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Sept. 20, 2021

Is It Time To Move on to a New Home?

Thinking of selling your home.  #GivePaulaCall #BettercallPaul

 

Is It Time To Move on to a New Home?

Is It Time To Move on to a New Home? | MyKCM

If you’ve been in your home for longer than five years, you’re not alone. According to recent data from First American, homeowners are staying put much longer than historical averages (see graph below):Is It Time To Move on to a New Home? | MyKCMAs the graph shows, before 2008, homeowners sold their houses after an average of just five years. Today, that number has more than doubled to over 10 years. The housing industry refers to this as your tenure.

To really explore tenure, it’s important to understand what drives people to make a move. An article from The Balance explores some of the primary reasons individuals choose to sell their houses. It says:

“People who move for home-related reasons might need a larger home or a house that better fits their needs, . . . Financial reasons for moving include wanting a nicer home, moving to a newer home to avoid making repairs on the old one, or cashing in on existing equity.”

If you’ve been in your home for longer than the norm, chances are you’re putting off addressing one, if not several, of the reasons other individuals choose to move. If this sounds like you, here are a few things to consider:

If your needs have changed, it may be time to re-evaluate your home.

As the past year has shown, our needs can change rapidly. That means the longer you’ve been in your home, the more likely it is your needs have evolved. The Balance notes several personal factors that could lead to your home no longer meeting your needs, including relationship and job changes.

For example, many workers recently found out they’ll be working remotely indefinitely. If that’s the case for you, you may need more space for a dedicated home office. Other homeowners choose to sell because the number of people living under their roof changes. Now more than ever, we’re spending more and more time at home. As you do, consider if your home really delivers on what you need moving forward.

It’s often financially beneficial to sell your house and move.

One of the biggest benefits of homeownership is the equity your home builds over time. If you’ve been in your house for several years, you may not realize how much equity you have. According to the latest Homeowner Equity Report from CoreLogic, homeowners gained an average of $33,400 in equity over the past year.

That equity, plus today’s low mortgage rates, can fuel a major upgrade when you sell your home and purchase a new one. Or, if you’re looking to downsize, your equity can help provide a larger down payment and lower your monthly payments over the life of your next loan. No matter what, there are significant financial benefits to selling in today’s market.

Bottom Line

If you’ve been in your home for 5-10 years or more, now might be the time to explore your options. Today’s low rates and your built-up equity could provide you with the opportunity to address your evolving needs. If you feel it’s time to sell, let’s connect.

Aug. 24, 2021

What Do Experts Say About Today's Mortgage Rates?

Mortgage rates hover near record lows today, but experts forecast they’ll rise in the coming months. Give me a call to purchase your home before they do!      #BetterCallPaul #TimetoCallPaul #PaulRuthTeam

What Do Experts Say About Today’s Mortgage Rates?

What Do Experts Say About Today’s Mortgage Rates? | MyKCM

Mortgage rates are hovering near record lows, and that’s good news for today’s homebuyers. The graph below shows mortgage rates dating back to 2016 and where today falls by comparison.What Do Experts Say About Today’s Mortgage Rates? | MyKCMGenerally speaking, when rates are low, you can afford more home for your money. That’s why experts across the industry agree – today’s low rates present buyers with an incredible opportunity. Here’s what they have to say:

Sam Khater, Chief Economist at Freddie Macpoints out the historic nature of today’s rates:

“As the economy works to get back to its pre-pandemic self, and the fight against COVID-19 variants unfolds, owners and buyers continue to benefit from some of the lowest mortgage rates of all-time.”

Mark Fleming, Chief Economist at First Americantalks about how rates impact a buyer’s bottom line:

“Mortgage rates are generally the same across the country, so a decline in mortgage rates boosts affordability equally in each market.”

Danielle Hale, Chief Economist at realtor.com, also notes the significance of today’s low rates and urges buyers to carefully consider their timing:

Those who haven’t yet taken advantage of low rates to buy a home or refinance still have the opportunity to do so this summer.”

Hale goes on to say that buyers who don’t act soon could see higher rates in the coming months, negatively impacting their purchasing power:

“We expect mortgage rates to fluctuate near historic lows through the summer before beginning to climb this fall.”

And while mortgage rates are still low today, the data from Freddie Mac indicates rates are fluctuating ever so slightly right now, as they moved up one week before inching slightly back down in their latest release. It’s important to keep in mind the influence rates have on your monthly mortgage payment.

