The Howell Realty Group Real Estate News and Information

 

April 6, 2020

The #1 Thing You Can Do Now to Position Yourself to Buy a Home This Year

The #1 Thing You Can Do Now to Position Yourself to Buy a Home This Year | MyKCM

The last few weeks and months have caused a major health crisis throughout the world, leading to a pause in the U.S. economy as businesses and consumers work to slow the spread of the coronavirus. The rapid spread of the virus has been compared to prior pandemics and outbreaks not seen in many years. It also has consumers remembering the economic slowdown of 2008 that was caused by a housing crash. This economic slowdown, however, is very different from 2008.

One thing the experts are saying is that while we’ll see a swift decline in economic activity in the second quarter, we’ll begin a sharp rebound in the second half of this year. According to John Burns Consulting:

“Historical analysis showed us that pandemics are usually V-shaped (sharp recessions that recover quickly enough to provide little damage to home prices), and some very cutting-edge search engine analysis by our Information Management team showed the current slowdown is playing out similarly thus far.” 

Given this situation, if you’re thinking about buying a home this year, the best thing you can do right now is use this time to get pre-approved for a mortgage, which you can do from the comfort of your home. Pre-approval will help you better understand how much you can afford so that you can confidently do the following two things when you’re ready to buy:

1. Gain a Competitive Advantage

Today’s low inventory, like we’ve seen recently and will continue to see, means homebuyers need every advantage they can get to make a strong offer and close the deal. Being pre-approved shows the sellers you’re serious about buying a home, which is always a plus in your corner.

2. Accelerate the Homebuying Process

Pre-approval can also speed-up the homebuying process so you can move faster when you’re ready to make an offer. Being ready to put your best foot forward when the time comes may be the leg-up you need to cross the finish line first and land the home of your dreams.

Bottom Line

Pre-approval is the best thing you can do right now to be in a stronger position to buy a home when you’re ready. Let’s connect today to get the process started.

 

Posted in For Buyers
April 3, 2020

New to Working From Home? Our Top Tips

 

Working from home can be a challenge, especially when you’re not used to it. There are a lot of distractions that can interfere with your work, sometimes causing you to get so off track that you end up behind on important tasks. While many consider working from home to be a great perk, if you’ve never worked from home before then you might be surprised at just how stressful it can be!

Fortunately, you’re not on your own. These are stressful times, and HomeKeepr is here to help you get through them. To that end, here are some tips that will make working from home for the first time a lot easier.

 

 

Set Up Your Space

 

When you think of working from home, you might picture yourself lounging on the couch in your pajamas with a laptop on your lap. While some people do choose to work like this when working from home, for most home workers this sort of setup is going to kill any productivity they might have. Instead of taking a “work wherever I end up” approach, set up a desk or office space that’s intended solely for work-related activities. This will help you to stay on task when you’re at work and will keep work activities from bleeding over into leisure time.

 

Check Your Equipment

 

If you’re used to having in-person meetings during the week, getting used to remote meetings via a video service like Zoom or Skype can be a bit of an adjustment. To make this easier, check your equipment beforehand to ensure that everything will work correctly when it’s time to start a meeting. This includes checking your webcam, your microphone and your speakers to make sure everything functions properly. There are websites and software solutions that help you with this, and some platforms like Zoom have built-in tests as well.

 

Keep to a Schedule

 

One common misconception about working from home is that you automatically gain the freedom to work whenever you feel like working. While this may be true for some industries, if you’ve been working 9 to 5 for the last 10 years then that isn’t likely to change much just because your office is now in your guest room. Keep as close as possible to your regular schedule, allowing for possible reduced hours or other differences brought about by working from home. It can help to print out a copy of your “office hours” as well, both as a reminder to others that you’re busy with work and a reminder to yourself that you’re supposed to be on the job.

 

Avoid Distractions

 

It’s said that one of the hard things about working from home is the fact that home is where we keep all our favorite distractions. This includes a lot of things, ranging from games to books to the TV. It also includes family members, who can be hard to ignore when you’re supposed to be on the job. As much as possible, try to avoid interacting with the people and things in your home unless you’re taking a break from work activities.

