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        <title>Real Estate Blog</title>
        <link>http://www.minneapolisurbanhomes.com/blog/2023-10/</link>
        <description></description>
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    <guid>https://www.minneapolisurbanhomes.com/blog/unmasking-scary-myths-about-todays-housing-market.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/unmasking-scary-myths-about-todays-housing-market.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>Unmasking Scary Myths about Today’s Housing Market</title>
    <description> <![CDATA[ 



 





Some Highlights




Here’s what you really need to know about a few myths causing fear in today’s housing market.


Despite common misconceptions, many people can buy a home even if they have student loans, home prices are rising nationally (not falling), and you usually don’t have to have 20 for a down payment.


If you have other fears or reservations about buying a home today, let’s connect so you have an expert to help clear those up.


 ]]> </description>
    <pubDate>Fri, 27 Oct 2023 08:25:00 -0500</pubDate>
</item>
<item>
    <guid>https://www.minneapolisurbanhomes.com/blog/affordable-homeownership-strategies-for-gen-z.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/affordable-homeownership-strategies-for-gen-z.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>Affordable Homeownership Strategies for Gen Z</title>
    <description> <![CDATA[ 



 


The idea of owning a home has always been a big part of the American Dream. It's a symbol of stability, independence, and having a place to truly call your own. But for Gen Z, the &quot;Zoomers&quot; born between 1997 and 2012, making that dream a reality can feel like quite the challenge today with higher mortgage rates and rising home prices.


But achieving that goal of owning your first home can still be attainable, even today, with some strategic planning and resourcefulness.


Explore Financing and Down Payment Assistance Options


With prices rising all around you, it can be hard to save up for a home. If you've been struggling to stash away enough cash for that down payment, it’s worth it to look into the various down payment assistance programs available. These programs can really help you save big on the upfront costs of buying a home.


There are a lot more options out there than you may realize. According to Down Payment Resource, there are over 2,000 programs designed to help hopeful homebuyers with down payments and closing costs.


If you qualify for one of these programs, you may not need to save up as much money for your down payment. A local real estate agent can help you explore these programs in your area, making it much easier to turn your homeownership dream into a reality.


Consider Living with Relatives To Save


If you still need a bit more time to save, even with the down payment assistance programs out there, there are ways you can make that happen. Many savvy Zoomers have made a strategic choice to live with relatives so they can get to their savings goals even faster.


According to the National Association of Realtors (NAR), around 30 of Gen Z homebuyers transition directly from their relative’s home to a home of their own.


By sharing living costs, such as mortgage payments, utility bills, and even grocery expenses, you can substantially reduce your monthly expenses. This frees up more of your income to tackle any outstanding debt, boost your credit score, and reach your down payment target in less time. And, all of this can bring homeownership one step closer to becoming a reality. Clare Trapasso, Executive News Editor at Realtor.com, explains:


“Faced with ongoing housing affordability issues . . . we're seeing parents and children becoming roommates again in later years as the 'kids' save up to purchase their own place . . .&quot;


The Road to Homeownership


When you're on the path to becoming a homeowner, it's a good idea to get some help along the way. And one of your best resources on this journey as a young homebuyer is a trusted real estate agent. They'll steer you through the process of buying a home and help you find one you can afford. 


Bottom Line


For Gen Z, the path to homeownership may not be straightforward, but it's still within reach. With the right strategies, you can turn your dream of owning a home into a reality.
 ]]> </description>
    <pubDate>Thu, 26 Oct 2023 08:53:00 -0500</pubDate>
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<item>
    <guid>https://www.minneapolisurbanhomes.com/blog/invest-in-yourself-by-owning-a-home.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/invest-in-yourself-by-owning-a-home.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>Invest in Yourself by Owning a Home</title>
    <description> <![CDATA[ 



 


Are you wondering if it makes sense to buy a home right now? While today’s mortgage rates might seem a bit intimidating, here are two compelling reasons why it still may be a good time to become a homeowner.


Home Values Appreciate over Time


There’s been a lot of confusion around what’s happened with home prices over the past two years. While they did dip ever so slightly in late 2022, this year they’ve been appreciating at a more normal pace, which is good news for the housing market. And while looking at price movement over just a year or two can make you worry prices are usually this unpredictable, history shows in the long run, home values rise (see graph below):


 


 


Using data from the Federal Reserve for the past 60 years, you can see the overall trend is home prices have climbed quite steadily. Sure, there was an exception around the housing crash of 2008 that caused prices to break the usual trend for a time, but overall, home values have been consistently on the rise.


