Category Archives: Housing Supply

Why Homeowners Are Selling Now

Some people believe there’s a group of homeowners who are reluctant to sell their houses because they don’t want to lose the historically low mortgage rate they have on their current residences. You may even have the same hesitation if you’re thinking about selling your house.

Data shows that as of this April, 51% of homeowners have a mortgage rate under 4%. And while it’s true mortgage rates are slightly higher than that right now, there are other non-financial factors to consider when it comes to making a move. Your mortgage rate is important, but you may have other things going on in your life that make a move essential, regardless of where rates are today.

As Jessica Lautz, Vice President of Demographics and Behavioral Insights at the National Association of Realtors (NAR), explains: “Home sellers have historically moved when something in their lives changed – a new baby, a marriage, a divorce, or a new job….”

So, if you’re thinking about selling your house, but hesitating, it may help to explore the other reasons homeowners are choosing to make a move. The 2022 Summer Sellers Survey by realtor.com asked recent home sellers why they decided to make their move. The visual below breaks down how they responded:

Top Reasons Homeowners Are Selling Their Houses Right Now | MyKCM

As the visual shows, an appetite for different features or the fact that their current home can no longer meet their needs topped the list for recent sellers. Additionally, remote work and whether or not they need a home office or are tied to a specific physical office location also factored in, as did the desire to live close to their loved ones.

If you, like the homeowners surveyed, find yourself wanting features, space, or amenities your current home just can’t provide, it may be time to consider marketing your house.

That’s what we did a few months ago. Our three bedroom, two bath Cape on a corner lot with a swing set in the backyard served us very well for 28 years. But, it had become too much space with too many stairs and a yard that was getting too big to take care of. (And the swing set was rarely used in a recent years!)

For us, the answer was downsizing to a ranch style condo in an over 55 community.

So, even if you’re concerned about mortgage rates, your lifestyle needs may be enough to motivate you to make a change.

If you’re interested in finding out what’s the best path for you, let’s connect at 508-360-5664 or msennott@todayrealestate.com. We can help you walk through your options, so you can make a confident decision based on what matters most to you and your loved ones.

Talk soon…

Mari and Hank

Buyers Are Regaining Negotiating Power

If you’re thinking about buying a home today, here’s some welcome news. Even though it’s still a sellers’ market, it’s a more moderate now than even earlier this year. The days of feeling like you need to waive contingencies or pay drastically over asking price to get your offer considered may be coming to a close.

Today, you should have less competition and more negotiating power as a buyer. That’s because the intensity of buyer demand and bidding wars is easing. So, if bidding wars were the biggest factor that kept you on the sidelines, here are two trends that may be just what you need to re-enter the market.

1. The Return of Contingencies

Over the last two years, more buyers were willing to skip important steps in the homebuying process, like the appraisal or inspection, to try to win a bidding war. But now, fewer people are waiving the inspection and appraisal.

The latest data from the National Association of Realtors (NAR) shows the percentage of buyers waiving their home inspection and appraisal is declining. A recent survey from realtor.com confirms more sellers are accepting offers that include these conditions today. According to their August study: 95% of sellers reported that buyers requested a home inspection, while 67% of sellers negotiated with buyers on repairs as a result of the inspection.

All of our recent sales have included home inspections.

2. Sellers Are More Willing To Help with Closing Costs

Generally, closing costs range between 2% and 5% of the purchase price for the home. Before the pandemic, it was not uncommon to see buyers ask sellers to help with some of their closing costs. This didn’t happen as much during the peak buyer frenzy over the past two years.

Today, as the market shifts and demand slows, data from realtor.com that uses the results of a national survey suggests this is making a comeback. A recent article shows 32% of sellers paid some or all of their buyer’s closing costs. This may be an option available to you when you purchase a home, although we have not experienced it yet with any of our recent clients.

Bottom Line

The extremely competitive housing market of the past few years seems to be easing a bit. The data suggests that the days of over the top offers with no contingencies are waning and sellers now have to negotiate with buyers. This is good news if you’re planning to enter the housing market.

For more information about buying or selling, please request our Fall Guides. The video below explains what you can learn.

…and to find out how the market is shifting, let’s connect at 508-360-5664 or msennott@todayrealestate.com. We’ll share with you the latest data, as well as our recent experience as sellers and buyers ourselves.

Talk soon…

Mari and Hank

What’s Next for Home Prices

Whether you’re a potential homebuyerseller, or both, you’re probably wondering: will home prices fall this year? So, let’s take a look at what the real experts are saying and why this matters for your homeownership goals.