 

Don't Make Deals

 

It’s easy to tell yourself that if you do something unrelated to work now, you’ll make up the work that you’re supposed to be doing later. Unfortunately, this tends to snowball, and the next thing you know you’re behind on everything you’re supposed to be doing. Avoid making these sorts of deals; instead choose to do those things or have those conversations during your next scheduled break, just like you would do if you were still going in to work. If there’s something you want to do that won’t fit into a regular break, try to get your current tasks done BEFORE you take the time off instead of bargaining that you’ll wrap it up after.

 

Stay Connected

 

Isolation is difficult, especially if you’re used to working closely with your coworkers. You can fight this by calling them up, collaborating over video or even sending out daily emails or texts to check on everyone. Even though it’s not the one-on-one interaction you’re used to, the contact you have with your coworkers can still make a huge difference.

April 2, 2020

Activities You Can Do With the Whole Family

 

With the current state of the world, people are spending more time at home than ever. This provides for some great opportunities to bond as a family, and also gives some of us a bit more time to get things done around the house. Spending more time with your family can lead to some questions, though. One of the biggest is “Exactly what are we supposed to do now that we’re together?” Without the breaks afforded by work, school and other activities, trying to come up with activities for the whole family can seem a bit overwhelming.

If you need some ideas on how to spend that family time, here are a few suggestions to get you started. Not only will these ideas help you to spend some quality time together as a family, but some of them might help you with some of those tasks around the house as well!

 

Planning (and Planting) a Garden

 

Even though the year has gotten off to a rocky start, time waits for no one. We’re already getting into gardening season, so it’s time to start prepping the soil and starting your seeds. Since you’ve got the family all there at home, try to get everyone else involved as well. Plan out the size and shape of your garden plot and make a list of everyone’s favorite fruits and veggies to help decide what to plant. You can even get younger kids involved by letting them make row markers featuring pictures of everything you plan to grow.

Family Game Nights

Game nights are a classic, but sometimes it can be hard to fit them in. Timing isn’t as much of an issue these days, however, so let’s play some games! These could be anything from board games to multiplayer video games or even tabletop role-playing games. Let the family decide on the specifics and plan out a new game night every week to help keep everyone entertained.

Movie Time

Going to the movies is a popular family activity. Just because the theaters are closed doesn’t mean you have to give up on enjoying a film together, though. Make some popcorn, break out some snacks and cue up a favorite film on the TV. Several studios are releasing movies for sale or rental early, and some have even put new releases up for rental on streaming services even though they should still be in a theatrical run, so you can still catch some of the films that you might have planned on seeing as a family anyway.

 

Plan Some Redecorations

 

Were you hoping to redecorate this spring? You still can, and you can get the family involved in the process as well. Let everyone help pick out paint colors and decorations, especially in their bedroom or other rooms where they spend a significant amount of time. Even if you can’t get everything that you need for the project right now, this will let you plan things out in advance so that you’ll be ready to start once it’s go time.

 

Activities From a Hat

 

If you aren’t sure what to do, have everyone get together and make a list of three things that you’d like to do as a family. Once you’ve got the lists made, put them all on a hat or other container and draw one of the lists out. Look at the listed items and let the family vote on which activity you’d like to do from the list. If you’re worried that the same person might win too many times, the next time you do it, have the person who won sit out the suggestions and be the one to draw the winning list instead.

 

Time Alone, Together

 

Sometimes, one of the best things that you can do as a family is just relax and enjoy each other’s company. Don’t assume that you have to fill up every available moment with activities. Take some time to read books, give the kids some screen time or do some other individual downtime activities. You can take this downtime in the same room, spending casual time together without having to be “on” and actively doing things together all the time.

April 1, 2020

The Best Advice Does Not Mean Perfect Advice

 

The Best Advice Does Not Mean Perfect Advice | MyKCM

The angst caused by the coronavirus has most people on edge regarding both their health and financial situations. It’s at times like these when we want exact information about anything we’re doing – even the correct protocol for grocery shopping. That information brings knowledge, and this gives us a sense of relief and comfort.

