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| Provided to you Exclusively by Bruce Gordon |
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For the Month of October 2024 --- Vol. 18, Issue 10
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| In This Issue |
"Home is not a place, it's a feeling." — Cecelia Ahern What to Watch: Home borrowing costs surged to nearly 8% in the fall of 2023 and are now just above the 6% level. The recent bullish sentiment in the bond market was the reason for lower costs. And although that is good news for potential buyers, there still is a shortage of homes for sale. Housing: When your home doubles as your office, space is key. Find out what else remote workers look for when shopping for houses and how it's changing the market for everyone. Home improvement: Ready for a refresh? Get creative with our budget-friendly ideas to renovate your kitchen. Q&A: Considering purchasing a property in a homeowners association community? Explore the pros and cons before making your decision. Please feel free to forward this newsletter to friends, family or co-workers who may find it helpful. |
| What to Watch |
Both the U.S. capital markets and the mortgage space have a lot to watch in the current environment as stocks trade near all time highs and after the bond markets had their best positive run in 14 years through September. In the mortgage market, home borrowing costs surged to nearly 8% in the fall of 2023 and are now just above the 6% level. The recent bullish sentiment in the bond market was the reason for lower costs. And although that is good news for potential buyers, there still is a shortage of homes for sale. Consumers recently received data showing new home construction rose nearly 10% in August and up 4% year-over-year which is a positive for the shortage problem. Future new construction reports will be on the radar in the housing sector. With the closely watched S&P 500 stock index near all-time highs, the question is whether there could be a correction on the horizon. The sector has not had a meaningful correction in recent memory and if one does take place, it could be positive for the bond markets and mortgage rates. Can we call this a Goldilocks environment with easing inflation, a decent economy, and a still rather healthy jobs market? Yes, the economy, as well as the jobs market are not hitting on all cylinders, but they are not falling apart either. We may see a soft landing. A soft landing in the business cycle is the process of an economy shifting from growth to slow-growth to potentially flat, as it approaches but avoids a recession. It is usually caused by government attempts to slow down inflation. That is what the Federal Reserve is currently accomplishing after inflation hit a 40-year high in June 2022 of 9% and has fallen to 2.5% as measured by the Consumer Price Index. Bottom line: Yes, home prices are frothy but there are still opportunities to see lower prices if you look hard enough. They may not be in your locality, but they are out there. Always remember, 'Difficult roads often lead to beautiful destinations' - Zig Ziglar. Source: Mortgage Market Guide |
| Housing News |
Did you know that in the last five years, the number of employees working from home has more than tripled? It's safe to say remote work is here to stay, so it shouldn't come as a surprise that this shift has had a significant impact on housing trends. Read on to explore how working from home is reshaping where and how we live. Increased demand for spacious homes: If you've ever worked from home, you know one of the biggest challenges is finding a quiet, distraction-free space to concentrate. As a result, many buyers are looking for homes with larger living areas, extra bedrooms, and unique spaces to turn into offices. In fact, the average home size has increased in recent years, reflecting this desire for a more spacious environment to accommodate work and family life under one roof. A shift toward suburban living: Previously, where you worked determined where you lived. Today, all it takes for many people is a steady internet connection to conduct business. Now that employees are untethered from traditional office spaces, there's no need to choose housing based on their commute to and from work. This freedom has increased interest in suburban and rural properties, which are often more affordable, include larger living spaces, and provide a more laid-back lifestyle. An emphasis on affordable housing: With rising rents and home prices, people are actively looking for budget-friendly housing options. Studies show that a growing percentage of people agree that affordability is their top concern when searching for a new home. This trend continues to influence the housing market and developers and policymakers alike are responding to the need for more cost-effective living spaces. A focus on sustainability: A significant number of homeowners are showing an increased interest in integrating eco-friendly features into their properties, including solar panels and energy-efficient appliances. With workers spending more time at home, it makes sense to try to cut down on utility bills and expenses. There's also an emphasis on creating green spaces to improve the visual appeal of properties as people become more conscious of their living conditions. As remote and hybrid work options continue to become more popular, expect to see these housing trends increase. Whether you currently work from home or plan to in the future, it's worth keeping these ideas in mind when it's time to begin the search for your next house. Sources: Linkedin.com, Build-review.com |
| Home Improvement |
Want to renovate your kitchen without draining your bank account? With a few strategic updates, you can transform your space into something fresh and new. Here are a few high-impact, budget-friendly ideas to get started. Refresh your cabinets: Replacing cabinets can be expensive, but giving them a quick facelift with a fresh coat of paint will instantly transform your kitchen. Choose white or soft neutral colors to make your space feel bigger. You can also replace outdated hardware with stylish knobs and handles for more flair. Install a new backsplash: Unleash your creativity with a new backsplash to completely change the vibe of your kitchen. From subway tiles and colorful mosaics to renter-friendly peel-and-stick options, there are plenty of affordable solutions. Update your countertops: Can't justify brand-new countertops? No worries. Consider options such as laminate or butcher block for a stylish and budget-friendly alternative. These materials provide a whole new look without the hefty price tag of granite or quartz. Add lighting: New lighting can make a world of difference. Install pendant lights over your kitchen island or swap out old fixtures for modern, energy-efficient LED options. Bonus: You'll brighten your space and save energy. Even small updates can have a big impact when you're renovating a space. So, why wait? Choose one of our budget-friendly projects and watch your kitchen come to life. Sources: HGTV.com, Homearttile.com |
| Q&A |
| What Are the Pros and Cons of Buying a Home in a Homeowners Association Community?
QUESTION: Is living in an HOA right for me? ANSWER: If you're considering purchasing a home in an HOA, you're likely drawn to benefits such as knowing that the organization will keep common areas, streets, and sidewalks neat and tidy. HOAs may also provide amenities, such as pools, gyms, and community centers, that you can enjoy as a member. Furthermore, the rules that the HOA establishes ensure all homes in the area meet certain standards, which can help preserve your property's value. However, there are also some drawbacks to consider. Living in an HOA community requires a monthly fee, which typically ranges from $200 to $300 depending on your location. These fees cover the provided services and amenities. HOAs can also be strict about enforcing their rules regarding how you can use and modify your property. They might regulate everything from the color of your house and the plants you grow to the types of pets you can have. Violating these rules can result in fines or other penalties. Ultimately, making the decision to purchase a home in an HOA community comes down to personal preference. If you appreciate shared amenities and a uniform look in your neighborhood, an HOA might be a good fit for you. If you prefer more freedom to customize your property, you might want to consider homes without an HOA to give you the flexibility you desire. Sources: Lowermybills.com, Worthross.com As we wrap up this issue, we want to remind you that your home is what you make it. Whether you're searching for your dream property or upgrading your current living space on a budget, a little creativity goes a long way. We hope these insights and tips inspire you to enjoy the journey. |
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