Last Year’s Rapid Home Price Growth Wasn’t the Norm

In 2021, home prices appreciated quickly. One reason is because record-low mortgage rates motivated more buyers to enter the market. As a result, there were more people looking to make purchases than there were homes available for sale. That led to competitive bidding wars which drove prices up. CoreLogic helps explain how unusual last year’s appreciation was: “Price appreciation averaged 15% 2021, up from the 2020 average of 6%”

In other words, the pace of appreciation in 2021 far surpassed what the market saw in 2020. And even that appreciation was greater than the pre-pandemic norm which was typically around 3.8%. This shows that 2021 was an anomaly in the housing market spurred by more buyers than homes for sale.

Home Price Appreciation Is Moderating

Home price appreciation is now slowing (or decelerating) from the feverish pace the market saw over the past two years. According to the latest forecasts, experts say on average, nationwide, prices will still appreciate by roughly 10% in 2022 (see graph below):

What Does the Rest of the Year Hold for Home Prices? | MyKCM

On Cape Cod, the median sales price for a single family home was up 14.3% this July when compared to last. Year-to-date the median price is up 14.9% over 2021. That’s on the high end of what’s predicted, but within range of what the experts are saying.

Why do all of these experts agree prices will continue to rise? It’s simple. Even though housing supply is growing today, it’s still low overall thanks to several factors, including a long period of underbuilding homes. And experts say that’s going to help keep upward pressure on home prices this year. Additionally, since mortgage rates are higher this year than they were last year, buyer demand has slowed.

As the market undergoes this change, this year’s true price appreciation won’t match the feverish pace in 2021. But the rapid appreciation the market saw last year wasn’t sustainable anyway.

What Does That Mean for You?

Today, the market is beginning to move back toward pre-pandemic levels. But even the forecast for 10% home price growth in 2022 is well beyond the 3.8% that’s more typical for a normal market.

So, despite what you may have heard on your favorite cable TV news channel or from your mother’s cousin Gretchen, who had her real estate license 20 year ago , the actual experts say home prices won’t fall in most markets. They’ll just appreciate more moderately.

If you’re worried that the house you’re trying to sell or the home that you want to buy will decrease in value, you should know the experts aren’t calling for depreciation in most markets, just deceleration. That means your home should still grow in value, just not as fast as it did last year. Real estate remains one of the best long term financial investments available.

Bottom Line

If you’re thinking of making a move, you shouldn’t wait for prices to fall. Experts say nationally, prices will continue to appreciate this year, just at a more moderate pace.

Still on the fence about selling? With the market cooling, you’ve arguably lost money by waiting. You’ll still receive a very nice price for your home, but possibly not what your neighbor received eight months ago when there were bidding wars.

Curious about your options? Let’s connect at 508-360-5664 or msennott@todayrealestate.com. We’ll share with you the latest market data, as well as our experience this spring as sellers and buyers.

Finally, please be patient with our local merchants and their employees. Many businesses remain understaffed and are doing the best they can to serve you as efficiently as possible. Being told at a restaurant that there’s a 30 minute wait when you see open tables simply means they don’t have the staff to properly serve you. It’s better to not seat you, than have you sitting at a table getting frustrated over the “lousy service” and posting negative comments on social media. Thanks…

Mari and Hank

But Where Will I Go?

That’s a question we frequently hear from homeowners who are sitting on the fence about selling.

The answer: wherever you want.

That’s because today’s market is undergoing a shift, and the supply of homes for sale is slowly increasing as a result. That means you may have a better chance of finding a home that will meet your current need, whether upsizing, downsizing or moving to that “someday” community. Here are some options to consider.

Buying an Existing Home Can Give You That Lived-in Charm

According to the National Association of Realtors (NAR), the supply of existing homes nationally has steadily increased since the beginning of the year. The graph below indicates inventory levels are rising, and that’s largely due to more homes coming onto the market and the pace of sales slowing:

Wondering Where You’ll Move if You Sell Your House Today? | MyKCM

As the graph shows, if you’re looking for a home with lived-in charm, supply is rising, and that’s great news for you.

There are several benefits to buying an existing home. Many buyers want to purchase a home with history, and the character of older houses is hard to reproduce. Existing homes can often be part of an established neighborhood featuring mature landscaping that can give you additional privacy and boost your curb appeal.

