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The desire to own a home is&nbsp;still strong&nbsp;today. In fact, according to the&nbsp;Census, the U.S. homeownership rate is on the rise. To illustrate the increase, the graph below shows the homeownership rate over the last year:<div class="se-component se-image-container __se__float-none" contenteditable="false"><figure style="margin: 0px;"><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20220826023848.png" alt="" data-rotate="" data-proportion="true" data-rotatex="" data-rotatey="" data-size="648px,486px" data-align="none" data-index="5" data-file-name="20220815-MEM-Eng-1.png" data-file-size="49087" data-origin="," style="width: 648px; height: 486px;"></figure></div> ?“In the 1970s, when inflation was running around 10%, home prices were rising at approximately the same rate.&nbsp;Renters actually have a harder time in inflationary periods, because rents tend to rise along with inflation, whereas mortgage payments stay the same for homeowners with fixed-rate mortgages.”When you&nbsp;buy a home&nbsp;with a fixed-rate mortgage, you can lock in what’s likely your biggest monthly expense – your housing payment – for the duration of that loan, often 15-30 years.That gives you a predictable monthly housing expense that can benefit you in the short term, but you’ll also&nbsp;gain equity&nbsp;over time as your home appreciates in value and you make your monthly mortgage payment.And with that growing equity, your&nbsp;net worth&nbsp;will increase as well. In fact, the&nbsp;latest data&nbsp;from NAR shows the median household net worth of a homeowner is roughly $300,000, while the median net worth of renters is only about $8,000.&nbsp;That means a homeowner’s net worth is nearly 40 times that of a renter.<div class="se-component se-image-container __se__float-" contenteditable="false"><figure style="margin: 0px; width: 700px;"><img src="https://files.mykcm.com/2022/08/12153345/20220815-MEM-Eng-2.png" alt="The U.S. Homeownership Rate Is Growing | MyKCM" data-origin="700,450" data-proportion="true" style="width: 700px; height: 450px;" data-size="700px,450px" data-align="" data-index="7" data-file-name="20220815-MEM-Eng-2.png" data-file-size="0" origin-size="1000,750"></figure></div><h3>Final Thoughts&nbsp;</h3>The U.S. homeownership rate is growing. If you’re ready to purchase the home of your dreams, let’s connect so you can begin the homebuying process today.

The U.S. Homeownership Rate Is Growing

With so much talk about an&nbsp;economic slowdown, some people are asking if the housing market is heading for a&nbsp;crash&nbsp;like the one in 2008. To really understand what’s happening with real estate today, it’s important to lean on the experts for reliable information.Here’s why economists and industry experts say the&nbsp;housing market&nbsp;is not a&nbsp;bubble&nbsp;ready to pop.<h4 style="text-align: start">Today Is Nothing Like 2008</h4>The 2008 housing crash is still fresh in the minds of many homebuyers and sellers. But today’s market is different. Odeta Kushi, Deputy Chief Economist at&nbsp;First American,&nbsp;says:"This is not the same market of 2008. . . . It’s no secret the housing market played a central role in the Great Recession, but this market is just fundamentally different in so many ways."Natalie Campisi, Advisor Staff for Forbes, explains how today’s lending standards are different from those during the lead-up to the housing market crash: "Among the differences between today’s housing market and that of the 2008 housing crash is that lending standards are tighter due to lessons learned and new regulations enacted after the last crisis.&nbsp;Essentially, that means those approved for a mortgage nowadays are less likely to default than those who were approved in the pre-crisis lending period."Another reason today’s housing market is nothing like 2008 is that the number of people looking to buy a home still outweighs the supply of homes for sale. As realtor.com notes: ". . .&nbsp;experts don’t believe the market is in a bubble or a crash is in the cards, like during the Great Recession.&nbsp;The nation is still suffering from a housing shortage that has reached crisis proportions at a time when many millennials are reaching the age when they start to consider homeownership. That’s likely to keep prices high."<h3 style="text-align: start">Final Thoughts</h3>Experts say the housing market isn’t a bubble, and we’re not heading for a crash. Let’s connect so you can have a full picture of today’s housing market in our local area.

Housing Experts Say This Isn’t a Bubble

If you’ve been thinking about&nbsp;buying a home, you likely have one question on the top of your mind:&nbsp;should I buy right now, or should I wait?&nbsp;While no one can answer that question for you, here’s some information that could help you make your decision.<h4>The Future of Home Price Appreciation</h4>Each quarter,&nbsp;Pulsenomics&nbsp;surveys&nbsp;a national panel of over 100 economists, real estate experts, and investment and market strategists to compile projections for the future of&nbsp;home price appreciation. The output is the&nbsp;Home Price Expectation Survey.&nbsp;In the latest release, it forecasts home prices will continue appreciating over the next five years (see graph below):<div class="se-component se-image-container __se__float- __se__float-none" contenteditable="false"><figure style="margin: 0px;"><img src="https://files.mykcm.com/2022/07/12140314/20220713-MEM-Eng-1.png" alt="Should I Buy a Home Right Now? | MyKCM" data-origin="700,450" data-proportion="true" style="width: 654px; height: 450px;" data-size="654px,450px" data-align="" data-index="2" data-file-name="20220713-MEM-Eng-1.png" data-file-size="0" origin-size="1000,750"></figure></div>As the graph shows, the rate of appreciation will moderate over the next few years as the&nbsp;market shifts&nbsp;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.&nbsp;As Lawrence Yun, Chief Economist at the&nbsp;National Association of Realtors&nbsp;(NAR),&nbsp;says:&nbsp;<blockquote>"People should not anticipate another double-digit price appreciation. Those days are over. . . .&nbsp;We may return to more normal price appreciation of 4%, 5% a year."</blockquote> For you, that ongoing appreciation should give you peace of mind&nbsp;your investment&nbsp;in homeownership is worthwhile because you’re buying an asset that’s projected to grow in value in the years ahead.<h4>What Does That Mean for You?</h4>To give you an idea of how this could impact your&nbsp;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&nbsp;Pulsenomics&nbsp;survey mentioned above (see graph below):<div class="se-component se-image-container __se__float- __se__float-none" contenteditable="false"><figure style="margin: 0px;"><img src="https://files.mykcm.com/2022/07/12140321/20220713-MEM-Eng-2.png" alt="Should I Buy a Home Right Now? | MyKCM" data-origin="700,450" data-proportion="true" style="width: 659px; height: 450px;" data-size="659px,450px" data-align="" data-index="3" data-file-name="20220713-MEM-Eng-2.png" data-file-size="0" origin-size="1000,750"></figure></div>As the graph conveys, even at a more typical pace of appreciation, you still stand to make significant&nbsp;equity gains&nbsp;as your home grows in value. That’s what’s at stake if you delay your plans.<h3>Final Thoughts</h3>If you’re ready to become a homeowner, know that buying today can set you up for long-term success as your asset’s value (and your own net worth) is projected to grow with the ongoing home price appreciation. Let’s connect to begin your homebuying process today.

