Affordability Challenges Are Being Addressed | April Market Update
Does It Make Sense to Buy a Home Right Now?
Considering buying a home? The latest Home Price Expectations Survey suggests a positive outlook, indicating continuous growth in home prices for the next five years, with an anticipated 3-4% annual rise. This forecast suggests that investing in a home now could yield substantial benefits in the long run, as home values are projected to appreciate steadily. For instance, if you bought a $400,000 home this year, expert projections suggest potential household wealth growth of over $83,000 in the next five years. Waiting may result in increased costs, making now a great opportunity to enter the housing market! This solidifies that purchasing a home is a wise investment decision, offering the prospect of increasing asset value over time. Connect with me to explore your options and take the first step towards homeownership today.1
New Listings Rise to the Highest Level in Over a Year
Amidst a surge in U.S. home listings, recent data from Redfin indicates a flourishing market and a rise in inventory! The report reveals a 5% increase in total homes for sale, marking the largest year-over-year uptick since May 2023, alongside a remarkable 15% rise in new listings, the most significant jump since June 2021. This surge has reignited buyer interest, reflected in a 9% month-over-month increase in mortgage-purchase applications and Redfin’s Homebuyer Demand Index. Redfin economists anticipate gradual declines in mortgage rates throughout 2024, allowing potential buyers to enter a market with favorable conditions and possible savings in fees. For more insights on the dynamic housing market, don’t hesitate to reach out.2
Proposed Tax Incentives for Homebuyers and Sellers
The President has introduced plans to tackle the nation’s affordable housing challenges, proposing tax incentives for both first-time homebuyers and “starter home” sellers. The proposal includes a “mortgage relief credit” of up to $5,000 annually for two years for middle-class first-time buyers, along with a one-year credit of up to $10,000 for middle-class families selling starter homes. Although mortgage rates remain elevated compared to historic records, efforts to address housing supply shortages are acknowledged, suggesting a commitment to long-term solutions. Overall, the proposal signifies a proactive approach toward fostering homeownership and enhancing housing accessibility.3
Did You Know?
Changes are underway following the recent NAR settlement, prompting a new process for buyer broker commissions and their impact on home prices. Amidst this transformation, real estate agents are poised to adapt and thrive, ensuring continued excellence in service.4
Homeowners Associations Are Booming
The growth of homeowners associations (HOAs) is anticipated to continue this year, with approximately 3,000 new associations expected to form, reflecting an ongoing trend toward community governance. Currently, over 30% of U.S. housing stock is under HOA management, providing residents with well-maintained neighborhoods and shared amenities. While concerns exist regarding potential fee increases due to inflation, many homeowners appreciate the benefits of HOAs in protecting property values and enhancing neighborhood environments. HOAs play an important role in managing disputes and maintaining neighborhood standards, contributing positively to residents’ quality of life and property values. Prospective homeowners are encouraged to review HOA regulations to ensure alignment with their preferences and lifestyle. Contact me if you or someone you know is interested in buying a home within an HOA community.5
Experience Stress-Free Homebuying with RWM Zero
Achieve your homebuying aspirations stress-free with our RWM Zero program! Qualifying clients can enjoy up to 100% FHA financing, whether they’re a first-time or repeat homebuyer. Benefits include low credit score requirements, flexible debt-to-income requirements, and no income limitations. With easy eligibility and various property types supported, your dream home is within reach. Find more details on our program page and reach out with any questions!6
Sources: 1 keepingcurrentmatters.com; 2 redfin.com; 3 cnbc.com; 4 usatoday.com; 5 nar.realtor; 6 rwmloans.com
