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Clover lawns are gaining popularity as a low-maintenance, eco-friendly alternative to traditional grass lawns. Clover is a hardy perennial that requires little mowing, watering or chemical treatments once established. As a nitrogen-fixing legume, it actually improves soil quality. Clover is drought-resistant, crowds out weeds, attracts pollinators, and resists pests – eliminating the need for herbicides and pesticides.
To grow a clover lawn, overseed into an existing lawn or start fresh by prepping the soil, sowing clover seed, covering with topsoil, and keeping it watered initially. White and miniclover varieties are common, but you can also find clover with pink, red or yellow blooms. Clover lawns only need mowing once or twice per season.
Overall, clover lawns are sustainable, low-effort options that provide a lush green groundcover while benefiting the environment.
If you would like to read more about this lawn alternative, check out this article from Real Simple.
Say Goodbye to High-Maintenance Grass with Clover Lawns
10 Designer-Approved Tricks to Brighten a Dark Room
Having a dark, dimly lit room can make a space feel uninviting and dreary. If you have an interior room with little to no natural light, don’t worry – there are plenty of design strategies you can use to artificially brighten and open up the area. Several interior designers shared their top tips for creating the illusion of a brighter, airier room:
- Use light paint colors like beige, white, pale gray or tan on the walls to reflect light rather than absorb it.
- Add wallpaper with texture or patterns to uninterrupted wall space.
- Incorporate accent lighting like lamps to create pockets of warmth and ambiance.
- Use lightweight, sheer window treatments that allow existing natural light to filter in.
- Choose light-colored furniture upholstery and natural wood tones over bulky, dark pieces.
- Install dimmers on overhead lighting to control brightness levels and create a cozy atmosphere.
- Strategically place mirrors to reflect both natural and artificial light sources around the room.
- Utilize reflective surfaces like glass, acrylic and glossy finishes on accents.
- Layer a bright area rug over dark floors to lighten up and define the space.
- Refresh the room with light-toned pillows, throws and linens in airy fabrics.
With a few simple, affordable updates suggested by the pros, you can easily transform a gloomy, cave-like room into a fresh, inviting retreat using colors, lighting and reflective accents to maximize brightness and openness. Get creative and have fun making the most of your interior spaces!
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Tips taken from 10 Ways to Brighten a Dark Room, According to Interior Designers, Martha Stewart magazine.
No Need to Worry – Today’s Rising Foreclosures Are Not a Crisis
If you’ve seen the recent headlines about foreclosures increasing in the housing market, you might be getting flashbacks to the mortgage crisis of 2008 and feeling concerned. However, the data tells a different story than those alarming headlines would suggest.
Despite the media portraying it as dramatic, the reality is that today’s foreclosure increase is just a return to normal levels after the artificial lows caused by the COVID foreclosure moratorium from 2020-2021. During that period, millions of struggling homeowners were able to pause payments and avoid foreclosure thanks to that federal program.
Now that the moratorium has ended, foreclosure filings have understandably risen. But they are still nowhere close to the Crisis levels seen in 2008 when over 1 million homes per year were being foreclosed on. Current year projections are around 357,000 total foreclosures – a fraction of the previous crash.
The key difference from 2008 is that most homeowners today actually have significant home equity after years of rising prices. Back then, homeowners were underwater on their mortgages as prices plummeted, leaving them with no equity cushion when hardships hit. This time around, that equity is protecting homeowners and preventing the next foreclosure crisis.
A recent article from Bankrate explains, “In the years after the housing crash, millions of foreclosures flooded the housing market, depressing prices. That’s not the case now. Most homeowners have a comfortable equity cushion in their homes.”
So while the foreclosure rate rising makes for attention-grabbing headlines, it’s simply not evidence of another housing crisis brewing. It’s just a reversion to normal levels that were temporarily suppressed during the pandemic. With homeowner equity largely intact, there’s no reason to think this temporary foreclosure increase will lead to the type of market crash and pricing freefall we saw 15 years ago.
When you look at the full context instead of just the headlines, the data is reassuring that today’s housing market fundamentals remain strong despite the foreclosure rate increasing from ultra-low pandemic levels. No crisis here!
