Marlow Group

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

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.

Today, homes with curb appeal that are presented well are still selling quickly, and sometimes over asking price.

With the spring buying season just around the corner, now’s the time to start getting your house ready to sell.

>> 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.

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.

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.

Contact me today so you can find out which updates make the most sense.

Marlow Group | COMPASS
(512) 294-1394
[email protected]
www.marlow.group

The Spring Housing Market Could Be a Sweet Spot for Sellers

The biggest challenge in the housing market ishow few homes there are for sale compared to the number of people who want to buy. That's why, if you're thinking about selling your house, this is a great way to do so.

"While the number of homes for homes for sale is increasing, it is still 43.2% lower than it was before the pandemic in 2017 to 2019. This means that there are still fewer homes available to buy on a typical day than there were a few years ago." - Monthly Housing Market Trends Report from realtor.com.

Number of Homes for Sale Up from Last Year, but Below Pre-Pandemic Numbers (Active Monthly Listings, Last 6 Januarys)
2018 | 1,042,660
2019 | 1,109,507
2020 | 953,045
2022 | 378,189
2023 | 625,875

How This Impacts You:
Today's low inventory means we're still in a sellers' market.
So, if you want to take advantage of this sweet spot, spring could be your shot.

The housing market needs more homes for sale to meet the demand of today's buyers. If you've thought about selling, let's connect today.

Marlow Group | COMPASS
(512) 294-1394
[email protected]
www.marlow.group

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.”

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.

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

Marlow Group | COMPASS
(512) 294-1394
[email protected]
www.marlow.group

Should You Consider Buying a Newly Built Home?

If you’re thinking about buying a home, it makes sense to consider all your options, and that includes a home that’s newly built.

>>The Number of Newly Built Homes Is on the Rise

There's still a historically low number of homes available on the market. One reason for that is years of underbuilding—meaning there haven’t been enough new homes built to keep up with demand.

As Mark Fleming, Chief Economist at First American, shares:
“While existing-home inventory remains limited, the silver lining for home buyers is that new-home inventory is on the rise, and a new home at the right price is a pretty good substitute.”

>>Builder Incentives Can Provide a Boost

While there a growing number of new homes for sale, builders are slowing that pace until they sell more of their current inventory. And many builders are now offering incentives to help buyers purchase these homes. Fleming also explains:

“The National Association of Home Builders reported that nearly two-thirds of builders were offering incentives, including mortgage rate buydowns, paying points for buyers and price reductions, which could entice potential home buyers.”

A builder who’s willing to pay to reduce your mortgage rate could be a game changer. Ksenia Potapov, Economist at First American, puts it this way:

“A one percentage-point decline in mortgage rates has the same impact on affordability as an 11 percent decline in house prices.”

>>Should You Buy a Brand-New Home?

The best way to decide what type of home to buy is to work with a trusted real estate professional who can help you weigh the pros and cons of each option.

Contact me so I can help you weigh the pros and cons of shopping for a new home versus an existing one.

Marlow Group | COMPASS
(512) 294-1394
[email protected]
www.marlow.group

Why It’s Easy To Fall in Love with Homeownership

No matter how the housing market changes, there are some things about owning a home that never change—like the personal benefits it can provide. When you own your home, you likely feel a sense of attachment because of the comfort it gives and also because it’s a space that’s truly yours.

Over the last few years, we’ve fully embraced the meaning of our homes as we spent more time than ever in them. As a result, the emotional benefits our homes provide have become even more important to us.

As the most recent State of the American Homeowner from Unison puts it:

“. . . one thing has stayed the same: the home continues to be of the utmost importance and a place of security and comfort.”

The same study from Unison notes:

• 91% of homeowners say they feel secure, stable, or successful owning a home
• 64% of American homeowners say living through a pandemic has made their home more important to them than ever

The National Association of Realtors (NAR) also explains:

“In addition to tangible financial benefits, homeownership brings substantial social benefits for [households], communities, and the country as a whole.”

In other words, not only does owning a home build your net worth over time, but it also gives you and your loved ones a place to thrive. And by living near people with shared experiences, homeownership helps you connect with your community and contribute meaningfully.

Whether you’re thinking of buying your first home, moving up to your dream home, or downsizing to something that better fits your changing lifestyle, let me be the key to unlocking a home you can truly fall in love with. Contact me today.

