Category Archives: Home buyers

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

Should You Sell Your House This Year?

There’s no denying that the housing market is undergoing a shift as buyer demand slows and the number of homes for sale grows.

On Cape Cod, there were 231 homes for sale in January. In August, there were 563. This is nowhere near what we consider to be a normal market. But, what it does represent is a slow tick upward in the number of homes available.

So, here’s a look at the key opportunities you have if you list your house this fall.

Opportunity #1: Where Can You Go?

We often hear from those who are thinking about selling that their biggest concern is that they don’t know where they can go. But, one of the biggest stories today is the growing supply of homes for sale primarily because higher mortgage rates helped cool off the peak frenzy of buyer demand. But what you may not realize is, this actually can benefit you as a seller

If you’re marketing your house to make a move, it means you’ll have more options for your own home search. This gives you an even better chance to find a home that checks all of your boxes. So, if you’ve put off selling because you were worried about being able to find somewhere to go, know your options have improved.

Opportunity #2: The Number of Homes on the Market Is Still Low

Just remember, while data shows the number of homes for sale has increased this year, housing supply is still firmly in sellers’ market territory. To be in a balanced market where there are enough homes available to meet the pace of buyer demand, there needs to be a six months’ supply of homes nationally. According to the latest report from the Cape and Island Association of Realtors there’s a 1.9 month supply here.

While you’ll have more options for your own home search, inventory is still low, and that means your home will still be in demand if you price it right. On Cape, the Cumulative Days on Market Before Sale is 29 (YTD), still quick by traditional standards, but not the gone-in-a-weekend pace of even just a few months ago.

Opportunity #3: Your Equity Has Grown by Record Amounts

The home price appreciation that the market experienced over the past few years has likely given your equity (and your net worth) a considerable boost.

Danielle Hale, Chief Economist at realtor.comexplains: “Homeowners trying to decide if now is the time to market their homes are still in a good position in many places across the country as a decade of rising home prices gives them a substantial equity cushion…”

While there are no statistics available on individual equity, we can report based on our own personal experience and that of our sellers that this is true.

So, if you’ve been holding off on selling because you’re worried about how rising prices will impact your search, rest assured your equity can help. It may be just what you need to cover a large portion (if not all) of the down payment on your next home.

That’s what we did a few months ago. We used the equity in our home as down payment for our new one. So, we were able to secure where we were going before the For Sale sign ever went up in our yard.

There’s often never a “good time” to market a home: an unexpected job transfer, the loss of a loved one, or a family break up can make the decision hard and the process difficult. But sellers manage to get through it with the help of a knowledgeable professional.

If, however, the market is presenting you with an opportunity to benefit from your long-term real estate investment and make the change that you’ve been contemplating for years, why not move forward?

Let’s connect at 508-360-5664 or msennott@todayrealestate.com to talk about your possibilities. We’re happy to help.

Mari and Hank

A Bit of What We Learned in Dallas

Like many of you, we were dodging the downpours last week. Only we were in Dallas where the torrential rains flooded parts of the downtown stranding people in their cars with many needing to be rescued by first responders.

We were attending our seventh Success Summit, sponsored by the Tom Ferry organization. Ferry is consistently voted the leading trainer in our profession. He’s also an FOM. (Friend of Mari)

With us were about 25,00 of our colleagues from the States and around the world. (About 6,000 in person; the rest on live stream.)

We had an opportunity to network with other professionals and learn about where they work and what has been successful for them in helping their buyer and seller clients.

The conference itself provided a wealth of information about the status of the market and its somewhat confusing behavior. Bad memories of 2008, worse advice from inernet “experts” and relatives who know “a few things about real estate,” and the charged political atmosphere with the mid-terms looming have many concerned about a possible crash.

But, one of the key reasons why the market won’t crash this time is the current undersupply of inventory. Housing supply comes from three key places; 1.current homeowners putting their homes up for sale; 2. newly built homes coming onto the market, and 3.distressed properties (short sales or foreclosures)

For the market to crash, you’d have to make a case for an oversupply of inventory headed to the market, and the numbers just don’t support that. So, here’s a deeper look at where inventory is coming from today to help prove why the housing market isn’t headed for a crash.

Current Homeowners Putting Their Homes Up for Sale

Even though housing supply is increasing this year, there’s still a limited number of existing homes available. The graph below helps illustrate this point. Based on the latest weekly national data, inventory is up 27.8% compared to the same week last year (shown in blue). But compared to the same week in 2019 (shown in the larger red bar), it’s still down by 42.6%.

Why Today’s Housing Inventory Proves the Market Isn’t Headed for a Crash | MyKCM

So, what does this mean? There simply aren’t enough homes on the market to cause prices to crash. There would need to be a flood of people getting ready to sell their houses in order to tip the scales toward a buyers’ market. And that level of activity simply isn’t there.

Newly Built Homes Coming onto the Market

There’s also a lot of talk about what’s happening with newly built homes today, as builders are actually slowing down their production. Ali Wolf, Chief Economist at Zonda, notes: “It has become a very competitive market for builders where they are trying to offload any standing inventory.”

To avoid repeating the overbuilding that happened leading up to the housing crisis, builders are reacting to higher mortgage rates and softening buyer demand by slowing down their work. It’s a sign they’re being intentional about not overbuilding homes like they did during the bubble.

But, with not enough new homes being built over the last several years, builder caution is not helping to increase supply as much as needed.

Distressed Properties (Short Sales or Foreclosures)

The last place inventory can come from is distressed properties, including short sales and foreclosures. Back in the housing crisis, there was a flood of foreclosures due to lending standards that allowed many people to secure a home loan they couldn’t truly afford. Today, lending standards are much tighter, resulting in more qualified buyers and far fewer foreclosures. The graph below uses data from ATTOM Data Solutions on properties with foreclosure filings to help paint the picture of how things have changed since the crash:

Why Today’s Housing Inventory Proves the Market Isn’t Headed for a Crash | MyKCM

So for those of you looking for a deal, your wait could be a long one.

