Tag Archives: #SCRealtor

Exploring the Factors Behind the Current Housing Market

26 Wednesday Apr 2023

Posted by in Buying Myths, Columbia housing market, Columbia tell me what you think?, Home buying, Home Ownership

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Why Aren’t Home Prices Crashing?

The COVID-19 pandemic has created significant disruptions in almost all aspects of our lives, including the housing market. With the ongoing economic uncertainty and rising unemployment rates, many experts expected home prices to plummet. However, to the surprise of many, home prices have not crashed. In fact, the housing market has remained strong, with prices continuing to rise. This begs the question: Why aren’t home prices crashing?

There are several factors behind the current housing market. One of the primary reasons is the low interest rates. The Federal Reserve has lowered interest rates to historic lows, making mortgages more affordable. This has incentivized many potential homebuyers to enter the market, driving up demand. However, the low interest rates have also encouraged existing homeowners to refinance their homes, reducing the supply of available homes.

Another factor contributing to the housing market’s resilience is the limited supply of available homes. Before the pandemic, the housing market was already facing a shortage of inventory. With the pandemic slowing down new home construction and many homeowners reluctant to sell their homes, the supply of available homes has further decreased. This has caused a bidding war among potential buyers, resulting in higher home prices.

The pandemic has also led to a change in consumer behavior. With remote work becoming more prevalent, many individuals are no longer tied to specific geographic locations. This has led to increased demand for larger homes with more outdoor space, particularly in suburban and rural areas. As a result, homes in these areas have seen a significant increase in demand and price.

Furthermore, the government’s stimulus packages and unemployment benefits have provided financial support to many households, enabling them to continue making mortgage payments. This has prevented a wave of foreclosures and forced sales that could have led to a crash in home prices.

In conclusion, while the pandemic has caused significant disruptions in almost all aspects of our lives, it has not led to a crash in home prices. The current housing market’s resilience can be attributed to several factors, including low interest rates, limited supply of available homes, changes in consumer behavior, and government support. As we continue to navigate the ongoing economic uncertainty, it will be interesting to see how these factors continue to shape the housing market.

#RealEstateMarket, #HomePrices, #HousingCrisis, #EconomicFactors, #SupplyandDemand, #RMFRealty, #SCRealtor,#SouthCarolina,

The Spring South Carolina Housing Market Forecast

25 Tuesday Apr 2023

Posted by in Buying Myths, SC Home Sellers, South Carolina Living

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As we enter the spring season, many homeowners and prospective buyers in South Carolina are wondering what the real estate market has in store. The state has seen significant growth in recent years, with more people moving to the area for its affordable cost of living, beautiful natural landscapes, and growing job market. So, what does this mean for the South Carolina housing market? We’ve gathered insights from experts in the industry to help provide some clarity.

According to the South Carolina Realtors Association, the statewide median home price rose by nearly 14% from February 2020 to February 2021. This trend is expected to continue into the spring season, with many experts predicting a strong seller’s market.

One factor contributing to this trend is the low inventory of available homes. Many homeowners are holding off on selling due to the pandemic, causing a shortage of homes on the market. According to Lawrence Yun, chief economist for the National Association of Realtors, “Inventory is expected to remain low, with fewer homes for sale this spring compared to years past.”

Houzeo, a leading real estate platform, the South Carolina housing market is experiencing a significant shift. While the median sale price increased by 17.9% year-over-year in September 2022, the number of homes sold dropped by 17.3%. This indicates a trend of higher prices but fewer transactions in the market, likely due to low inventory levels and increased competition among buyers. As the market continues to evolve, it will be important for both buyers and sellers to work closely with experienced real estate professionals to navigate these changing conditions and make the most informed decisions possible.

This shortage of inventory is leading to increased competition among buyers, with bidding wars becoming more common. To navigate this competitive market, experts recommend working with a trusted real estate agent who can help buyers stay informed about new listings and act quickly when the right property becomes available.

