BENEFITS OF BUYING A SMALLER HOME

Tired of all the work it takes to maintain your LARGE home?  Feeling like you need to downsize and make like easier and less complicated?  Then maybe a smaller home is just what you need.

Remember, I said small not tiny.  Think more along the lines of 1,000 square feet.  If you are single and looking to buy your first home, small maybe just the thing you need.  Consider it "training" for the day you buy that bigger home.  Or, if you are downsizing and no longer need the larger home, a smaller home can be just what "the doctor ordered".

Here are a few benefits of buying a smaller home.

1. Lower sale price, lower mortgage, and lower escrow costs.  This is not rocket science - with a smaller home you have less cash outflow with the purchase and mortgage.  Saving for a down payment is no longer a Herculean task.

2. Energy efficient.  All things being equal with a smaller house you will tend to see lower energy costs both during the summer and winter months.  Few open spaces mean lower energy bills and that is a big benefit to budget minded people.

3. Easier maintenance and upkeep.  If you think that a smaller home is maintenance free, think again.  There will always be little things popping up here and there that will need a little repair or replacement.  The plus side to this is that your expenses will be considerably less.

4. Unique, cozy, and intimate.  Probably the three best words to describe your smaller home.  Remember, these three words as one or all of them were instrumental in your decision to purchase the smaller home.  Even though a small home is just that - small; you can make it feel as big as you want through create design and color combinations.

Just as you do not judge a book by its cover; do not judge small homes by their size.  After all you may own a diamond in the rough.

 

IT IS THAT TIME OF YEAR AGAIN - HURRICANE SEASON

On June 1st, the 2021 hurricane season officially begins.  For those living on the East and Gulf coasts it is time to make ready for the potential of extreme weather.  It is never too early to start preparations.  

Here are a few helpful tips to get your prep work moving forward.

1. Have a plan.  Whether you ride out the storm or evacuate, it is important you have a plan, and everyone knows the plan.  Storms do not always follow the path or prediction of the weather service.  Shifts in wind speed and the storms direction can change at any time.  

2. Have your "go bag" always packed.  Pack essential clothing items, medications, and important documents in a protective container in the event you evacuate your area for a week.  Remember, if a storm hits your area and you are unable to return to your home, the "go bag" will help carry you through until you can return to your home.

3. Have a plan for pets. Know who will be responsible for the care and gathering of pets in the event of a hurricane.  Pets are just as sensitive to extreme events as humans, so include them in you evac plans. 

4. Have essentials items stockpiled for your "hurricane party".  If you choose to stay during the storm, have a stockpile of essentials - drinking water, flashlights with extra batteries, fuel for camp stoves and generators, nonperishable food items, paper plates and plastic utensils and toilet paper.  Also fill your bathtub, sinks with water to use for flushing the toilet and hand washing. 

Taking actions prior to the start of hurricane season can save you valuable time in the event evacuation is ordered.  Be prepared! Plan early! Plan right! 

5 TAKEAWAYS FROM THE 2020 HOUSING MARKET YEAR

If you are trying to get a handle on the 2020 housing market and the impact of the Covid-19 pandemic the following 5 takeaways should help.

1. Mortgage rates - In 2020 mortgages rates went for a ride.  At the start of 2020, the rates 3.75% for a fixed-rate 30-year mortgage.  In March, when the initial impact of the pandemic was starting to be felt in America the rates dropped, but later in the year the rates fluctuated against the backdrop of sudden unemployment and social distancing.  Now following the most recent stimulus bill passage and a rise in employment rates are beginning to rise again.

2. Home prices - Three things contributed to increased home prices in 2020. 

1. low mortgage rates
2. low housing inventory
3. increased buyer demand

By January 2021, housing prices rose 10% nationally.  About 75 million household are not able to afford a median-priced home according to the National Association of Home Builders.

3.Housing shortage - Many homeowners remained reluctant to sell due to a variety of concerns, some associated with Covid-19.  Those who did place their homes on the market during this "sellers' market" reaped the benefit of a competitive housing market. In many cases multiple offers for homes was not uncommon.

4. Urban flight - Despite the "exodus" out of many areas that were under Covid lockdown, people did not flee the cities; they simply bought larger homes in that city or relocated to smaller cities where they purchased larger homes.

5. Builder's struggled - During the latter part of 2020 when the economy began to see a resurgence, builds found themselves unprepared for the surge in demand for new houses.  Coupled with the shortage of skilled laborers and buildable lots many builders had to sit temporarily on the sidelines.  As construction began in earnest, material prices began to skyrocket, especially lumber.  Cost increases translated into price increases in late 2020.

The impact of Covid-19 on the US economy, more specially the housing market, will be a matter of discussion for years to come, but the immediate results are visible today as 2021 housing market moves forward.

BUYING IN 2021 - 2ND QUARTER UPDATE

We have successfully navigated the first quarter of the 2021 housing market and are entering what is considered by many as the next buying cycle.  What do we need to know?  First, rates will climb slightly, but still be described as low.  On the back side of that is the simple truth that in the current seller's market, prices will continue to creep up as buyers outnumber sellers.

Let us get right to it then:

1. Hard Fact 1: There are more buyers than sellers.  "It is a sellers' market in just about every part of the country," according to Christopher Arienti, broker and owner of Re/Max Executive Realty in Franklin, Massachusetts.

2. Hard Fact 2: Buyers are going to have to make some concessions in hot markets. The speed with which some homes are entering and exiting the market indicates that when you find a home that meets "most of your wish list" you will have to act fast and make a solid offer.

3. Hard Fact 3: Home prices are expected to creep up. "Prices of existing homes are projected to increase 3.1% in 2021, compared with a 6.7% jump in 2020," according to forecasts from Fannie Mae, Freddie Mac, the National Association of Realtors, and the Mortgage Bankers Association.

4. Hard Fact 4: Home buyers will continue to utilize digital tools when searching for a property. 2021 has not changed many home buyer's reliance on digital home sites to find properties and nothing appears to change that fact moving forward. "Social-distancing regulations vary by state, county and city and will loosen with a successful rollout of vaccines. But Arienti predicts that greater reliance on some online tools to increase efficiency will outlast the pandemic."

Active buyers will have to have their proverbial "ducks-in-a-row" through the remainder the 2021 housing market to acquire the home of their dreams, and those are the hard facts.