Tag Archives: #realestate

Navigating the Tight Housing Market

03 Friday Nov 2023

Posted by in Columbia housing market

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A Call for Sustainable Home Construction 🏡





In the world of real estate, the housing market is an ever-evolving landscape. Today, we’re diving into the current state of the market and exploring the challenges posed by low inventory despite a slight increase, and the path forward toward sustainable solutions. At RMF Realty, we’re committed to helping you in navigating the tight housing market. To make informed decisions in this challenging environment.





The Inventory Conundrum





As you may have noticed, the inventory of available homes has been a hot topic recently. Despite a slight uptick, we’re still looking at a limited supply of around 1.2 million homes across the United States. This scarcity has led to skyrocketing home prices, making it increasingly challenging for prospective buyers to find their dream homes.





Why Is Inventory So Low?





One significant factor contributing to the low inventory is the sluggish pace of new home construction. The construction industry has been struggling to keep up with the growing demand, leading to a gap between supply and demand. This, in turn, drives home prices to rise, leaving many potential homeowners priced out of the market.





The Economic Hurdle





It’s not just construction that’s playing a role in this housing crisis. The economic landscape is also a critical factor. The current generation often needs to save more and for longer than previous generations to secure a down payment for a home. With student loans and other financial pressures, achieving this milestone can feel like an uphill battle.





Remote Work and Affordable Markets





In the midst of this housing crisis, there is one notable trend worth mentioning: the rise of remote work. As companies embrace the remote work model, many individuals are seizing the opportunity to relocate to more affordable housing markets. This shift allows them to pursue homeownership in areas where their budgets can stretch further, even with limited inventory.





If you’re one of the countless individuals frustrated by the current housing market, we encourage you to join the conversation and take action. Here’s how you can help address this issue:





    

  1. Advocate for Sustainable Construction: Support policies and initiatives that promote sustainable and affordable new home construction. Encourage your local government to streamline permitting processes and incentivize developers to build more homes.
    2. 




  2. Financial Literacy: Take the time to educate yourself about personal finance, savings, and investment. Understanding your financial situation is the first step towards homeownership. Join me at the KW Homebuyers Experience (new class starts in January 2024) 
    3. 




  3. Consider Alternative Markets: Explore the possibility of remote work and consider moving to more affordable markets. It might be the key to achieving your homeownership dreams.
    4. 




  4. Connect with RMF Realty: We’re here to help you navigate the housing market. Reach out to us for expert advice, market insights, and personalized solutions to meet your unique needs.
    5. 






The housing market is undoubtedly facing challenges, but together, we can work towards a solution. Let’s build a future where everyone has the opportunity to find their perfect home. Join us in addressing the housing crisis and taking steps towards a more sustainable and inclusive housing market. Together, we can make a difference! 🏡💪





#HousingMarketTrends, #HomeInventory, #RealEstate, #NewHomeConstruction, #AffordableHousing, #RMFRealty,





For more information and personalized guidance, contact RMF Realty today. Your dream home might be closer than you think.

					


	





	

								
Challenges to Homeownership: Understanding the Gap between Aspiration and Reality
										

			06
			Monday
			Mar 2023
		

	
	

		

			Posted  by  in Buying Myths		

		

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In a recent Harris Poll survey, it was found that 80% of Americans consider buying a home as a priority, and 28 million of them have plans to purchase a home within the next 12 months. It is not surprising considering the various financial and non-financial benefits that come with homeownership.





However, it is highly unlikely that all 28 million Americans will be able to achieve this goal in the coming year. According to experts, the total number of homes projected to be sold in 2023 is around five million. This significant difference is partly due to the various challenges associated with purchasing a home.





The same survey revealed that when asked what is preventing them from pursuing homeownership, 34% of respondents cited a lack of savings for a down payment, while 30% cited their credit score as the reason.





If buying a home is your goal, it is essential to understand these challenges and work towards overcoming them.





Save for Your Down Payment





Your down payment is a big chunk of what you pay up front for your home. For most home purchases, buyers put down some amount of cash up front (a down payment) and then take out a loan (a mortgage) to pay for the rest.





It’s a longstanding myth that you need to pay 20% of the purchase price for your down payment. In reality, 20% down isn’t always required. In fact, according to the National Association of Realtors (NAR), today’s median down payment is 14% for the average buyer and just 6% for a first-time buyer.





Regardless of how much money you can save for your down payment, know there’s help available. A local lender can show you options to help you get closer to your down payment goal. Plus, there are even loan types, like FHA loans, with down payments as low as 3.5% for some buyers, as well as options like VA loans and USDA loans with no down payment requirements for qualified applicants.





Beyond assistance programs and different loan types, here are a few other tips to help you as you save for your down payment:





    

  • Remember to factor in closing costs. In addition to your down payment, closing costs are usually 2-5% of the home’s purchase price.
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  • Maintain your savings. Your down payment shouldn’t deplete all your savings. It’s important to still have some money set aside for homeownership expenses after you move in.
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  • Explore your options and lean on your trusted advisor for expert guidance. Do your research, ask questions, and look into the resources available for buyers like you.
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Improve Your Credit Score





Your credit score is a number that indicates how financially reliable you are to lenders. A higher credit score usually means you’ll be able to borrow more money at a better interest rate. If your credit score is preventing you from getting an affordable mortgage, there are steps you can take to improve it. Here are two:





    

  • Pay your bills on time. When you pay your bills on time, your credit score improves. When you’re late, it takes a hit. One way to make paying your bills on time easier? Set up automatic payments when and where you can.
    • 




  • Mix it up. From auto loans, to credit cards, to mortgages – there are several different types of credit. And having a mix of them improves your credit score.
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Bottom Line





If you want to purchase a home this year, let’s connect so we can start preparing.

					


	





	

								
Home Prices: What Happened in 2020? What Will Happen This Year?
										

			02
			Tuesday
			Mar 2021
		

	
	

		

			Posted  by  in Buying Myths, Columbia tell me what you think?, SC Home Sellers, Selling your Columbia Home, South Carolina Living		

		

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Home Prices: What Happened in 2020? What Will Happen This Year? | MyKCM





The real estate market was on fire during the second half of 2020. Buyer demand was way up, and the supply of homes available for sale hit record lows. The price of anything is determined by the supply and demand ratio, so home prices skyrocketed last year. Dr. Lynn Fisher, Deputy Director of the Federal Housing Finance Agency (FHFA) Division of Research and Statistics, explains:





“House prices nationwide recorded the largest annual and quarterly increase in the history of the FHFA Home Price Index. Low mortgage rates, pent up demand from homebuyers, and a limited housing supply propelled every region of the country to experience faster growth in 2020 compared to a year ago despite the pandemic.”





Here are the year-end home price appreciation numbers from the FHFA and two other prominent pricing indexes:









The past year was truly a remarkable time for homeowners as prices appreciated substantially. Lawrence Yun, Senior Economist at the National Association of Realtors (NAR), reveals:





“A typical homeowner in 2020, just by being a homeowner, would have accumulated around $24,000 in housing wealth.”





What will happen with home prices this year?





Many experts believe buyer demand will soften somewhat as mortgage rates are poised to bump up slightly. Some also believe the inventory challenge will ease as more listings come to market this year.





Home Prices: What Happened in 2020? What Will Happen This Year? | MyKCM





Based on this, most forecasters anticipate we’ll see strong appreciation in 2021 – but not as strong as last year. Here are seven prominent groups and their projections:





Bottom Line





Home price appreciation will be strong this year, but it won’t reach the historic levels of 2020. Let’s connect if you’d like to find out what your house is currently worth in our local market.