Should I Buy a Home Right Now?

If you’re following along with the news today, you’ve heard about rising inflation. Today,&nbsp;inflation&nbsp;is at a&nbsp;40-year high. According to the&nbsp;National Association of Home Builders&nbsp;(NAHB):<blockquote>“Consumer prices accelerated again in May as shelter, energy and food prices continued to surge at the fastest pace in decades. This marked the third straight month for inflation above an&nbsp;8% rate and was the largest year-over-year gain since December 1981.”</blockquote>With inflation rising, you’re likely feeling it impact your day-to-day life as prices go up for gas, groceries, and more. These climbing consumer costs can put a pinch on your wallet and make you re-evaluate any big purchases you have planned to ensure they’re still worthwhile.If you’ve been thinking about purchasing a home this year, you’re probably wondering if you should continue down that path or if it makes more sense to wait. While the answer depends on your situation, here’s how homeownership can help you combat the rising costs that come with inflation.<h4 style="text-align: start">Homeownership Helps You Stabilize One of Your Biggest Monthly Expenses</h4>Investopedia&nbsp;explains&nbsp;that during a period of high inflation, prices rise across the board. That’s true for things like food, entertainment, and other goods and services, even housing. Both rental prices and&nbsp;home prices&nbsp;are on the rise. So, as a buyer, how can you protect yourself from increasing costs? The answer lies in&nbsp;homeownership.Buying a home allows you to stabilize what’s typically your biggest monthly expense: your housing cost. When you have a fixed-rate mortgage on your home, you lock in your monthly payment for the duration of your loan, often 15 to 30 years. James Royal, Senior Wealth Management Reporter at&nbsp;Bankrate,&nbsp;says:<blockquote>“A fixed-rate mortgage allows you to maintain the biggest portion of housing expenses at the same payment.&nbsp;Sure, property taxes will rise and other expenses may creep up, but your monthly housing payment remains the same. That’s certainly not the case if you’re renting.”</blockquote>So even if other prices increase, your housing payment will be a reliable amount that can help keep your budget in check. If you rent, you don’t have that same benefit, and you won’t be protected from rising housing costs.<h4 style="text-align: start">Investing in an Asset That Historically Outperforms Inflation</h4>While it’s true rising home prices and higher mortgage rates mean that buying a house today costs more than it did even a few months ago, you still have an opportunity to set yourself up for a long-term win. That’s because, in inflationary times, you want to be invested in an asset that outperforms inflation and typically holds or grows in value.The graph below shows how the average home price appreciation outperformed the average inflation rate in most decades going all the way back to the seventies – making homeownership a historically strong hedge against inflation (see graph below): <div class="se-component se-image-container __se__float-none" contenteditable="false"><figure style="margin: 0px;"><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20220629022921.png" alt="" data-rotate="" data-proportion="true" data-rotatex="" data-rotatey="" data-size="726px,545px" data-align="none" data-index="1" data-file-name="image.png" data-file-size="66732" data-origin="," style="width: 726px; height: 545px;"></figure></div> So, what does that mean for you? Today, experts&nbsp;forecast&nbsp;home prices will only go up from here thanks to the ongoing imbalance of supply and demand. Once you buy a house, any home price appreciation that does occur will grow your&nbsp;equity&nbsp;and your&nbsp;net worth. And since homes are typically assets that grow in value, you have peace of mind that history shows your investment is a strong one.That means, if you’re ready and able, it makes sense to buy today before prices rise further.<h3 style="text-align: start">Final Thoughts</h3>If you’ve been thinking about buying a home this year, it makes sense to act soon, even with inflation rising. That way you can stabilize your monthly housing cost and invest in an asset that historically outperforms inflation. If you’re ready to get started, let’s connect so you have expert advice on your specific situation when you’re ready to buy a home.

 Homeownership Is a Great Hedge Against the Impact of Rising Inflation

As people realize their needs are changing, some are turning to luxury housing to find their dream home.&nbsp;Investopedia&nbsp;helps define what pushes a home into this category. In a&nbsp;recent article, they point out that a luxury home isn’t only defined by its price. Location is also an important factor. It could be a condo at a desirable city address, a spacious home on the water, or one with access to luxury activities like arts and entertainment, high-end shopping and dining, and more. The home itself will also boast some of the finest features available. According to the&nbsp;Luxury Market Report&nbsp;from the&nbsp;Institute for Luxury Home Marketing,&nbsp;there’s been a substantial increase in how many buyers are purchasing luxury homes over the past two years.&nbsp;It says:<blockquote>“. . . North America recorded the fastest growth of demand during the first year of the pandemic.&nbsp;Also, demand has&nbsp;. . .&nbsp;consistently increased, and&nbsp;even in April 2022, we saw a higher volume of sales compared to 2021.”</blockquote> If you own a luxury home, it could be a great time to&nbsp;list your house&nbsp;today while demand is so high. But first, let’s understand where the demand is coming from.<h4> </h4><h4>What’s Driving the Heightened Buyer Demand for High-End Homes?</h4> The same report says more people have reached a certain net-worth threshold, and that’s contributing to the increased interest in luxury housing:<blockquote>“In 2020, we saw a 2.2% growth in the number of individuals with wealth of over $5 million in net value, but in 2021 that number grew by an outstanding 19.8%. This total increase has resulted in the introduction of over 660,000 new individuals into the high net-worth bracket, which, combined with the existing affluent looking to both diversify and add new properties to their portfolio, provides a true insight into why the demand for luxury properties skyrocketed during 2021 and into 2022.”</blockquote> So, if you’re looking to make changes to your real estate portfolio or are&nbsp;looking to sell&nbsp;your current house, it may be a&nbsp;great time to list&nbsp;and benefit from the high demand for luxury homes today. <h3>Final Thoughts</h3>If you own a luxury home and want to know how strong demand is in your area, let’s connect so you can capitalize on current market conditions while buyer demand for upscale homes is so high.

