Living In DFW

What You Should Know About Rising Mortgage Rates

After steadily falling over the winter, mortgage rates have started to rise in recent weeks. This is concerning to some potential homebuyers as the combination of higher mortgage rates and higher prices have made homes less affordable. So, if you’re planning to purchase a home this year, you too may be wondering if now’s the right time to buy or if you should hold off on your search until rates come back down.

The recent uptick in rates has been driven by what’s happening with inflation. Joel Kan, Vice President and Deputy Chief Economist at the Mortgage Bankers Association (MBA), explains:

“Mortgage rates increased across the board last week, pushed higher by market expectations that inflation will persist, thus requiring the Federal Reserve to keep monetary policy restrictive for a longer time.”

The most recent weekly average 30-year fixed mortgage rate reported by Freddie Mac is 6.5%. It’s the third week in a row that rates have increased and puts them at the highest point they’ve been this year (see graph below):

Advice for Home Shoppers

If you’re thinking about pausing your home search because rates have started to go up again, you may want to reconsider. This could actually be an opportunity to buy the home you’ve been searching for. According to the MBA, mortgage applications declined by 13.3% in just one week, so it appears the rise in mortgage rates is leading some potential homebuyers to pull back on their search for a new home.

So, what does that mean for you? If you stay the course, you’ll likely face less competition among other buyers when you’re looking for a home. This is welcome relief in a market that has so few homes for sale.

Bottom Line

Over the last few weeks, mortgage rates have risen. But that doesn’t mean you should delay your plans to buy a home. In fact, it could mean the opposite if you want to take advantage of less buyer competition. Let’s connect today to explore the options in our local market.

Free Buyer Guide

Free Seller Guide

45 Easy Ways to Sell Your Home Faster

Robin McCoy is a Texas Realtor with Keller Williams Realty. License #0582766
RobinMcCoyRealty.com | 214.226.3770 | RobinMcCoy@kw.com

The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Robin McCoy Realty Group and Living in DFW 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. Robin McCoy Realty Group and Living in DFW will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.

Potential Plumbing Problems

It’s important to know how to tell when you have a plumbing problem so that you can address small issues before they become bigger ones. When pipes are left unchecked over time, some common occurrences are exuberant water bills, permanent water damage, the spread of harmful mold, and bursting pipes and sewer lines. The following are some things to look for to tell if you have a plumbing issue that needs attention.

Your faucet is making strange noises

A loud sound like a screech when you use the tap is a sign there is air in your pipes that signifies something is not right with your bleed-off system. This system allows fresh water to enter while reducing the buildup of mineral concentrations.

Unpleasant smell in the drain

If you only detect a rotten smell in the kitchen sink drain, this could be due to lodged decaying food fragments. However, if the odor comes from all your drains, your drain vent may be clogged, allowing sewer gas to back up into your pipes. Consult with a professional plumber to pinpoint the problem.

Low water pressure

Several issues could be causing this, such as a leak, a clog in multiple places, or inadequately-sized pipes that provide poor water pressure.

Discoloration in the water and pipes

Your pipes could be corroded if your water is yellow, green, or brown. White, green, and red hues indicate corrosion, rust, or a slow leak. Lines should be inspected twice yearly for discoloration, a sign of wear and tear.

Bottom Line

Be sure to stay alert to signs of problems with your plumbing. You can avoid further or more extensive damage by paying attention to the signs early and calling a professional before the issues get worse or cause consequential damage.

Free Buyer Guide

Free Seller Guide

45 Easy Ways to Sell Your Home Faster

Robin McCoy is a Texas Realtor with Keller Williams Realty. License #0582766
RobinMcCoyRealty.com | 214.226.3770 | RobinMcCoy@kw.com

One Major Benefit of Investing in a Home

One of the many reasons to buy a home is that it’s a major way to build wealth and gain financial stability. According to Freddie Mac:

“Building equity through your monthly principal payments and appreciation is a critical part of homeownership that can help you create financial stability.”

With spring approaching, now’s a great time to consider if buying a home makes sense for you. The best way to figure that out is to talk with a trusted real estate professional.

The Largest Part of Most Homeowners’ Net Worth Is Their Equity

You may be surprised to learn just how much of a homeowner’s net worth actually comes from owning their home. The National Association of Realtors (NAR) shares:

“Homeownership is the largest source of wealth among families, with the median value of a primary residence worth about ten times the median value of financial assets held by families. Housing wealth (home equity or net worth) gains are built up through price appreciation and by paying off the mortgage.”

In other words, home equity does more to build the average household’s wealth than anything else. And according to data from First American, this holds true across different income levels (see graph below):

Bottom Line

One of the biggest benefits of owning a home, regardless of your income level, is that it provides financial stability and an avenue to build wealth. Let’s connect today so you can start investing in homeownership.