Increasing home values is one great reason why buying may make more sense than renting. As prices rise, and as you pay down your mortgage, you build equity. Over time, that growing equity gives your net worth a boost.


Rent Keeps Going Up Through the Years


Another reason you may want to consider buying a home instead of renting is the never-ending rent hike. If you've ever felt the pinch of rent increasing year after year, you're not alone. That’s because, rents have climbed steadily over the past six decades (see graph below):





By buying a home, you can lock in your monthly housing costs and bid farewell to those pesky rent hikes. That stability is a game-changer.


In the end, it all boils down to this: your housing payments are an investment, and you've got a choice to make. Do you want to invest in yourself or your landlord?


By becoming a homeowner, you're investing in your own future. When you rent, that’s money you never get back.


When you factor in home values consistently rising, plus the opportunity to get relief from never-ending rent hikes, homeownership can be a path to financial security. As Dr. Jessica Lautz, Deputy Chief Economist and VP of Research at the National Association of Realtors (NAR), states: 


“If a homebuyer is financially stable, able to manage monthly mortgage costs and can handle the associated household maintenance expenses, then it makes sense to purchase a home.”


Bottom Line


When it comes down to it, buying a home offers more benefits than renting, even when mortgage rates are high. If you want to avoid increasing rents and take advantage of long-term home price appreciation, let’s connect to go over your options.
 ]]> </description>
    <pubDate>Wed, 25 Oct 2023 09:15:00 -0500</pubDate>
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    <guid>https://www.minneapolisurbanhomes.com/blog/the-perks-of-selling-your-house-when-inventory-is-low.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/the-perks-of-selling-your-house-when-inventory-is-low.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>The Perks of Selling Your House When Inventory Is Low</title>
    <description> <![CDATA[ 



 


When it comes to selling your house, you’re probably trying to juggle the current market conditions and your own needs as you plan your move.


One thing that may be working in your favor is how few homes there are for sale right now. Here’s what you need to know about the current inventory situation and what it means for you.


The Supply of Homes for Sale Is Far Below the Norm


When you’re selling something, it helps if what you’re selling is in demand, but is also in low supply. Why? That makes it even more desirable since there’s not enough to go around. That’s exactly what’s happening in the housing market today. There are more buyers looking to buy than there are homes for sale.


To tell the story of just how low inventory is, here’s the latest information on active listings, or homes available for sale. The graph below uses data from Realtor.com to show how many active listings there were in September of this year compared to what’s more typical in the market.





 


As you can see in the graph, if you look at the last normal years for the market (shown in the blue bars) versus the latest numbers for this year (shown in the red bar), it’s clear inventory is still far lower than the norm.


What That Means for You


Buyers have fewer choices now than they did in more typical years. And that’s why you could still see some great perks if you sell today. Because there aren’t enough homes to go around, homes that are priced right are still selling fast and the average seller is getting multiple offers from eager buyers. Based on the latest data from the Confidence Index from the National Association of Realtors (NAR):




69 of homes sold in less than a month.


2.6 offers: the average number of offers on recently sold homes.




An article from Realtor.com also explains how the limited number of houses for sale benefits you if you’re selling:


“. . . homes spent two weeks less on the market this past month than they did in the average September from 2017 to 2019 . . . as still-limited supply spurs homebuyers to act quickly . . .”


Bottom Line


Because the supply of homes for sale is so low, buyers desperately want more options – and your house may be just what they’re looking for. Let’s connect to get your house listed at the right price for today’s market. You could still see it sell quickly and potentially get multiple offers.
 ]]> </description>
    <pubDate>Tue, 24 Oct 2023 11:31:00 -0500</pubDate>
</item>
<item>
    <guid>https://www.minneapolisurbanhomes.com/blog/why-home-prices-keep-going-up.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/why-home-prices-keep-going-up.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>Why Home Prices Keep Going Up</title>
    <description> <![CDATA[ 



 


If you've ever dreamed of buying your own place, or selling your current house to upgrade, you're no stranger to the rollercoaster of emotions changing home prices can stir up. It's a tale of financial goals, doubts, and a dash of anxiety that many have been through.


But if you put off moving because you’re worried home prices might drop, make no mistake, they’re not going down. In fact, it's just the opposite. National data from several sources says they’ve been going up consistently this year (see graph below):


 


 


Here’s what this graph shows. In the first half of 2022, home prices rose significantly (the green bars on the left side of the graphs above). Those increases were dramatic and unsustainable.