Plus, timing can be a consideration as well. With an existing home, you can move in based on the timeline you agree to with the sellers, rather than building a new home and waiting for construction to finish. This is something to keep in mind, especially if you need to move sooner rather than later.

Just remember, while more sellers are listing their homes, supply is still low overall. That means you’ll have more options to choose from as you search for your next home, but you’ll still need to be prepared for a fast-moving market.

Purchasing a Newly Built or Under Construction Home Means Brand New Everything

Census data shows there’s an increasing number of new homes available for sale. It includes homes that are under construction, soon to be completed, and fully built. As the graph below highlights, the supply of new homes for sale has also grown this year:

Wondering Where You’ll Move if You Sell Your House Today? | MyKCM

When building a new home, you can create your perfect living space and customize it to your lifestyle. That could mean everything from requesting energy efficient options to specific design features. Plus, you’ll have the benefit of all new appliances, windows, roofing, and more. These can all help lower your energy costs, which can add up to significant savings over time.

The lower maintenance that comes with a newer home is another great advantage. When you have a new home, you likely won’t have as many little repairs to tackle, like leaky faucets, shutters to paint, and other odd jobs around the house. And with new construction, you’ll also have warranty options that may cover portions of your investment for the first few years.

But, keep in mind purchasing a new home could mean waiting a considerable amount of time before you can move. That’s an important factor when making your decision and depends on your personal time line.

Anecdotally, the number of homes available for sale on Cape appears to be increasing based on the time spent at our office and company-wide meetings discussing new listings. We’re also receiving more emails announcing price reduction announcements. Sometimes they involve properties where homeowners waited too long to sell and, as a result, the sale price that a neighbor received six months ago — that the seller wants today — isn’t realistic.

So, is it finally time to make your move? We put our Sandwich home under contract at the end of April and last month moved to an area in Mashpee that we had been thinking about for years. You can do it, too!. (And we received no special consideration from anyone, because we’re realtors.)

We’re happy to answer your questions about the current housing market. Let’s connect at 508-360-5664 or msennott@todayrealestate.com. We’ll provide you with the most up-to-date marketing data, as well as our thoughts based on our experience as sellers and buyers. Talk soon…

Please continue to be careful in the warm weather and pay attention to the kids and adults, who are not familiar with water. Thanks…

Mari and Hank

Should You Buy a Home Right Now?

If you’ve been thinking about buying a home, there’s one question that you’re no doubt asking yourself: should I buy right now, or should I wait?  While no one can answer that question for you, here’s some information that could help you make your decision.

The Future of Home Price Appreciation

Each quarter, Pulsenomics surveys a national panel of over 100 economists, real estate experts, and investment and market strategists to compile projections for the future of home price appreciation. The output is the Home Price Expectation Survey. In the latest release, it forecasts home prices will continue appreciating over the next five years (see graph below):

Should I Buy a Home Right Now? | MyKCM

As the graph shows, the rate of appreciation will moderate over the next few years as the market shifts away from the unsustainable pace it saw during the pandemic. After this year, experts project home price appreciation will continue, but at levels that are more typical for the market. 

As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says: “People should not anticipate another double-digit price appreciation. Those days are over…We may return to a more normal price appreciation of 4-5% a year.”

For you, ongoing appreciation should give you peace of mind that your investment in homeownership is worthwhile, because you’re buying an asset that’s projected to grow in value in the years ahead.

What Does That Mean for You?

To give you an idea of how this could impact your net worth, here’s how a typical home could grow in value over the next few years using the expert price appreciation projections from the Pulsenomics survey mentioned above (see graph below):

Should I Buy a Home Right Now? | MyKCM

As the graph conveys, even at a more typical pace of appreciation, you still stand to make significant equity gains as your home grows in value. That’s what’s at stake if you delay your plans.

As of June 20, the median sales price for a single family home on Cape Cod is $694,250.00. While that is certainly higher than just a few years ago, it’s still less than Boston ($800,000) and many surrounding communities. Plus, the Cape also offers much more in terms of quality school systems, recreational and outdoor activities, etc.

So, if you’re ready to become a homeowner, know that buying today can set you up for long-term success as your home’s value (and your own net worth) is projected to grow with ongoing price appreciation.

Let’s connect at 508-360-5664 and msennott@todayrealestate.com to discuss your options. We’re happy to answer your questons.

…and remember last month we sold our home of 28 years and downsized to an area that we had been thinking about for years.

