THESES BE TROUBL'N TIMES!

 Pardon the poor grammar, but the point needs to be made.  We are living in troubling times.  No one can deny the fact that the housing market is one of those troubles.

This is not 2008-2010 when the mortgage industry imploded due to poor oversight and free money via low interest home mortgages.  

This time there are multiple facets to today's housing market problems.  Please remember that despite these problems houses are still being bought and sold.  Closings are happening every day. 

But let's face it there is a large part of the population who just cannot afford to take the first step in securing a new home.

The constraints on today's housing market are real, leaving many potential buyers sitting on the sidelines watching from a safe distance.

So, what is the best course of action for these troubl'n times? 

1. Look deep into your current financial position to determine what is your breaking point?  Basically, how much house can I afford to buy and can I sustain payments until the market softens.

2. Is buying or selling essential?  For those who are moving to a new locale due to their job, buying or renting is a given.  For those who are not, what will be my financial gain if I surrender my 3% interest for a much higher rate and a new house?

Bottom Line:  No one can tell you to buy or sell.  These troubl'n times have made many folks too cautious and for good reason.  Whatever your reason, think it through and then take action.

IN SEARCH OF YOUR DREAM HOUSE

 Searching for that dream house? Here are a few things to help you in your efforts to find the "house".

1. Make a list of the features you want and then rank them in order of importance.  This will help you focus on properties that work for all the family members.

2. The neighborhood and the surrounding area is equally important.  Is the area accessible to good schools, shops, and parks?  Is the area potentially noisy and near airports, construction sites or manufacturing?

3. How big is the house lot and where is it location?  Is there adequate room for landscaping and green space? 

4. What is the age of the house?  Not all older houses are as they seems.  Interior damage can be lurking behind the walls or under the floors.  Remember also, that historical houses come with their own set of regulations per the local historical society.

5. What is your ideal house style?  Are you more interested in a house, condo, or townhouse.  As you move through the city, you will see a variety of house style.  Find one that suits your style and narrow your search to that style of house.

6. Will you be making renovations or remodeling projects?  Most new homeowners want to make some up grade to various rooms in the house.  Whether it is the kitchen or a bathroom, renovation projects will impact the whole family while the work is underway.

7. What compromises can you handle?  Let us face the facts that unless you build your house from the ground up, you may not get everything on the wish list. Be willing to make compromise you can live with. 

Bottom Line: Searching for a dream house is an exciting quest.  You get to explore the whole spectrum of house styles, neighborhoods, and design features.  Remember the journey to finding your dream house is better than you can imagine.

ADDING VALUE TO YOUR HOUSE

 The question many realtors hear when a seller is anticipating selling their house is, "What can I do to improve the value of my house?"

If you are a fan of the home improvement shows and you see the transformations that happen seemingly overnight to a house you may be inclined to undertake some major renovations. The questions now becomes what renovations will had the greatest value to the house?  Surprisingly, some of the major renovations do not increase the value of the house.

So, where can a seller add value to their house without robbing a bank.  Focusing on minor upgrades and renovations appear to be the source of increased value for a house. Here are just a few:

1. A fresh coat of paint on the interior and exterior of the house.
2. Update the curb appeal by removing and replacing overgrown plants or shrubs with plants that accent the house.
3. Replace the front door.
4. Power-wash the sidewalks and driveways.
5. Shutters, if appropriate for the style of the house.
6. Change the hardware on sinks pulls, bathroom pulls and drawer and cabinet pull.

Bottom Line:  When it comes to renovations and major upgrades to a house more is not always better; it is just more.  Consult with a realtor to see what upgrades you, as a seller, should make to improve the value of your house.

ANTICIPATING THE SPRING HOUSING MARKET

If you have been riding out the rough last few months in the housing market and are anticipating some new direction in the Spring housing market this is what you want to be reading.

1. A calmer market: Let's face it now that the pandemic is just a bad memory; lock downs are a thing-of-the-past; and buyers frantically looking to purchase larger homes to accommodate the "work from home" craze - relax, the housing market has begun to take on a calmer tone.

Affordability is and will be a challenge for many buyers, while sellers will take a step back to make their homes more competitive in a calmer market.

The rise in mortgage rates has dramatically taken some of the zeal out of the market.  Buyers are roughly spending 31% of their household income on a mortgage even after a 20% down payment.

2. "A little competition is always a good thing." Buyers living in the regions where the home prices are more affordable and at a lower price point should expect competition.  For sellers, well-priced, well-market homes will receive attractive offers.  

If you are waiting on the sidelines for prices to drop or skyrocket, you may be disappointed.

Bottom Line:  Here are the key elements to keep in mind as you survey the 2023 Spring Housing Market.

1. The course of inflation.  

2. Unemployment.

3. Mortgage rates.

4. Housing inventory.