Even small increases can have a big impact on what you pay each month. Trust the experts. Today’s rates give you opportunity and flexibility in what you can afford. Don’t wait on the sidelines and hope for a better rate to come along; the rates we’re seeing today are worth capitalizing on.

Bottom Line

Mortgage rates hover near record lows today, but experts forecast they’ll rise in the coming months. Waiting could prove costly when that happens. Let’s connect today to discuss today’s rates and determine if now’s the time for you to buy.

Aug. 20, 2021

Options for First-time Homebuyers

With the housing market this competitive, sometimes you have to think outside the box. Let's connect so you can stayup-to-date on all your options and what other first-time buyers are doing to find their homes.  940-300-1887    #BetterCallPaul #firsttimehomebuyers #paulruthteam 

Options for First-Time Homebuyers

Options for First-Time Homebuyers [INFOGRAPHIC] | MyKCM

Some Highlights

  • With a housing market this competitive, sometimes you have to think outside the box.
  • Work with your trusted real estate advisors to do things like assess your budgetexpand your search radius, look into other options, and determine your true needs.
  • If you're having trouble finding your first home, let’s connect to explore your options. It's out there!
Aug. 16, 2021

A Look at Home Price Appreciation and What It Means for Sellers

\Wondering about your Biggest Investment?  #BetterCallPaul 

A Look at Home Price Appreciation and What It Means for Sellers

A Look at Home Price Appreciation and What It Means for Sellers | MyKCM

When you hear the phrase home price appreciation, what does it mean to you? Through context clues alone, chances are you know it has to do with rising home prices. And as a seller, you know rising home prices are good news for your potential sale. But let’s look past the dollar signs and dive deeper into the concept. To truly understand home price appreciation, you need to know how it works and why it matters to you.

Investopedia defines appreciation like this:

Appreciation, in general terms, is an increase in the value of an asset over time. The increase can occur for a number of reasons, including increased demand or weakening supply, or as a result of changes in inflation or interest rates. This is the opposite of depreciation, which is a decrease in value over time.” 

When we consider this definition and how it applies to real estate, a few words stick out: supply and demand. In today’s real estate market, we’re experiencing high buyer demand and very few sellers listing their homes for sale (see maps below):A Look at Home Price Appreciation and What It Means for Sellers | MyKCMNo matter the industry, anytime there’s more demand than supply, prices naturally rise. It happens because buyers are willing to pay more to secure the scarce product or service they’re looking for. That’s exactly what’s happening in today’s real estate market. Buyers are competing with one another to purchase a home, leading to bidding wars that drive prices up. For sellers, the rising prices mean that opportunity is knocking.

According to Quicken Loans, the national average home price appreciation rate is between 3-5% in a typical year. Today, home prices are appreciating well beyond the norm thanks to high demand. Here are the latest expert projections on the rate of home price appreciation for this year (see chart below):A Look at Home Price Appreciation and What It Means for Sellers | MyKCM

Compared to the normal pace of 3-5% appreciation per year, the current average forecast of nearly 11.5% is significant.

For sellers, this means that with the current rise in prices, your house may be worth more than you realize. That price appreciation helps give your equity a boost. Equity is the difference between what you owe on the home and its market value based on factors like price appreciation. It works like this (see chart below):A Look at Home Price Appreciation and What It Means for Sellers | MyKCMYou can use your built-up equity to power a move into your dream home, or you can put it toward life-changing goals like funding an education or opening a business.

But don’t wait. While price appreciation is strong now, those same experts say it’ll start to appreciate at a more normalized pace next year. If you list your house sooner rather than later, you’ll be in a better position to capitalize on the higher-than-average home price appreciation we’re seeing today.

Bottom Line

If you’re thinking of selling your house, there really is no time like the present. Let’s connect so you can get an expert market analysis of your home and its potential.

Aug. 2, 2021

Key Questions To Ask Yourself Before Buying a Home

Key Questions To Ask Yourself Before Buying a Home

Key Questions To Ask Yourself Before Buying a Home | MyKCM

Sometimes it can feel like everyone has advice when it comes to buying a home. While your friends and loved ones may have your best interests in mind, they may also be missing crucial information about today’s housing market that you need to make your best decision.

Before you decide whether you’re ready to buy a home, you should know how to answer these three questions.

1. What’s Going on with Home Prices?

Home prices are one factor that directly impacts how much it will cost to buy a home and how much you stand to gain as a homeowner when prices appreciate.

