At one time, it seemed that everything you read in the newspaper’s real estate section had to do with downsizing—the practice of selling off the family home and moving to a small, low-maintenance villa or condominium. The favored communities for downsizing were often located in the South, offering good year-round weather and no more snow shoveling. It sounded like a great deal—pre-pandemic.
Are We Facing a Real Estate Bubble?
Recollections of the 2008 economic recession and the mortgage crisis that followed are fresh in the minds of many of the older Millennial and Gen-X homeowners burned by the housing market in the past. As buyers compete in multiple offer situations and pay well-above asking price for that new home—whether as first-time homebuyers or as move-up buyers—many are wondering whether the housing market is due for a correction.
Why Now Is a Great Time to Tap Into Your Home’s Equity
If you’re a homeowner, you’re in luck. US homeowners are currently enjoying a boom in residential equity value. According to CoreLogic’s Homeowner Equity Insights Report, approximately 63 percent of US homeowners are experiencing an equity increase of more than 10.8 percent year over year between Q3 of 2019 and Q3 of 2020. That represents a combined equity value of more than $1 trillion in just one year. During the same period, negative equity fell by 18.3 percent year over year, resulting in greater security and financial stability for hundreds of thousands of homeowners.
New Places to Look for Your Next Home
For many buyers, one of the most challenging aspects of buying a home in 2020 turned out to be finding a home in the first place. Low inventory in many markets, as well as the struggles associated with local restrictions and virtual home tours, meant that some enthusiastic buyers found themselves unable to find the right space when they were ready to move forward with their purchase.
What to Expect from the Closing Process
When you watch a show on HGTV where an eager young couple is looking for a home, it usually ends when the offer is accepted. In real life, however, that is only the beginning of the story. The closing or escrow process has its own rules and challenges. By being prepared for each step of the process, you’ll be able to stay calm, cool, and collected—even if the unexpected occurs.
Preparing for a 2021 Home Purchase
While you may have been ready to buy a home during the 2020 spring market, the uncertainties caused by the pandemic may have put a damper on your plans. At this point, you may be uncertain about your post-COVID-19 real estate goals and unsure whether the opportunity to work from home will inspire you to move to another market or another type of home.
Why Now Is the Time to Upgrade Your Space
As recently as last year, industry observers saw the real estate market moving further toward smaller homes and predicted the demise of sprawling McMansions and large luxury properties. What a difference a few months can make in changing lifestyles and the types of activities taking place within the home.
December 2020 Residential Market Report
Are You Ready to Upsize Your Space?
For many years, downsizing has been a watchword in the real estate industry, with both retirees and younger buyers and sellers thinking about reducing their square footage for a variety of reasons. However, the advent of COVID-19 and the reality of life in a smaller space has many people rethinking their previous plans and upsizing instead. If you’re not sure which is right for you, read on to see if you and your family would benefit from upsizing your space.