Luxury Homes Are in High Demand

Because&nbsp;buying&nbsp;or&nbsp;selling&nbsp;a home is such a&nbsp;big decision&nbsp;in our lives, the need for clear, trustworthy information and guidance is crucial. And while no one can give you perfect advice, when you align yourself with an expert, you’ll get the best advice for your situation. <h4>An Expert Will Give You the Best Advice Possible</h4>Let’s say you need an attorney, so you seek out an expert in the type of law required for your case. When you go to their office, they won’t immediately tell you how the case is going to end or how the judge or jury will rule. What a good attorney can do, though, is discuss the most effective strategies you can take. They may recommend one or two approaches they believe will work well for your case. Then, they’ll leave you to make the decision on which option you want to pursue. Once you decide, they can help you put a plan together based on the facts at hand. They’ll use their expert knowledge to work toward the resolution you want and make whatever modifications in the strategy necessary to try and achieve that outcome. Similarly, the job of a trusted real estate professional is to give you the&nbsp;best advice&nbsp;for your situation. Just like you can’t find a lawyer to give you perfect advice, you won’t find a real estate professional who can either. They can’t because it’s impossible to know exactly what’s going to happen throughout your transaction. They also can’t predict exactly what will happen with conditions in today’s&nbsp;housing market. But an expert real estate advisor is knowledgeable about&nbsp;market trends&nbsp;and the ins and outs of the&nbsp;home buying&nbsp;and&nbsp;selling&nbsp;process. With that knowledge, they can anticipate what&nbsp;could&nbsp;happen based on your situation and help you put together a solid plan. And they’ll guide you through the process, helping you make decisions along the way. That’s the very definition of getting the best – not perfect – advice. And that’s the power of working with an expert real estate advisor. <h3>Final Thoughts</h3>If you want trustworthy advice when buying or selling a home, let’s connect so you have an expert real estate advisor on your side.

Work With a Real Estate Professional if You Want the Best Advice

With a limited number of&nbsp;homes for sale&nbsp;today and so many buyers looking to make a purchase before&nbsp;mortgage rates&nbsp;rise further,&nbsp;bidding wars&nbsp;are common. According to the&nbsp;latest report&nbsp;from the&nbsp;National Association of Realtors&nbsp;(NAR), nationwide, homes are getting an average of 4.8 offers per sale. Here’s a look at how that breaks down state-by-state (see map below): <div class="se-component se-image-container __se__float-" contenteditable="false"><figure style="margin: 0px; width: 700px;"><img class="aligncenter wp-image-101976" src="https://files.mykcm.com/2022/04/28120026/20220503-MEM-Eng-1.png" alt="Things That Could Help You Win a Bidding War on a Home | MyKCM" data-origin="700,450" data-proportion="true" data-size="700px,450px" data-align="" data-index="1" data-file-name="20220503-MEM-Eng-1.png" data-file-size="0" origin-size="1000,750" style="width: 700px; height: 450px;"></figure></div>The same report from NAR shows the average buyer made two offers before getting their third offer accepted. In this type of competitive&nbsp;housing market, it’s important to know what levers you can pull to help you beat the competition. While a real estate professional is your ultimate guide to presenting a strong offer, here are a few things you could consider. <h4>Offering over Asking Price</h4>When you think of sweetening the deal for sellers, the first thought you likely have is around the price of the home. In today’s housing market, it’s true more homes are selling for over&nbsp;the&nbsp;asking price&nbsp;because there are more buyers than there are homes for sale. You just want to make sure your offer is still within your budget and realistic for the market value in your area – that’s where a local real estate professional can help you through the process.&nbsp;Bankrate&nbsp;says:<blockquote>“Simply put, being willing to pay more money than other buyers is one of the best ways to&nbsp;get your offer accepted.&nbsp;You may not have to increase it by a lot — it’ll depend on the area and other factors — so look to your real estate agent for guidance.”</blockquote><h4> </h4><h4>Putting Down a Bigger Earnest Money Deposit</h4>You could also consider putting down a larger deposit upfront. An&nbsp;earnest money deposit&nbsp;is a check you write to go along with your offer. If your offer is accepted, this deposit is credited toward your home purchase.&nbsp;NerdWallet&nbsp;explains&nbsp;how it works:<blockquote>“A typical earnest money deposit is 1% to 2% of the home’s purchase price, but the amount varies by location.&nbsp;A higher earnest money deposit may catch a seller’s attention in a hot housing market.”</blockquote> That’s because it shows the seller you’re seriously interested in their house and have already set aside money that you’re ready to put toward the purchase. Talk to a professional to see if this is something you can do in your area.&nbsp; <h4> </h4><h4>Making a Higher Down Payment&nbsp;</h4>Another option is increasing how much of a&nbsp;down payment&nbsp;you’re going to make. The benefit of a&nbsp;higher down payment&nbsp;is you won’t have to finance as much. This helps the seller feel like there’s less risk of the deal or the financing falling through. And if other buyers put less down, it could be what helps your offer stand out from the crowd. <h4>Non-Financial Options To Make a Strong Offer</h4>Realtor.com&nbsp;points out&nbsp;that while increasing these financial portions of the deal can help, they’re not your only options:<blockquote>“. . .&nbsp;Price is not the only factor sellers weigh when they look at offers.&nbsp;The buyer’s terms and contingencies are also taken into account, as well as&nbsp;pre-approval letters, appraisal requirements, and the closing time the buyer is asking for.”</blockquote> When it’s time to make an offer, partner with a trusted professional. They have insight into what sellers are looking for in your local market and can give you expert advice on what levers you may or may not want to pull when it’s time to write an offer.From a non-financial perspective, this can include things like flexible move-in dates or minimal contingencies (conditions you set that the seller must meet for the purchase to be finalized). For example, you could make an offer that’s not contingent on the sale of your current home. Just remember,&nbsp;there are&nbsp;certain contingencies you don’t want to forego, like your&nbsp;home inspection. Ultimately, the options you have can vary state-to-state, so it’s best to lean on an expert real estate professional for guidance.<h3> </h3><h3>Final Thoughts</h3>In today’s hot housing market, you need a partner who can serve as your guide, especially when it comes to making a strong offer. Let’s connect so you have a trusted resource and coach on how to make the strongest offer possible for your specific situation.