The graph below shows just how much experts are forecasting prices to rise this year:Key Questions To Ask Yourself Before Buying a Home | MyKCMContinued price appreciation is great news for existing homeowners but can pose a significant challenge if you wait to buyUsing these forecasts, you can determine just how much waiting could cost you. If prices increase based on the average of all forecasts (12.46%), a median-priced home that cost $350,000 in January of 2021 will cost an additional $43,610 by the end of the year. What does this mean for you? Put simply, with home prices increasing, the longer you wait, the more it could cost you.

2. Are Today’s Low Mortgage Rates Going To Last?

Another significant factor that should inform your decision is mortgage interest rates. Today’s average rates remain close to record-lows. Much like prices, though, experts forecast rates will rise over the coming months, as the chart below shows:Key Questions To Ask Yourself Before Buying a Home | MyKCMYour monthly mortgage payment can be significantly impacted by even the slightest increase in mortgage rates, which makes the overall cost of the home greater over time when you wait.

3. Why Is Homeownership Important to You?

The final question is a personal one. Before deciding, you’ll need to understand your motivation to buy a home and why homeownership is an important goal for you. The financial benefits of owning a home are often easier to account for than the many emotional ones.

The 2021 National Homeownership Market Survey shows that six of the nine reasons Americans value homeownership are because of how it impacts them on a personal, aspirational level. The survey says homeownership provides:

  • Stability
  • Safety
  • A Sense of Accomplishment
  • A Life Milestone
  • A Stake in the Community
  • Personal Pride

The National Housing & Financial Capability Survey from NeighborWorks America also highlights the emotional benefits of homeownership:Key Questions To Ask Yourself Before Buying a Home | MyKCMClearly, there’s a value to homeownership beyond the many great financial opportunities it provides. It gives homeowners a sense of pride, safety, security, and accomplishment – which impacts their lives and how they feel daily.

Bottom Line

Homeownership is life-changing, and buying a home can positively impact you in so many ways. With any decision this big, it helps to have a trusted advisor by your side each step of the way. If you’re ready to begin your journey toward homeownership, let’s connect to discuss your options and begin your journey.

 

GIve Paul a call to ask your Key Questions about home purchasing.  940-300-1887 Cell   #BetterCallPaul

July 30, 2021

Waiting To Buy a Home Could Cost You.

Waiting To Buy a Home Could Cost You 

Waiting To Buy a Home Could Cost You [INFOGRAPHIC] | MyKCM

Some Highlights

  • If you’re thinking of buying a home but wondering if waiting a few years will save you in the long run, think again.
  • The longer the wait, the more you’ll pay, especially when mortgage rates and home prices rise. Even the slightest change in the mortgage rate can have a big impact on your buying power no matter your price point.
  • Don’t assume waiting will save you money. Let’s connect to set the ball into motion today while mortgage rates are hovering near historic lows.

 

Don't wait to buy your next home.  Give me a call!  #BetterCall Paul

Posted in Move Up Buyers
July 14, 2021

Housing Supply is Rising. What does that mean to you?

 

Housing Supply Is Rising. What Does That Mean for You?

Housing Supply Is Rising. What Does That Mean for You? | MyKCM

An important factor in today’s market is the number of homes for sale. While inventory levels continue to sit near historic lows, there are indications we may have hit the lowest point we’ll see. Odeta Kushi, Deputy Chief Economist at First American, recently said of our supply challenges:

It looks like inventory may have hit a bottom (we’ve seen this in the higher frequency data as well). Unsold inventory in May was at 2.5 months supply, up from 2.4.

To put it into perspective, the graph below shows levels of inventory rising since the beginning of the year:Housing Supply Is Rising. What Does That Mean for You? | MyKCMWe’re still not close to a balanced market, which would be a 6 months’ supply of homes for sale. However, we are seeing a slow but steady increase in homes coming up for sale. And that leaves many buyers and sellers wondering the same thing: what does that mean for me?

Buyers: More Options Are Arriving, so It’s Time To Act

If you’re a buyer, more inventory coming to market is a welcome sight. More supply means more options and less competition, which could mean fewer bidding wars.

According to the latest Monthly Housing Market Trends Report, supply levels are continuing to increase, which is different from the typical summer market:

“In June, newly listed homes grew by 5.5% on a year-over-year basis, and by 10.9% on a month-over-month basis. Typically, fewer newly listed homes appear on the market in the month of June compared to May. This year, growth in new listings is continuing later into the summer season, a welcome sign for a tight housing market.

If you’re having trouble finding your next home, this news should give you the hope and motivation to keep your buying process moving forward. Experts project mortgage rates will begin increasing, which will make purchasing a home less affordable as time passes. You can still capitalize on today’s low interest rates, so stick with your search as more homes come to market.