So, in the second half of the year, prices went through a correction and started dipping a bit (shown in red). But those slight declines were shallow and short-lived. Still, the media really focused on those drops in their headlines – and that created a lot of fear and uncertainty among consumers.


But here’s what hasn’t been covered fully. So far in 2023, prices are going up once more, but this time at a more normal pace (the green bars on the right side of the graphs above). And after price gains that were too high and then the corrections that followed in 2022, the fact that all three reports show more normal or typical price appreciation this year is good news for the housing market.


Orphe Divounguy, Senior Economist at Zillow, explains changing home prices over the past 12 months this way: 


“The U.S. housing market has surged over the past year after a temporary hiccup from July 2022-January 2023. . . . That downturn has proven to be short lived as housing has rebounded impressively so far in 2023. . .”


Looking ahead, home price appreciation typically starts to ease up this time of year. As that happens, there’s some risk the media will confuse slowing price growth (deceleration of appreciation) with home prices falling (depreciation). Don’t be fooled. Slower price growth is still growth.


Why Are Home Prices Increasing Now?


One reason why home prices are going back up is because there still aren't enough homes for sale for all the people who want to buy them.


Even though higher mortgage rates cause buyer demand to moderate, they also cause the supply of available homes to go down. That’s because of the mortgage rate lock-in effect. When rates rise, some homeowners are reluctant to sell and lose their current low mortgage rate just to take on a higher one for their next home.


So, with higher mortgage rates impacting both buyers and sellers, the supply and demand equation of the housing market has been affected. But since there are still more people who want to purchase homes than there are homes available to buy, prices continue to rise. As Freddie Mac states: 


“While rising interest rates have reduced affordability—and therefore demand—they have also reduced supply through the mortgage rate lock-in effect. Overall, it appears the reduction in supply has outweighed the decrease in demand, thus house prices have started to increase . . .”


Here’s How This Impacts You




Buyers: If you've been waiting to buy a home because you were afraid its value might drop, knowing that home prices have gone back up should make you feel better. Buying a home gives you a chance to own something that usually becomes more valuable over time.


Sellers: If you've been holding off on selling your house because you were worried about how changing home prices would impact its value, it could be a smart move to work with a real estate agent and put your house on the market. You don't have to wait any longer because the most recent data indicates home prices have turned in your favor.




Bottom Line


If you put off moving because you were worried that home prices might go down, data shows they’re increasing across the country. Let’s connect so you can understand how home prices are changing in our local area.
 ]]> </description>
    <pubDate>Mon, 23 Oct 2023 11:21:00 -0500</pubDate>
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    <guid>https://www.minneapolisurbanhomes.com/blog/home-price-growth-is-returning-to-normal.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/home-price-growth-is-returning-to-normal.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>Home Price Growth Is Returning to Normal</title>
    <description> <![CDATA[ 



 





Some Highlights




If you're wondering what’s happening with home prices, know they’re still rising, just at a slower pace – and that’s perfectly normal for this time of year.  


Based on typical seasonality in the market, prices go up most in the spring during the peak buying season, and then price growth slows down as the year goes on.


Home prices aren’t falling. They’re just rising slower and going back to normal seasonal trends. That’s a good thing. If you're curious about prices in our area, let’s connect.


 ]]> </description>
    <pubDate>Fri, 20 Oct 2023 09:13:00 -0500</pubDate>
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<item>
    <guid>https://www.minneapolisurbanhomes.com/blog/what-are-the-real-reasons-you-want-to-move-right-now.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/what-are-the-real-reasons-you-want-to-move-right-now.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>What Are the Real Reasons You Want To Move Right Now?</title>
    <description> <![CDATA[ 



 


If you're considering selling your house right now, it's likely because something in your life has changed. And while things like mortgage rates play a big role in your decision, you don’t want that to overshadow why you thought about making a move in the first place.


It’s true mortgage rates are higher right now, and that has an impact on affordability. As a result, some homeowners are deciding they’ll wait to sell because they don’t want to move and have a higher mortgage rate on their next home.


But your lifestyle and your changing needs matter, too. As a recent article from Realtor.com says:


“No matter what interest rates and home prices do next, sometimes homeowners just have to move—due to a new job, new baby, divorce, death, or some other major life change.”


Here are a few of the most common reasons people choose to sell today. You may find any one of these resonates with you and may be reason enough to move, even today.


Relocation


Some of the things that can motivate a move to a new area include changing jobs, a desire to be closer to friends and loved ones, wanting to live in your ideal location, or just looking for a change in scenery.


For example, if you just landed your dream job in another state, you may be thinking about selling your current home and moving for work.