Avoiding the Pitfalls of Overpricing in a Seller’s Market
Keeping Current Matters had a good article discussing the importance of correctly pricing your home when you first put it on the market. Here are some highlights from the article:
While it’s a hot seller’s market this spring, overpricing your home can backfire. The asking price creates a critical first impression – if too high, it deters buyers before they even tour the home. As U.S. News states, “Buyers aren’t going to pay attention to an inflated asking price,” even in a hot market.
Overpricing risks your listing getting skipped entirely or not receiving offers if deemed too expensive. It may then require a price reduction down the line, which can raise doubts for some buyers.
The smarter approach is pricing at or slightly under current market value from the start. But determining that ideal price requires an agent’s expertise in evaluating condition, upgrades, comps, and other factors to pinpoint an accurate value.
Properly priced homes attract more buyers, better odds of a bidding war, and tend to sell quicker. So, while maximizing profits is the goal, overpricing does more harm by deterring buyers and stalling the sale.
Pricing your home right is key for a successful sale. Work with an experienced local agent like me to set the perfect asking price based on comparable sales. If you’re thinking of selling, let’s meet for a free pricing consultation and market analysis. Even if you’re not ready yet, I’ll provide home prep tips to get you started.
Don’t leave money on the table – contact me today to ensure your home sells for top dollar.
If you’d like to read the full article, you may find it HERE.
Spring Cleaning Tips: Where to Start Your Home Decluttering
The Spruce has a good article about home decluttering. Here are the highlights of the article which provides 6 golden rules from professional organizer Sumner Canfield for effectively decluttering your home during spring cleaning:
1. Start small with a manageable space first before tackling larger areas.
2. Get rid of items you no longer use or need, even if you originally had good intentions for them.
3. Check expiration dates and discard expired food, medications, cosmetics, etc.
4. Digitize manuals, records, artwork, etc. instead of keeping stacks of physical papers.
5. Discard any single items that have lost their mates (socks, containers without lids, etc).
6. Regularly go through kids’ toys, clothes and supplies to donate anything outgrown or no longer used, enlisting their help.
The key is to start small, be ruthless about purging unused items, and maintain the decluttering process regularly, especially for kids’ belongings.
If you’d like to read the full article, you can find it here.
Are We Still Asking the ‘Housing Crash’ Question???
Maintaining a positive mindset in the face of daily challenges is crucial for me, and that’s why I steer clear of the news when it comes to the state of the world, my business, and myself. Perhaps that is why I am surprised the question about the possibility of another housing crash seems to linger. Let’s break down why the current market conditions differ significantly from those in 2008, and why we shouldn’t fear another housing crash.
Firstly, obtaining a home mortgage loan has become significantly more challenging today than it was in 2008. This means that individuals in precarious financial situations, who are more likely to struggle with house payments and face foreclosure, are not as easily able to secure a loan.
Secondly, the housing supply is much lower now than it was in 2008, with today’s market having less than one-third of the inventory of 2008. In contrast, the oversaturation of the market with too many houses, especially from short sales and foreclosures, was a primary factor that led to falling prices in 2008.
Lastly, a critical distinction lies in how people are managing their home equity. Unlike in 2008, where individuals were freely tapping into their home equity, the current scenario sees home equity at an all-time high. This financial stability provides homeowners with alternatives to foreclosure during times of financial hardship.
Below is an article from Keeping Current Matters (you can read the original article here) that goes into a little further detail on these three points.
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Why We Aren’t Headed for a Housing Crash
If you’re holding out hope that the housing market is going to crash and bring home prices back down, here’s a look at what the data shows. And spoiler alert: that’s not in the cards. Instead, experts say home prices are going to keep going up.
Today’s market is very different than it was before the housing crash in 2008. Here’s why.
It’s Harder To Get a Loan Now – and That’s Actually a Good Thing
It was much easier to get a home loan during the lead-up to the 2008 housing crisis than it is today. Back then, banks had different lending standards, making it easy for just about anyone to qualify for a home loan or refinance an existing one.
