Where Will You Go If You Sell? Newly Built Homes Might Be the Answer.

Do you want to sell your house, but hesitate because you’re worried you won’t be able to find your next home in today’s market?

You’re not alone, but there’s some good news that may ease your worries. New home construction is up and is becoming an increasingly significant part of the housing inventory.

That means when you go to put your house on the market this summer, considering newly built homes is crucial for expanding the options you’ll have for your next move.

Near-Record Percentage of New Home Inventory

Newly built homes today make up a near-record percentage of the total number of homes available for sale (see graph below):

In fact, as the data shows, newly built homes now make up 31% of the total for-sale inventory. Over the past couple of decades, newly built homes made up an average of only around 13% of total housing inventory from 1983 to 2019.

That means the percentage of the total available homes that are newly built is over two times higher than the norm.

Why This Matters to You 

Overall, the supply of homes for sale is still low. And when there’s limited supply, it’s crucial to explore all of your available choices. New-home construction has emerged as a game changer with increasing inventory. Not to mention, recent data shows it’s gaining even more momentum as more newly built homes are underway and will be coming to the market in the months ahead.

Robert Dietz, Chief Economist at the National Association of Home Builders (NAHB), highlights the importance of newly built homes for those looking to buy in today’s housing market. Dietz states:

“With limited available housing inventory, new construction will continue to be a significant part of prospective buyers’ search in the quarters ahead.”

Don’t overlook this growing market segment and risk missing out on great opportunities to find your ideal home. Since new home construction accounts for roughly 31% of total for sale inventory, you could be cutting nearly one in three options from your search if you don’t consider newly built homes. 

If you’re looking to make a move, a local real estate agent can help you sell your current house and explore newly built options in your area. They have the expertise you need to handle both sides of the process so you can move out of your current house and into your brand-new dream home.

Bottom Line

Now’s the time to sell your house and take advantage of the momentum that’s building in new home construction. Reach out to a trusted real estate agent who can guide you throughout the selling and buying process so you can make your transition to a newly built home a reality.

Get more like this on Keeping Current Matters.

Related Links

• This Is the First Decision You Should Make When Decorating a Small Bedroom

• Lending Standards Are Not Like They Were Leading Up to the Crash

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If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

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Lending Standards Are Not Like They Were Leading Up to the Crash

You might be worried we’re heading for a housing crash, but there are many reasons why this housing market isn’t like the one we saw in 2008.

One of which is how lending standards are different today. Here’s a look at the data to help prove it. 

Every month, the Mortgage Bankers Association (MBA) releases the Mortgage Credit Availability Index (MCAI). According to their website:

“The MCAI provides the only standardized quantitative index that is solely focused on mortgage credit. The MCAI is . . . a summary measure which indicates the availability of mortgage credit at a point in time.”

Basically, the index determines how easy it is to get a mortgage. Take a look at the graph below of the MCAI since they started keeping track of this data in 2004. It shows how lending standards have changed over time. It works like this: 

• When lending standards are less strict, it’s easier to get a mortgage, and the index (the green line in the graph) is higher.

• When lending standards are stricter, it’s harder to get a mortgage, and the line representing the index is lower.

In 2004, the index was around 400. But, by 2006, it had gone up to over 850. Today, the story is quite different. Since the crash, the index went down because lending standards got tighter, so today it’s harder to get a mortgage.

Loose Lending Standards Contributed to the Housing Bubble

One of the main factors that contributed to the housing bubble was that lending standards were a lot less strict back then. Realtor.com explains it like this: 

“In the early 2000s, it wasn’t exactly hard to snag a home mortgage. . . . plenty of mortgages were doled out to people who lied about their incomes and employment, and couldn’t actually afford homeownership.” 

The tall peak in the graph above indicates that leading up to the housing crisis, it was much easier to get credit, and the requirements for getting a loan were far from strict. Back then, credit was widely available, and the threshold for qualifying for a loan was low.

Lenders were approving loans without always going through a verification process to confirm if the borrower would likely be able to repay the loan. That means creditors were lending to more borrowers who had a higher risk of defaulting on their loans.

Today’s Loans Are Much Tougher To Get than Before

As mentioned, lending standards have changed a lot since then. Bankrate describes the difference: 

“Today, lenders impose tough standards on borrowers – and those who are getting a mortgage overwhelmingly have excellent credit.”

If you look back at the graph, you’ll notice after the peak around the time of the housing crash, the line representing the index went down dramatically and has stayed low since. In fact, the line is far below where standards were even in 2004 – and it’s getting lower. Joel Kan, VP and Deputy Chief Economist at MBA, provides the most recent update from May:

“Mortgage credit availability decreased for the third consecutive month . . . With the decline in availability, the MCAI is now at its lowest level since January 2013.”

The decreasing index suggests standards are getting much tougher – which makes it clear we’re far away from the extreme lending practices that contributed to the crash.

