Navigating the Challenging Housing Market
Navigating the Challenging Housing Market: A Closer Look at Spokane and Coeur d'AleneIn recent years, the dream of homeownership has become increasingly elusive, especially for those residing in Spokane and Coeur d'Alene. The affordability crisis has hit hard, with less than 30% of the local population able to afford the average priced home, which currently hovers around $415,000. This has created a distinct divide in the real estate market, characterized by intense competition for homes under $420k and a more balanced market for higher-priced properties. Additionally, renters are facing their own set of challenges, as rental costs continue to rise steadily. As we delve deeper into the intricacies of this housing crisis, it becomes clear that strategic decision-making is essential for both prospective buyers and existing homeowners.Implications for Homeowners: For current homeowners, holding onto their property as a means to accumulate "free equity" may prove to be a wise choice. If you purchased your home within the last five years and your income hasn't experienced a significant increase, selling might result in a lateral move rather than a substantial financial gain. However, it's crucial to evaluate your individual circumstances before making any decisions.The Waiting Game: On the other hand, if you find yourself on the sidelines, eagerly awaiting a drop in housing prices before taking the plunge, it's time to reassess your strategy. The pandemic and economic recession have caused housing shortages, severely impacting the supply-demand balance. Consequently, the likelihood of prices decreasing in the near future is slim. By delaying your entry into the market, you risk missing out on potential appreciation of home values and the opportunity to build equity. It's a tough call to make, but timing can play a crucial role in your long-term financial well-being.Seeking Guidance: Navigating the complexities of the current housing market may seem overwhelming, but you don't have to face it alone. Reach out to someone you trust, such as a real estate agent or financial advisor, to help you make informed decisions based on your unique circumstances. Their expertise and insights can prove invaluable as you weigh the pros and cons of buying or selling a home.My Role in Assisting You: If you're feeling uncertain and need guidance, I'm here to help. As a trusted resource, I can provide you with information to better understand your options and make the best decisions for your specific situation. Feel free to reach out to me if you have any questions or require assistance along your real estate journey.In the midst of a challenging housing market in Spokane and Coeur d'Alene, it's important to approach homeownership and rental decisions with careful consideration. Affordability concerns, limited inventory, and rising rental costs all contribute to the complexity of the situation. Whether you choose to hold onto your property or enter the market as a buyer, remember that informed decision-making is key. Seek support from trusted professionals who can guide you through the process, and remember that the right time to act may be sooner than you think. The housing market may be tough, but with the right strategy, you can still navigate it successfully and achieve your homeownership goals.5 Key things to do before selling your home:
Selling your house can be an exciting and challenging experience. Before you put your home on the market, there are a few essential things you should do to ensure that you attract potential buyers and get the best possible price. In this blog post, we’ll discuss five essential things you should do when getting ready to sell your house.
Clean and Declutter
The first thing you should do when getting ready to sell your house is to clean and declutter. A clean and clutter-free home makes a great first impression on potential buyers. Start by getting rid of any unnecessary items, such as old magazines, toys, and clothes. Next, deep clean your home, including all surfaces, floors, and carpets. Pay extra attention to the kitchen and bathrooms, as these are the rooms that buyers tend to scrutinize the most. You can also hire a professional cleaning service to ensure that your home is spotless.
Stage Your Home
Staging is the process of arranging your home to showcase its best features and make it more appealing to potential buyers. It involves removing personal items and rearranging furniture to create an open and inviting space. You can hire a professional home stager or do it yourself. Start by removing any personal items, such as family photos and personal knick-knacks. Rearrange furniture to create an open and inviting space, and add a few decorative touches, such as fresh flowers or a bowl of fruit.
Improve Curb Appeal
The exterior of your home is the first thing that potential buyers see, so it’s essential to make a good first impression. Improving your home’s curb appeal can help attract more buyers and increase your home’s value. Start by giving your home’s exterior a fresh coat of paint, trimming any overgrown bushes, and mowing the lawn. You can also add some colorful flowers and plants to create a welcoming entrance.
