BuyersFirst Time Home BuyersFor BuyersHousing Market UpdatesSellers July 29, 2022

Three Reasons To Buy a Home in Today’s Shifting Market [INFOGRAPHIC]

Three Reasons To Buy a Home in Today’s Shifting Market [INFOGRAPHIC] | MyKCM

Some Highlights

  • The housing market is moving away from the frenzy of the past year and it’s opening doors for you if you’re thinking about buying a home.
  • Housing inventory is increasing, which means more options for your search. Plus, the intensity of bidding wars may ease as buyer demand moderates, leading to fewer homes selling above asking price.
  • If you’re ready to buy a home, now may be the moment you’ve been waiting for. Let’s connect to start the homebuying process today.
Housing Market Updates July 18, 2022

Housing Experts Say This Isn’t a Bubble

With so much talk about an economic slowdown, some people are asking if the housing market is heading for a crash like the one in 2008. To really understand what’s happening with real estate today, it’s important to lean on the experts for reliable information.

Here’s why economists and industry experts say the housing market is not a bubble ready to pop.

Today Is Nothing Like 2008

The 2008 housing crash is still fresh in the minds of many homebuyers and sellers. But today’s market is different. Odeta Kushi, Deputy Chief Economist at First American, says:

“This is not the same market of 2008. . . . It’s no secret the housing market played a central role in the Great Recession, but this market is just fundamentally different in so many ways.”

Natalie Campisi, Advisor Staff for Forbesexplains how today’s lending standards are different than those during the lead-up to the housing market crash:

“Among the differences between today’s housing market and that of the 2008 housing crash is that lending standards are tighter due to lessons learned and new regulations enacted after the last crisis. Essentially, that means those approved for a mortgage nowadays are less likely to default than those who were approved in the pre-crisis lending period.”

Another reason today’s housing market is nothing like 2008 is that the number of people looking to buy a home still outweighs the supply of homes for sale. As realtor.com notes:

. . . experts don’t believe the market is in a bubble or a crash is in the cards, like during the Great Recession. The nation is still suffering from a housing shortage that has reached crisis proportions at a time when many millennials are reaching the age when they start to consider homeownership. That’s likely to keep prices high.”

Bottom Line

Experts say the housing market isn’t a bubble, and we’re not heading for a crash. Let’s connect so you can have a full picture of today’s housing market in our local area.

About Team Blue June 27, 2022

Team Blue Participates in Wilmington High School Senior Exploration Program

 

Team Blue in ERA Key’s Wilmington office recently participated in the Wilmington High School Senior Exploration Program by accepting two seniors, Tori Ciampa and Janelle Penney.

Each year, Wilmington High School holds a Senior Exploration Program to give students an opportunity to experience a career field that may be of interest to them. This year,Team Blue had the honor of accepting two students from the program to work with from May 4 to May 31, 2022. During their time with Team Blue at ERA Key Realty Services, the two interns:

  • Observed at an open house
  • Delivered “Pop-By” tokens to neighborhoodsWilmington Interns
  • Hosted the raffle table at the Kentucky Derby Client Appreciation Party
  • Learned about town assessments and competitive market values
  • Participated in other administrative tasks, such as branding, social media and marketing

“Working with Team Blue was such a fun experience! The whole team created an inviting and exciting environment for us to come work and learn about real estate,” said Tori.

“Over the summer, Tori and I are planning on attending a real estate course to study and take the exam to get our real estate licenses,” Janelle said. “We had such a great time working with Team Blue that we want to continue to work in and learn about the real estate business.”

Team Blue is located at the Wilmington branch of ERA Key Realty Services. The team
specializes in real estate in the Boston Suburban areas and Southern New Hampshire. For the past five years, Team Blue has been awarded the #1 Team at ERA Key Realty Services. Their goal is to guide their clients through the contractual, investment, and emotional decisions involved in the real estate process.

For more information on Team Blue’s services, contact Lori Penney at 978-375-2520 or
loripenney@erakey.com, or visit the team’s Facebook and Instagram pages
@TeamBlueRealEstate.

 Pictured are Tori Ciampa and Janelle Penney. 

Housing Market Updates June 17, 2022

Is the Housing Market Correcting?