Despite the challenges of a competitive market, South Carolina remains an attractive destination for buyers and investors. The state’s growing economy, beautiful natural scenery, and diverse range of communities make it a desirable place to call home.

If you’re curious about the current value of your home in today’s market, contacting the RMF Realty Team at KW Preferred can be a great first step. With their expertise in real estate, they can help provide a thorough evaluation of your property and give you a realistic understanding of its current worth. Whether you’re considering selling your home or just want to stay informed about its value, the RMF Realty Team can offer invaluable insights and guidance throughout the process.

In summary, the South Carolina housing market is expected to remain competitive this spring due to low inventory and high demand. Prospective buyers should work closely with a trusted real estate agent and be prepared to act quickly in order to secure their dream home. With its strong economy and attractive lifestyle, South Carolina remains a popular destination for homebuyers and investors alike.

SouthCarolinaRealEstate, #HousingMarketForecast, #SpringMarketTrends, #RMFRealty, #SCRealtor,

3 Ways You Can Use Your Home Equity

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3 Ways You Can Use Your Home Equity | MyKCM

3 Ways You Can Use Your Home Equity

If you’re a homeowner, odds are your equity has grown significantly over the last few years as home prices skyrocketed and you made your monthly mortgage payments. Home equity builds over time and can help you achieve certain goals. According to the latest Equity Insights Report from CoreLogic, the average borrower with a home loan has almost $300,000 in equity right now.

As you weigh your options, especially in the face of inflation and talk of a recession, it’s important to understand your assets and how you can leverage them. A real estate professional is the best resource to help you understand how much home equity you have and advise you on some of the ways you can use it.  Here are a few examples.

1. Buy a Home That Fits Your Needs

If you no longer have the space you need, it might be time to move into a larger home. Or it’s possible you have too much space and need something smaller. No matter the situation, consider using your equity to power a move into a home that fits your changing lifestyle. 

If you want to upgrade your house, you can put your equity toward a down payment on the home of your dreams. And if you’re planning to downsize, you may be surprised that your equity may cover some, if not all, of the cost of your next home. A real estate advisor can help you figure out how much equity you have and how you can use it toward the purchase of your next home.

2. Reinvest in Your Current House

According to a recent survey from Point, 39% of homeowners would invest in home improvement projects if they chose to access their equity. This is a great option if you want to change some things about your living space but you aren’t ready to make a move just yet.

Home improvement projects allow you to customize your home to suit your needs and sense of style. Just remember to think ahead with any updates you make, as some renovations add more value to your home and are more likely to appeal to future buyers than others. For example, a report from the National Association of Realtors (NAR) shows refinishing or replacing wood flooring has a high cost recovery. Lean on a local professional for the best advice on which projects to invest in to get the greatest return on your investment when you sell.

3. Pursue Your Personal Goals

In addition to making a move or updating your house, home equity can also help you achieve the life goals you’ve dreamed of. That could mean investing in a new business venture, retiring or downsizing, or funding an education. While you shouldn’t use your equity for unnecessary spending, leveraging it to start a business or putting it toward education costs can help you achieve other lifelong goals.

Bottom Line

Your equity can be a game changer. If you’re unsure how much equity you have in your home, let’s connect so you can start planning your next move.

The Fall Housing Market; What Are Experts Saying

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What Are Experts Saying About the Fall Housing Market? | MyKCM

The Fall Housing Market; What Are Experts Saying

The housing market is rapidly changing from the peak frenzy it saw over the past two years. That means you probably have questions about what your best move is if you’re thinking of buying or selling this fall.

To help you make a confident decision, lean on the professionals for insights. Here are a few things experts are saying about the fall housing market.

Expert Quotes for Fall Homebuyers

A recent article from realtor.com:

“This fall, a more moderate pace of home selling, more listings to choose from, and softening price growth will provide some breathing room for buyers searching for a home during what is typically the best time to buy a home.”