Bottom Line

Leading up to the housing crash, lending standards were much more relaxed with little evaluation done to measure a borrower’s potential to repay their loan. Today, standards are tighter, and the risk is reduced for both lenders and borrowers. This goes to show, these are two very different housing markets, and this market isn’t like the last time.

Keep reading.

Related Links

• This Is the First Decision You Should Make When Decorating a Small Bedroom

• What Homebuyers Need To Know About Credit Scores

• How to Create a Budget for Your Upcoming Bathroom Remodel

If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

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This Is the First Decision You Should Make When Decorating a Small Bedroom

Most people aren’t blessed with a palatial, Cher Horowitz-sized bedroom à la Clueless (color-coded motorized closet and all, IYKYK)

Luckily, though, there’s no shortage of tried-and-true decorating hacks to help maximize square footage in a compact sleep space, from brightening paint colors (hint: try creams and blues) to furniture layout ideas. Recently, I even learned about a new, expert-approved small-bedroom design tip that should arguably be priority number one when it comes to designing your sleeping quarters.

I asked New York-based designer Kyi Gyaw of Kyi Gyaw Interiors to share a few of her top small-space styling pointers, and she had one particularly notable takeaway. According to Gyaw, the very first decision you should make in decorating any teeny-tiny bedroom is — drum roll, please — determining “if you want to go quiet or loud.” What does that mean, exactly? Essentially, choosing a distinct tone for the space from the get-go, whether that’s more muted and minimalist or bold and packed with personality. Below, Gyaw breaks down how to pull off both ends of the small bedroom spectrum. 

How to Decorate a “Quiet” Small Bedroom

If you’d rather lean into a neutral bedroom design scheme, Gyaw first recommends being intentional with your color palette by honing in on just three to four hues total — specifically soothing, muted shades. “There’s a trend of only using white and beige these days, but it’s OK to add color as long as they are pastel and softer,” she explains. From there, Gyaw also suggests adding “a lot of interest in textures and very subtle patterns” with textiles and decorative accessories, but again, sticking with similar tones throughout the space “to not overwhelm your eyes,” she adds. Consider finishing off the look with linen bedding and window treatments specifically for the ultimate “welcoming, relaxed, and lived-in” feel, Gyaw notes.

Lamp placement is key in any tranquil bedroom as well. “I suggest having different types of lighting in your bedroom so that you can really enhance the mood,” says Gyaw. Think beyond just ceiling lights, as Gyaw notes they have a tendency to create a “cave-like feeling.” Instead, “in order to have that layered lighting effect, you will need table lamps and floor lamps,” Gyaw adds. For a warm, cozy ambience, she advises 2700K temperature bulbs, preferably with dimming capabilities. 

How to Decorate a “Loud” Small Bedroom

“When I think of loud spaces, I think of bold and fun,” says Gyaw. “It’s OK to have a lot of things going on, but I suggest you find a common thread.” She cites playing with different textile patterns and colors, for example, yet keeping them all within the same fabric family, like velvet or satin. Once you’ve landed on a cohesive design scheme, you can then get as creative as possible with vibrant rugs, bedding, throw pillows, and art. For the latter, Gyaw proposes setting up a gallery wall that incorporates mirrors — especially sculptural styles that double as accent pieces — to diversify the setup and help brighten any small bedroom. 

In terms of lighting in a more maximalist environment, Gyaw’s all for making a big statement. “Lighting is such an important aspect of any interior, and people will notice a fun chandelier, table lamp, wall sconce, or floor lamp,” she says. No need to fully reinvent the wheel here, though: You can instantly perk up an existing light with a punchy new shade, notes Gyaw, who references Etsy as a shopping hotspot for unique options. That upcycling mentality even extends to furniture makeovers, too. “I love reupholstering vintage furniture to give it a new life,” she says. “You can find a simple storage ottoman and reupholster it to a really unique fabric.” End-of-the-bed benches and reading chairs are other options you can consider for re-covering, as well.

Of course, there’s always the option to pick and choose elements from both “quiet” and “loud” small bedroom design ideas. Just be deliberate when curating furniture and decor pieces so that the space doesn’t feel overly cluttered or jarringly mismatched — unless, of course, that’s the look you’re going for because it speaks to you.

Get more like this on Apartment Therapy.

Related Links

• Here's Why Life Is So Good in "15-Minute Cities"

• What Homebuyers Need To Know About Credit Scores

• How to Create a Budget for Your Upcoming Bathroom Remodel

If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

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Here’s Why Life Is So Good in “15-Minute Cities”

Picture this: You walk out your front door, hop on your bike, and ride to a doctor’s appointment.

On your ride home, you drop by the grocery store to pick up a few veggies for dinner. Later, you walk to the park for a little sunset stroll.

This fantasy could be your reality if you move to a “15-minute city.”

