From Better Homes & Gardens | By Kristine Gill
A look at the potential benefits and challenges of rightsizing, plus how it differs from downsizing.
You’re probably familiar with the terms “starter home” and “dream home.” The first is typically a small, affordable home you start with before you grow into a larger home. Eventually, most homeowners downsize, buying a smaller home for later stages in life. But have you heard of rightsizing?
“Rightsizing a home does not define increasing or decreasing the size of your home. You are adjusting your home size to better fit your needs,” says Jessica Duncan, a realtor with Better Homes and Gardens Real Estate Main Street...
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From our friends at the KCM blog
Going into 2023, there was a lot of talk about a possible recession that would cause the housing market to crash. Some in the media were even forecasting home prices would drop by as much as 10-20%—and that might have made you feel a bit unsure about buying a home.
But here’s what actually happened: home prices went up more than usual. Brian D. Luke, Head of Commodities at S&P Dow Jones Indices, explains:
“Looking back at the year, 2023 appears to have exceeded average annual home price gains over the past 35 years.”
To put last year’s growth into context, the graph below uses data from Freddie Mac on how home prices have changed...
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By Patrick S. Duffy | US NEWS & WORLD REPORT
Monthly costs in these locations start as low as 18% of local per capita incomes, compared with the national average of 39%.
Detroit may not be the most undervalued area for long. Its economy will continue to see steady growth in the years ahead with more jobs and higher wages for area residents.
Key Takeaways:
The most undervalued markets to purchase a home continue to be located predominantly in the Midwest and the East Coast, led by Detroit, Cleveland, Philadelphia, St. Louis and Oklahoma City.
The most undervalued markets to rent a home are also concentrated in the Midwest, led...
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By Aarthi Swaminathan | REALTOR.COM
The numbers: U.S. mortgage applications fell as home buyers struggled with a low number of home listings and rising home prices.
Home-buying demand was dampened due to a persistent lack of supply. The overall market composite index—a measure of mortgage application volume—decreased in the last week, according to the Mortgage Bankers Association (MBA) said on Wednesday.
The market index fell 7.2% to 202.5 for the week ending January 26 from a week ago. A year ago, the index stood at 233.0.
Key details: The purchase index—which measures mortgage applications for the purchase of a home—fell 7.2% from a week ago.
The refinance index fell 11.4%, as homeowners saw little...
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By Clare Trapasso | REALTOR.COM
Homebuyers received an unexpected gift around the holidays as mortgage rates dropped rapidly late last year.
They fell from a peak of about 8% in the fall to the mid-6% range in late December, a level many economists and forecasters hadn’t anticipated until the end of 2024—if they were being optimistic. Now with the U.S. Federal Reserve poised to cut its own rates this year, the question on the minds of many aspiring homebuyers is just how low mortgage rates will drop this year.
Most of the real estate experts who spoke with Realtor.com® say they expect rates will stay in the 6% range this year, but some believe...
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From our friends in KCM
If you’ve owned your house for at least a couple of years, there’s something you’re going to want to know more about – and that’s home equity. If you’re not familiar with that term, Freddie Mac defines it like this:
“. . . your home’s equity is the difference between how much your home is worth and how much you owe on your mortgage.”
That means your equity grows as you pay down your home loan over time and as home values climb. While it’s true home prices dipped slightly last year, they rebounded and have been climbing in many areas since then. Here’s why that price growth is good news for you.
In the latest Equity...
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From our friends in KCM
If you’re thinking about buying a home, pre-approval is a crucial part of the process you definitely don’t want to skip. So, before you start picturing yourself in your new living room or dining on your future all-season patio, be sure you’re working with a trusted lender to prioritize this essential step. Here’s why.
While home price growth is moderating and mortgage rates have been coming down in recent weeks, affordability is still tight. At the same time, there’s a limited number of homes for sale right now, and that means ongoing competition among hopeful buyers. But, if you’re strategic, there are ways to navigate these waters – and pre-approval is the...
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By our friends in KCM
When you read about the housing market, you’ll probably come across some information about inflation or recent decisions made by the Federal Reserve (the Fed). But how do those two things impact you and your homebuying plans? Here’s what you need to know.
The Federal Funds Rate Hikes Have Stalled
One of the Fed’s primary goals is to lower inflation. In order to do that, they started raising the Federal Funds Rate to slow down the economy. Even though this doesn’t directly dictate what happens with mortgage rates, it does have an impact.
Recently inflation has started to cool, a signal those increases worked and are bringing inflation back down. As a...
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By Jillian Pretzel | REALTOR.COM
Something about the word “tax” makes even the most ardent financial wizard’s eyes glaze over. We get it: It’s no fun to think about the money you have to hand over to Uncle Sam.
Yet, when it comes to real estate, understanding your tax basis is like knowing the rules of the game. Your tax basis is a fundamental factor that can significantly affect your finances when it comes time to sell your property.
However, tax basis is more important to some homeowners than others. Read on to find out everything you need to know.
What is a tax basis?
Tax basis, also known as cost basis,...
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By Clare Trapasso | REALTOR.COM
As 2023 comes to an end, fewer homeowners are facing foreclosure than they were earlier this year.
The number of homeowners with a foreclosure filing fell 7% in November from the previous month, according to a recent report from real estate data firm ATTOM. But real estate experts warned that foreclosures will likely rise in 2024.
“While we’ve observed a modest decrease in U.S. foreclosure activity most likely due to seasonal factors, it’s essential to note that these fluctuations are a part of the cyclical nature of the market,” ATTOM CEO Rob Barber said in a statement.
There were still more than 3,200 properties facing foreclosure in November, up 5% from...
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