 Things That Could Help You Win a Bidding War on a Home

<article id="post-101805" class="post-101805 post type-post status-publish format-standard has-post-thumbnail hentry category-baby-boomers category-buyers category-sellers category-senior-market">
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Life events can have a major impact on what you need from your home, and retirement is one of the biggest changes many of us face. This period of your life can mean doing more of the things you enjoy, like traveling, visiting with loved ones, or taking on new hobbies. But what does that mean for your home?
If you&rsquo;re looking for ways to focus more on the important things in your life, the answer could be downsizing. A&nbsp;recent article&nbsp;from&nbsp;The Balance&nbsp;talks about why it could be a great option, saying:
<blockquote>
&ldquo;There are many reasons to buy a smaller home&mdash;or to downsize from your present home&mdash;but sometimes,&nbsp;the idea that &ldquo;less is more&rdquo; is what propels homeowners to buy a smaller home.&rdquo;
</blockquote>
<h4>You Can Find the Right Home for Your Needs</h4>
The&nbsp;2022 Home Buyers and Sellers Generational Trends&nbsp;from the&nbsp;National Association of Realtors&nbsp;(NAR) provide more information on why people of retirement age choose to move. It shows the need for a smaller home, the desire to be closer to loved ones, and retirement itself as three of the top reasons homebuyers over the age of 55 make a move.
If you&rsquo;re in this group, changing priorities may be top of mind for you today, and that could be driving your&nbsp;decision&nbsp;to downsize. After all, as your lifestyle changes, what you need in your home likely changes, too.
Plus, as&nbsp;The Balance&nbsp;notes, moving into a smaller home can open your schedule up even more. When you downsize, you can spend less time&nbsp;maintaining&nbsp;your home and more time with the people you love or exploring newfound hobbies. That&rsquo;s a recipe that can lead to less stress and&nbsp;increased happiness.
<h4>Your Equity Can Make a Big Impact When You Downsize</h4>
Home equity&nbsp;plays a big role when you sell your existing house and move. It could be a great tool to use to help you downsize. According to the latest&nbsp;Homeowner Equity Insights&nbsp;report from&nbsp;CoreLogic, the average homeowner gained about&nbsp;$55,300 in equity over the past 12 months. Dr. Frank Nothaft, Chief Economist at&nbsp;CoreLogic,&nbsp;explains&nbsp;how important price appreciation and equity gains are for existing homeowners:
<blockquote>
&ldquo;Home prices rose 18% during 2021 in the CoreLogic Home Price Index, the largest annual gain recorded in its 45-year history, generating a big increase in home equity wealth, . . .&nbsp;For low- and moderate-income homeowners, home equity has historically been a major source of wealth.&rdquo;
</blockquote>
As home prices rise, your&nbsp;equity&nbsp;does, too. So, you may have more equity than you realize because of the record levels of&nbsp;home price appreciation&nbsp;over the past year. Those equity gains could allow you to make a&nbsp;larger down payment&nbsp;on your next home. And putting more money down can lead to a smaller monthly mortgage payment, which can give you greater financial freedom. It can also be a significant help in navigating today&rsquo;s&nbsp;competitive&nbsp;housing market, since offering more money up front could help your offer stand out.
Whatever your home ownership goals are, a trusted real estate advisor&nbsp;can help you to find the best option for your situation. They&rsquo;ll help you&nbsp;sell&nbsp;your current home and guide you as you buy your next one and enter this new phase of life.
<h3>Final Thoughts</h3>
If you&rsquo;ve recently retired or plan to soon, your needs are likely changing. That means now may be the perfect time to downsize. Let&rsquo;s connect so we can work together to find a home that matches your situation.
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Life events can have a major impact on what you need from your home, and retirement is one of the biggest changes many of us face. This period of your life can mean doing more of the things you enjoy, like traveling, visiting with loved ones, or taking on new hobbies. But what does that mean for your home?

If you’re looking for ways to focus more on the important things in your life, the answer could be downsizing. A recent article from The Balance talks about why it could be a great option, saying:

Is It Time To Buy a Smaller Home?

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Are you thinking about selling your house? If so, you may want to make it a priority to start the process soon. According to realtor.com, the sweet spot for sellers is just around the corner. In a recent study, experts analyzed housing market trends by looking at data from the past several years (excluding 2020, since it was an atypical year). When applied to the current market, experts determined the ideal week to list a house this year. The research says:
<blockquote>
&ldquo;Home sellers on the fence waiting for that perfect moment to sell should start preparations, because the best time to list a home in 2022 is approaching quickly.&nbsp;The week of April 10-16 is expected to have the ideal balance of housing market conditions that favor home sellers, more so than any other week in the year.&rdquo;
</blockquote>
If you&rsquo;ve been putting your move on the back burner waiting for the ideal time to sell, you should know your golden window of opportunity is coming up. If you&rsquo;re able to get your house ready quickly, here&rsquo;s what you can expect from that week.
<h4>You Should See More Buyer Activity</h4>
The article expects higher buyer demand based on what&rsquo;s happened in previous years. This could result in increased competition among buyers and ultimately a bidding war over your house. And since mortgage rates recently ticked up over 4%, chances are good that analysis is right. When rates rise, experts say buyers often hurry to make their purchase before rates climb higher. As Nadia Evangelou, Senior Economist and Director of Forecasting at the&nbsp;National Association of Realtors (NAR), says:
<blockquote>
&ldquo;. . .&nbsp;Buyers are rushing to lock in lower rates as the outlook is for even higher mortgage rates in the following months.&rdquo;
</blockquote>
<h4>Your House Is Expected To Sell Quickly</h4>
Additionally, the&nbsp;realtor.com&nbsp;analysis shows houses sell even faster during this week of the year, likely due to the heightened buyer demand. If you work with a trusted real estate professional to&nbsp;price your house&nbsp;right, it should sell quickly. And when homes are already selling in just 18 days according to&nbsp;NAR, that could set you up for a big win.
<h4>Your House Will Be in the Spotlight</h4>
Since the beginning of the year, the&nbsp;number of homes&nbsp;available for sale has been at or near record lows. According to the&nbsp;realtor.com&nbsp;study, the typical trend for this week of the year is that there will be even fewer sellers on the market. If you list when inventory is low, your house will be the center of attention for eager buyers craving options.
If you&rsquo;re ready to move fast, you may want to shoot for April 10th-16th&nbsp;as your target goal. Just remember, even if you&rsquo;re not ready to list within the next couple of weeks, rest assured this is still a hot&nbsp;sellers&rsquo; market. If you list later in April, you&rsquo;ll still be in the driver&rsquo;s seat.
<h3>Final Thoughts</h3>
Ready to get the ball rolling? Let&rsquo;s connect and schedule a time to go over your next steps. In the meantime, make a checklist&nbsp;of things you need to tackle to get your house ready. When we talk, we can prioritize your to-do list and get you on the road to selling your house.
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The Best Week To List Your House Is Just Around the Corner