Michael Lane, VP and General Manager, ShowingTime:

“Buyers will continue to see less competition for homes and have more time to tour homes they like and consider their options.” 

Expert Quotes for Fall Sellers

Selma Hepp, Interim Lead of the Office of the Chief Economist, CoreLogic:

“. . . record equity continues to provide fuel for housing demand, particularly if households are relocating to more affordable areas.”

Danielle Hale, Chief Economist, realtor.com:

“For homeowners deciding whether to make a move this year, remember that listing prices – while lower than a few months ago – remain higher than in prior years, so you’re still likely to find opportunities to cash-in on record-high levels of equity, particularly if you’ve owned your home for a longer period of time.”

Bottom Line

Mortgage rates, home prices, and the supply of homes for sale are top of mind for buyers and sellers today. And if you want the latest information for our area, let’s connect today.

Now May Be the Time To Buy The Home You Want.

29 Friday Jul 2022

Posted by in Area Homes For Sale, Buying Myths, Uncategorized

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Want To Buy a Home? Now May Be the Time. | MyKCM

There are more homes for sale today than at any time last year. So, if you tried to buy a home last year and were outbid or out priced, now may be your opportunity. The number of homes for sale in the U.S. has been growing over the past four months as rising mortgage rates help slow the frenzy the housing market saw during the pandemic.

Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains why the shifting market creates a window of opportunity for you:

“This is an opportunity for people with a secure job to jump into the market, when other people are a little hesitant because of a possible recession. . . They’ll have fewer buyers to compete with.”

Two Reasons There Are More Homes for Sale

The first reason the market is seeing more homes available for sale is the number of sales happening each month has decreased. This slowdown has been caused by rising mortgage rates and rising home prices, leading many to postpone or put off buying. The graph below uses data from realtor.com to show how active real estate listings have risen over the past four months as a result.

Want To Buy a Home? Now May Be the Time. | MyKCM

The second reason the market is seeing more homes available for sale is because the number of people selling their homes is also rising. The graph below outlines new monthly listings coming onto the market compared to last year. As the graph shows, for the past three months, more people have put their homes on the market than the previous year.

Want To Buy a Home? Now May Be the Time. | MyKCM

Bottom Line

The number of homes for sale across the country is growing, and that means more options for those thinking about buying a home. This is the opportunity many have been waiting for who were outbid or out priced last year.

Do You Have a Home Inventory?

08 Friday Apr 2022

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Do You Have a Home Inventory?

Are you prepared for a disaster? Disaster can strike anywhere at anywhere. The U.S declared 58 disasters which caused billions of dollars in damage, according to the Federal Emergency Management Agency (FEMA)

Hurricanes are at the top of the list and are predicted to increase for the 2022 season according to the researchers. The 2022 hurricane season will be more active.

Being prepared will help to avoid delays in receiving an insurance payout should you someday face a disaster. Look over your insurance policy. Familiarize yourself with what coverage you have and how to submit a claim, should you find yourself in a horrible situation.

Create a inventory of your belongings; in a form of a checklist, video, or labeled photographs. Your inventory should include the information insurance companies need to process your claim.

Information required by insurers:

  • Each item’s description and the quantity (ex: 2 sterling silver candlesticks)
  • Name of the manufacturer (ex: Tiffany & Co.)
  • Make/model/serial number
  • The date (or estimated date) of purchase
  • Where the item was purchased
  • The appraised value of each item (or an estimate)
  • If you can’t find the written appraisal for any item, jot down the name and contact information of the appraisal company and the date the items were appraised.

It is very important to keep your inventory safe. It is recommended that it be stored off-site like in the cloud on a backup server, or on a USB drive in a safety deposit box.