Free Buyer Guide

Free Seller Guide

45 Easy Ways to Sell Your Home Faster

Robin McCoy is a Texas Realtor with Keller Williams Realty. License #0582766
RobinMcCoyRealty.com | 214.226.3770 | RobinMcCoy@kw.com

A Smaller Home Could Be Your Best Option

Many people are reaching the point in their lives when they need to decide where they want to live when they retire. If you’re a homeowner approaching this stage, you have several options to explore. Jessica Lautz, Deputy Chief Economist and Vice President of Research at the National Association of Realtors (NAR), says:

“As we see the transition of the large Baby Boomer generation age into retirement, it will be interesting to see if they move in with their Millennial and Gen Z children or if they stay put in their own homes.”

Lautz lists two options: move into a multigenerational home with loved ones, or stay in your current house. Multigenerational living is rising in popularity, but it isn’t an option for everyone. And staying put may fit fewer and fewer of your needs. There’s a third option though, and for some, it’s the best one: downsizing.

When you sell your house and purch a se a smaller one, it’s known as downsizing. Sometimes smaller homes are more suited to your changing needs, and moving means you can also land in your ideal location.

In addition to the personal benefits, downsizing might be more cost effective, too. The New York Times (NYT) shares:

“Many downsizers expect to improve their retirement income stream if their new home costs less than what their old house sells for. Lower utility costs, insurance and property taxes — as well as investment returns on the proceeds — can also improve the bottom line.”

Being in a strong financial position is one of the most important parts of retirement, and downsizing can make a big difference.

A key part of why downsizing is still cost effective today, even when mortgage rates are higher than they were a year ago, is the record-high level of equity homeowners have. Leveraging your equity when you downsize can lower or maybe even eliminate the mortgage payment on your next home.

So, not only is the upkeep of a smaller home likely more affordable, but leveraging your home equity could make a big difference too. Your local real estate advisor is the best resource to help you understand how much equity you may have in your current home and what options it can provide for your next move.

Bottom Line

If you’re a homeowner getting ready for retirement, part of that transition likely includes deciding where you’ll live. Let’s connect so you can understand your options and explore your downsizing opportunities.

Free Buyer Guide

Free Seller Guide

45 Easy Ways to Sell Your Home Faster

Robin McCoy is a Texas Realtor with Keller Williams Realty. License #0582766
RobinMcCoyRealty.com | 214.226.3770 | RobinMcCoy@kw.com

Exterior Home Hazards

Although we may pay attention to maintenance and safety needs inside the house, outside hazards such as falling tree limbs, mold, infestations, and foundation issues can get overlooked, leading to costly repairs and possible injury. Here are some common risks to look for and tips for keeping your exterior property safe.

Wear and tear on wooden structures and supports

Wood that is split and rotted on decks, porches, or steps can splinter or crack can create hazards. Check for signs of moisture or brittleness and replace as needed. If you notice swaying or shifting, your support beams could be damaged and may need to be shored up or rebuilt. Inspect for loose nails and handrails; remove and repair as required. Consider a professional inspection. You don’t want to have an incident where your porch or deck gives out during heavy snow or outdoor gathering on the deck.

Overgrowth

Falling branches, overgrown bushes, and climbing vines can damage siding. Older trees with low-hanging branches should be monitored and removed if needed. Roots can dig along the foundation, putting pressure on foundation walls or penetrating and expanding cracks. Do not plant trees too close to the house; regularly manicure hedges and other growth. This practice will also help minimize insect, bird, and animal infestations.

Standing water

Water that pools around your foundation can breed mold and or cause structural issues. Makes sure water is draining away from the foundation including runoff from downspouts. Grade all areas around the property to ensure water is not running along the foundation. If the property slopes towards the house, consider adding a swale or French drain to direct water away.

Smoke and Flames

Your grill and firepit can contribute to fun pastimes on your patio or backyard but can also be dangerous if too close to the property. Keep these items at least 10 feet from your home, shed, and other structures. Check local codes to ensure you are meeting all local requirements.

Bottom Line

The outside of your home should be kept as safe and well-tended as the inside, especially since it is constantly exposed to the elements. Take the time to survey all exterior areas at least 4 times per year to stay ahead of any issues to ensure you can safely enjoy your home inside and out.

Free Buyer Guide

Free Seller Guide

45 Easy Ways to Sell Your Home Faster

Robin McCoy is a Texas Realtor with Keller Williams Realty. License #0582766
RobinMcCoyRealty.com | 214.226.3770 | RobinMcCoy@kw.com

The Two Big Issues the Housing Market’s Facing Right Now

The biggest challenge the housing market’s facing is how few homes there are for sale. Mark Fleming, Chief Economist at First American, explains the root causes of today’s low supply:

“Two dynamics are keeping existing-home inventory historically low – rate-locked existing homeowners and the fear of not finding something to buy.”