Upgrading


Many homeowners decide to sell to move into a larger home. This is especially common when there’s a need for more room to entertain, a home office or gym, or additional bedrooms to accommodate a growing number of loved ones.


For example, if you’re living in a condo and your household is growing, it may be time to find a home that better fits those needs.


Downsizing


Homeowners may also decide to sell because someone’s moved out of the home recently and there’s now more space than needed. It could also be that they’ve recently retired or are ready for a change.


For example, you’ve just kicked off your retirement and you want to move somewhere warmer with less house to maintain. A different home may be better suited for your new lifestyle.


Change in Relationship Status


Divorce, separation, or marriage are other common reasons individuals sell.


For example, if you’ve recently separated, it may be difficult to still live under one roof. Selling and getting a place of your own may be a better option.


Health Concerns


If a homeowner faces mobility challenges or health issues that require specific living arrangements or modifications, they might sell their house to find one that works better for them.


For example, you may be looking to sell your house and use the proceeds to help pay for a unit in an assisted-living facility.


With higher mortgage rates and rising prices, there are some affordability challenges right now – but your needs and your lifestyle matter too. As a recent article from Bankrate says:


“Deciding whether it’s the right time to sell your home is a very personal choice. There are numerous important questions to consider, both financial and lifestyle-based, before putting your home on the market. . . . Your future plans and goals should be a significant part of the equation . . .”


Bottom Line


If you want to sell your house and find a new one that better fits your needs, let’s connect. That way, you’ll have someone to guide you through the process and help you find a home that works for you.
 ]]> </description>
    <pubDate>Wed, 18 Oct 2023 08:22:00 -0500</pubDate>
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    <guid>https://www.minneapolisurbanhomes.com/blog/are-higher-mortgage-rates-here-to-stay.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/are-higher-mortgage-rates-here-to-stay.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>Are Higher Mortgage Rates Here To Stay?</title>
    <description> <![CDATA[ 



 


Mortgage rates have been back on the rise recently and that’s getting a lot of attention from the press. If you’ve been following the headlines, you may have even seen rates recently reached their highest level in over two decades (see graph below):  





 


That can feel like a little bit of a gut punch if you’re thinking about making a move. If you’re wondering whether or not you should delay your plans, here’s what you really need to know.   


 How Higher Mortgage Rates Impact You  


 There’s no denying mortgage rates are higher right now than they were in recent years. And, when rates are up, that affects overall home affordability. It works like this. The higher the rate, the more expensive it is to borrow money when you buy a home. That’s because, as rates trend up, your monthly mortgage payment for your future home loan also increases.  


 Urban Institute explains how this is impacting buyers and sellers right now: 


 “When mortgage rates go up, monthly housing payments on new purchases also increase. For potential buyers, increased monthly payments can reduce the share of available affordable homes . . . Additionally, higher interest rates mean fewer homes on the market, as existing homeowners have an incentive to hold on to their home to keep their low interest rate.” 


 Basically, some people are deciding to put their plans on hold because of where mortgage rates are right now. But what you want to know is: is that a good strategy? 


 Where Will Mortgage Rates Go from Here? 


 If you’re eager for mortgage rates to drop, you’re not alone. A lot of people are waiting for that to happen. But here’s the thing. No one knows when it will. Even the experts can’t say with certainty what’s going to happen next.  


 Forecasts project rates will fall in the months ahead, but what the latest data says is that rates have been climbing lately. This disconnect shows just how tricky mortgage rates are to project.  


 The best advice for your move is this: don’t try to control what you can’t control. This includes trying to time the market or guess what the future holds for mortgage rates. As CBS News states: 


 “If you're in the market for a new home, experts typically recommend focusing your search on the right home purchase — not the interest rate environment.” 


 Instead, work on building a team of skilled professionals, including a trusted lender and real estate agent, who can explain what’s happening in the market and what it means for you. If you need to move because you’re changing jobs, want to be closer to family, or are in the middle of another big life change, the right team can help you achieve your goal, even now. 


Bottom Line


The best advice for your move is: don’t try to control what you can’t control – especially mortgage rates. Even the experts can’t say for certain where they’ll go from here. Instead, focus on building a team of trusted professionals who can keep you informed. When you’re ready to get the process started, let’s connect.
 ]]> </description>
    <pubDate>Mon, 16 Oct 2023 08:38:00 -0500</pubDate>
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    <guid>https://www.minneapolisurbanhomes.com/blog/growing-your-net-worth-with-homeownership.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/growing-your-net-worth-with-homeownership.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>Growing Your Net Worth with Homeownership</title>
    <description> <![CDATA[ 



 


Take a moment to imagine where you want to be in a few years. You might be thinking about your job, money, wanting more stability, or goals you want to reach soon. Is homeownership a part of that vision? If it is, you should know owning a home has a whole lot of financial benefits.