Tips from the experts at the Insurance Information Institute

Real Estate Is a Driving Force in the Economy

04 Wednesday Nov 2020

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Real Estate Is a Driving Force in the Economy | MyKCM

As the economy recovers from this year’s health crisis, the housing market is playing a leading role in the turnaround. Real Estate Is a Driving Force in the Economy. It’s safe to say that what we call “home” is taking on a new meaning, causing many of us to consider buying or selling sooner rather than later. Housing, therefore, has thrived in an otherwise down year.

Today’s high buyer demand combined with low housing inventory means we’re seeing home prices appreciate at an above-average pace. This demand is being driven by those who want to take advantage of historically low mortgage rates. According to Freddie Mac:

“The record low mortgage rate environment is providing tangible support to the economy at a critical time, as housing continues to propel growth.”

Real Estate Is a Driving Force in the Economy | MyKCM

These factors are driving a positive impact on the economy as a whole. According to the National Association of Realtors (NAR), the real estate industry provided $3.7 billion dollars of economic impact to the country last year. To break it down, in 2019, the average newly constructed home contributed just over $88,000 per build to local economies. Across the country, real estate clearly makes a significant impact (See map below):In addition, last week, the Bureau of Economic Analysis announced the U.S. Gross Domestic Product increased at an annual rate of 33.1% in the 3rd quarter of this year, after decreasing by 31.4% in the second quarter. There’s no doubt the growing economy is being fueled in part by the soaring housing market. Experts forecast this housing growth to carry into 2021, continuing to make a big impact on the economy next year as well.

Bottom Line

The American Dream of homeownership has continued to thrive in the midst of this year’s economic downturn, and “home” has taken on a new meaning for many of us during this time.  Best of all, the housing market is making a significant impact as the economy recovers.

Experts Predict Economic Recovery Should Begin in the Second Half of the Year

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One of the biggest questions we all seem to be asking these days is: When are we going to start to see an economic recovery? As the country begins to slowly reopen, moving forward in strategic phases, business activity will help bring our nation back to life. Many economists indicate a recovery should begin to happen in the second half of this year. Here’s a look at what some of the experts have to say.

Jerome Powell, Federal Reserve Chairman

“I think there’s a good chance that there’ll be positive growth in the third quarter. And I think it’s a reasonable expectation that there’ll be growth in the second half of the year…

So, in the long run, I would say the U.S. economy will recover. We’ll get back to the place we were in February; we’ll get to an even better place than that. I’m highly confident of that. And it won’t take that long to get there.”

Nonpartisan Analysis for the U.S Congress

“The economy is expected to begin recovering during the second half of 2020 as concerns about the pandemic diminish and as state and local governments ease stay-at-home orders, bans on public gatherings, and other measures. The labor market is projected to materially improve after the third quarter; hiring will rebound and job losses will drop significantly as the degree of social distancing diminishes.”

Neel Kashkari, President, Minneapolis Federal Reserve Bank

“I think we need to prepare for a more gradual recovery while we hope for that quicker rebound.”

We’re certainly not out of the woods yet, but clearly many experts anticipate we’ll see a recovery starting this year. It may be a bumpy ride for the next few months, but most agree that a turnaround will begin sooner rather than later.

During the planned shutdown, as the economic slowdown pressed pause on the nation, many potential buyers and sellers put their real estate plans on hold. That time coincided with the traditionally busy spring real estate season. As we look ahead at this economic recovery and we begin to emerge back into our communities over the coming weeks and months, perhaps it’s time to think about putting your real estate plans back into play.

Bottom Line

The experts note a turnaround is on the horizon, starting as early as later this year. If you paused your 2020 real estate plans, let’s connect today to determine how you can re-engage in the process as the country reopens and the economy begins a much-anticipated rebound

Will COVID-19 Have on Impact on My Home Values?

27 Monday Apr 2020

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What Impact Might COVID-19 Have on Home Values? | MyKCM

A big challenge facing the housing industry is determining what impact the current pandemic may have on home values. Some buyers are hoping for major price reductions because the health crisis is straining the economy.

The price of any item, however, is determined by supply and demand, which is how many items are available in relation to how many consumers want to buy that item.