If you’re thinking about buying or selling a home today, the same need for information is very real. But, because it’s such a big step in our lives, that desire for clear information is even greater in the homebuying or selling process. Given the current level of overall anxiety, we want that advice to be truly perfect. The challenge is, no one can give you “perfect” advice. Experts can, however, give you the best advice possible.

Let’s say you need an attorney, so you seek out an expert in the type of law required for your case. When you go to her office, she won’t immediately tell you how the case is going to end or how the judge or jury will rule. If she could, that would be perfect advice. What a good attorney can do, however, is discuss with you the most effective strategies you can take. She may recommend one or two approaches she believes will be best for your case.

She’ll then leave you to make the decision on which option you want to pursue. Once you decide, she can help you put a plan together based on the facts at hand. She’ll help you achieve the best possible resolution and make whatever modifications in the strategy are necessary to guarantee that outcome. That’s an example of the best advice possible.

The role of a real estate professional is just like the role of the lawyer. An agent can’t give you perfect advice because it’s impossible to know exactly what’s going to happen throughout the transaction – especially in this market.

An agent can, however, give you the best advice possible based on the information and situation at hand, guiding you through the process to help you make the necessary adjustments and best decisions along the way. An agent will get you the best offer available. That’s exactly what you want and deserve.

Bottom Line

If you’re thinking of buying or selling, contact a local real estate professional to make sure you get the best advice possible.

Posted in For Buyers
March 26, 2020

Don’t Let Frightening Headlines Scare You

 

Don’t Let Frightening Headlines Scare You | MyKCM

There’s a lot of anxiety right now regarding the coronavirus pandemic. The health situation must be addressed quickly, and many are concerned about the impact on the economy as well.

Amidst all this anxiety, anyone with a megaphone – from the mainstream media to a lone blogger – has realized that bad news sells. Unfortunately, we will continue to see a rash of horrifying headlines over the next few months. Let’s make sure we aren’t paralyzed by a headline before we get the full story.

When it comes to the health issue, you should look to the Centers for Disease Control and Prevention (CDC) or the World Health Organization (WHO) for the most reliable information.

Finding reliable resources with information on the economic impact of the virus is more difficult. For this reason, it’s important to shed some light on the situation. There are already alarmist headlines starting to appear. Here are two such examples surfacing this week.

1. Goldman Sachs Forecasts the Largest Drop in GDP in Almost 100 Years

It sounds like Armageddon. Though the headline is true, it doesn’t reflect the full essence of the Goldman Sachs forecast. The projection is actually that we’ll have a tough first half of the year, but the economy will bounce back nicely in the second half; GDP will be up 12% in the third quarter and up another 10% in the fourth.

This aligns with research from John Burns Consulting involving pandemics, the economy, and home values. They concluded:

“Historical analysis showed us that pandemics are usually V-shaped (sharp recessions that recover quickly enough to provide little damage to home prices), and some very cutting-edge search engine analysis by our Information Management team showed the current slowdown is playing out similarly thus far.”

The economy will suffer for the next few months, but then it will recover. That’s certainly not Armageddon.

2. Fed President Predicts 30% Unemployment!

That statement was made by James Bullard, President of the Federal Reserve Bank of St. Louis. What Bullard actually said was it “could” reach 30%. But let’s look at what else he said in the same Bloomberg News interview:

“This is a planned, organized partial shutdown of the U.S. economy in the second quarter,” Bullard said. “The overall goal is to keep everyone, households and businesses, whole” with government support.

According to Bloomberg, he also went on to say:

“I would see the third quarter as a transitional quarter” with the fourth quarter and first quarter next year as “quite robust” as Americans make up for lost spending. “Those quarters might be boom quarters,” he said.

Again, Bullard agrees we will have a tough first half and rebound quickly.

Bottom Line

There’s a lot of misinformation out there. If you want the best advice on what’s happening in the current housing market, let’s talk today.

Posted in Uncategorized
March 23, 2020

Economic Slowdown: What the Experts Are Saying

Economic Slowdown: What the Experts Are Saying | MyKCM

More and more economists are predicting a recession is imminent as the result of the pullback in the economy caused by COVID-19. According to the National Bureau of Economic Research:

“A recession is a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.”