Marlow Group | COMPASS
(512) 294-1394
[email protected]
www.marlow.group

What You Should Know About Closing Costs

Before you buy a home, it’s important to plan ahead. While most buyers consider how much they need to save for a down payment, many are surprised by the closing costs they have to pay. To ensure you aren’t caught off guard when it’s time to close on your home, you need to understand what closing costs are and how much you should budget for.

>>What Are Closing Costs?

People are sometimes surprised by closing costs because they don’t know what they are. According to Bankrate:

“Closing costs are the fees and expenses you must pay before becoming the legal owner of a house, condo or townhome . . . Closing costs vary depending on the purchase price of the home and how it’s being financed . . .”

In other words, your closing costs are a collection of fees and payments involved with your transaction. According to Freddie Mac, while they can vary by location and situation, closing costs typically include:

• Government recording costs
• Appraisal fees
• Credit report fees
• Lender origination fees
• Title services
• Tax service fees
• Survey fees
• Attorney fees
• Underwriting Fees

>>How Much Will You Need To Budget for Closing Costs?

According to Freddie Mac, the costs to close are typically between 2% and 5% of the total purchase price of your home. With that in mind, here’s how you can get an idea of what you’ll need to cover your closing costs.

Let’s say you find a home you want to purchase for the median price of $366,900. Based on the 2-5% Freddie Mac estimate, your closing fees could be between roughly $7,500 and $18,500.

It’s important to plan for the fees and payments you’ll be responsible for at closing. Contact me so you can feel confident throughout the process.

Marlow Group | COMPASS
(512) 294-1394
[email protected]
www.marlow.group

How To Win As A Buyer In Today's Housing Market

> Build Your Team | Make sure you have trusted professionals on your side, including your local real estate agent and lender. The pros have the skills you need to move quickly and efficiently.

> Make Strategic Plays | Careful budgeting and planning for your down payment are key. Think about your wishlist and prioritize what you need.

> Consider What's In and Out of Bounds | Figure out if you want to stay in the same area or branch out to new communities. Make a list of neighborhoods you'd like to live in.

> Stand Out From the Crowd | Get pre-approved to show you're a serious and qualified buyer. Lean on your team's expert advice to draft an offer.

In today's housing market, you can still be the champion if you have the right team and strategy. Let's connect today to make your game-winning play.

Marlow Group | COMPASS
(512) 294-1394
[email protected]
www.marlow.group

Why Today’s Housing Market Isn’t Headed for a Crash

67% of Americans say a housing market crash is imminent in the next three years. With all the talk in the media lately about shifts in the housing market, it makes sense why so many people feel this way. But there’s good news. Current data shows today’s market is nothing like it was before the housing crash in 2008.

>>Back Then, Mortgage Standards Were Less Strict
During the lead-up to the housing crisis, it was much easier to get a home loan than it is today. Banks were creating artificial demand by lowering lending standards and making it easy for just about anyone to qualify for a home loan or refinance an existing one.

Today, things are different, and purchasers face much higher standards from mortgage companies. Tighter lending standards have helped prevent a situation that could lead to a wave of foreclosures like the last time.

>>Foreclosure Volume Has Declined a Lot Since the Crash
Foreclosure activity has been lower since the crash, largely because buyers today are more qualified and less likely to default on their loans.

So even as foreclosures tick up, the total number is still very low.

>>The Supply of Homes for Sale Today Is More Limited
Today, unsold inventory sits at just 2.7-months’ supply at the current sales pace, which is significantly lower than the last time. There just isn’t enough inventory on the market for home prices to come crashing down like they did last time.

If recent headlines have you worried we’re headed for another housing crash, the data above should help ease those fears. Expert insights and the most current data clearly show that today’s market is nothing like it was last time.

Marlow Group | COMPASS
(512) 294-1394
[email protected]
www.marlow.group

Number of Homes for Sale Up from Last Year, but Below Pre-Pandemic Years

The biggest challenge in the housing market right now, and likely for years to come, is how few homes there are for sale compared to the number of people who want to buy. That’s why, if you’re thinking about selling your house, this is a great time to do so. Your house would be welcome in a market that has fewer homes for sale than it did in the years leading up to the pandemic.

According to the latest Monthly Housing Market Trends Report from realtor.com:

“There were 65.5% more homes for sale in January compared to the same time in 2022. This means that there were 248,000 more homes available to buy this past month compared to one year ago. While the number of homes for sale is increasing, it is still 43.2% lower than it was before the pandemic in 2017 to 2019. This means that there are still fewer homes available to buy on a typical day than there were a few years ago.”

>>What Does This Mean for You?

