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January
30

If HomeBuying is a goal for you in 2023, here are some tips to follow!

*Source: Keeping Current Matters, Inc

January
19

Whether you're already a homeowner or you're looking to become one, the recent headlines about home prices may leave you with more questions than answers. News stories are talking about home prices falling, and that's raising concerns about a repeat of what happened to prices in the crash in 2008.

One of the questions that's on many minds, based on those headlines, is: how much will home prices decline? But what you may not realize is expert forecasters aren't calling for a free fall in prices. In fact, if you look at the latest data, there's a case to be made that the biggest portion of month-over-month price depreciation nationally may already be behind us – and even those numbers weren't significant declines on the national level. Instead of how far will they drop, the question becomes: have home values hit bottom?

Let's take a look at the latest data from several reputable industry sources (see chart below):

Have Home Values Hit Bottom? | MyKCM

The chart above provides a look at the most recent reports from Case-Shiller, the Federal Housing Finance Agency (FHFA), Black Knight, and CoreLogic. It shows how, on a national scale, home values have changed month-over-month since January 2022. November and December numbers have yet to come out.

Let's focus in on what the red numbers tell us. The red numbers are the change in home values over the last four months that have been published. And if we isolate the last four months, what the data shows is, in each case, home price depreciation peaked in August.

While that doesn't guarantee home price depreciation has hit bottom, it confirms prices aren't in a free fall, and it may be an early signal that the worst is already behind us. As the numbers for November and December are released, data will be able to further validate this national trend.

Bottom Line

Home prices month-over-month have depreciated for the past four months on record, but there's a strong case to be made that the worst may be behind us. If you have questions about what's happening with home prices in our local market, let's connect.

Hunziker & Associates, REALTORS

Ames Area
105 South 16th St. • Ames, IA 50010 • 515-233-4450
Ankeny Area
1520 NW Irvinedale Dr • Suite 102 • Ankeny, IA 50023 • 515-963-8618
Boone Area
1516 S. Story Street • Boone, IA 50036 • 515-432-8699
October
12

If recent headlines about the housing market cooling and buyer demand moderating have you worried you've missed your chance to sell, here's what you need to know. Buyer demand hasn't disappeared, it's just eased from the peak intensity we saw over the past two years.

Buyer Demand Then and Now

During the pandemic, mortgage rates hit record lows, and that spurred a significant rise in buyer demand. This year, as rates increased due to factors like rising inflation, buyer demand pulled back or softened as a result. The latest data from ShowingTime confirms this trend (see graph below):

Will My House Still Sell in Today's Market? | MyKCM

The orange bars in the graph above represent the last few months of data and the clear cooldown in the volume of home showings the market has seen since mortgage rates started to rise. But context is important. To get the full picture of where today's demand stands, let's look at the July data for the past six years (see graph below):

Will My House Still Sell in Today's Market? | MyKCM

This second visual makes it clear that, while moderating compared to the frenzy in 2020 and 2021, showing activity is still beating pre-pandemic levels – and those pre-pandemic years were great years for the housing market. That goes to show there's still demand if you sell your house today.

What That Means for You When You Sell

The key to selling in a changing market is understanding where the housing market is now. It's not the same market we had last year or even earlier this year, but that doesn't mean the opportunity to sell has passed.

While things have cooled a bit, it's still a sellers' market. If you work with a trusted local expert to price your house at the current market value, the demand is still there, and it should sell quickly. According to a recent survey from realtor.com, 92% of homeowners who sold in August reported being satisfied with the outcome of their sale.

Bottom Line

Buyer demand hasn't disappeared, it's just moderated this year. If you're ready to sell your house today, let's connect so you have expert insights on how the market has shifted and how to plan accordingly for your sale.

September
23

Some Highlights

  • When it comes to selling your house, you want it to look its best inside and out so it catches the attention of buyers. A real estate professional can help you decide what to do to make that happen.
  • Focus on tasks that can make it inviting, show it's cared for, and boost your curb appeal.
  • Let's connect so you have advice on what you may want to do to get your house ready to sell this season.

*Source: Keeping Current Matters, Inc.

September
12

If you've been thinking of buying a home, you may have been watching what's happened with mortgage rates over the past year. It's true they've risen dramatically, but where will they go from here, especially as the market continues to slow?

As you think about your homeownership goals and decide if now's the time to make your move, the best place to turn to for that information is the professionals. Here's a summary of the latest mortgage rate forecasts from housing market experts.

Experts Project Mortgage Rates Will Stabilize

While mortgage rates continue to fluctuate due to ongoing inflationary pressures and economic uncertainty, experts project they'll start to stabilize in the months ahead. According to the latest projections, mortgage rates are expected to hover in the low to mid 5% range initially, and then potentially dip into the high 4% range by later next year (see chart below):

Expert Forecasts on Mortgage Rates | MyKCM

That could bring you some welcome relief. So far this year, mortgage rates have climbed over two percentage points due to the Federal Reserve's response to inflation, and that's made it more expensive to buy a home. And wondering if the rise in rates will continue is keeping some prospective buyers on the sidelines.