Bill McBride, the founder of Calculated Riskbelieves we are already in a recession:

“With the sudden economic stop, and with many states shutting down by closing down schools, bars and restaurants…my view is the US economy is now in a recession (started in March 2020), and GDP will decline sharply in Q2. The length of the recession will depend on the course of the pandemic.”

How deep will it go?

No one knows for sure. It depends on how long it takes to beat this virus. Goldman Sachs anticipates we will see a difficult first half of the year, but the economy will recover in the second half (see below):Economic Slowdown: What the Experts Are Saying | MyKCMGoldman also projects we’ll have “further strong gains in early 2021.”

This aligns with the projection from Wells Fargo Investment Institute:

“Once the virus infection rate peaks, we expect a recovery to gain momentum into the final quarter of the year and especially into 2021.”

Again, no one knows for sure how long the pandemic will last. The hope is that it will resolve sometime over the next several months. Most agree that when it does, the economy will regain its strength quickly.

*QUARTER 1 DATA FROM GOLDMAN SACHS WAS UPDATED FROM 0% TO -0.2% ON 3/17/20 AFTER THE INITIAL RELEASE.

Bottom Line

This virus is not only impacting the physical health of Americans, but also the financial health of the nation. The sooner we beat it, the sooner our lives will return to normal.

Posted in For Buyers
March 20, 2020

A Recession Does Not Equal a Housing Crisis [INFOGRAPHIC]

 

A Recession Does Not Equal a Housing Crisis | MyKCM

Some Highlights

  • The COVID-19 pandemic is causing an economic slowdown.
  • The good news is, home values actually increased in 3 of the last 5 U.S. recessions and decreased by less than 2% in the 4th.
  • All things considered, an economic slowdown does not equal a housing crisis, and this will not be a repeat of 2008.
Posted in For Buyers
March 19, 2020

Three Reasons Why This Is Not a Housing Crisis

 

Three Reasons Why This Is Not a Housing Crisis | MyKCM

In times of uncertainty, one of the best things we can do to ease our fears is to educate ourselves with research, facts, and data. Digging into past experiences by reviewing historical trends and understanding the peaks and valleys of what’s come before us is one of the many ways we can confidently evaluate any situation. With concerns of a global recession on everyone’s minds today, it’s important to take an objective look at what has transpired over the years and how the housing market has successfully weathered these storms.

1. The Market Today Is Vastly Different from 2008

We all remember 2008. This is not 2008. Today’s market conditions are far from the time when housing was a key factor that triggered a recession. From easy-to-access mortgages to skyrocketing home price appreciation, a surplus of inventory, excessive equity-tapping, and more – we’re not where we were 12 years ago. None of those factors are in play today. Rest assured, housing is not a catalyst that could spiral us back to that time or place.

According to Danielle Hale, Chief Economist at Realtor.com, if there is a recession:

“It will be different than the Great Recession. Things unraveled pretty quickly, and then the recovery was pretty slow. I would expect this to be milder. There’s no dysfunction in the banking system, we don’t have many households who are overleveraged with their mortgage payments and are potentially in trouble.”

In addition, the Goldman Sachs GDP Forecast released this week indicates that although there is no growth anticipated immediately, gains are forecasted heading into the second half of this year and getting even stronger in early 2021.Three Reasons Why This Is Not a Housing Crisis | MyKCMBoth of these expert sources indicate this is a momentary event in time, not a collapse of the financial industry. It is a drop that will rebound quickly, a stark difference to the crash of 2008 that failed to get back to a sense of normal for almost four years. Although it poses plenty of near-term financial challenges, a potential recession this year is not a repeat of the long-term housing market crash we remember all too well.