If you’re following the news, all of the headlines about conditions in the current housing market may leave you with more questions than answers. Is the boom over? Is the market crashing or correcting? Here’s what you need to know.

The housing market is moderating compared to the last two years, but what everyone needs to remember is that the past two years were record-breaking in nearly every way. Record-low mortgage rates and millennials reaching peak homebuying years led to an influx of buyer demand. At the same time, there weren’t enough homes available to purchase thanks to many years of underbuilding and sellers who held off on listing their homes due to the health crisis.

This combination led to record-high demand and record-low supply, and that wasn’t going to be sustainable for the long term. The latest data shows early signs of a shift back to the market pace seen in the years leading up to the pandemic – not a crash nor a correction. As realtor.com says:

The housing market is at a turning point. . . . We’re starting to see signs of a new direction, . . .”

Home Showings Then and Now

The ShowingTime Showing Index tracks the traffic of home showings according to agents and brokers. It’s a good indication of buyer demand. Here’s a look at that data going back to 2019 (see graph below):

Is the Housing Market Correcting? | MyKCM

The 2019 numbers give a good baseline of pre-pandemic demand (shown in gray). As the graph indicates, home showings skyrocketed during the pandemic (shown in blue). And while current buyer demand has begun to moderate slightly based on the latest data (shown in green), showings are still above 2019 levels.

And since 2019 was such a strong year for the housing market, this helps show that the market isn’t crashing – it’s just at a turning point that’s moving back toward more pre-pandemic levels.

Existing Home Sales Then and Now

Headlines are also talking about how existing home sales are declining, but perspective matters. Here’s a look at existing home sales going all the way back to 2019 using data from the National Association of Realtors (NAR) (see graph below):

Is the Housing Market Correcting? | MyKCM

Again, a similar story emerges. The pandemic numbers (shown in blue) beat the more typical year of 2019 home sales (shown in gray). And according to the latest projections for 2022 (shown in green), the market is on pace to close this year with more home sales than 2019 as well.

It’s important to compare today not to the abnormal pandemic years, but to the most recent normal year to show the current housing market is still strong. First American sums it up like this:

“. . . today’s housing market looks a lot like the 2019 housing market, which was the strongest housing market in a decade at the time.”

Bottom Line

If recent headlines are generating any concerns, look at a more typical year for perspective. The current market is not a crash or correction. It’s just a turning point toward more typical, pre-pandemic levels. Let’s connect if you have any questions about our local market and what it means for you when you buy or sell this year.

About Team Blue May 18, 2022

Team Blue Raises $2,975 for Alzheimer’s Association

Kentucky Derby Party

Team Blue, which is based in  ERA Key’s Wilmington office, has raised $2,975 for the Alzheimer’s Association and is continuing its fundraising through the end of June 2022.

To show appreciation to past clients who have supported the team and their support for the Alzheimer’s Association, Team Blue hosted a Kentucky Derby Party on Saturday, May 7, 2022.

The team partnered with Peter DaMore at DaMore Law, Shant Banosian at Guaranteed Rate Mortgage, Joe Lombardo at Guild Mortgage Company, Mitch Corton at Hunt Mortgage and Laura Piro at LBP Insurance Agency, LLC to throw the party. The party featured raffle prizes, derby games, a best-dressed prize, and a best-hat prize. Guests included past clients, friends, and family of the business partners.

Kentucky Derby Hats

“In the United States, more than 6 million people are living with Alzheimer’s or other dementias,” said Lori Penney, the leader of Team Blue. “It is an honor to support all the families and friends who are providing care for their loved ones during such a difficult time.”

Team Blue specializes in real estate in the Boston suburban areas and southern New Hampshire. For the past five years, Team Blue has been awarded the #1 Team at ERA Key Realty Services. Their goal is to guide clients through the contractual, investment, and emotional decisions involved in the real estate process.

Kentucky Derby Hats

For more information on Team Blue’s services or how to donate to the Alzheimer’s Association, contact Lori Penney at 978-375-2520 or loripenney@erakey.com, or visit the team’s Facebook and Instagram pages @TeamBlueRealEstate.