Fewer homes for sale means buyers have fewer choices than they did prior to the pandemic—and that frustration is leading some to give up on the homebuying process altogether. But with mortgage rates sitting lower than they were at the peak last fall, more buyers are willing to come back into the process—they just need to find homes to buy. This is a welcome activity for the spring market, especially if you’re thinking of selling your house.

With a renewed interest in buying a home for many, the New York Times (NYT) reports:

“Home buyers are edging back into the market after being sidelined last year . . .”

So, if you want to take advantage of a sweet spot in the market, this spring could be your shot.

Marlow Group | COMPASS
(512) 294-1394
[email protected]
www.marlow.group

The Top Reasons for Selling Your House

Many of today’s homeowners bought or refinanced their homes during the pandemic when mortgage rates were at history-making lows. Since rates doubled in 2022, some of those homeowners put their plans to move on hold, not wanting to lose the low mortgage rate they have on their current house. And while today’s rates have started coming down from last year’s peak, they’re still higher than they were a couple of years ago.

Today, 93% of outstanding mortgages have a rate at or below 6%. That means a strong majority of homeowners with mortgages have a rate below what they’d get if they moved right now. But if you’re a homeowner in that position, remember that mortgage rates aren’t the only thing to consider when making a move. Your mortgage rate is important, but there are plenty of reasons you may still need or want to move. A recent report from NAR breaks down why homeowners have decided to sell over the past year.

The most commonly cited reasons for selling were the desire to move closer to loved ones, followed by moving due to retirement, and their neighborhood becoming less desirable. Additionally, the need for more space factored in, as did a change in household structure.

If you also find yourself wanting a change in location or needing space your current house just can’t provide, it may be time to sell. Contact me today to weigh the benefits of selling your house.

Marlow Group | COMPASS
(512) 294-1394
[email protected]
www.marlow.group

You May Not Need As Much As You Think For A Down Payment

If you are planning to buy a home, here are some good things you need to know about your down payment.

>> The Costly Misconception | Many people believe you need to put down 20% of the purchase price when you buy a home. But that's not always the case.

>> The Actual Numbers | Recent homebuyers actually put down far less on their purchase. And depending on the type of loan, some buyers are able to put as little down as 0-3.5%.

Let's connect to make sure you have a trusted lender and can find out if you're ready to buy a home sooner rather than later.

Marlow Group | COMPASS
(512) 294-1394
[email protected]
www.marlow.group

Experts Forecast a Turnaround in the Housing Market in 2023

The housing market has gone through a lot of change recently, and much of that was a result of how quickly mortgage rates rose last year.

Now, as we move through 2023, there are signs things are finally going to turn around. Home price appreciation is slowing from the recent frenzy, mortgage rates are coming down, inflation is easing, and overall market activity is starting to pick up. All of that’s great news for the housing market this year. Here’s what experts are saying.

>>Cristian deRitis, Deputy Chief Economist, Moody’s Analytics:

“The current state of the housing market is that it is certainly in transition.”

>>Susan Wachter, Professor of Real Estate and Finance, University of Pennsylvania’s Wharton School:

“Housing is going to ease up. I think 2023 will be a turnaround year.”

>>Lawrence Yun, Chief Economist, National Association of Realtors (NAR):

“Mortgage rates have fallen in the recent past weeks, so I’m very hopeful that the worst in home sales is probably coming to an end.”

>>Robert Dietz, Chief Economist and Senior Vice President, National Association of Home Builders (NAHB):

“. . . it appears a turning point for housing lies ahead. In the coming quarters, single-family home building will rise off of cycle lows as mortgage rates are expected to trend lower and boost housing affordability.”

If you’re thinking about making a move this year, a turnaround in the housing market could be exactly what you’ve been waiting for. Contact me to learn about the latest trends in your area.

Marlow Group | COMPASS
(512) 294-1394
[email protected]
www.marlow.group

Should You Rent Your House or Sell It?

You may be thinking about using your current house as a short-term rental property instead of selling it. A short-term rental (STR) is typically offered as an alternative to a hotel, and they’re an investment that’s gained popularity in recent years. According to a Harris Poll survey, 28% of homeowners have considered using a rental service to temporarily rent out their home for additional income.

Owning a short-term rental can be a tempting idea, but you may find the reality of being responsible for one difficult to take on. Here are some of the challenges you could face if you rent out your house instead of selling it.

>>A Short-Term Rental Comes with Responsibilities

Successfully owning and renting a house takes work. Think through your ability to make that commitment, especially if you plan to use a platform that advertises your rental listing. Most of them have specific requirements hosts have to meet, and it takes a lot of work.