Sellers: Our Supply Challenges Aren’t Over Yet, so Now Is the Time To Sell

If you’ve been putting off selling your house, you shouldn’t wait much longer. The year’s month-over-month gains in homes for sale have helped buyers, but we’re still very much in a sellers’ market.

As the graph below shows, even with the number of homes for sale rising, we’re still well below the supply levels we’ve seen historically:Housing Supply Is Rising. What Does That Mean for You? | MyKCMOf course, more homes are coming to market now, and more are expected in the coming months. Selling your house this summer gives you the chance to get ahead of the competition and maximize your sales potential before more homes are put up for sale in your neighborhood.

Bottom Line

More homes for sale means more options for buyers and more competition for sellers. Whether you’re looking to buy or sell, let’s connect today to discuss your options and why it’s still a good time to make your move.

 



The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein
Posted in Home Buyers
May 26, 2021

Buying a Home Is Still Affordable

Buying a Home Is Still Affordable

Buying a Home Is Still Affordable | MyKCM

The last year has put emphasis on the importance of one’s home. As a result, some renters are making the jump into homeownership while some homeowners are re-evaluating their current house and considering a move to one that better fits their current lifestyle. Understanding how housing affordability works and the main market factors that impact it may help those who are ready to buy a home narrow down the optimal window of time in which to make a purchase.

There are three main factors that go into determining how affordable homes are for buyers:

  1. Mortgage Rates
  2. Mortgage Payments as a Percentage of Income
  3. Home Prices

The National Association of Realtors (NAR) produces a Housing Affordability Index. It takes these three factors into account and determines an overall affordability score for housing. According to NAR, the index:

“…measures whether or not a typical family earns enough income to qualify for a mortgage loan on a typical home at the national and regional levels based on the most recent price and income data.”

Their methodology states:

“To interpret the indices, a value of 100 means that a family with the median income has exactly enough income to qualify for a mortgage on a median-priced home. An index above 100 signifies that family earning the median income has more than enough income to qualify for a mortgage loan on a median-priced home, assuming a 20 percent down payment.”

So, the higher the index, the more affordable it is to purchase a home. Here’s a graph of the index going back to 1990:Buying a Home Is Still Affordable | MyKCMThe blue bar represents today’s affordability. We can see that homes are more affordable now than they’ve been at any point since the housing crash when distressed properties (foreclosures and short sales) dominated the market. Those properties were sold at large discounts not seen before in the housing market for almost one hundred years.

Why are homes so affordable today?

Although there are three factors that drive the overall equation, the one that’s playing the largest part in today’s homebuying affordability is historically low mortgage rates. Based on this primary factor, we can see that it’s more affordable to buy a home today than at any time in the last eight years.

If you’re considering purchasing your first home or moving up to the one you’ve always hoped for, it’s important to understand how affordability plays into the overall cost of your home. With that in mind, buying while mortgage rates are as low as they are now may save you quite a bit of money over the life of your home loan.

Bottom Line

If you feel ready to buy, purchasing a home this summer may save you a significant amount of money over time based on historical affordability trends. Let’s connect today to determine if now is the right time for you to make your move.

Feb. 19, 2021

Water Heater Maintenance For Homeowners

Storage tank water heaters are the type of appliance that can hum along for years. Once installed, they don't need constant attention. However, they do require maintenance to keep them running at peak efficiency. These are mostly simple tasks that you can do yourself, but you can also hire a pro to perform regular maintenance for you. Here are some tips on how you can keep your water heater working proficiently, and how often it will need maintenance.

Understanding Your Water Heater

Be sure to review the owner's manual that came with your water heater. It usually spells out necessary maintenance tasks, as well as other important information, such as safety precautions and size specifications. When in doubt, refer to the manual. If you can't find the manual, check the manufacturer's website for instructions on obtaining a copy.

Consult a professional before attempting any maintenance tasks, and make sure that the water line and the power to the water heater are safely shut off before beginning.

Ongoing Maintenance

Keep the area around the water heater free of clutter. Gas heaters have vents at the bottom that must be kept clear to aid in the heating element combustion. Never store anything with flammable vapors, such as gasoline or paint thinner, near a gas water heater. Providing a clear space around the appliance makes it easy to get to the water shutoff in an emergency. It also gives repairmen room to work on the heater, should a service call be necessary.