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In an annual&nbsp;Gallup poll, Americans chose real estate as the best long-term investment. And it&rsquo;s not the first time it&rsquo;s topped the list, either. Real estate has been on a winning streak for the past eight years, consistently gaining traction as the best long-term investment&nbsp;(see graph below):
<img class="aligncenter wp-image-101232" src="https://files.mykcm.com/2022/02/18105653/20220221-MEM-ENG.png" border="0" alt="Real Estate Voted the Best Investment Eight Years in a Row | MyKCM" width="600" height="450" />
If you&rsquo;re thinking about purchasing a home this year, this poll should reassure you. Even when inflation is rising like it is today, Americans agree&nbsp;an investment like real estate truly shines.
<h4>Why Is Real Estate a Great Investment During Times of High Inflation?</h4>
With inflation reaching its highest level in&nbsp;40 years, it&rsquo;s more important than ever to understand the financial benefits of homeownership. Rising inflation means prices are increasing across the board. That includes goods, services, housing costs, and more. But when you purchase your home, you lock in your monthly housing payments, effectively shielding yourself from increasing housing payments. James Royal, Senior Wealth Management Reporter at&nbsp;Bankrate,&nbsp;explains&nbsp;it like this:
<blockquote>
&ldquo;A fixed-rate mortgage allows you to maintain the biggest portion of housing expenses at the same payment. Sure, property taxes will rise and other expenses may creep up, but your monthly housing payment remains the same.&rdquo;
</blockquote>
If you&rsquo;re a renter, you don&rsquo;t have that same benefit, and you aren&rsquo;t protected from increases in your housing costs, especially rising rents.
<h4>History Shows During Inflationary Periods, Home Prices Rise as Well</h4>
As a homeowner, your house is an asset that typically increases in value over time, even during inflation. That&lsquo;s because, as prices rise, the value of your home does, too. And that makes buying a home&nbsp;a great hedge during periods of high inflation. Natalie Campisi, Advisor Staff for&nbsp;Forbes, notes:
<blockquote>
&ldquo;Tangible assets like real estate get more valuable over time,&nbsp;which makes buying a home a good way to spend your money during inflationary times.&rdquo;
</blockquote>
<h3>Final Thoughts</h3>
Housing truly is a strong investment, especially when inflation is high. When you lock in a mortgage payment, you&rsquo;re shielded from housing cost increases, and you own an asset that typically gains value with time. If you want to better understand how buying a home could be a great investment for you, let&rsquo;s connect today.
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Real Estate Voted the Best Investment Eight Years in a Row

<article id="post-101012" class="post-101012 post type-post status-publish format-standard has-post-thumbnail hentry category-sellers category-housing-market-updates category-move-up-buyers-buyers">
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In today&rsquo;s sellers&rsquo; market, many homeowners are weighing their options and trying to decide if they should sell their houses. If you&rsquo;re in that group, you may be balancing things like the ongoing health crisis, rising mortgage rates, and your own changing needs to determine your best time to make a move.
However, recent data shows that time may already be here. According to the latest&nbsp;Home Purchase Sentiment Index&nbsp;(HPSI) by&nbsp;Fannie Mae,&nbsp;76% of consumers believe now is a good&nbsp;time to sell.
Looking back over the past few years, it's clear consumers are incredibly optimistic today. The graph below shows the percentage of survey respondents who say it&rsquo;s a good time to sell a house, and their positive outlook is on the rise. The big dip near the middle of the chart indicates how consumer sentiment about selling dropped at the beginning of the pandemic as uncertainty about the health crisis and its impact grew. The good news is, the trend today shows a continued, drastic improvement, and people are feeling more and more confident with time about selling a home.
In fact, survey respondents think it&rsquo;s an&nbsp;even better time to sell a house today than they did in the lead-up to the health crisis.&nbsp;The latest survey results indicate we&rsquo;re at one of the strongest peaks in seller sentiment since March of 2019, hitting highs when 77% of people thought it was a good time to sell only twice before in June and October of 2021.
<img class="aligncenter wp-image-101015" src="https://files.mykcm.com/2022/02/04130946/20220107-MEM-Eng-1.png" border="0" alt="Consumers Agree: It&rsquo;s a Good Time To Sell | MyKCM" width="600" height="450" />
<h4>Why Are Consumers So Optimistic About Today&rsquo;s Housing Market?</h4>
From record-high&nbsp;equity gains&nbsp;to record-low&nbsp;housing supply&nbsp;and significant&nbsp;buyer demand, homeowners have more motivation than ever to sell.&nbsp;There are more buyers in today&rsquo;s market than there are homes for sale, and that&rsquo;s driving home prices up, making it a great time to sell your house.
According to the&nbsp;National Association of Realtors&nbsp;(NAR), the current&nbsp;supply of homes&nbsp;for sale today is at a&nbsp;1.8-month supply, which is an all-time low.&nbsp;When the supply of homes for sale is low, sellers will likely see more offers, which is exactly what&rsquo;s happening right now. As NAR notes:
<blockquote>
&ldquo;The average home for sale is receiving 3.8 offers today,&nbsp;up from 3.3 offers just one year ago.&rdquo;
</blockquote>
<h3>Final Thoughts</h3>
With the inventory of houses for sale so low today pushing home prices in an upward direction, it&rsquo;s no wonder consumers think it&rsquo;s a good time to sell. If you&rsquo;re ready to take advantage of today&rsquo;s favorable sellers&rsquo; market, let&rsquo;s connect today.
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Consumers Agree: It’s a Good Time To Sell

High-end or luxury homes are in a category all by themselves when you&rsquo;re looking for a home. Most have incredible views, eccentric features, and are so large that it&rsquo;s hard to picture your family living in something so grand.
But today, luxury homes or high-end homes are often misconstrued. Many listings claim a home is &lsquo;high-end&rsquo; when it doesn&rsquo;t truly have the features you&rsquo;d expect in a luxury home.
So what makes a home worth the &lsquo;high-end&rsquo; status?
The Price
It goes without question that luxury homes are higher priced &ndash; it comes with the territory. You can&rsquo;t have luxury features without a luxury price tag. You&rsquo;ll find high-end homes in the million-dollar range, but you can also find them in the $300,000 &ndash; $500,000 range too depending on the location.
Larger Size
High-end homes are almost always an incredible size. Whether they have an open floor plan or closed, the number of rooms and the sheer size of each room play a role in whether a home is luxurious or not.
More square footage leaves room for more features, such as incredible master suites, staff quarters, or libraries &ndash; something you wouldn&rsquo;t find in ordinary homes.
Location
Most luxury homes are in an area all by themselves or are at least on a lot of lands. You may find a subdivision of several luxury homes together, but they aren&rsquo;t going to be situated as close together as your cookie-cutter traditional homes.
Many high-end homes are in an area by themselves whether in the mountains, on a beach, or somewhere else where the homeowners have complete privacy.
Incredible Designs
Most high-end homes are custom-built, meaning they don&rsquo;t follow the cookie-cutter design of a traditional subdivision. You may even find some luxury homes in unique shapes or styles, something you haven&rsquo;t seen anywhere else because the owners built it or designed it themselves rather than following a specific plan.
Unusual Amenities
High-end homes usually have more than the standard kitchen, master bedroom, other bedrooms, family room, and living room. You may find full-size theaters, staff quarters, tennis courts, basketball courts, swimming pools, or even a bowling alley in them.
Modern Technology
All high-end homes have technology that automates just about anything you need to do in a home. TVs with surround sound hooked up throughout the room, top-of-the-line security systems, Alexa wired throughout the house, speakers or radios throughout the house, and built-in vacuum systems are just a few of the features you may find in a luxury home.
Are you Looking for a High-End Home?
If you&rsquo;re in the market for a high-end home, let me help you. I have many years of experience helping people just like you find the perfect luxury home that suits their needs. I know the right questions to ask so that I match you up with the perfect home that&rsquo;s not a cookie-cutter or carbon copy of other homes, but rather a home that feels like it was built just for you.