There’s a lot to consider before taking the leap and converting your house into a short-term rental. If you aren’t ready for the work it takes, it could be wiser to sell instead.

>>Your House May Not Be Ideal for Your Rental Goals

Not every house ends up being a profitable short-term rental either. One of the biggest factors is where your home is located. The less likely your neighborhood is to be a travel destination, the fewer requests you should expect from potential renters.

It’s smart to do your homework and learn how much rentals in your area go for, how much business they get throughout the year, and how this compares to your goals. To decide if selling your house is a better alternative, contact me today.

Marlow Group | COMPASS
(512) 294-1394
[email protected]
www.marlow.group

Lower Mortgage Rates Are Bringing Buyers Back to the Market

As mortgage rates rose last year, activity in the housing market slowed down. Now, however, rates are beginning to come down—and buyers are starting to reenter the market.

So, if you’ve been planning to sell your house but you’re unsure if there will be anyone to buy it, this shift in the market could be your chance. Here’s what experts are saying.

>>Mike Fratantoni, SVP and Chief Economist, MBA:

“Mortgage rates are now at their lowest level since September 2022, and about a percentage point below the peak mortgage rate last fall. As we enter the beginning of the spring buying season, lower mortgage rates and more homes on the market will help affordability for first-time homebuyers.”

>>Lawrence Yun, Chief Economist, National Association of Realtors (NAR):
“The upcoming months should see a return of buyers, as mortgage rates appear to have already peaked and have been coming down since mid-November.”

>>Thomas LaSalvia, Senior Economist, Moody’s Analytics:
"We expect the labor market to remain robust, wages to continue to rise—maybe not at the pace that they did during the pandemic, but that will open up some opportunity for folks to enter homeownership as interest rates stabilize a bit."

>>Sam Khater, Chief Economist, Freddie Mac:
“Homebuyers are waiting for rates to decrease more significantly, and when they do, a strong job market and a large demographic tailwind of Millennial renters will provide support to the purchase market.”

If you’ve been thinking about making a move, now’s the time to get your house ready to sell. Contact me to learn about buyer demand in our area and the best time to put your house on the market.

Marlow Group | COMPASS
(512) 294-1394
[email protected]
www.marlow.group

Where Will You Go If You Sell? You Have Options.

There are plenty of good reasons you might be ready to move. No matter your motivations, before you list your current house, you need to consider where you’ll go next.

>>The Benefits of Newly Built Homes

1. Build your dream home
If you build a home from the ground up, you’ll have the option to select the custom features you want, including appliances, finishes, landscaping, layout, and more.

2. Take advantage of builder concessions
A lot of home builders are working hard to sell their current inventory before they add more to their mix. That means many of them are offering concessions and are more willing to negotiate with buyers.

3. Minimize home repairs
Many builders offer a warranty, so you’ll have peace of mind on unlikely repairs. Plus, you won’t have as many little improvement projects to tackle.

4. Take advantage of energy efficiency
When building a home, you can choose brand-new, energy-efficient options to help lower your utility costs, protect the environment, and reduce your carbon footprint.

>>The Benefits of Existing Homes

1. Explore a wider variety of home styles and floor plans
With decades of homes to choose from, you’ll have a broader range of floor plans and designs available.

2. Appreciate that lived-in charm
The character of older homes is hard to reproduce. If you value timeless craftsmanship or design elements, you may prefer an existing home.

3. Join an established neighborhood
Existing homes give you the option to get to know the neighborhood, community, or traffic patterns before you commit.

4. Move in faster
If you have a short timeframe to move or you just don’t want the process to take several months while your home is under construction, buying an existing home might make sense for you.

Contact me to discuss what's available and what's right for you.

Marlow Group | COMPASS
(512) 294-1394
[email protected]
www.marlow.group

Homeownership Builds Your Wealth Over Time
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If you are thinking about buying a home this year, be sure to factor in the long-term benefits of homeownership.

Homeownership Boosts Your Net Worth Through Equity - Equity: The current value of your home minus what you owe on the loan. It increases when (1) You pay down your loan over time and (2) Home price appreciation drives up your home's value.

On average, nationwide, home prices appreciated by 288.7% over the last 32 years. This means homeowners grow their net worth significantly in the long run.

Homeownership wins over time. Let's connect so you can start your homebuying journey today.

Marlow Group | COMPASS
(512) 294-1394
[email protected]
www.marlow.group