Let’s break down these two big issues in today’s housing market.

Rate-Locked Homeowners

According to the Federal Housing Finance Agency (FHFA), the average interest rate for current homeowners with mortgages is less than 4% (see graph below):

But today, the typical mortgage rate offered to buyers is over 6%. As a result, many homeowners are opting to stay put instead of moving to another home with a higher borrowing cost. This is a situation known as being rate locked.

When so many homeowners are rate locked and reluctant to sell, it’s a challenge for a housing market that needs more inventory. However, experts project mortgage rates will gradually fall this year, and that could mean more people will be willing to move as that happens.

The Fear of Not Finding Something To Buy

The other factor holding back potential sellers is the fear of not finding another home to buy if they move. Worrying about where they’ll go has left many on the sidelines as they wait for more homes to come to the market. That’s why, if you’re on the fence about selling, it’s important to consider all your options. That includes newly built homes, especially right now when builders are offering concessions like mortgage rate buydowns.

What Does This Mean for You?

These two issues are keeping the supply of homes for sale lower than pre-pandemic levels. But if you want to sell your house, today’s market is a sweet spot that can work to your advantage.

Be sure to work with a local real estate professional to explore the options you have right now, which could include leveraging your current home equity. According to ATTOM:

“. . . 48 percent of mortgaged residential properties in the United States were considered equity-rich in the fourth quarter, meaning that the combined estimated amount of loan balances secured by those properties was no more than 50 percent of their estimated market values.”

This could make a major difference when you move. Work with a local real estate expert to learn how putting your equity to work can keep the cost of your next home down.

Bottom Line

Rate-locked homeowners and the fear of not finding something to buy are keeping housing inventory low across the country. But as mortgage rates start to come down this year and homeowners explore all their options, we should expect more homes to come to the market.

Free Buyer Guide

Free Seller Guide

45 Easy Ways to Sell Your Home Faster

Robin McCoy is a Texas Realtor with Keller Williams Realty. License #0582766
RobinMcCoyRealty.com | 214.226.3770 | RobinMcCoy@kw.com

New Construction in the Spring Market with Megan Reeves

In “New Construction in the Spring Market with Megan Reeves”, I’m back with Megan Reeves of Pacesetter Homes, talking about new construction just in time for the spring market. We’ve seen lots of changes in the housing market, at least in DFW (and probably most other places as well), within the last six months, and Megan is going to give us the lowdown on the new construction market today.

Megan grew up in Real Estate but started working in new home construction in 2014. She’s worked for a handful of different builders but has been working for Pacesetter Homes since mid-2020 and can’t say enough great things about their management team and ethos. She actually lives in a Pacesetter Home with her husband and their 3 fur babies, and they absolutely love it there.

Megan says that in January of this year, she sold more homes than in her entire first year in New Home Sales, indicating that more homebuyers are looking for new construction homes vs older homes.

How does the market differ now that spring of 2023 has passed? Call me, let’s have a discussion about it.
_______________________________________
Megan Reeves: Pacesetter Homes
Facebook: Megan Reeves
Instagram: @megan.sells.new.homes.dfw
Email: megan.reeves@pacesetterhomes.com
_______________________________________

Free Buyer Guide

Free Seller Guide

45 Easy Ways to Sell Your Home Faster

Robin McCoy is a Texas Realtor with Keller Williams Realty. License #0582766
RobinMcCoyRealty.com | 214.226.3770 | RobinMcCoy@kw.com

Spring into Action: Boost Your Home’s Curb Appeal with Expert Guidance

To sell your home this spring, it may need more preparation than it would have a year or two ago. Today’s housing market has a different feel. There are more homes for sale than there were at this time last year, but inventory is still historically low. So, if a house has been sitting on the market for a while, that’s a sign it may not be hitting the mark for potential buyers. But here’s the thing. Right now, homes that are updated and priced at market value are still selling fast.

Today, homes with curb appeal that are presented well are still selling quickly, and sometimes over asking price. According to Danielle Hale, Chief Economist at realtor.com:

“In a market where costs are still high and buyers can be a little choosier, it makes sense they’re going to really zero in on the homes that are the most appealing.”

With the spring buying season just around the corner, now’s the time to start getting your house ready to sell. And the best way to determine where to spend your time and money is to work with a trusted real estate agent who can help you understand which improvements are most valuable in your local market.

Curb Appeal Wins

One way to prioritize updates that could bring a good return on your investment is to find smaller projects you can do yourself. Little updates that boost your curb appeal usually work well. Investopedia puts it this way:

“Curb-appeal projects make the property look good as soon as prospective buyers arrive. While these projects may not add a considerable amount of monetary value, they will help your home sell faster—and you can do a lot of the work yourself to save money and time.”