What Makes a Home High-End?

<article id="post-100430" class="post-100430 post type-post status-publish format-standard has-post-thumbnail hentry category-first-time-home-buyers category-buyers category-rent-vs-buy">
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Are you one of the many renters thinking about where you&rsquo;ll live the next time your lease is up? Before you decide whether to look for a new house or another apartment, it&rsquo;s important to understand the true costs of&nbsp;renting&nbsp;in 2022.
As a renter, you should know&nbsp;rents&nbsp;have been rising since 1988&nbsp;(see graph below):
&nbsp;
<img class="aligncenter wp-image-100432" src="https://files.mykcm.com/2021/12/21142345/20220104-MEM-Eng-1.png" border="0" alt="Avoid the Rental Trap in 2022 | MyKCM" width="600" height="450" />
In 2021, rents grew dramatically. According to&nbsp;ApartmentList.com, since January 2021:
<blockquote>
&ldquo;. . . the national median rent has increased by a staggering 17.8 percent.&nbsp;To put that in context, rent growth from January to November averaged just 2.6 percent in the pre-pandemic years from 2017-2019.&rdquo;
</blockquote>
That increase in 2021 was far greater than the typical rent increases we&rsquo;ve seen in recent years. In other words &ndash;&nbsp;rents are rising fast.&nbsp;And the&nbsp;2022 National Housing Forecast&nbsp;from&nbsp;realtor.com&nbsp;projects prices for vacant units will continue to increase this year:
<blockquote>
&ldquo;In 2022, we expect this trend will continue and fuel rent growth. At a national level,&nbsp;we forecast rent growth of 7.1% in the next 12 months, somewhat ahead of home price growth . . .&rdquo;
</blockquote>
That means, if you&rsquo;re planning to move into a different rental this year, you&rsquo;ll likely pay far more than you have in years past.
<h4>Homeownership Provides an Alternative to Rising Rents</h4>
If you&rsquo;re a renter facing rising rental costs, you might wonder what&nbsp;alternatives&nbsp;you have. If so, consider homeownership. One of the many benefits of homeownership is it provides a stable monthly cost you can lock in for the duration of your loan.
As Lawrence Yun, Chief Economist at the&nbsp;National Association of Realtors&nbsp;(NAR),&nbsp;says:
<blockquote>
&ldquo;. . . fast-rising rents and increasing consumer prices,&nbsp;may have some prospective buyers seeking the protection of a fixed, consistent mortgage payment.&rdquo;
</blockquote>
If you&rsquo;re planning to make a move this year,&nbsp;locking in&nbsp;your monthly housing costs for 15-30 years can be a major benefit. You&rsquo;ll avoid wondering if you&rsquo;ll need to adjust your budget to account for annual increases.
Homeowners also enjoy the added benefit of home equity, which has grown substantially right now. In fact, the latest&nbsp;Homeowner Equity Insight&nbsp;report from&nbsp;CoreLogic&nbsp;shows the average homeowner gained $56,700 in equity over the last 12 months. As a renter, your rent payment only covers the cost of your dwelling. When you pay your mortgage, you grow your wealth through the forced savings that are your home equity.&nbsp;&nbsp;
<h3>Final Thoughts&nbsp;</h3>
If you&rsquo;re thinking of renting this year, it&rsquo;s important to keep in mind the true costs you&rsquo;ll face. Let&rsquo;s connect so you can see how you can begin your journey to homeownership today.
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Avoid the Rental Trap in 2022

If you&rsquo;re trying to decide when to sell your house, there may not be a better time than this winter.&nbsp;Selling&nbsp;this season means you can take advantage of today&rsquo;s strong&nbsp;sellers&rsquo; market&nbsp;when you make a move.
<h4>Win When You Sell</h4>
Right now, conditions are very favorable for current homeowners looking for a change. If you sell now, here&rsquo;s what you can expect:
<ul>
<li>Your House Will Stand Out&nbsp;&ndash; While recent&nbsp;data&nbsp;shows there are more sellers getting ready to list their homes this winter, there are still more buyers in the market than there are homes for sale. If you sell your house now before more houses are listed, it will get more attention from serious buyers who are eager to find a home.</li>
<li>Your House Will Likely Get Multiple Offers&nbsp;&ndash; When supply is low and demand is high, buyers have to compete with each other for a limited number of homes. The latest&nbsp;Realtors Confidence Index&nbsp;from the&nbsp;National Association of Realtors&nbsp;(NAR) shows sellers are getting an average of&nbsp;3.6 offers&nbsp;in today&rsquo;s market.</li>
<li>Your House Should Sell Quickly&nbsp;&ndash; According to the same report from NAR, homes are selling in an average of just&nbsp;18 days.&nbsp;As a seller, that&rsquo;s great news for you if you&rsquo;re looking for a quick process.</li>
</ul>
<h4>Win When You Move</h4>
In addition to these great perks, you&rsquo;ll also win big on your next move if you sell now.&nbsp;CoreLogic&nbsp;reports&nbsp;homeowners gained an average of&nbsp;$51,500&nbsp;in&nbsp;equity&nbsp;over the past year. This wealth boost is the result of buyer competition driving home prices up. You can leverage that equity to fuel a move, before&nbsp;mortgage rates&nbsp;and&nbsp;home prices&nbsp;climb higher. To get a feel for how rates are projected to rise, see the chart below.
<a class="use_kcm_lightbox" href="https://files.mykcm.com/2021/12/01114527/20211206-MEM-Eng-1.png" target="_blank" rel="noopener"><img class="aligncenter wp-image-100078" src="https://files.mykcm.com/2021/12/01114527/20211206-MEM-Eng-1.png" border="0" alt="Win When You Sell (And When You Move) | MyKCM" width="600" height="450" /></a>
&nbsp;
The longer you wait to make your move, the more it will&nbsp;cost&nbsp;you down the road. As mortgage rates rise, even modestly, it will impact your monthly payment when you purchase your next home. Waiting just a few months to make that change could mean a long-term financial impact.
The good news is today&rsquo;s rates are still hovering in a historically low range.&nbsp;According&nbsp;to Doug Duncan, Senior VP and Chief Economist at&nbsp;Fannie Mae:
<blockquote>
&ldquo;Right now, we forecast mortgage rates to average 3.3 percent in 2022, which, though slightly higher than 2020 and 2021,&nbsp;by historical standards remains extremely low . . .&rdquo;
</blockquote>
Selling before rates climb higher means you can make your move and lock in a low rate on the mortgage for your next home. This helps you get more home for your money and keeps your payments down too.
<h3>Final Thoughts</h3>
As a homeowner, you have a great opportunity to get the best of both worlds this season. You can truly win when you sell and when you buy. If you&rsquo;re thinking about making a move, let&rsquo;s connect so you have the information you need to get the process started.