Things are different today. Homebuyers face increasingly higher standards from mortgage companies. The graph below uses data from the Mortgage Bankers Association (MBA) to show this difference. The lower the number, the harder it is to get a mortgage. The higher the number, the easier it is:
The peak in the graph shows that, back then, lending standards weren’t as strict as they are now. That means lending institutions took on much greater risk in both the person and the mortgage products offered around the crash. That led to mass defaults and a flood of foreclosures coming onto the market.
There Are Far Fewer Homes for Sale Today, so Prices Won’t Crash
Because there were too many homes for sale during the housing crisis (many of which were short sales and foreclosures), that caused home prices to fall dramatically. But today, there’s an inventory shortage – not a surplus.
The graph below uses data from the National Association of Realtors (NAR) and the Federal Reserve to show how the months’ supply of homes available now (shown in blue) compares to the crash (shown in red):
Today, unsold inventory sits at just a 3.0-months’ supply. That’s compared to the peak of 10.4 month’s supply back in 2008. That means there’s nowhere near enough inventory on the market for home prices to come crashing down like they did back then.
People Are Not Using Their Homes as ATMs Like They Did in the Early 2000s
Back in the lead up to the housing crash, many homeowners were borrowing against the equity in their homes to finance new cars, boats, and vacations. So, when prices started to fall, as inventory rose too high, many of those homeowners found themselves underwater.
But today, homeowners are a lot more cautious. Even though prices have skyrocketed in the past few years, homeowners aren’t tapping into their equity the way they did back then.
Black Knight reports that tappable equity (the amount of equity available for homeowners to access before hitting a maximum 80% loan-to-value ratio, or LTV) has actually reached an all-time high:
That means, as a whole, homeowners have more equity available than ever before. And that’s great. Homeowners are in a much stronger position today than in the early 2000s. That same report from Black Knight goes on to explain:
“Only 1.1% of mortgage holders (582K) ended the year underwater, down from 1.5% (807K) at this time last year.”
And since homeowners are on more solid footing today, they’ll have options to avoid foreclosure. That limits the number of distressed properties coming onto the market. And without a flood of inventory, prices won’t come tumbling down.
Bottom Line
While you may be hoping for something that brings prices down, that’s not what the data tells us is going to happen. The most current research clearly shows that today’s market is nothing like it was last time.
Unlocking Your Dream Home: Down Payment Assistance Demystified
Embarking on the journey to homeownership brings excitement and anticipation, but it also involves navigating various financial considerations. In this post, we’ll unpack three critical aspects for first-time home buyers: 1) Down Payment, 2) Monthly Payment, and 3) Closing Costs. While we’ll explore Monthly Payments and Closing Costs in future posts, let’s take a moment to shed light on the often-perplexing topic of Down Payments.
Addressing Down Payment Concerns:
When delving into the costs of homeownership, a common sentiment I encounter is, “I can’t afford a large down payment. The monthly cost seems manageable (although Zillow says it would be less), but what about those mysterious closing costs?”
Guidance on Prioritizing:
My advice to first-time home buyers is to focus on the monthly payment initially. If your budget aligns with that, rest assured we have options for assistance with the down payment and closing costs. While a detailed discussion on closing costs is reserved for a subsequent post, let’s hone in on the down payment for now.
Dispelling the 20% Myth:
A prevailing myth suggests a hefty 20% down payment is the only path to homeownership (refer to the Keeping Current Matters article copied below). However, with a solid credit score, I have access to a lender offering a 1% down conventional loan. Furthermore, I’ve established a network with lenders who excel in facilitating down payment assistance programs.
Where to go From Here:
Consider this – read the Keeping Current Matters article (copied below) to equip yourself with valuable insights. Then, shoot me a DM or a text, and let’s arrange a meeting this week to look at how the numbers align for you. You might be closer to the keys of your first home than you ever imagined, especially with potential down payment assistance!
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Article from Keeping Current Matters (original post here)
The Truth About Down Payments
If you’re planning to buy your first home, saving up for all the costs involved can feel daunting, especially when it comes to the down payment. That might be because you’ve heard you need to save 20% of the home’s price to put down. Well, that isn’t necessarily the case.