Small cosmetic updates, like refreshing some paint and power washing the exterior of your home, create a great first impression for buyers and help it stand out. Work with a real estate professional to find the low-cost projects you can tackle around your house that will appeal to buyers in your area.

Not All Updates Are Created Equal

When deciding what you need to do to your house before selling it, remember you’re making these repairs and updates for someone else. Prioritize projects that will help you sell faster or for more money over things that appeal to you as a homeowner.

The 2022 Remodeling Impact Report from the National Association of Realtors (NAR) highlights popular home improvements and what sort of return they bring for the investment (see graph below):

Spring into Action: Boost Your Home’s Curb Appeal with Expert Guidance | MyKCM

Remember to lean on your trusted real estate advisor for the best advice on the updates you should invest in. They’ll know what local buyers are looking for and have the latest insights of what your house needs to sell quickly this spring.

Bottom Line

As we approach the spring season, now’s the time to get your house ready to sell. Let’s connect today so you can find out which updates make the most sense.

Free Buyer Guide

Free Seller Guide

45 Easy Ways to Sell Your Home Faster

Robin McCoy is a Texas Realtor with Keller Williams Realty. License #0582766
RobinMcCoyRealty.com | 214.226.3770 | RobinMcCoy@kw.com

Young Entrepreneur Success Story with Ashley Rucks

In this episode, I speak with Ashley Rucks about being an entrepreneur at 22 years old without funding from a loan. Ashley is the proprietor of Prickly Boba in Waxahachie, TX. She worked the “typical” jobs growing up and decided fairly early on that she didn’t want to work for someone else. This drove her to go into business for herself. She’s slowly letting herself to let go a little more of being in complete control and allowing her employees to work more on their own without her around.

Her business started in with a camper she found listed on a local seller site, and her idea took off. She bought the camper the same day she went to look at it and had so much fun designing the logo and learning day-by-day what it means to own her own business. In the beginning she had a full 9-to-5 job and worked the camper on weekends on top of that. Today she has a storefront in downtown Waxahachie, about 30 minutes south of the DFW metroplex.

Prickly Boba is a one stop shop for all your drink needs! They serve boba tea, fruit infused lemonades & tea, frozen drink, iced coffee, energy drinks and more! They also serve Açaí bowls topped with fresh fruit. Prickly Boba also offers their space out for party rentals!

“Just go for it. You have nothing to lose if you go for it, but you’ll always wonder what would have happened if you didn’t go for it. Just start where you can and do your best. Believe in yourself and your product and other people will believe in it.”
_______________________________________
Ashley Rucks: Prickly Boba
Facebook: Prickly Boba
Instagram: @prickly.boba
Tiktok: @pricklyboba
_______________________________________

Free Buyer Guide

Free Seller Guide

45 Easy Ways to Sell Your Home Faster

Robin McCoy is a Texas Realtor with Keller Williams Realty. License #0582766
RobinMcCoyRealty.com | 214.226.3770 | RobinMcCoy@kw.com

Wondering What’s Going on with Home Prices?

The recent changes in home prices are top of mind for many as the housing market begins gearing up for spring. It can be hard to navigate misleading headlines and confusing data, so here’s what you should know about today’s home prices.

Local price trends still vary by market. But looking at national data, Nataliya Polkovnichenko, Ph.D., Supervisory Economist at the Federal Housing Finance Agency (FHFA), explains:

“U.S. house prices were largely unchanged in the last four months and remained near the peak levels reached over the summer of 2022. While higher mortgage rates have suppressed demand, low inventories of homes for sale have helped maintain relatively flat house prices.”

Month-over-month home price changes can be seen in the chart below. The data also shows that price depreciation peaked around August. Since then, any depreciation has been even milder. In other words, today’s home prices aren’t in a freefall.

What Does This Mean for You?

If you currently own your house, you may be concerned about even the smallest decline in prices. But keep in mind how much home values grew over the last few years. Compared to that growth, any declines we’re seeing nationally are likely to be minimal. Selma Hepp, Chief Economist at CoreLogic, shares:

“. . . while prices continued to fall from November, the rate of decline was lower than that seen in the summer and still adds up to only a 3% cumulative drop in prices since last spring’s peak.”

It’s also important to remember that every local market is different. That’s why it’s essential to lean on an expert for the latest information on the home prices in your area if you’re planning to make a move this spring.

Bottom Line

To understand what’s going on with home prices in our market and how they could impact your goals, let’s connect today.

Free Buyer Guide

Free Seller Guide

45 Easy Ways to Sell Your Home Faster

Robin McCoy is a Texas Realtor with Keller Williams Realty. License #0582766
RobinMcCoyRealty.com | 214.226.3770 | RobinMcCoy@kw.com