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  Provided to you Exclusively by John Marbury
John Marbury
John Marbury
Vice President Mortgage Loan Origination
NMLS# 740833
National Bank of Commerce
Mobile: 205-266-5669
Email: jmarbury@nationalbankofcommerce.com
Website: www.johnmarbury.com
  National Bank of Commerce
For the Month of June 2021 --- Vol. 15, Issue 6
 
  In This Issue  
     
 

"Life was meant for good friends and great adventures." - Unknown

As the housing market begins to slow, you might find prices beginning to increase and wonder how you can jump into homeownership. In this issue, we'll cover these ideas as well as the following:

  • What to Watch - Transitory low inflation? The all-too-familiar buzzword, inflation, and where it may be headed.
  • Dealing With Low Inventory - After the housing market boom last year, early 2021 has seen a slight housing inventory shortage. How do potential homebuyers compete with so many others?
  • Can You Restain Wood Veneer? - Furniture covered in wood veneer can be restained as long as you prepare the furniture correctly.
  • Q&A: What Are the Exurbs and Suburbs? - If you know you don't want to live in the city, you might wonder what's the difference between exurbs and suburbs. Knowing the benefits of each can help you narrow down your housing options.

Please feel free to forward this newsletter to friends, family or co-workers who may find it helpful.

 
 
  What to Watch  
     
 

Transitory Low Inflation?

Traders, investors, market watchers, and potential home buyers are zeroing in on the recent all-too-familiar buzzword, inflation, and where it may be headed for decisions on portfolios as well as borrowing costs.

As the country moves to fully reopen and with consumers armed with stimulus money, pent up demand will be a key issue in the coming months when summer is at its peak. Americans are expected to be spending big on vacations as well as goods and services.

And what happens when there are too many dollars chasing a lower supply? Prices rise, and inflation sets in. Simply put, inflation is a general increase in prices and a fall in the purchasing value of money.

The Federal Reserve fully believes that the spike in prices will be temporary or transitory with a moderation in prices come fall. What we can expect over the summer months is that future inflation readings will be closely watched for sustained and substantial price increases.

Will the Fed be correct? We must remember that the Fed said that low inflation was also transitory. Low inflation lasted for ten years.

However, don't fight the Fed! The Fed does have the ability to stave off inflation if they act at the precise time. If the Fed did see inflation being a prolonged occurrence, the Fed could enact Operation Twist or raise the Fed Funds Rate. But the Fed will have to walk a fine line to balance the economy from overheating or underperforming.

Operation Twist is the selling of near-term Treasurys and buying longer-dated ones to push long-term rates lower.

Bottom line: If the Fed is right and inflation does moderate in the fall, we will not see any major increase in rates. If the Fed is wrong and we see sustained higher inflation, the Fed will likely adopt the above tools to help keep long-term rates low. This means there should be no major increase in home borrowing costs. Is this a win-win for the mortgage market? Time will tell.

Source: Mortgage Market Guide

 
 
  Housing News  
     
 

Dealing With Low Inventory

After dealing with the house-buying boom of 2020, spring 2021 has seen a slight housing inventory shortage. According to the National Association of Realtors, the number of homes for sale in January 2021 was 26% less than in January 2020.

This has caused stiff competition and relatively high prices for much of the country. An unprecedented shortage of homes for sale has caused many properties to receive multiple offers, spurred by low mortgage rates.

Strong demand and fewer people listing their homes have caused the real estate market to undergo a tight squeeze. Also, whereas homeowners used to move every decade or so, current homeowners are opting to stay in their homes longer.

Potential homebuyers aren't completely out of luck, though. Following these practices might help you in a competitive housing market:

  • Get preapproved. To stay competitive with others, you should get prequalified to make sure you're ready to go once you find your dream home. Showing up at an open house, whether it's virtual or in-person, shows the seller that you're serious about your offer and can afford the price listed.
  • Pay more than the asking price. The simple reason behind this is based on supply and demand since prices rise when inventory is low. Make sure you can afford that higher price, though.
  • Be flexible on closing dates. If the seller needs to close the property quickly, your offer might be accepted over someone else's if you're willing to speed up the process.

The housing market might remain competitive for a few months or even a few years, so it's important to try to stand out from other buyers. If you need further assistance, don't be afraid to reach out to a loan officer or real estate professional.

Sources: Trulia.com, Bankrate.com

 
 
  Home Improvement  
     
 

Can You Restain Wood Veneer?

You probably already know that you can restain wood, but what if you have furniture made out of wood veneer that's old and chipped? Although veneer can become damaged more easily than wood, the good news is that most veneer is thick enough and can be restained if it peels, warps, or cracks.

Before you start restaining, take a look at the veneer to see if any of the edges have lifted. If so, take some carpenter's glue and secure it to the furniture. For any parts that are missing sections, try to find a matching section and glue it on. You can also apply wood filler, let it dry, and sand smooth.

Apply a furniture stripper to remove the finish. After letting it sit, use a scraper to remove the finish. Work in the direction of the grain. If the finish is very thick, you might need to add another coat of stripper. Use 150-grit sandpaper and sand out any scratches. Again, work in the direction of the grain. You want to sand as little as possible.

The process of applying the stain is the same as for any other type of wood. Using a rag, apply the oil-based stain in the direction of the grain. Read the manufacturer's directions, but you should only leave the stain on for a few minutes. Use another rag to remove the stain. If you used wood filler, use gel stain to match the color to the rest of the veneer. You might need to apply a few coats since wood filler likes to absorb the stain.

Once you restain the veneer, you want to protect it. Dampen a clean towel with an oil- or water-based polyurethane and aim for a smooth, even coat. Apply at least two coats, letting each one dry before moving onto the next coat.

Don't let the fear of restaining a piece of furniture covered in wood veneer deter you from tackling this project. Head to your local home improvement store to pick up the necessary tools, and you can get started today.

Sources: Homeguides.sfgate.com, Thriftednest.com

 
 
  Q&A  
     
  What Are the Exurbs and Suburbs?

QUESTION: What's the difference between the exurbs and the suburbs?

ANSWER: When looking at a home, you might know immediately that you don't want to live in the city. If that's the case, you might want to gravitate toward the suburbs or exurbs.

Suburbs and exurbs came about due to a desire for people to have more space and privacy while maintaining proximity to the city. But what exactly defines these two types of communities?

Suburbs give you full access to everything you would find in the city, including restaurants, high-quality medical facilities, and entertainment. All these locations are within driving distance.

Exurbs tend to be more spread out and less walkable compared to suburbs and the city. You gain more usable land and have less crime and fewer neighbors. They're an excellent option if you work from home or seek a second home since they're more secluded.

If you're in the market for a new home, whether it's in the suburbs or exurbs, reach out to a real estate professional. They can help you find your next dream home.

Sources: Sandypetermann.com, Realtor.com

 
 

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