Make Necessary Repairs
Before putting your home on the market, it’s important to make any necessary repairs. This includes fixing any leaky faucets, replacing broken tiles, and repairing any holes in the walls. Buyers will often hire a home inspector to check for any issues, so it’s best to fix any problems beforehand to avoid any surprises during the selling process.
Price Your Home Competitively
Finally, it’s essential to price your home competitively. Overpricing your home can lead to it sitting on the market for longer, while underpricing it can lead to a lower selling price. A real estate agent can help you determine the best price for your home based on market trends and comparable properties in your area.
In conclusion, selling your home can be a stressful process, but taking the time to clean, stage, improve curb appeal, make necessary repairs, and price your home competitively can help you attract potential buyers and get the best possible price for your home. Good luck with your home sale!
What to know before getting your real estate licence:
Real estate is often touted as a lucrative career path with the potential to make a lot of money quickly. However, the reality is that it takes more than just passing a licensing exam to succeed in this industry. If you are considering becoming a real estate agent, there are a few things you should know before jumping in headfirst.
First and foremost, real estate is not a simple, straightforward job. It involves much more than just showing a few houses and sticking up signs in yards. A successful career in real estate requires perseverance, quick thinking, out-of-the-box problem-solving skills, and the ability to stay calm in emotionally-charged situations.
To be successful in real estate, you also need to have a deep knowledge of the local market and stay on top of industry regulations. This means continually educating yourself on changes in laws and regulations that could affect your clients' transactions. It's also essential to develop strong relationships with other professionals in the industry, including lawyers, inspectors, and lenders, to ensure that your clients receive the best possible service.
While the opportunities for success are out there, they won't just fall into your lap. As an agent, it's crucial to network with other agents and local business owners to continue to grow your business. This means attending industry events, joining professional associations, and connecting with potential clients on social media.
If you're curious about what a career in real estate looks like, it's essential to speak to someone who has experience in the field. A real estate agent can provide valuable insights into what it takes to succeed and what challenges you might face along the way.
In conclusion, a career in real estate can be rewarding, but it takes hard work and dedication to make it successful. If you're up for the challenge, start by educating yourself on the local market, building relationships with other professionals, and networking with potential clients. With the right mindset and approach, you can build a thriving career in this exciting industry.
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Considering Short-Term Rentals?
Short-term rentals can be a highly lucrative investment and a fun way to make money. Some of the advantages to managing a short-term rental property include:
1. Your tenants are generally excited to be at your vacation property and may not require as much attention as a long-term tenant.
2. You can collect one-time, up-front payments instead of keeping track of monthly or weekly payments.
3. Depending on the location and amenities of your property, you may make several thousand dollars per month per property.
4. Platforms such as Airbnb, VRBO, and Booking.com make it easy to set up a website to market your property.
A short-term rental investment can be accomplished by purchasing a property to keep rented out or putting your own home up for rent when you travel. Whichever course you take, here are some things to think about before you hang up that “vacancy” sign.
1. Managing short term rentals is not exactly passive income. There is quite a lot of work involved in marketing the property, keeping it maintained, and turning it around between tenants. Consider whether you have the time to keep up with it yourself or if you will need to hire a property manager, and how much that will cut into your profits.
2. Think beyond vacation rentals. Short term rentals don’t have to be on the beach or a ski slope. Other reasons why someone may need a rental in your neighborhood include job interviews, waiting to close on a home, renovating a home, visiting family, traveling with pets, college tours, entertainment events occurring in the area, or having medical procedure done at a nearby hospital.
3. Do your due diligence when buying an investment property. You’ll want to assess the existing short-term rental market and find out what the going rates are and which areas are renting well. You should find out if there are HOA or condominium regulations that prohibit short-term rentals. Also inquire as to state, county, or city regulations and resort taxes.
4. Create a business plan. Many property owners wing it with their short-term rentals, but you will have more peace of mind and less surprises if you treat your rental as a business. Make a list of expenses, including insurance, mortgage payments, taxes, cleaning and handyman services, utilities, internet and TV, lawn or pool care, furnishings, consumables you will provide, and marketing costs.