The forbearance program during the height of the pandemic was a game changer, giving homeowners options for things like loan deferrals and modifications they didn’t have before. And data on the success of that program shows four out of every five homeowners coming out of forbearance are either paid in full or have worked out a repayment plan to avoid foreclosure. These are a few of the biggest reasons there won’t be a wave of foreclosures coming to the market.

With the real experts agreeing that, in general, prices will moderate, but not decrease, is it time to make your move? As many of you know, we did earlier this year selling our home of 28 years and moving to something that makes more sense for our current needs and lifestyle. You can, too!

Let’s connect at 508-360-5664 or msennott@todayrealestate.com. We’d be happy to share our experience as sellers and buyers, as well as more of what we learned in Dallas and how it can apply to your personal situation. Let’s talk soon.

With school beginning in many of our communities this week, please be aware of kids walking to school and waiting for the bus. Thanks…

Mari and Hank

Your Home’s Equity Can Power Your Retirement

Planning To Retire? Your Equity Can Help You Reach Your Goal | MyKCM

Whether you’ve just retired or you’re thinking about retirement, you’re no doubt considering all your options and trying to picture a whole new stage of your life.

And you’re not alone. 

Research from the Retirement Industry Trust Association (RITA) shows 10,000 Baby Boomers reach the typical retirement age (65) every day, but only 47% have actually retired.

If you are or are thinking about doing so, one thing worth considering is whether or not your current home will suit your new lifestyle. If your house is too big or doesn’t have the features or benefits you need, the good news is, you may be in a better position to move than you realize.

That’s because, if you already own a home, you’ve likely built-up significant equity, and that can help you fuel your next move. According to the National Association of Realtors (NAR): “A homeowner who purchased a typical home five years ago would have gained $125,300 from just price appreciation alone.”

In fact, over the last twelve months, CoreLogic reports the average homeowner in the United States gained roughly $64,000 in equity due to home price appreciation.

You can use your equity to help you achieve your homeownership goals. Whether you want to downsize, move closer to loved ones, or buy a home in a dream destination, your equity can help get you there. It may be some (if not all) of what you’d need as a down payment on a home that better fits your new situation and goals.

The first step is determining the current valuation of your home. You can do that by visiting our website, www.makeyourmovewithmari.com/evaluation.

Then let’s connect at 508-360-5664 or msennott@todayrealestate.com to discuss current market conditions. We’ll provide you with the latest statistics, as well as share our experiences as we sold our home and downsized in June. (But we’re not retired. Realtors never retire!)

Together, we can come up with strategies to help you successfully make your next move. 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

Why People Are Making Their Move

Many were surprised when during the height of the pandemic, the housing market remained strong. In fact, it’s credited with getting the country’s economic engine moving again.

You also may remember that many so called experts, well-meaning observers, and not so well-intentioned TV talking heads were predicting disaster. But, the people who were truly familiar with the housing market were urging calm and saying that things would be fine.

Just like now.

“Those who know” are once again looking at the current economic situation and raising doubt about today’s shifting market and questioning what it means for consumers.

While mortgage rates are higher than they were at the start of the year and home prices are rising, you shouldn’t put your plans on hold based solely on market factors. Instead, it’s necessary to consider why you want to move and how important those reasons are to you. Here are two of the biggest personal motivators driving people to buy homes today.

A Need for More Space

Moving.com looked at migration patterns to determine why people moved to specific areas. One trend that emerged was the need for additional space, both indoors and outdoors. (Something that Cape Cod can certainly provide.)

Outgrowing your home isn’t new. If you need office space, crave a large yard, more room to entertain, or just need additional storage areas or bedrooms overall, having the physical space you need for your desired lifestyle may be reason enough to make a change.

A Desire To Be Closer to Loved Ones

Moving and storage company United Van Lines surveys customers each year to get a better sense of why they move. Their latest survey finds that nearly 32% did so to be closer to loved ones.

A similar company, Pods, also highlights this as a top motivator for why people move. They note that an increase in flexible work options has helped many homeowners make a move closer to the people they care about most.

According to Pods: “a shifting of priorities has also affected why people are moving. Many companies have moved to permanent remote working policies, giving employees the option to move freely around the country, and people are taking advantage of the perk.”

If you can move to another location because of remote work, retirement, or any other reason, you could leverage that flexibility to be closer to the most important people in your life. Being nearby for caregiving and or just seeing those who are important to you on a regular basis could be exactly what you’re looking for.

What Does This Mean for You?

As a seller, especially if you need to downsize, there is a strong demand for your property. Open Houses for typical three bedroom, two bath “family” homes continue to be popular and often result in multiple offers.

If you’re a buyer, sitting on the fence waiting for prices to go down or the market to crash is no more than wishful thinking that is costing you money. Reputable experts — not the alleged ones posting on Facebook — say that prices will moderate, but not drop.

Selling and buying a home is a very personal decision. (We just did both.) But, if there’s one universal lesson from the pandemic it is that life does indeed go on. In the face of genuine tragedy and not insignificant logistical challenges, people nonetheless decided to make their move, whether for work, finances, or personal situations.

Is this your time? Let’s connect at 508-360-5664 or msennott@todayrealestate.com to review your options. We’ll provide you with the most up-to-date market data, as well as share our own experience as recent sellers and buyers.

We hope that you continue to be safe during the heatwave. Please pay special attention to those kids (and adults) who may not be familiar with the water, but will jump in stay cool. Thanks.

Best regards,

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