Every Few Months

Drain some of the tank's water to remove the sediment that collects on the bottom of the tank. All incoming water contains sediment that, over time, can hinder the performance of your water heater. The amount you need to drain will depend on the condition of the water.
  1. Shut off the power. For electric heaters, shut the unit down completely. For gas heaters, move the control dial to "pilot".
  2. Turn off the cold water supply to the tank.
  3. Connect a garden hose to the drain valve located near the bottom of the tank, and then run the hose to a drain.
  4. Open a hot water faucet in a nearby sink and leave it open.
  5. Open the water heater's drain valve. Caution: Be careful. The water will be very hot.
  6. Drain the tank until the water runs clear. This may take a few minutes or longer.
  7. Once the water is clear, close the drain valve and turn on the water supply. You'll know the tank is full when water is flowing through the faucet you left open earlier.
  8. When the tank is full, turn the power back on.
Pro Tip: Plumbers will often turn the water on and off a few times to help stir up the sediment at the bottom of the tank.

The frequency of this procedure will depend on the condition of your water. If the water is perfectly clear from the start, you probably don't need to drain your tank often. If the water is very dirty, you may need to drain it more frequently.

Annually

Test the temperature/pressure-relief valve. It's located near the top of the storage tank and should be attached to a long tube that extends almost to the bottom of the tank. The valve is designed to relieve pressure that builds up above acceptable levels inside the tank.
  1. Place a small bucket under the extension tube.
  2. Lift the valve up, and then push the lever back into position to close the valve. Caution: Stand back because hot water will be released from the valve.
  3. If there is no release of pressure in the form of air and/or water, the valve may be defective. Consult a plumber to have it fixed.
Check to make sure the venting system is operating properly on your gas water heater. On top of the tank is a draft hood raised above the flue, which is located inside the tank. The hood should be attached to connectors that run to the chimney. If the flue is not drawing adequately, gases that should be going up the chimney could be lingering into the room.

Turn the temperature controls up so that the burner starts. Wait a few minutes to give the unit time to get going. Place your fingers near the opening between the hood and the top of the tank. If you feel air brush across your fingers and up the draft hood, the flue is drawing properly, so you can reset the water to normal operating temperature.

If you don't feel air, the flue may not be drawing. Black soot around the top of the tank and the vent hood is also a sign that system is not venting properly. There could be a couple of reasons for the problem, including blockage in the exhaust flu. To be safe, shut down the unit and call in a professional to inspect the system.

Every Few Years

Check the anode rod, and replace it, if necessary. The rod is usually made of aluminum, magnesium, zinc, or a combination of corrodible metals, and is suspended inside the tank. Its purpose is to attract any corrosive elements in the water. The theory is that any corrosion that attacks the rod will not attack the inside walls of the tank. Eventually, corrosion will get the best of the rod, and a new one must take its place.
  1. Turn off the power to the water heater, and shut off the water.
  2. Drain off 4 or 5 gallons of water through the drain valve. This will help prevent water splashing up on you as you remove the rod. It is not necessary to drain the entire tank.
  3. Locate the rod. It's often threaded to the top of the tank. You may see it right away, or you may need to consult your manual for its location.
  4. To remove the rod, you will need a ratchet with a 1-1/16-inch socket. Have a helper hold the tank steady while you loosen the rod, and then carefully pull it out
  5. If there are sections of the rod missing, you should replace the rod. If necessary, cut the new rod to match the size of the old one. Apply some plumber's tape to the threads of the new rod, and then carefully lower it into the tank and tighten it.
  6. Turn the water on and wait for the tank to fill up again. Then, turn the power to the water heater back on.
Keeping your water heater running at optimal performance can save you from needing to replace the unit more often than necessary. Performing regular maintenance will ultimately help extend the life of your water heater, which should be a priority for all homeowners.
 
I hope this finds you well and as always, please contact me if you or anyone you know needs has any Real Estate related questions,

Paul Ruth
Team Leader – Paul Ruth Team
RE/MAX Dallas Suburbs
REALTOR
® IRES CDPE – Zillow Premier Agent
RE/MAX Hall of Fame - Class of 2016
Check out my reviews on Zillow
940-300-1887 Cell
paul@paulruthteam.com
www.PaulRuthTeam.com

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This year someone you know will fall in love and get married, celebrate the birth of a child, take a job transfer to a distant city, be promoted to the corner office, or finally become an empty nester! I welcome the opportunity to represent your friends and family at each of life’s important milestones!

Posted in Owners
Feb. 19, 2021

Home Service Checklist

Home Service Check List !

Home Service Checklist

Posted in Owners