Stay safe this week and please keep an eye on the kids and adults, who are not familiar with the water. Thanks…

Mari and Hank

The American Dream

Defining the American dream is personal, and no one individual will have the same definition as another. But the feelings it brings about success, freedom, and a sense of prosperity are universal. That’s why, for many people, homeownership remains a key part of the American dream. Your home is your stake in the community, a strong financial investment, and an achievement to be proud of.

A recent survey from Bankrate asked respondents to rank achievements as indicators of financial success, and the responses show that owning a home is still important to many Americans today (see graph below):

Is Homeownership Still the American Dream? | MyKCM

As the graph shows, homeownership ranks above other significant milestones, including retirement, having a successful career, and earning a college degree.

This could be because owning a home is a significant wealth-building tool and provides meaningful financial stability. The National Association of Realtors (NAR) explains: “Homeownership builds financial security. With 65.5% of Americans owning homes, the net worth of a typical homeowner is nearly 40 times the net worth of a non-owner.”

There are other ways your home acts as more than just a roof over your head. The Mortgage Reports highlights a few of the many benefits homeowners enjoy, including:

  • Your housing costs are fixed – and that can help combat rising costs from inflation.
  • You’ll have greater privacy and the opportunity to customize your living space.

Plus, homeowners tend to be more active in their community. As the NAR says: “Living in one place for a longer amount of time creates an obvious sense of community pride, which may lead to more investment in a community.”

What Does That Mean for You?

If your definition of the American Dream involves greater freedom and prosperity, then homeownership could play a major role in helping you achieve that dream. When you set out to buy, know there are incredible benefits waiting for you at the end of your journey. You’ll have a place you can call your own, feel most comfortable, and grow your wealth.

This is a concept not lost on millennials (born between 1982 and 2000), who are often referred to as a generation of renters. However, their homeownership rate is catching up to Generation X (born between the mid-1960s and early 1980s). In the coming years, they may become the first generation since World War II to reverse the trend in declining homeownership.

According to Apartment List: “today the millennial homeownership rate is 43 percent, well below the rates of generation X (67 percent) and the baby boomer and silent generations (77 percent).

“An important feature of millennial homeownership that often gets muddled in the media conversation is that it is increasing, and with few minor exceptions, it has always been increasing. The oldest millennials turned 18 in 1999, and every year since then there has been a net increase in the number of millennial-owned homes.

“Since the Great Recession, the millennial homeownership rate has grown faster than any other, particularly in the last five years…Today, millennials are the least likely to own a home, but they are the most likely to purchase one.”

No matter your generation, buying a home is a powerful decision and a key part of the American Dream. And if buying a home for the first time, upsizing, downsizing or moving to that “someday” place is part of your personal dreams this year, let’s connect at 508-360-5664 or msennott@todayrealestate.com. We’re happy to answer your questions as real estate professionals and as people who last month sold our home of 28 years to buy a smaller property in an area that we had been thinking about for years.

Please stay safe and pay attention to children or adults who aren’t familiar with the water. We’ve already had far too many accidents this summer. Thanks…

Best regards,

Mari and Hank

Is the Boom Over?

If you’re following the news, all of the headlines about conditions in the current housing market may be leaving 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 just 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.

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.

Based on our own experience and that of our colleagues we can say that not every Open House has lines of potential buyers stretching down the driveway, as was the case not that long ago. Appropriately priced homes still attract a crowd, but buyers have become a bit more discerning. Houses whose asking price aren’t realistic because of condition or location are getting less attention when they might have a year ago.

What we are seeing — and again, this is anecdotally — are some homes becoming available to see if they will sell at some crazy price, because buyers are thought to still be “desperate.” But, there’s not much interest.

Existing Home Sales Then and Now

The headlines are also talking about how existing home sales are declining, but perspective matters here, as well. Let’s 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…”

Housing sales statistics for May have just been released by the Cape Cod and the Islands Board of Realtors and show that YTD the median sales price for a single family home is $690,000.00. (The YTD number one year ago was $607,000.00) New listings YTD are 1,613 compared to 1,836 in 2021.

New listings in May numbered 468. Last May there were 511. Months of housing supply in May is 1.4. In January it was 0.7 meaning more homes are coming on the market. This trend is expected to continue, but we have a long way to go to reach the more than five months supply we had pre-pandemic when good houses were available for sale for more than 100 days.

If recent headlines are concerning you and you’re thinking about buying, selling or both, 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.

We’re happy to answer your questions. Let’s connect at 508-360-5664 or msennott@todayrealestate.com. It’s important that you have the correct information before making a decision.