5. Work with an agent who knows the area. Buying the right property at the right price takes some experience. Remember that the purchase of the property is the bigger investment than the rentals to follow. Let’s talk about how I can help you get started making money with short-term rentals!
Why Fall is the best time…
Why Fall is the Best Season for Selling Your Home
Temps are cooling down and so has the Spokane area market! This may sound like a bad thing for sellers, but it's actually a good thing, and here's why!
Interest rates have mellowed out a hair and homes are sitting on the market a bit longer, finally giving buyers a more fair playing field. This can entice buyers to start their home search (when they've been sitting on the sidelines the last two years), putting more eyes on your listing than before.
Fall decor is everyone's favorite and if agents are educating their sellers, homes will be extra cozy! (Seller tip: make a batch of chocolate chip cookies before an open house to make your house smell like home) Selling the lifestyle of the home is so important, and it's super easy to do in the fall!
Now that we're in the full swing of the school year, buyers are eager to move so they can be settled in in time for the holidays.
If you're thinking now may be the time to sell, let's meet up and get you on track!
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Homeownership Is a Great Hedge Against the Impact of Rising Inflation
If you’re following along with the news today, you’ve heard about rising inflation. Today, inflation is at a 40-year high. According to the National Association of Home Builders (NAHB):
“Consumer prices accelerated again in May as shelter, energy and food prices continued to surge at the fastest pace in decades. This marked the third straight month for inflation above an 8% rate and was the largest year-over-year gain since December 1981.”
With inflation rising, you’re likely feeling it impact your day-to-day life as prices go up for gas, groceries, and more. These climbing consumer costs can put a pinch on your wallet and make you re-evaluate any big purchases you have planned to ensure they’re still worthwhile.
If you’ve been thinking about purchasing a home this year, you’re probably wondering if you should continue down that path or if it makes more sense to wait. While the answer depends on your situation, here’s how homeownership can help you combat the rising costs that come with inflation.
Homeownership Helps You Stabilize One of Your Biggest Monthly Expenses
Investopedia explains that during a period of high inflation, prices rise across the board. That’s true for things like food, entertainment, and other goods and services, even housing. Both rental prices and home prices are on the rise. So, as a buyer, how can you protect yourself from increasing costs? The answer lies in homeownership.
Buying a home allows you to stabilize what’s typically your biggest monthly expense: your housing cost. When you have a fixed-rate mortgage on your home, you lock in your monthly payment for the duration of your loan, often 15 to 30 years. James Royal, Senior Wealth Management Reporter at Bankrate, says:
“A fixed-rate mortgage allows you to maintain the biggest portion of housing expenses at the same payment. Sure, property taxes will rise and other expenses may creep up, but your monthly housing payment remains the same. That’s certainly not the case if you’re renting.”
So even if other prices increase, your housing payment will be a reliable amount that can help keep your budget in check. If you rent, you don’t have that same benefit, and you won’t be protected from rising housing costs.
Investing in an Asset That Historically Outperforms Inflation
While it’s true rising home prices and higher mortgage rates mean that buying a house today costs more than it did even a few months ago, you still have an opportunity to set yourself up for a long-term win. That’s because, in inflationary times, you want to be invested in an asset that outperforms inflation and typically holds or grows in value.
The graph below shows how the average home price appreciation outperformed the average inflation rate in most decades going all the way back to the seventies – making homeownership a historically strong hedge against inflation (see graph below):
Homeownership Is a Great Hedge Against the Impact of Rising Inflation | MyKCM
So, what does that mean for you? Today, experts forecast home prices will only go up from here thanks to the ongoing imbalance of supply and demand. Once you buy a house, any home price appreciation that does occur will grow your equity and your net worth. And since homes are typically assets that grow in value, you have peace of mind that history shows your investment is a strong one.
That means, if you’re ready and able, it makes sense to buy today before prices rise further.
Bottom Line
If you’ve been thinking about buying a home this year, it makes sense to act soon, even with inflation rising. That way you can stabilize your monthly housing cost and invest in an asset that historically outperforms inflation. If you’re ready to get started, let’s connect so you have expert advice on your specific situation when you’re ready to buy a home.What Everyone Wants To Know: Will Home Prices Decline in 2022?