Pictured, left to right, top to bottom, are Linda DuCharme, Lori Penney, Nicole Dupuis, Nancy Dinelli, Lisa Luther, Alex Wargo and Tim Penney; Kelly McGowan, Tim Penney, Kayla Slavin (front), Ryan St. Jean, Maddy McKinley (front), Kyle Penney, Mikey Daley, Rob Fullerton and Tyler Canning; Lori Penney, Amy Bishop, Laura Piro and Ellen Sheehan; Tim Penney and Kelly McGowan.

About Team Blue May 18, 2022

Lori Penney earns Internationally Recognized Achievement for Performance in Luxury Real Estate

Lori Penney

Lori Penney, leader of Team Blue at ERA Key Realty Services in Wilmington, earned The Institute for Luxury Home Marketing’s Million Dollar GUILD™ recognition for experience, knowledge, and expertise in million-dollar and above residential properties.

Lori is a Certified Luxury Home Marketing Specialist™ (CLHMS), part of an exclusive group of real estate professionals who have completed The Institute’s training and have a proven performance in the upper-tier market.

“Agents who have earned the GUILD™ recognition are performing at the highest level in their community,” said Diane Hartley, president of The Institute. “It takes a superior level of service to be successful and consistently close sales at or above one million dollars. We want to recognize this performance and give these elite professionals the earned distinction that they are the agent of choice for affluent buyers and sellers.”

The specialized training and ongoing membership with The Institute provide Penney with the knowledge and tools to better serve affluent clients. The GUILD™ recognition provides evidence of the successful commitment to service at the highest level.

“Being able to evaluate and look at the high-quality finishing and intuitive construction incorporated into homes with today’s technology is simply amazing,” Lori said. “I enjoy seeing the evolution of what each individual home has to offer in unique features and upgrades. It is amazing to see the evolution of high-end homes built in the 1950s to present day.”

Lori has been in real estate since 2008 and specializes in the Boston Suburban areas and Southern New Hampshire. She is a Board member of both the Wilmington/Tewksbury Chamber of Commerce and the Wilmington Housing Authority. She is also a member of the Greater Boston Association of Realtors, Massachusetts Association of Realtors, New Hampshire Association of Realtors, National Association of Realtors, Certified Probate Real Estate Specialist, Accredited Buyers Representative, and At Home with Diversity (AHWD).

Her team has been awarded the #1 team at ERA Key Realty Services for each of the past five years. Penney is a dedicated community member and makes giving back to her community a priority. Her team organizes events every year to raise awareness and funds for local charities.

BuyersBuying MythsFirst Time Home BuyersFor BuyersHousing Market Updates April 10, 2022

What You Can Expect from the Spring Housing Market

As the spring housing market kicks off, you likely want to know what you can expect this season when it comes to buying or selling a house. While there are multiple factors causing some uncertainty, including the conflict overseas, rising inflation, and the first rate increase from the Federal Reserve in over three years — the housing market seems to be relatively immune.

Here’s a look at what experts say you can expect this spring.

1. Mortgage Rates Will Climb

Freddie Mac reports the 30-year fixed mortgage rate has increased by more than a full point in the past six months. And despite some mild fluctuation in recent weeks, experts believe rates will continue to edge up over the next 90 days. As Freddie Mac says:

“The Federal Reserve raising short-term rates and signaling further increases means mortgage rates should continue to rise over the course of the year.”

If you’re a first-time buyer or a seller thinking of moving to a home that better fits your needs, realize that waiting will likely mean you’ll pay a higher mortgage rate on your purchase. And that higher rate drives up your monthly payment and can really add up over the life of your loan.

2. Housing Inventory Will Increase

There may be some relief coming for buyers searching for a home to purchase. Realtor.com recently reported that the number of newly listed homes has grown for each of the last two months. Also, the National Association of Realtors (NAR) just announced the months’ supply of inventory increased for the first time in eight months. The inventory of existing homes usually grows every spring, and it seems, based on recent activity, the next 90 days could bring more listings to the market.

If you’re a buyer who has been frustrated with the limited supply of homes available for sale, it looks like you could find some relief this spring. However, be prepared to act quickly if you find the right home.

If you’re a seller, listing now instead of waiting for this additional competition to hit the market makes sense. Your leverage in any negotiation during the sale will be impacted as additional homes come to market.