…and remember, we just sold our house of 28 years and moved to a smaller property. So, we get it.

Have a great week…

Mari and Hank

What Does the Rest of 2022 Hold for the Housing Market?

If you’re thinking of buying or selling a house, you’re at an exciting decision point where timing can be crucial. So, what does the rest of the year hold for the housing market? Here’s what experts have to say.

The Number of Homes Available for Sale Is Likely To Grow

There are early signs housing inventory is starting to grow and experts say that should continue in the months ahead. According to Danielle Hale, Chief Economist at realtor.com: “The gap between this year’s homes for sale and last year’s is one-fifth the size that it was at the beginning of the year. The catch up is likely to continue…This growth will mean more options for shoppers than they’ve had in a while, even though inventory continues to lag pre-pandemic normal.”

  • As a buyer, having more options is welcome news. Just remember, housing supply is still low, so be ready to act fast and put in your best offer up front.
  • As a seller, your house may soon face more competition when other sellers list their homes. But the good news is, if you’re also buying your next home, having more options to choose from should make that move-up process easier.

Here on Cape, there has been a very modest, but steady increase in new listings this year. In January, there were 209. In April, there were 375. For some perspective, there were 629 new listings in April 2019 and we had 5.8 months of housing inventory.

Commenting on social media last week, Ryan Castle, Chief Executive Officer of the Cape and Island Association of Realtors, reported that “162 of 223 properties that became available over the last two weeks are still for sale.”

Cumulative days on the market before sale (YTD) is 36 seeming to indicate that not every property is selling in a day. Just a few years ago, days on market for well-maintained and appropriately priced homes could number in the months.

Mortgage Rates Will Likely Continue To Respond to Inflationary Pressures

Experts also agree inflation should continue to drive up mortgage rates, albeit more moderately. Odeta Kushi, Deputy Chief Economist at First Americansays: “…ongoing inflationary pressure remains likely to push mortgage rates even high in the months to come.”

  • As a buyer, work with reputable lenders, so you can learn how rising the mortgage rate environment impacts your purchasing power. It may make sense to buy now before it costs more to do so, if you’re ready.
  • As a seller, rising mortgage rates are motivating some homeowners to make a move up sooner rather than later. If you’re planning to buy your next home, talk to us and we can give you some advice on timing your move based on our own experience.

Home Prices Are Projected To Continue To Increase

Home prices are forecast to keep appreciating because there are still fewer homes for sale than there are buyers in the market. That said, experts agree the pace of that appreciation should moderate – but home prices won’t fall. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says: “Given the extremely low inventory, we’re unlikely to see prices decline, but appreciation should slow in the coming months.”

  • As a buyer, continued home price appreciation means it’ll cost you more to buy the longer you wait. But it also gives you peace of mind that, once you do buy a home, it will likely grow in value. That makes it historically a good investment and a strong hedge against inflation.
  • As a seller, price appreciation is great news for the value of your home. Again, you can take advantage of our experience to find the best way to strike the right balance for both selling your house and buying your next one. (We just did that!)

On Cape, the median sales price for a single family home (TYD) is up 12.5% to $675,000.00. In April 2019, it was $420,000.00.

But, the percentage of original list price received (YTD) is 101.1% suggesting that the days of head scratching offers may be fading. (Although there will always be exceptions.) In 2019, percentage of list was 92.9%. Back then asking price was the best you could hope for, not the starting point as it often is today.

Thinking about making your move? We’d be happy to answer your questions. Let’s connect at 508-360-5664 or msennott@todayrealestate.com. It’s important that you have the most accurate information to make the best decision for you.


…and speaking of making your move, today (Monday) is moving day for us. We closed on our new condo this past Wednesday and have used the last several days to finish packing up our house where we have lived for the last 28 years and bringing in painters, etc. to our new place. We close on our “old” home this coming Wednesday,

We’ve been chronicling what we’ve been doing in a series called “Mari Makes the Move” that you can find on our YouTube channel Mari Sennott Plus and on many of our social media platforms.

We’ll let you know next week how it all went…

Mari and Hank

Mortgage Rates Pushing Buyers Off the Fence

If you’re thinking about buying a home, you’re no doubt aware that mortgage rates are rising and you’re probably wondering what that means for you. Since mortgage rates have increased over two percentage points this year, it’s natural to think about how this will impact your homeownership plans.

