Katie McBride's Blog
Recently, multiple headlines have been written asserting that homeownership is less affordable today than at any other time in the last decade. Though the headlines are accurate, they lack context and lead too many Americans to believe that they can’t partake in a major part of the American Dream – owning a home.
In 2008, the housing market crashed and home values fell by as much as 60% in certain markets. This was the major trigger to the Great Recession we experienced from 2008 to 2010. To come back from that recession, mortgage interest rates were pushed down to levels that were never seen before.
For the last ten years, you could purchase a home at a dramatically discounted price and attain a mortgage at a historically low mortgage rate.
Now that home values have returned to where they should be, and mortgage rates are beginning to increase, it is less affordable to own a home than it was over the last ten years.
However, what is not being reported is that it is MORE AFFORDABLE to own a home today than at any other time since 1985 (when data was first collected on this point).
If you take out the years after the crash, affordability today is greater than it has been at almost any time in American history.
This has not been adequately reported which has led to many Americans believing that they cannot currently afford a home.
As an example, the latest edition of Freddie Mac’s Research: Profile of Today’s Renter reveals that 75% of renters now believe it is more affordable to rent than to own their own homes. This percentage is the highest ever recorded. The challenge is that this belief is incorrect. Study after study has proven that in today’s market, it is less expensive to own a home than it is to rent a home in the United States.
Thankfully, some are starting to see this situation and accurately report on it. The National Association of Realtors, in their 2019 Housing Forecast, mentions this concern:
“While the U.S. is experiencing historically normal levels of affordability, potential buyers may be staying out of the market because of perceived problems with affordability.”
If you are one of the many renters who would like to own their own homes, let’s get together to find out if homeownership is affordable for you right now.
If you intend to list your house in the weeks to come, you may want to complete a wide range of home improvements. That way, you can transform your ordinary house into an awe-inspiring residence, increasing the likelihood of a fast, profitable home sale.
Although you may have lofty expectations for your home improvement projects, it is important to note that performing myriad home repairs can be costly. And if you're not careful, you risk overspending to upgrade your residence.
Fortunately, it can be easy to establish a home improvement budget – here are three tips to help you develop an effective home improvement budget.
1. Determine Which Areas of Your House That You Want to Improve
When it comes to crafting a home improvement budget, it is important to differentiate between major and minor home repairs. By doing so, you'll be better equipped than ever before to budget for assorted home maintenance projects.
A kitchen overhaul or bathroom renovation may be considered a major home improvement. Conversely, updating the color of your bedroom may be a minor home improvement. If you assess the major and minor home improvements that you want to perform, you can put together an appropriate budget.
Of course, you should take an objective look at you house to decide which areas that you want to improve. With an objective view, you can identify various home issues, determine how much money will be required to fix these problems and budget accordingly.
2. Examine the Home Improvement Funds at Your Disposal
In all likelihood, you only have a finite amount of money at your disposal. Luckily, regardless of how much money you have, you should be able to establish an effective home improvement budget.
Oftentimes, it helps to get multiple quotes from home improvement professionals. If you receive a variety of quotes, you may find that you can save money on home repairs, as well as stick to a tight home improvement budget.
It also may be cost-effective to complete simple home improvement projects on your own. If you possess the skills and know-how to perform quick, easy home repairs, you may be able to enhance your house without putting a dent in your home improvement budget.
3. Set Home Improvement Priorities
Priorities are important, particularly if you need to put together a home improvement budget. It generally is a good idea to set priorities for different home improvement projects. Then, you can allocate the necessary time and resources to complete home improvement tasks in order of priority.
If you plan to list your house soon, home improvements may prove to be exceedingly valuable. Home upgrades can help you differentiate your residence from the competition and enable you to achieve the optimal home selling results.
Lastly, if you need extra help prior to listing your residence, it may be beneficial to collaborate with a real estate agent. This housing market professional can put you in touch with top-notch home improvement professionals, offer home improvement tips and insights and much more.
9 Haven Way, Ashland, MA 01721
In the community of Westborough, MA in the past month there have been 12 homes sold. The average sale price of these homes was $559,783 and the homes were on the market an average of 54 days. There have been 7 homes listed for sale during the past month Westborough, MA.
We are here to serve all your real estate needs in the surrounding communities. We welcome your business, and we promise to take exceptional care of you or any of your referrals.
The lack of existing inventory for sale has forced many homebuyers to begin looking at new construction. When you buy a newly constructed home instead of an existing home, there are many extra steps that must take place.
To ensure a hassle-free process, here are 5 tips to keep in mind if you are considering new construction:
1. Hire an Inspector
Despite the fact that builders must comply with town and city regulations, a home inspector will have your best interests in mind! When buying new construction, you will have between 1-3 inspections, depending on your preference (the foundation inspection, the pre-drywall inspection, and a final inspection).
These inspections are important because the inspector will often notice something that the builder missed. If possible, attend the inspection so that you can ask questions about your new home and make sure the builder fixes any problems found by the inspector.
2. Maintain good communication with your builder
Starting with the pre-construction meeting (where you will go over all the details of your home with your project manager), establish a line of communication. For example, will the builder email you every Friday with progress updates? If you are an out-of-state buyer, will you receive weekly pictures of the progress via email? Can you call the builder and if so, how often? How often can you visit the site?
3. Look for builder’s incentives
The good thing about buying a new home is that you can add the countertop you need, the mudroom you want, or an extra porch off the back of your home! However, there is always a price for such additions, and they add up quickly!
Some builders offer incentives that can help reduce the amount you spend on your home. Do your homework and see what sort of incentives the builders in your area are offering.
4. Schedule extra time into the process
There are many things that can impact the progress on your home. One of these things is the weather, especially if you are building in the fall and winter. Rain can delay the pouring of a foundation as well as other necessary steps at the beginning of construction, while snow can freeze pipes and slow your timeline.
Most builders already have a one-to-two-week buffer added into their timelines, but if you are also in the process of selling your current home, you must keep that in mind! Nobody wants to be between homes for a couple of weeks.
5. Visit the site often
As we mentioned earlier, be sure to schedule time with your project manager at least once a week to see the progress on your home. It’s easy for someone who is not there all the time to notice little details that the builder may have forgotten or overlooked. Additionally, don’t forget to take pictures! You might need them later to see exactly where that pipe is or where those electrical connections are once they’re covered up with drywall!
Watching your home come to life is a wonderful experience that can sometimes come with hassles. To avoid some of these headaches, keep these tips in mind!
If you are ready to put your current home on the market and find out what new construction is available in your area, let’s get together to discuss your options!