🏠 From One Little House to Five Happy Clients! 🏠

Back in ‘08/‘09, we took on a humble listing on East Walnut Street for a local bank. Little did we know, that one “crappy” house would turn into something extraordinary! Fast forward to today, and we’re celebrating not just one, but FIVE successful closings. 🥂

This journey reminds us that every property has a story, and every client’s dream is worth the effort. We’re committed to turning challenges into opportunities for our clients, no matter how big or small. 🌟

🏡📊 Market Update for Madison County, Kentucky! 📊🏡

August Residential Housing Stats are in, and they paint a promising picture for our community! 🌟 Here’s a quick snapshot:

🔍 Total Sold Listings: 115
📈 Average Sales Price: $290,000
📉 Days on Market: 33

The beat of the market is still very very positive. If you’re considering buying or selling, now might be the perfect time! 💼✨

For more detailed insights or to explore your options, feel free to reach out to our MARCUMsold Team. We’re here to guide you through every step of the process! 🤝🏠

🎥 Exciting News! Introducing our newest video series - 'Why Richmond'! 🌟 Join me as I take you on a journey through the unique charm and hidden gems of Richmond, Kentucky. 🏡 Stay tuned for a closer look at what makes this community truly special. Let's discover Richmond together! 🗺️

Are you thinking about selling your house? If so, today’s mortgage rates may be making you wonder if that’s the right decision. Some homeowners are reluctant to sell and take on a higher mortgage rate on their next home. If you’re worried about this too, know that even though rates are high right now, so is home equity. Here’s what you need to know.

Bankrate explains exactly what equity is and how it grows:

“Home equity is the portion of your home that you’ve paid off and own outright. It’s the difference between what the home is worth and how much is still owed on your mortgage. As your home’s value increases over the long term and you pay down the principal on the mortgage, your equity stake grows.”

In other words, equity is how much your home is worth now, minus what you still owe on your home loan.

How Much Equity Do Homeowners Have Now?

Recently, your equity has been growing faster than you might think. To help contextualize just how much the average homeowner has, CoreLogic says:

“. . . the average U.S. homeowner now has about $290,000 in equity.”

That’s because, over the past few years, home prices went up significantly – and those rising prices helped your equity to accumulate faster than usual. While the market has started to normalize, there are still more people wanting to buy homes than there are homes available for sale. This high demand is causing home prices to go up again.

According to the Federal Housing Finance Agency (FHFA), the Census, and ATTOM, a property data provider, nearly two-thirds (68.7%) of homeowners have either fully paid off their mortgages or have at least 50% equity (see chart below):

Bottom Line

Toward the end of last year, there were a number of headlines saying home prices were going to fall substantially in 2023. That led to a lot of fear and questions about whether there was going to be a repeat of the housing crash that happened back in 2008. But the headlines got it wrong.

While there was a slight home price correction after the sky-high price appreciation during the ‘unicorn’ years, nationally, home prices didn’t come crashing down. If anything, prices were a lot more resilient than many people expected.

Let's take a look at some of the expert forecasts from late last year stacked against their most recent forecasts to show that even the experts recognize they were overly pessimistic.

Expert Home Price Forecasts: Then and Now

This visual shows the 2023 home price forecasts from seven organizations. It provides the original 2023 forecasts (released in late 2022) for what would happen to home prices by the end of this year and their most recently revised 2023 forecasts (see chart below):

Bottom Line

As housing affordability improves and the shortage in existing homes continues, homebuyers are turning to new construction. As a homebuyer, you may be tempted to jump on the first available new home that suits your family, but before you do, there are three major mistakes you should be aware of.

Don’t visit builders alone. If you visit builders on your own, they have no obligation to deal with your real estate agent, and you will have lost the opportunity to have an advocate. Make sure you sign the builder’s visitor log and include your agent’s name and contact information. Builders use their own contracts that limit their liabilities and may not be in your best interests. Your Berkshire Hathaway HomeServices network real estate professional can vet your builder for you, help you save money, and help you through the underwriting process to closing. 

Don’t skip the inspection. Just because a home is new, doesn’t mean it’s without problems. A recent news report found that some homebuilders are “cutting corners” to produce homes faster. Protect yourself by demanding an inspection that covers all systems, fixtures and appliance in the home.

Don’t buy the model home. Model homes feature the most luxurious features to tempt you into adding upgrades. If these upgrades are done during the building process, and not after the home is completed, you’ll save a lot of money and prevent costly delays. Make sure the luxuries you get are in line with other homes being built or completed. 

Wondering if it still makes sense to sell your house right now? The short answer is, yes. Especially if you consider how few homes there are for sale today.

You may have heard inventory is low right now, but you may not fully realize just how low or why that’s a perk when you go to sell your house. This graph from Calculated Risk can help put that into perspective: 

Bottom Line