Will COVID-19 Have on Impact on My Home Values?

In residential real estate, the measurement used to decipher that ratio is called months supply of inventory. A normal market would have 6-7 months of inventory. Anything over seven months would be considered a buyers’ market, with downward pressure on prices. Anything under six months would indicate a sellers’ market, which would put upward pressure on prices.

Going into March of this year, the supply stood at three months – a strong seller’s market. While buyer demand has decreased rather dramatically during the pandemic, the number of homes on the market has also decreased. The recently released Existing Home Sales Report from the National Association of Realtors (NAR) revealed we currently have 3.4 months of inventory. This means homes should maintain their value during the pandemic.

This information is consistent with the research completed by John Burns Real Estate Consulting, which recently reported:

“Historical analysis showed us that pandemics are usually V-shaped (sharp recessions that recover quickly enough to provide little damage to home prices).”

What are the experts saying?

Here’s a look at what some experts recently reported on the matter:

Ivy Zelman, President, Zelman & Associates

“Supported by our analysis of home price dynamics through cycles and other periods of economic and housing disruption, we expect home price appreciation to decelerate from current levels in 2020, though easily remain in positive territory year over year given the beneficial factors of record-low inventories & a historically-low interest rate environment.”

Freddie Mac

“The fiscal stimulus provided by the CARES Act will mute the impact that the economic shock has on house prices. Additionally, forbearance and foreclosure mitigation programs will limit the fire sale contagion effect on house prices. We forecast house prices to fall 0.5 percentage points over the next four quarters. Two forces prevent a collapse in house prices. First, as we indicated in our earlier research report, U.S. housing markets face a large supply deficit. Second, population growth and pent up household formations provide a tailwind to housing demand. Price growth accelerates back towards a long-run trend of between 2 and 3% per year.”

Mark Fleming, Chief Economist, First American

“The housing supply remains at historically low levels, so house price growth is likely to slow, but it’s unlikely to go negative.”

Bottom Line

Even though the economy has been placed on pause, it appears home prices will remain steady throughout the pandemic.

Uncertainty Abounds in the Search for Economic Recovery Timetable

23 Thursday Apr 2020

Posted by in Columbia tell me what you think?, Home Ownership, SC Home Sellers, Uncategorized

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Uncertainty Abounds in the Search for Economic Recovery Timetable | MyKCM

Earlier this week, we discussed how most projections from financial institutions are calling for a quick V-shaped recovery from this economic downturn, and there’s research on previous post-pandemic recoveries to support that expectation.

In addition, we noted how there are some in the business community who believe we may instead be headed for a U-shaped recovery, where the return to previous levels of economic success won’t occur until the middle of next year. Yesterday, Reuters released a poll of U.S. and European economists which revealed that most surveyed are now leaning more toward a U-shaped recovery.

Uncertainty Abounds in the Search for Economic Recovery Timetable

Here are the results of that poll:Uncertainty Abounds in the Search for Economic Recovery Timetable | MyKCM

Why the disparity in thinking among different groups of economic experts?

The current situation makes it extremely difficult to project the future of the economy. Analysts normally look at economic data and compare it to previous slowdowns to create their projections. This situation, however, is anything but normal.

Today, analysts must incorporate data from three different sciences into their recovery equation:

1. Business Science – How has the economy rebounded from similar slowdowns in the past?

2. Health Science – When will COVID-19 be under control? Will there be another flareup of the virus this fall?

3. Social Science – After businesses are fully operational, how long will it take American consumers to return to normal consumption patterns? (Ex: going to the movies, attending a sporting event, or flying).

The challenge of accurately combining the three sciences into a single projection has created uncertainty, and it has led to a wide range of opinions on the timing of the recovery.

Bottom Line

Right now, the vast majority of economists and analysts believe a full recovery will take anywhere from 6-18 months. No one truly knows the exact timetable, but it will be coming.