Buyers are reacting in one of two ways: they’re either making the decision to buy now before rates climb higher or they’re waiting it out in hopes rates will fall. Here’s some context that can help you understand why so many buyers are making their move and taking action instead of waiting.

How the Current Mortgage Rate Compares to Historical Data

One factor that could help you make your decision to buy now is how today’s mortgage rates compare to historical data. While higher than the average 30-year fixed rate in recent years, the latest rates are still comparatively low when you look at the bigger picture of where rates have been since 1971 (see graph below):

Why Rising Mortgage Rates Push Buyers off the Fence | MyKCM

If you’re deciding whether to buy now or wait, this is important context to have. Today’s mortgage rate still gives you a window of opportunity to lock in a number that’s significantly lower than decades past.

Not every lender is offering the same rate right now. The differences can be 1% or more. So, be sure to compare. We work with several reputable lenders and are happy to pass along their contact information.

We remember when interest rates were at their highest. We had a rate of 14%! But people still bought homes, because they understood that real estate has always been the safest investment and that waiting was, well, just waiting.

A Look Ahead: What Happens if Rates Climb Further

The buyers who are springing into action now are motivated to make their move because they know rates have risen steadily this year, and they’re eager to get ahead of any further increases.

Why? When mortgage rates climb, they impact the monthly mortgage payment you’ll have on the home you’re buying. Basically, it’ll likely cost you more to buy if you wait.

Experts say mortgage rates will rise (although more moderately) in the months ahead. Odeta Kushi, Deputy Chief Economist at First Americanexplains: “…ongoing inflationary pressure remains likely to push mortgage rates even higher in the months to come.”

So, if you’re ready and financially able to buy now, it may make more sense to get off the fence and make your purchase sooner rather than later.

That’s what we’ve done. We’ve sold our home where we’ve lived for the past 28 years and are purchasing a ranch style condo. We have an mortgage interest rate that would have been laughed off as fantasy when we were younger.

At the end of the day, there is no perfect advice on when to buy a home. What you should do depends on your goals, your finances, and your personal situation.

Please use this information to make an informed decision about what’s best for you. And let’s connect at 508-360-5664 or msennott@todayrealestate.com. We’re be happy to answer your questions.

Happy Memorial Day. Never forget…

Mari and Hank

What Every Homeowner Needs To Know About a Recession

A recession does not equal a housing crisis. That’s the one thing that every homeowner today needs to know. Everywhere you look, experts are warning we could be heading toward a recession. If true, an economic slowdown doesn’t mean homes will lose value.

The National Bureau of Economic Research (NBER) defines a recession this way: “A recession is a significant decline in economic activity spread across the economy. A recession begins when the economy reaches a peak of economic activity and ends when the economy reaches its trough. Between trough and peak, the economy is in expansion.”

To illustrate that home prices don’t fall every time there’s a recession, let’s take a look at the historical data. There have been six recessions in this country over the past four decades.

As the graph below shows, looking at the recessions going all the way back to the 1980s, home prices appreciated four times and depreciated only two times. So, historically, there’s proof that when the economy slows down, it doesn’t mean home values will fall or depreciate.

The One Thing Every Homeowner Needs To Know About a Recession | MyKCM

The first occasion on the graph when home values depreciated was in the early 1990s when home prices dropped by less than 2%. It happened again during the housing crisis in 2008 when home values declined by almost 20%.

Most people vividly remember the housing crisis in 2008 and think if we were to fall into a recession that we’ll repeat what happened then. But this housing market isn’t a bubble that’s about to burst. The fundamentals are very different today than they were in 2008. So, we shouldn’t assume we’re heading down the same path.

The housing crisis in 2008 was caused by too many homeowners being over-leveraged and having little or no equity in their properties. They found themselves “under-water” when their balloon mortgage payments exploded. That’s simply not the case today. According to ATTOM Data Services 41.9% of all mortgaged homes have at least 50% equity.

As long as inventory remains tight and demand strong, prices will continue to be high. They may level off, but are not expected to decrease in any significant way.

For buyers your bottom line is this: you’re paying somebody’s mortgage. It can either be yours or your landlords.

For potential sellers don’t wring your hands and ask “But, where can we go?” Ask yourself what we’ve always asked ourselves when we decided to make a move: “Where do I want to go?”

That’s what we did and we’re closing on the sale of our home and buying a new one within the next few weeks.

Curious about your options? We’d be happy to answer your questions. Let’s connect at 508-360-5664 or msennott@todayrealestate.com.

It’s important you have the correct information to make the best decisions.

Mari and Hank