Win When You Sell (And When You Move)

<article id="post-99972" class="post-99972 post type-post status-publish format-standard has-post-thumbnail hentry category-buyers category-sellers category-foreclosures category-housing-market-updates category-interest-rates category-pricing">
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There are a lot of questions right now regarding the real estate market as we head into 2022. The forbearance program is coming to an end and mortgage rates are beginning to rise.
With all of this uncertainty, anyone with a megaphone &ndash; from the mainstream media to a lone blogger &ndash; has realized that bad news sells. Unfortunately, we&rsquo;ll continue to see a rash of troublesome headlines over the next few months. To make sure you aren&rsquo;t paralyzed by a headline, turn to reliable resources for a look at what to expect from the housing market next year.
There are already alarmist headlines starting to appear. Here are two recent topics you may have seen in the news.
<h4>1. Foreclosures Are Spiking Today</h4>
There are a number of headlines circulating that call out the rising foreclosures in today&rsquo;s real estate market. Those stories focus on an overly narrow view on that topic: the current volume of foreclosures compared to 2020. They emphasize that we&rsquo;re seeing far more foreclosures this year compared to last.
That seems rather daunting. However, though it&rsquo;s true foreclosures have been up to over the 2020 numbers, it&rsquo;s important to realize that there were virtually no foreclosures last year because of the forbearance plan. If we compare this September to September of 2019 (the last normal year), foreclosures were down 70%&nbsp;according to&nbsp;ATTOM.
Even Rick Sharga, an Executive Vice President of the firm that issued the report referenced in the above article,&nbsp;says:
<blockquote>
&ldquo;As expected, now that the moratorium has been over for three months, foreclosure activity continues to increase. But it&rsquo;s increasing at a slower rate, and it appears that most of the activity is primarily on vacant and abandoned properties, or loans in foreclosure prior to the pandemic.&rdquo;
</blockquote>
Homeowners who have been impacted by the pandemic are not generally the ones being burdened right now. That&rsquo;s because the&nbsp;forbearance program&nbsp;has worked. Ali Haralson, President of&nbsp;Auction.com,&nbsp;explains&nbsp;that the program has done a remarkable job:
<blockquote>
&ldquo;The tsunami of foreclosures many feared in the early days of the pandemic has not materialized thanks in large part to the swift and decisive foreclosure protections put in place by government policymakers and the mortgage servicing industry.&rdquo;
</blockquote>
And the government is still making sure homeowners have every opportunity to stay in their homes. Rohit Chopra, the Director of the&nbsp;Consumer Financial Protection Bureau&nbsp;(CFPB), issued this&nbsp;statement&nbsp;just last week:
<blockquote>
&ldquo;Failures by mortgage servicers and regulators worsened the impact of the economic crisis a decade ago. Regulators have learned their lesson, and we will be scrutinizing servicers to ensure they are doing all they can to help homeowners and follow the law.&rdquo;
</blockquote>
<h4>2. Rising Mortgage Rates Will Slow the Housing Market</h4>
Another topic that&rsquo;s generating frequent headlines is the rise in&nbsp;mortgage rates. Some people are expressing concern that rising rates will negatively impact the housing market by causing home sales to dramatically decline. The resulting headlines are raising unneeded alarm bells. To counteract those headlines, we need to take a look at what history tells us. Looking at data over the last 20 years, there&rsquo;s no evidence that an increase in rates dramatically forces sales to come to a halt. Nor does home&nbsp;price appreciation come to a screeching stop. Let&rsquo;s look at home sales first:
The last three times rates increased (shown in the graph above in red), sales (depicted in blue in the graph) remained rather consistent. It&rsquo;s true that sales fell rather dramatically from 2007 through 2010, but mortgage rates were also falling at the time. The next two instances showed no meaningful drop in sales.
Now, let&rsquo;s take a look at home price appreciation (see graph below):
<a class="use_kcm_lightbox" href="https://files.mykcm.com/2021/11/18154530/20211123-MEM-Eng-2.png" target="_blank" rel="noopener"><img class="aligncenter wp-image-99976" src="https://files.mykcm.com/2021/11/18154530/20211123-MEM-Eng-2.png" border="0" alt="Don't Believe Everything You Read: The Truth Many Headlines Overlook | MyKCM" width="600" height="450" /></a>
Again, we see that a rise in rates didn&rsquo;t cause prices to depreciate. Outside of the years following the crash, prices continued to appreciate, just at a slower rate.
<h3>Final Thoughts</h3>
There&rsquo;s a lot of misinformation out there. If you want the best advice on what&rsquo;s happening in the current housing market, let&rsquo;s connect.
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Don’t Believe Everything You Read: The Truth Many Headlines Overlook