Unless specified by your loan type or lender, it’s typically not required to put 20% down. That means you could be closer to your homebuying dream than you realize.
As The Mortgage Reports says:
“Although putting down 20% to avoid mortgage insurance is wise if affordable, it’s a myth that this is always necessary. In fact, most people opt for a much lower down payment.”
According to the National Association of Realtors (NAR), the median down payment hasn’t been over 20% since 2005. In fact, for all homebuyers today it’s only 15%. And it’s even lower for first-time homebuyers at just 8% (see graph below):
The big takeaway? You may not need to save as much as you originally thought.
Learn About Resources That Can Help You Toward Your Goal
According to Down Payment Resource, there are also over 2,000 homebuyer assistance programs in the U.S., and many of them are intended to help with down payments.
Plus, there are loan options that can help too. For example, FHA loans offer down payments as low as 3.5%, while VA and USDA loans have no down payment requirements for qualified applicants.
With so many resources available to help with your down payment, the best way to find what you qualify for is by consulting with your loan officer or agent {like Rob!}. They know about local grants and loan programs that may help you out.
Don’t let the misconception that you have to have 20% saved up hold you back. If you’re ready to become a homeowner, lean on the professionals to find resources that can help you make your dreams a reality. If you put your plans on hold until you’ve saved up 20%, it may actually cost you in the long run. According to U.S. Bank:
“. . . there are plenty of reasons why it might not be possible. For some, waiting to save up 20% for a down payment may “cost” too much time. While you’re saving for your down payment and paying rent, the price of your future home may go up.”
Home prices are expected to keep appreciating over the next 5 years – meaning your future home will likely go up in price the longer you wait. If you’re able to use these resources to buy now, that future price growth will help you build equity, rather than cost you more.
Bottom Line
Keep in mind that you don’t always need a 20% down payment to buy a home. If you’re looking to make a move this year, reach out to a trusted real estate professional {like Rob!} to start the conversation about your homebuying goals.
Why ‘Timing the Market’ May Not Be The Best Idea
Economist: ‘Timing’ the Market May Not Work for Buyers
Home shoppers are sensitive to mortgage rates, which was made clear this week with an increase in the average for the 30-year fixed-rate mortgage. The rate rose to 6.77%, and mortgage applications for home purchases fell 3%, according to the Mortgage Bankers Association.
Every notch up and down in rates can impact home buyers’ purchasing power, but borrowing costs have largely stabilized. “While mortgage interest rates edged up weekly, the overall trajectory from fall 2023 is down and is now a full percentage point below the recent high” when rates neared 8%, says Jessica Lautz, deputy chief economist at the National Association of REALTORS®. “While mortgage interest rates may come down to the low 6% range in the middle to later part of the year, buyers must weigh what makes the most sense for them. Timing the real estate market based purely on mortgage interest rates—especially marginal changes—rarely works when new babies, marriages and jobs are the real decision-makers.”
Buyers may not save much by waiting, either. Home buyers purchasing the typical home at $400,000, with a 20% down payment, would likely have a monthly mortgage payment of about $2,080 at this week’s rate average, Lautz says. Last week, when rates averaged 6.64%, home buyers could have paid about $70 less per month—but that was based on a median home price of $391,700.
Home prices are rising quickly. The median price of an existing home surged to an all-time high in December, according to NAR, and prices are expected to continue to climb. The annual median home price is predicted to increase by 1.4% this year, and by another 2.6% in 2025, to $405,200, NAR’s forecast shows. Plus, housing inventory remains at historical lows and remain a major obstacle for would-be home buyers. That will keep pressure on home prices, economists say.
Freddie Mac reports the following national averages for mortgage rates for the week ending Feb. 15:
- 30-year fixed-rate mortgages: averaged 6.77%, rising from last week’s 6.64% average. Last year at this time, 30-year rate averaged 6.32%.
- 15-year fixed-rate mortgages: averaged 6.12%, up from last week’s 5.90% average. A year ago, 15-year rates averaged 5.51%.
Melissa Dittmann Tracey is a contributing editor for REALTOR® Magazine, editor of the Styled, Staged & Sold blog, and produces a segment called “Hot or Not?(link is external)” in home design that airs on NAR’s Real Estate Today radio show. Follow Melissa on Instagram and Twitter at @housingmuse.
