic/" rel="noopener noreferrer" target="_blank">homeownership</a>&nbsp;today. #stopflushing$ #pryorrealestate #pryor #oklahomarealestate #tulsarealestate #tulsa #claremorerealestate #claremore

Owning May Cost You Less

Over the past two years, we’ve lived through one of the most stressful periods in recent history. Because of the health crisis, many of us have spent more time at home and that’s led us to re-evaluate both what we need in a house and how much we appreciate having a safe space. If you’ve found your current home isn’t filling all your needs, you may be wondering if it’s time to find a new one.There’s reason to believe a change of scenery could boost your happiness. Catherine Hartley, an Assistant Professor at&nbsp;New York University’s Department of Psychology&nbsp;and co-author of a study on how new experiences impact happiness,&nbsp;says:<blockquote>“Our results suggest that people feel happier when they have more variety in their daily routines—when they go to novel places and have a wider array of experiences.”</blockquote>A move could be exactly the new experience you’ve been looking for. If that’s something you’re considering to better your lifestyle, here are a few things to keep in mind.<h4>Approach Your Decision Thoughtfully and Explore Your Options</h4>Buying and selling a home is a major life change, and it’s not a decision you should enter lightly. But, if you’re questioning whether or not a move would bring you more happiness, it’s important to explore if it’s the right choice for you.To find out more and discuss your options, reach out to a local real estate professional. They’ll explain the process – including how to list your existing house and search for a new one – in clear and simple terms.You should also think about your lifestyle and what you’re hoping to get out of your move. What needs aren’t being met in your current home? What features would bring you more joy and make your life easier? For example, are you now working remotely and need a home office? Do you crave more fresh air and open outdoor space to unwind in? Knowing the answers to these questions can help you&nbsp;get started&nbsp;and position your real estate advisor to work with you so you can find just the right home.<h4>Consider a Location with Weather That Will Boost Your Mood</h4>Home features aren’t the only thing to consider. You should also weigh your options when it comes to location. Is the weather something that’s important to you? Does it have a tendency to impact your mood? If it does, you may want to factor it into your next move. The&nbsp;World Population Review&nbsp;shares:<blockquote>“What states have the best weather? When evaluating each state for temperature, rain, and sun, some states stand out. . . . Climate and weather preferences are personal and subjective. . . . “</blockquote>Better weather can mean different things to different people. Some prefer the heat, others cooler temperatures, and some want to experience all four seasons. Think about what makes you feel happiest and prioritize that in your home search. If you’re moving to a whole new location, your agent is a great resource with a strong network to support you along the way.<h3>Bottom Line</h3>Moving could provide you with a fresh beginning and the chance to find happiness in your new home. Let’s connect today to talk about your goals and options in the current market.

Why a Move Could Bring You More Happiness This Year

You may have heard that it’s important to get&nbsp;<a href="https://www.simplifyingthemarket.com/2021/05/07/the-power-of-mortgage-pre-approval-infographic/?a=815668-98bf0ef4633533f7541519d41ecca6dd" rel="noopener noreferrer" target="_blank">pre-approved</a>&nbsp;for a mortgage at the beginning of the&nbsp;<a href="https://www.simplifyingthemarket.com/2021/11/19/your-journey-to-homeownership-infographic/?a=815668-98bf0ef4633533f7541519d41ecca6dd" rel="noopener noreferrer" target="_blank">homebuying&nbsp;process</a>, but what does that really mean, and why is it so important? Especially in today’s&nbsp;market, with rising&nbsp;<a href="https://www.simplifyingthemarket.com/2022/01/13/whats-going-to-happen-with-home-prices-this-year/?a=815668-98bf0ef4633533f7541519d41ecca6dd" rel="noopener noreferrer" target="_blank">home prices</a>&nbsp;and high&nbsp;<a href="https://www.simplifyingthemarket.com/2022/01/20/buyers-want-to-know-why-is-housing-supply-still-so-low/?a=815668-98bf0ef4633533f7541519d41ecca6dd" rel="noopener noreferrer" target="_blank">buyer competition</a>, it’s crucial to have a pre-approval letter prior to making an offer. Here’s why.Being intentional and competitive are musts when buying a home this year. Pre-approval from a lender is the only way to know your true price range and how much money you can borrow for your loan. Just as important, being able to present a pre-approval letter shows sellers you’re a qualified buyer and enables you to make your offer quickly, something that can really help you land your dream home in an ultra-competitive market. Many area sellers have made the pre-approval a requirement of showing their home. They don't want to be displaced several times a day by potential buyers who can't make a competitive offer.With limited housing inventory, there are many more buyers active in the market than there are sellers, and that’s creating some serious competition. According to the&nbsp;National Association of Realtors&nbsp;(NAR), homes today are receiving an average of&nbsp;<a href="https://www.nar.realtor/research-and-statistics/research-reports/realtors-confidence-index" rel="noopener noreferrer" target="_blank">3.8 offers</a>&nbsp;for sellers to consider. As a result, bidding wars are still common. Pre-approval gives you an&nbsp;<a href="https://www.simplifyingthemarket.com/2021/12/28/5-tips-for-making-your-best-offer-on-a-home/?a=815668-98bf0ef4633533f7541519d41ecca6dd" rel="noopener noreferrer" target="_blank">advantage</a>&nbsp;if you get into a multiple-offer scenario, and these days, it’s likely you will. When a seller knows you’re qualified to buy the home, you’re in a better position to potentially win the bidding war.Freddie Mac&nbsp;<a href="https://myhome.freddiemac.com/blog/homeownership/20180926_strategies_for_winning_the_bidding_war.page" rel="noopener noreferrer" target="_blank">explains</a>:<blockquote>“By having&nbsp;a&nbsp;<a href="https://myhome.freddiemac.com/blog/homeownership/20201001_get_pre_approved.page" rel="noopener noreferrer" target="_blank">pre-approval letter</a>&nbsp;from your lender, you’re telling the seller that you’re a serious buyer, and you’ve been pre-approved for a mortgage by your lender for a specific dollar amount. In a true bidding war, your offer will likely get dropped if you don’t already have one.”</blockquote>Every step you can take to gain an advantage as a buyer is crucial when today’s market is constantly&nbsp;<a href="https://www.simplifyingthemarket.com/2022/01/12/two-ways-homebuyers-can-win-in-todays-market/?a=815668-98bf0ef4633533f7541519d41ecca6dd" rel="noopener noreferrer" target="_blank">changing</a>. Interest rates are rising, prices are going up, and lending institutions are regularly updating their standards. You’re going to need guidance to navigate these waters, so it’s important to have a team of professionals such as a loan officer and a trusted real estate advisor making sure you take the right steps and can show your qualifications as a buyer when you find a home to purchase.Bottom LineIn a competitive market with low inventory, a pre-approval letter is a game-changing piece of the homebuying process. Not only does being pre-approved bring clarity to your homebuying budget, but it shows sellers how serious you are about purchasing a home.What next?If you are thinking about buying a home, it's time to contact a mortgage broker or loan officer. I'd be happy to help you find someone local who can help you find the loan product, down-payment, and price range that you're comfortable with by answering the questions: How much can I afford up front? What do I want my monthly payment to look like? and What kinds of loans do I qualify for? Once we have this information, we are ready to begin looking at what's on the market for you!

Why Pre-Approval is Key for Home Buyers in Oklahoma This Year

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