In today&rsquo;s housing market, the number of homes for sale is&nbsp;much lower&nbsp;than the strong buyer demand. As a result, homeowners ready to sell have a significant&nbsp;advantage. Here are three ways today&rsquo;s&nbsp;low inventory&nbsp;will set you up for a win when you sell this season.
<h4>1. Higher Prices</h4>
With so many more buyers in the market than homes available for sale, homebuyers are frequently getting into&nbsp;bidding wars&nbsp;for the houses they want to purchase. According to the latest data from the&nbsp;National Association of Realtors&nbsp;(NAR), homes are receiving an average of&nbsp;3.7 offers&nbsp;in today&rsquo;s market. This buyer competition drives&nbsp;home prices&nbsp;up. As a seller, this certainly works to your advantage, potentially netting you more for your house when you close the deal.
<h4>2. Greater Return on Your Investment</h4>
Rising prices mean homes are also gaining value, which increases the equity you have in your home. In the latest&nbsp;Homeowner Equity Insights Report,&nbsp;CoreLogic&nbsp;explains:
<blockquote>
&ldquo;In the second quarter of 2021, the average homeowner gained approximately&nbsp;$51,500 in equity during the past year.&rdquo;
</blockquote>
This year-over-year growth in&nbsp;equity&nbsp;gives you the ability to sell your house and then put that money toward a down payment on your next home, or to keep it as extra savings.
<h4>3. Better Terms</h4>
In a&nbsp;sellers&rsquo; market&nbsp;like we have today, you&rsquo;re in the driver&rsquo;s seat if you make a move. You have the power to sell on your terms, and&nbsp;buyers&nbsp;are more likely to work with you if it means they can finally land their dream home.
<h4>So, is low housing inventory a big deal?</h4>
Yes, especially if you want to sell on your terms.&nbsp;Moving&nbsp;now while inventory is so low is key to maximizing your opportunities.
<h3>Final Thoughts</h3>
If you&rsquo;re interested in taking advantage of the current sellers&rsquo; market, let&rsquo;s connect today to determine your best move.

How Sellers Win When Housing Inventory Is Low

It&rsquo;s impossible to research the subject of buying a home without coming across a headline declaring that the fall in home affordability is a crisis. However, when we add context to the most recent affordability statistics, we soon realize that, though homes are&nbsp;less affordable&nbsp;than they have been over the last few years, they are&nbsp;more affordable&nbsp;than they historically have been.
Black Knight, a premier provider of data and analytics for the mortgage industry, just released their latest&nbsp;Monthly Mortgage Monitor&nbsp;which includes a new analysis of the affordability situation. Here&rsquo;s what the report reveals:
<blockquote>
&ldquo;The monthly payment required to purchase the average priced home with a 20% down 30-year fixed rate mortgage increased by nearly 20% (+$210) over the first nine months of 2021, . . . It now requires&nbsp;21.6% of the median household income to make the monthly mortgage payment&nbsp;on the average home purchase, the least affordable housing has been since 30-year rates rose to nearly 5% back in late 2018.&rdquo;
</blockquote>
Basically, the report shows that homes are less affordable today than at any other time in the last three years. However, in a previous&nbsp;report&nbsp;earlier this year,&nbsp;Black Knight&nbsp;calculated that the percentage of the median household income to make the monthly mortgage payment on the average home purchase over the last 25 years was 23.6% (see graph below):
<a class="use_kcm_lightbox" href="https://files.mykcm.com/2021/10/13154101/20211021-MEM-Eng-1.png" target="_blank" rel="noopener"><img class="aligncenter wp-image-99586" src="https://files.mykcm.com/2021/10/13154101/20211021-MEM-Eng-1.png" border="0" alt="Important Distinction: Homes Are Less Affordable, Not Unaffordable | MyKCM" width="935" height="701" style="display: block; margin-left: auto; margin-right: auto;" /></a>
Today&rsquo;s payment-to-income ratio is more affordable than the average over the last 25 years.&nbsp;Given that context, we can see that American households still have the same ability to be homeowners as their parents did 20 years ago.
This confirms the recent&nbsp;analysis&nbsp;of&nbsp;ATTOM Data&nbsp;resources where Todd Teta, Chief Product and Technology Officer, explains:
<blockquote>
&ldquo;The typical median-priced home around the U.S. remains affordable to workers earning an average wage, despite prices that keep going through the roof. Super-low interests and rising pay continue to be the main reasons why.&rdquo;
</blockquote>
<h3>Final Thoughts&nbsp;</h3>
It&rsquo;s true that it&rsquo;s less affordable to buy a home today than it has been the last few years. However, it&rsquo;s more affordable to buy today than the average over the last 25 years. In other words, homes are less affordable, but&nbsp;they&rsquo;re not unaffordable. That&rsquo;s an important distinction.

Important Distinction: Homes Are Less Affordable, Not Unaffordable

A recent survey from&nbsp;LendingTree.com&nbsp;found there are multiple reasons why Americans would choose to purchase a home instead of&nbsp;renting. Some of the most popular&nbsp;non-financial&nbsp;reasons given include:
<ul>
<li>The flexibility to make the space your own</li>
<li>The pride homeownership offers</li>
<li>The sense of stability</li>
</ul>
In the same survey, 41% of respondents say they&rsquo;d rather own a home than rent because of the unique way&nbsp;homeownership&nbsp;builds wealth&nbsp;over time.
And experts agree &ndash; the home you own is an important tool for building your net worth.&nbsp;Here&rsquo;s what many of those experts have to say about building long-term financial stability through homeownership.
According to the&nbsp;National Association of Realtors&nbsp;(NAR):
<blockquote>
&ldquo;Homeowners who purchased a typical single-family existing-home 30 years ago at the median sales price of $103,333 with a 10% down payment loan and who sold the property at the median sales price of $357,700 in 2021 Q2&nbsp;accumulated housing wealth of $349,258, . . .&rdquo;
</blockquote>
Mark Fleming, Chief Economist at&nbsp;First American, points out that&nbsp;a home is truly a one-of-a-kind asset.&nbsp;It&rsquo;s the only asset that&rsquo;s both an investment and a place for you to call your own.
<blockquote>
&ldquo;The major financial advantage of homeownership is the&nbsp;accumulation of equity in the form of house price appreciation.&nbsp;. . . We won&rsquo;t always have 17% house price appreciation, but we have to take into account&nbsp;the fact that the shelter that you&rsquo;re owning is an equity-generating or wealth-generating asset.&rdquo;
</blockquote>
Homeowners can leverage the wealth they generate in several ways throughout their life. Tapping into accumulated equity has long been used to pay for the cost of education, to start a business, or to fund various other expenses. The Joint Center of Housing Studies&nbsp;at&nbsp;Harvard&nbsp;points out:
<blockquote>
&ldquo;. . . by paying down mortgage principal each month and participating in the long-term appreciation of home values, a family can build wealth that can be&nbsp;used for retirement or other needs, including helping the next generation.&rdquo;
</blockquote>
<h3>Final Thoughts&nbsp;</h3>
With home prices expected to continue to appreciate in coming years, homebuyers have an opportunity to start the long-term wealth-building process right now. Let&rsquo;s connect today if you&rsquo;re ready to begin your journey on the path to becoming a homeowner.

 Experts Agree: Homeownership Provides a Path to Long-Term Wealth

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