2. A Recession Does Not Equal a Housing Crisis

Next, take a look at the past five recessions in U.S. history. Home values actually appreciated in three of them. It is true that they sank by almost 20% during the last recession, but as we’ve identified above, 2008 presented different circumstances. In the four previous recessions, home values depreciated only once (by less than 2%). In the other three, residential real estate values increased by 3.5%, 6.1%, and 6.6% (see below):Three Reasons Why This Is Not a Housing Crisis | MyKCM

3. We Can Be Confident About What We Know

Concerns about the global impact COVID-19 will have on the economy are real. And they’re scary, as the health and wellness of our friends, families, and loved ones are high on everyone’s emotional radar.

According to Bloomberg,

“Several economists made clear that the extent of the economic wreckage will depend on factors such as how long the virus lasts, whether governments will loosen fiscal policy enough and can markets avoid freezing up.”

That said, we can be confident that, while we don’t know the exact impact the virus will have on the housing market, we do know that housing isn’t the driver.

The reasons we move – marriage, children, job changes, retirement, etc. – are steadfast parts of life. As noted in a recent piece in the New York Times, “Everyone needs someplace to live.” That won’t change.

Bottom Line

Concerns about a recession are real, but housing isn’t the driver. If you have questions about what it means for your family’s homebuying or selling plans, let’s connect to discuss your needs.

 

Posted in For Sellers
March 16, 2020

Confidence Is the Key to Success for Young Homebuyers

 

Confidence Is the Key to Success for Young Homebuyers | MyKCM

Buying your first home can seem overwhelming. Thankfully, there’s a lot of great information out there to help you feel more confident as you learn about the process. For those in younger generations who aspire to buy, here are three things to consider sooner rather than later in your journey:

1. Understand What it Takes to Purchase a Home

Overall, Millennials make up the largest group of homebuyers in today’s real estate market, and Gen Z is not too far behind. A recent study shared by Freddie Mac shows, however, that Generation Z isn’t as confident in the homebuying process as Millennials. The best thing potential young buyers can do is understand what it takes to buy a home. Learn as much as you can about the mortgage processdown payment options, and the overall steps to take along the way. 

2. Realize Your Opportunity to Build Wealth 

Homeownership allows you the chance to put a small portion of the home’s value down when you buy, and then watch your appreciation grow on the full value of the home – not just on the down payment. It’s one of the best investments you can make, and a form of forced savings working in your favor over time. The added bonus? You get to live there, too.

3. Find Someone You Trust to Help You Through the Process 

Having someone you trust to guide you through this process is invaluable. Finding a local real estate expert to help you navigate through the transaction and feel more confident as you make important decisions could be the best choice you make.

For Millennials and Gen Z’ers thinking about buying, today’s historically low interest rates combined with the outlook for future home appreciation is a big win. This means whatever you buy today, you’ll be bragging about 10 years from now. You can feel confident about that!

Bottom Line

If you’re ready, buying your first home sooner rather than later is one of the best decisions you can make. But there are many things to consider before taking that step, so let’s work together to help you confidently navigate the full journey.

Posted in For Agents
March 10, 2020

New Homes Coming to the Housing Market This Year

 

New Homes Coming to the Housing Market This Year | MyKCM

The number of building permits issued for single-family homes is the best indicator of how many newly built homes will begin to come to market over the next few months. According to the latest U.S. Census Bureau and U.S. Department of Housing & Urban Development Residential Construction Report, the number of building permits issued in January was 1,551,000. This is a 9.2% increase from December.

How will this impact buyers?

New inventory means more options. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explained how this is good news for the housing market – especially for those looking to buy:

“More construction will mean more housing inventory for consumers in the later months of this year…Spring months could still be quite tough for buyers since it takes time to convert housing starts into actual housing completions.”

How will this impact sellers?

More inventory means more competition. Yun continues to say:

“As trade-up buyers move into these newly completed homes in the near future, their existing homes will be released onto the market.”

Today, because of the tremendous lack of inventory, a seller can potentially anticipate:

  1. great sale price on their house as buyers engage in potential bidding wars.
  2. quick sale as buyers have little inventory to choose from.
  3. Fewer hassles as buyers want to smoothly secure a contract.

Bottom Line

If you’re considering selling your house, you’ll want to list sooner rather than later. This way, you’ll get ahead of this new competition coming to market and ensure the most attention toward your listing and the best price for your house.

Posted in For Buyers