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What Everyone Wants To Know: Will Home Prices Decline in 2022?
If you’re thinking of buying a home in today’s housing market, you may be wondering how strong your investment will be. You might be asking yourself: if I buy a home now, will it lose value? Or will it continue to appreciate going forward? The good news is, according to the experts, home prices are not projected to decline.
Here’s why
With buyers still outweighing sellers, home prices are forecast to continue climbing in 2022, just at a slower or more moderate pace. Why the continued increase? It’s the simple law of supply and demand. When there are fewer items on the market than there are buyers, the competition for that item makes prices naturally rise.
And while the number of homes for sale today is expected to improve with more sellers getting ready to list their houses this winter, we’re certainly not out of the inventory woods yet. Thus, the projections show continued appreciation, but at a more moderate rate than what we’ve seen over the past year.
Here’s a look at the latest 2022 expert forecasts on home price appreciation:
What’s the biggest takeaway from this graph? None of the major experts are projecting depreciation in 2022. They’re all showing an increase in home prices next year.
And here’s what some of the industry’s experts say about how that will play out in the housing market next year:
Brad Hunter of Hunter Housing Economics explains:
“. . . the recent unsustainable rate of home price appreciation will slow sharply. . .. home prices will not decline. . . but they will simply rise at a more sustainable pace.”
Danielle Hale from realtor.com agrees:
“Price growth is expected to move back toward a normal range, but this is on top of recent high prices, . . . So, prices will [still] hit new highs. . .. The pace of price growth is going to slow notably . . .”
What Does This Mean for the Housing Market?
While home price appreciation is expected to continue, it isn’t projected to be the record-breaking 18 to almost 20% increase the market saw over the past 12 months. Overall, it’s important to note that price increases won’t be as monumental as they were in 2021 – but they certainly won’t decline anytime soon.
What Does That Mean for You?
With motivated buyers in the market and so few homes available to purchase, the imbalance of supply and demand will continue to put upward pressure on home prices in 2022. And when home price appreciation is in the forecast, that’s a clear indication your investment in homeownership is a sound one.
Bottom Line
It’s important to know that home prices are not projected to decline in the new year. Instead, they’re forecast to rise, just at a more moderate pace. Let’s connect to make sure you’re up to date on what’s happening with home price appreciation in our market, so you can make an informed decision about your next move.
How to Stage Your Primary Bedroom to Feel Like An Oasis
Our bedrooms are our space to get a good night's sleep so we can wake up refreshed and recharged for the day! That's why it's important to create a space that feels peaceful and relaxing. Whether you're looking for great staging tips to prep your home for sale or your Master bedroom is just in need of a makeover, you can put these tips to work to get it to the oasis level!
Start with the windows. Swap out plastic blinds for floor to ceiling curtains. Even if your windows aren't floor to ceiling windows, it will help add height to your room and make your ceiling seem taller. Opt for neutral colors or patterns unless your room needs a splash of color.
How are your linens looking? Do you have mismatched sheets, two flat pillows and a comforter thrown over the top? Your bed is most likely the focal point of your bedroom so let's treat it that way! Add neutral or white linens to give your room a clean, crisp look. Try a white duvet cover, a cozy ivory throw at the end of the bed and fluffy white towels in the bath to give your master suite a luxurious feel.
Next, accessorize with pillows. Have you ever stayed at a hotel where the pillows are piled on so perfectly it feels like you're laying on a cloud? Why not make the bed you sleep in every night have that same fancy hotel look? Throw on a couple of Euro sized pillows and you're ready to climb in bed with a good book and relax in comfort. You'll also want to add in some accent pillows but don't go too crazy here. When it comes to accent pillows, don't be afraid to try different shapes, patterns and textures. This is the best place to add pops of color to your room.
Bring the outdoors in by adding some greenery to the space. Fresh flowers on the nightstand is a simple yet striking touch. Consider adding a taller plant next to a floor length mirror or to a lonely corner.