One of the many reasons to buy a home is that it’s a great way to build wealth and gain financial stability. That’s because the value of most homes increases over time, which in turn grows your net worth. Here’s how home values are rising right now. According to Zillow:


“The total value of the U.S. housing market – the sum of Zillow’s estimated value for every U.S. home – is now slightly less than $52 trillion, which is $1.1 trillion higher than the previous peak reached last June.”


Basically, homeownership is a tremendous wealth-building tool. And with home values back on the rise across the nation, now might be a good time to consider if owning a home is something you want to reach for.


Here’s a look at some data to see how much owning a home can really make a difference in your life.


Household Net Worth Is Rising


Data shows that while those in the top 1 saw the most dramatic net worth increase, people from every single tax bracket have seen their wealth grow over the past few years (see graph below):


 


 


For many of those people, the rising value of their home plays a big part in that.


Owning a Home Helps You Achieve Financial Success


You can tell homeownership had a lot to do with that growth because there’s a significant net worth gap between homeowners and renters. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:


 “. . . homeownership is a catalyst for building wealth for people from all walks of life. A monthly mortgage payment is often considered a forced savings account that helps homeowners build a net worth about 40 times higher than that of a renter.”


The big reason why? Homeowner’s build equity. Home equity is the value of your home minus the amount you owe on your mortgage. And for most homeowners, that’s the largest contributor to their net worth. Here’s the data from First American to prove it (see graph below):





 


The blue portion of each bar represents housing as a portion of net worth – and it’s clearly a bigger contributor than other investments like stocks, gold, and cryptocurrencies. As you can see, across different income levels, homeownership does more to build the average household’s wealth than anything else.


Bottom Line


One of the biggest benefits of owning a home is that it can provide an avenue to grow your net worth. Let’s connect so you can start investing in homeownership.
 ]]> </description>
    <pubDate>Thu, 12 Oct 2023 15:50:00 -0500</pubDate>
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    <guid>https://www.minneapolisurbanhomes.com/blog/the-latest-expert-forecasts-for-home-prices-in-2023.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/the-latest-expert-forecasts-for-home-prices-in-2023.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>The Latest Expert Forecasts for Home Prices in 2023</title>
    <description> <![CDATA[ 



 


Are you thinking about making a move? If so, all the speculation that home prices would crash this year may have you feeling a bit on edge about your decision. Let the data and the experts reassure you. Prices aren’t in a downward spiral and will actually finish the year strong.


Even though you may have heard talk that prices would drop 5, 10, or even 20 this year, that hasn’t happened. The big reason why is the supply of homes for sale is too low. There are just more buyers looking to buy than homes available, and that’s kept prices from falling.


To prove this year wasn’t a bust for home prices, let’s look at the latest 2023 forecast from a number of experts.


Most Experts Project Home Prices Will Net Positive this Year


The general consensus from industry experts is that home price appreciation will actually be positive for 2023. The graph below shows the latest 2023 year-end forecasts from six different organizations:





 


As you can see, all but one project nationally prices will net positive this year. That’s significant because it shows the majority are optimistic about home price growth.


If you’re still worried about the one red bar that shows an overall price drop for the year, think about this. The projection from the National Association of Realtors (NAR) is for only a slight decline. It’s not the big crash all the headlines called for. Plus, if you average all six forecasts together, the expectation is that prices will net somewhere around 3.3 positive growth for the year.


If these 6 organizations aren’t enough to convince you that prices won’t come tumbling down, here’s something else to consider. One of the six forecasts represented in the graph is the Home Price Expectation Survey (HPES) from Pulsenomics. It combines survey results from over 100 economists, investment strategists, and housing market analysts. The HPES found that the average from all 100 of those experts is 3.3 price growth for the year.


If you look back at the graph above, you’ll notice the blue average for the forecasts in this graph is also 3.3. While individual forecasts may vary, both the HPES survey and the average of these forecasts provide the same projection. And 3.3 appreciation is a completely different story than prices falling.


Bottom Line


If you’re worried about home prices falling this year, let the experts reassure you. Based on the average of the latest forecasts, home prices will actually show positive growth this year. If you have questions about what’s happening with home prices in our local area, let’s connect.
 ]]> </description>
    <pubDate>Wed, 11 Oct 2023 11:24:00 -0500</pubDate>
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