Home Equity Can Be a Game Changer When You Sell
Article from Keeping Current Matters, 2/8/24
Are you on the fence about selling your house? While affordability is improving this year, it’s still tight. And that may be on your mind. But understanding your home equity could be the key to making your decision easier. An article from Bankrate explains:
“Home equity is the difference between your home’s value and the amount you still owe on your mortgage. It represents the paid-off portion of your home.
You’ll start off with a certain level of equity when you make your down payment to buy the home, then continue to build equity as you pay down your mortgage. You’ll also build equity over time as your home’s value increases.”
Think of equity as a simple math equation. It’s the value of your home now minus what you owe on your mortgage. And guess what? Recently, your equity has probably grown more than you think.
In the past few years, home prices skyrocketed, which means your home’s value – and your equity – likely shot up, too. So, you may have more equity than you realize.
How To Make the Most of Your Home Equity Right Now
If you’re thinking about moving, the equity you have in your home could be a big help. According to CoreLogic:
“. . . the average U.S. homeowner with a mortgage still has more than $300,000 in equity . . .”
Clearly, homeowners have a lot of equity right now. And the latest data from the Census and ATTOM shows over two-thirds of homeowners have either completely paid off their mortgages (shown in green in the chart below) or have at least 50% equity (shown in blue in the chart below):
That means roughly 70% have a tremendous amount of equity right now.
After you sell your house, you can use your equity to help you buy your next home. Here’s how:
- Be an all-cash buyer: If you’ve been living in your current home for a long time, you might have enough equity to buy your next home without having to take out a loan. If that’s the case, you won’t need to borrow any money or worry about mortgage rates. Investopedia states:
“You may want to pay cash for your home if you’re shopping in a competitive housing market, or if you’d like to save money on mortgage interest. It could help you close a deal and beat out other buyers.”
- Make a larger down payment: Your equity could also be used toward your next down payment. It might even be enough to let you put a larger amount down, so you won’t have to borrow as much money. The Mortgage Reports explains:
“Borrowers who put down more money typically receive better interest rates from lenders. This is due to the fact that a larger down payment lowers the lender’s risk because the borrower has more equity in the home from the beginning.”
The Easy Way To Find Out How Much Equity You Have
To find out how much equity you have in your home, ask {Rob} for a Professional Equity Assessment Report (PEAR).
Bottom Line
Planning a move? Your home equity can really help you out. Connect with {Rob} to see how much equity you have and how it can help with your next home.
Why Mortgage Rates Could Continue to Decline
Check out this article from Keeping Current Matters (original link below):
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 result, the Fed’s hikes have gotten smaller and less frequent. In fact, there haven’t been any increases since July (see graph below):
And not only has the Fed decided not to raise the Federal Funds Rate the last three times the committee met, they’ve signaled there may actually be rate cuts coming in 2024. According to the New York Times (NYT):
“Federal Reserve officials left interest rates unchanged in their final policy decision of 2023 and forecast that they will cut borrowing costs three times in the coming year, a sign that the central bank is shifting toward the next phase in its fight against rapid inflation.”
This indicates the Fed thinks the economy and inflation are improving. Why does that matter to you and your plans to buy a home? It could end up leading to lower mortgage rates and improved affordability.
Mortgage Rates Are Coming Down
Mortgage rates are influenced by a wide variety of factors, and inflation and the Fed’s actions (or as has been the case recently, inaction) play a big role. Now that the Fed has paused the increases, it looks more likely mortgage rates will continue their downward trend (see graph below):
Although mortgage rates may remain volatile, their recent trend combined with expert forecasts indicate they could continue to go down in 2024. That would improve affordability for buyers and make it easier for sellers to move since they won’t feel as locked-in to their current, low mortgage rate.
Bottom Line
The Fed’s decisions have an indirect impact on mortgage rates. By not raising the Federal Funds Rate, mortgage rates are likely to continue declining. Rely on a trustworthy real estate expert (like Rob!) to give you expert advice about changes in the housing market and how they affect you.