Don't forget, lighting is the key to staging any room to look more put together. Light and bright makes everything look nice. Invest in updated lamps on your dressers, nightstand and the ceiling. A chandelier can give a romantic, upscale feel but if you're the type of person who needs a fan when you sleep, you can also add in a nice looking ceiling fan if yours is starting to look a little shabby or outdated.
Clear the clutter! Do you have jewelry laying out on the dresser and other things starting to pile up? I know I'm guilty of this and the only solution I found was to purchase some decorative jewelry boxes and a catch all tray. That way I can still keep my everyday pieces out without having things look cluttered and messy. Anthropologie has some beautiful pieces for storing jewelry.
Lastly, let's consider the paint color. Do your walls need a refresh? Try to stick to neutral paint colors for the bedroom so that it feels like a peaceful space. If you want to turn your bedroom into an oasis, you'll want to leave the bright colors for the accessories and opt for bright whites and lush ivories when it comes to paint. You can always balance out the room with a darker statement wall if you love the idea of breaking up the white. This is also a great room to try out a modern wall paper pattern to accent the wall behind your bed. Remember, you don't want every single item to be white to the point where the room looks cold and uninviting. Strike a good balance between neutrals and pops of color. Blush is a gorgeous and popular color right now that can be used as a neutral while also adding in some color.
Grab your phone and start making a list of the items you're going to need to focus on. Then you're ready to whip out your laptop and start online shopping! Before you know it you'll be sneaking off the bed early to relax in your beautiful new space!
3 Home Seller Myths You Need to Know
Whenever anyone mentions that they’re thinking of putting their house up for sale it seems that everyone wants to give their opinions on the subject. Because of that, a lot of myths have developed that seem to go around like the game, Telephone. Let’s debunk those myths so that when you’re ready to sell, you know the facts!
MYTH #1: Automated Home Evaluations Are Always Accurate
Have you ever seen an Ad on Facebook that says “CLICK HERE to automatically determine your home’s market value” or something along those lines? If the answer is yes, I promise you’re not alone. The problem with the automated home evaluations is that they are not taking every factor into consideration and can result in false information, causing you to believe that your home value is less than what it actually is or even higher than what is realistic.
The internet doesn’t know if you refinished your hardwood floors, updated all your landscaping, added a brand-new deck or any other update you’ve put your hard earned money and possibly even your own valuable time into to improve your home.
What type of evaluation could give you an accurate answer? One where a LOCAL Real Estate Agent asks you for your contact info so they can conduct a personalized market analysis after asking you for more details about your home. Even better, schedule a consultation so that Agent can see your home in person and give you the MOST accurate answer. Listing Consultations cost you zero dollars and you have no obligation to order the for-sale sign and start signing afterwards.
MYTH #2: If You Don’t Have an Open House, Your Home Won’t Sell
Have you ever heard the actual stats on the success of an Open House? According to a 2017 survey by the National Association of REALTORS, only 7 percent of buyers find the home they buy through an Open House.
This isn’t to say that your home shouldn’t have an Open House when it’s for sale, but, it also isn’t the most effective marketing strategy. Holding an Open House will help increase exposure when your home first hits the market so it’s recommended to have your Agent hold one the first week that your home is on the market in order to drive as much traffic as possible to your listing. However, make sure your Agent has other marketing strategies they use other than standing around your house for a couple of hours every weekend.
MYTH #3: If You Price Your House on the High End, You’ll Have Room to Negotiate
Many sellers believe that if they price their house high, they’ll end up at the price they actually want. The problem with this is, that you’ll be decreasing the demand (number of interested buyers) when you first list your home which will automatically create a mindset that the home is priced too high.
When your home hits the market, you want to make sure you are drawing from the biggest pool of buyers to get as much exposure as possible. Pricing it on the high end will eliminate buyers who can afford the price you actually want because their budget might not go up to the price you’re starting with. Instead, price it at or slightly below the market value to increase demand, competition and ultimately more money in your pocket.
If you’re thinking of listing your home in the near future, you’re already in a better position knowing the truth about these common seller myths. To be even more prepared, make sure you schedule a listing consultation with a Real Estate Agent to find out what else you should know before listing your home for sale.