3. Home Prices Will Rise

Prices are always determined by supply and demand. Though the number of homes entering the market is increasing, buyer demand remains very strong. As realtor.com explains in their most recent Housing Report:

“During the final two weeks of the month, more new sellers entered the market than during the same time last year. . . . However, with 5.8 million new homes missing from the market and millions of millennials at first-time buying ages, housing supply faces a long road to catching up with demand.”

What does that mean for you? With the demand for housing still outpacing supply, home prices will continue to appreciate. Many experts believe the level of appreciation will decelerate from the high double-digit levels we’ve seen over the last two years. That means prices will continue to climb, just at a more moderate pace. Most experts are predicting home prices will not depreciate.

Won’t Increasing Mortgage Rates Cause Home Prices To Fall?

While some people may believe a 1% increase in mortgage rates will impact demand so dramatically that home prices will have to fall, experts say otherwise. Doug Duncan, Senior Vice President and Chief Economist at Fannie Maesays:

“What I will caution against is making the inference that interest rates have a direct impact on house prices. That is not true.”

Freddie Mac studied the impact that mortgage rates increasing by at least 1% has had on home prices in the past. Here are the results of that study:

What You Can Expect from the Spring Housing Market | Simplifying The Market

As the chart shows, mortgage rates jumped by at least 1% six times in the last thirty years. In each case, home values increased.

So again, if you’re a first-time buyer or a repeat buyer, waiting to buy likely means you’ll pay more for a home later in the year (as compared to its current value).

Bottom Line

There are three things that seem certain going into the spring housing market:

  1. Mortgage rates will continue to rise
  2. The selection of homes available for sale will modestly improve
  3. Home prices will continue to appreciate, just at a slightly slower pace

If you’re thinking of buying, act now before mortgage rates and home prices increase further. If you’re thinking of selling, your best bet may be to sell soon so you can beat the increase in competition that’s about to come to market.

 

BuyersBuying MythsEnergy Efficient April 10, 2022

How an Energy Efficient Home Can Be a Bright Idea [INFOGRAPHIC]

How an Energy Efficient Home Can Be a Bright Idea [INFOGRAPHIC] | Simplifying The Market

Some Highlights

  • With inflation driving up the cost of everyday items, seeking out an energy-efficient home can be a great way to decrease the expenses you can control.
  • Energy efficiency can help lower your utility bills and possibly even save you money on your taxesOptions to look for include efficient appliances, windows, and solar panels.
  • If you’re planning to buy a home this year, consider energy efficiency in your search. Let’s connect so you can better understand features that can save you money for years to come.
First Time Home BuyersFor BuyersHousing Market UpdatesRent vs. Buy April 10, 2022

A Key To Building Wealth Is Homeownership

The link between financial security and homeownership is especially important today as inflation rises.  But many people may not realize just how much owning a home contributes to your overall net worth. As Leslie Rouda Smith, President of the National Association of Realtors (NAR), says:

“Homeownership is rewarding in so many ways and can serve as a vital component in achieving financial stability.”

Here are just a few reasons why, if you’re looking to increase your financial stability, homeownership is a worthwhile goal.

Owning a Home Is a Building Block for Financial Success

A recent NAR report details several homeownership trends and statistics, including the difference in net worth between homeowners and renters. It finds:

“. . . the net worth of a homeowner was about $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 (see visual below):

A Key To Building Wealth Is Homeownership | Simplifying The Market

The results from this report show that owning a home is a key piece to the puzzle when building your overall net worth.

Equity Gains Can Substantially Boost a Homeowner’s Net Worth

The net worth gap between owners and renters exists in large part because homeowners build equity. As a homeowner, your equity grows as your home appreciates 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. As a renter, you’ll never see a return on the money you pay out in rent every month.

To sum it up, NAR says it simply:

“Homeownership has always been an important way to build wealth.”

Bottom Line

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.

Sellers April 10, 2022

It’s Still a Sellers’ Market [INFOGRAPHIC]

It’s Still a Sellers’ Market [INFOGRAPHIC] | Simplifying The Market

Some Highlights

  • Due to low supply and high demand, today is one of the strongest sellers’ markets we’ve seen.
  • Sellers can benefit from more offers to pick from, higher home values, and a faster sales process. There’s a reason why 72% of people believe it’s a good time to sell.
  • Don’t miss out on this unique opportunity. Let’s connect so you can take advantage of this hot sellers’ market.