But now that experts say mortgage rates should stabilize, this gives you a bit more certainty about what they think the future holds, and that may help you feel more confident about your decision to buy a home.

Bottom Line

Whether you're looking to buy your first home, move up to a larger home, or even downsize, you need to know what's happening in the housing market so you can make the most informed decision possible. Let's connect to discuss your goals and determine the best plan for your move.

*Keeping Current Matters, Inc. 2022

August
31

One of the biggest questions people are asking right now is: what's happening with home prices? There are headlines about ongoing price appreciation, but at the same time, some sellers are reducing the price of their homes. That can feel confusing and makes it more difficult to get a clear picture.

Part of the challenge is that it can be hard to understand what experts are saying when the words they use sound similar. Let's break down the differences among those terms to help clarify what's actually happening today.

  • Appreciation is when home prices increase.
  • Depreciation is when home prices decrease.
  • Deceleration is when home prices continue to appreciate, but at a slower or more moderate pace.

Experts agree that, nationally, what we're seeing today is deceleration. That means home prices are appreciating, just not at the record-breaking pace they have over the past year. In 2021, data from CoreLogic tells us home prices appreciated by an average of 15% nationwide. And earlier this year, that appreciation was upward of 20%. This year, experts forecast home prices will appreciate at a decelerated pace of around 10 to 11%, on average.

The graph below uses the latest data from CoreLogic to help tell the story of how home prices are decelerating, but not depreciating so far this year.

What's Actually Happening with Home Prices Today? | MyKCM

As the green bars show, home prices appreciated between 19-20% year-over-year from January to March. But over the last few months, the pace of that appreciation has decelerated to 18%. This means price growth is still climbing compared to last year but at a slower rate.

As the Monthly Mortgage Monitor from Black Knight explains:

"Annual home price growth dropped by nearly two percentage points . . . the greatest single-month slowdown on record since at least the early 1970s. . . While June's slowdown was record-breaking, home price growth would need to decelerate at this pace for six more months to drive annual appreciation back to 5%, a rate more in line with long-run averages."

Basically, this means, while moderating, home prices are still far above the norm, and we'd have to see a lot more deceleration to even fall in line with more typical rates of home price growth. That's still not home price depreciation.

The big takeaway is home prices haven't fallen or depreciated nationwide, they're just decelerating or moderating. While some unique and overheated markets may see declines, nationally, home prices are forecast to appreciate. And when we look at the country as a whole, none of the experts project home prices will net depreciate or fall. They're all projecting ongoing appreciation.

Bottom Line

If you have questions about what's happening with home prices in our local area, let's connect. Give us a call today!

*Keeping Current Matters, Inc. 2022

August
30

If you're thinking about buying a home, you likely have a lot of factors on your mind. You're weighing your own needs against higher mortgage rates, today's home prices, and more to try to decide if you want to jump into the market. While some buyers may wait things out, there's a reason serious buyers are making moves right now, and that's the growing number of homes for sale.

So far this year, housing inventory has been increasing and that's making the prospect of finding your dream home less difficult. While there are always reasons you could delay making a big decision, there are also always reasons to consider moving forward. And having a growing number of options for your home search may be exactly what you needed to feel more confident in making a move.

What's Causing Housing Inventory To Grow?

As new data comes out, we're getting an updated picture of why housing supply is increasing so much this year. As Bill McBride, Author of Calculated Risk, explains:

"We are seeing a significant change in inventory, but no pickup in new listings. Most of the increase in inventory so far has been due to softer demand – likely because of higher mortgage rates."

Basically, the inventory growth is primarily from homes staying on the market a bit longer (known as active listings). And that's happening because higher mortgage rates and home prices have helped moderate the peak frenzy of buyer demand.

The graph below uses data from realtor.com to show how much active listings have risen over the past five months as a result (shown in green):

Why You May Want To Start Your Home Search Today | MyKCM

Why This Growth Is Good News for You

Regardless of the source, the increase in available housing supply is good for buyers. More housing supply actively for sale means you have more options as your search for your next home. A recent article from realtor.com explains just how significant the inventory growth has been and why it's good news for your plans to buy:

"Nationally, the inventory of homes actively for sale on a typical day in July increased by 30.7% over the past year, the largest increase in inventory in the data history and higher than last month's growth rate of 18.7% which was itself record-breaking. This amounted to 176,000 more homes actively for sale on a typical day in July compared to the previous year and more choice for buyers who are still looking for a new home."

The growth this year is certainly good news for you, especially if you've had trouble finding a home that meets your needs. If you start your search today, those additional options should make it less difficult to find a home than it would have been over the past two years.

Bottom Line

If you're ready to jump into the market and take advantage of the increasing supply of homes for sale, let's connect today. The opportunity is knocking, will you answer?

*Keeping Current Matters, Inc. 2022

August
22

Some Highlights

  • If you're buying a home, here's what you should know about your home inspection and why it's so important.
  • A home inspection is a crucial step in the homebuying process. It assesses the condition of the home you plan to purchase so you can avoid costly surprises down the road.
  • Let's connect so you have an expert on your side to guide you through the process.

*Source: Keeping Current Matters, Inc. 2022