What is a 15-minute city, anyway? As the name suggests, it’s a neighborhood or urban development in which everything residents need to thrive is within a quick 15-minute walk or bike ride from home. That includes shopping, healthcare, leisure, work, school, services — you name it.

The concept is not new — a business professor and scientist named Carlos Moreno popularized the idea back in 2010 — but it has been in the news a lot lately. And not for the reason you might guess: Conspiracy theorists latched onto the idea and falsely equated 15-minute cities to prison camps, in which governments would monitor and restrict citizens’ movements.

Recent controversies aside, the concept likely has staying power. City leaders around the globe included 15-minute cities on their list of steps communities can take to recover from the COVID-19 pandemic in a way that promotes health, sustainability, inclusivity, and economic resilience. Here’s what you need to know if you’re planning a move and want to consider a 15-minute city.

The Pros and Cons of 15-Minute Cities

Proponents say 15-minute cities have numerous benefits. Because they’re designed for walking and biking, they should help reduce our reliance on fuel-guzzling, greenhouse-gas-emitting vehicles amid human-caused climate change.

“The concept of a 15-minute city is very much on brand with the current interest in reducing our carbon footprint and mitigating the negative human impact on the planet,” says real estate broker Julia Hoagland. “When people are within a short distance of work, shopping, play, and entertainment, they don’t need to drive a car as often and might not even need a car at all.”

A prominent example of a 15-minute city in the U.S. is Portland, Oregon. Living in a 15-minute city can also help residents stay active and spend more time outdoors, which has been linked with mental health benefits. And because people are out and about (instead of alone in their cars) they’re more likely to socialize and foster connections, says real estate broker Louise Phillips Forbes. “When everything is condensed in a mini-community, people flourish through relationships that might not happen otherwise,” she says.

With key destinations so close together, residents can spend less of their time and energy on commuting and focus more on leisure activities, says real estate broker Stephane Guerrier. Buying a house in a 15-minute city can also be a savvy financial move, she adds.

“The convenience and accessibility of essential services make your neighborhood more attractive to potential buyers or renters,” she says. “When people see they can have everything they need close by, they’re willing to pay more for a home in that area.”

The flip side of this, of course, is that you’ll likely pay higher prices when you’re hunting for a house to buy. A home in a 15-minute city may simply be out of your price range.

“The closer you are to the action, the higher the prices are — that’s the typical give-and-take scenario,” says real estate agent Ivan Chorney. “If you want it all, you better be prepared to give more from your wallet.”

Depending on the type of development, you may also have to settle for a smaller home and property, and that just won’t work for everyone. “If having a big home and a big yard are the most important things to a buyer, then they’ll likely need to be farther away from the action,” Chorney says.

But if location — and, more specifically, proximity — is at the top of your real estate wish list, then buying in a 15-minute city could help you really hone in on what’s important to you in a home. This is true in New York City, which is sort of like a 15-minute city on steroids. There, residents treat public spaces, like parks and playgrounds, and shared spaces, like restaurants and gyms, as extensions of their living space, says real estate agent Kate Wollman-Mahan.

“Most New Yorkers do not have the luxury of thinking of their home as a place that can meet all of their desires, but they learn to prioritize what they really need at home,” she says.

Keep reading on Apartment Therapy.

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If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

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What Homebuyers Need To Know About Credit Scores

If you’re thinking about buying a home, you should know your credit score’s a critical piece of the puzzle when it comes to qualifying for a home loan.

Lenders review your credit to assess your ability to make payments on time, to pay back debts, and more. It’s also a factor that helps determine your mortgage rate. An article from Bankrate explains:

 “Your credit score is one of the most important factors lenders consider when you apply for a mortgage. Not just to qualify for the loan itself, but for the conditions: Typically, the higher your score, the lower the interest rates and better terms you’ll qualify for.”

This means your credit score may feel even more important to your homebuying plans right now since mortgage rates are a key factor in affordability, especially today. According to the Federal Reserve Bank of New York, the median credit score in the U.S. for those taking out a mortgage is 765. But, that doesn’t mean your credit score has to be perfect. An article from Business Insider explains generally how your FICO score range can make an impact:

“. . . you don’t need a perfect credit score to buy a house. . . . Aiming to get your credit score in the ‘Good’ range (670 to 739) would be a great start towards qualifying for a mortgage. But if you’re wanting to qualify for the lowest rates, try to get your score within the ‘Very Good’ range (740 to 799).” 

Working with a trusted lender’s the best way to get more information on how your credit score could factor into your home loan and the mortgage rate you’re able to get. As FICO says:

“While many lenders use credit scores like FICO Scores to help them make lending decisions, each lender has its own strategy, including the level of risk it finds acceptable. There is no single “cutoff score” used by all lenders and there are many additional factors that lenders may use to determine your actual interest rates.”

If you’re looking for ways to improve your score, Experian highlights some things you may want to focus on:

• Your Payment History: Late payments can have a negative impact by dropping your score. Focus on making payments on time and paying any existing late charges quickly.

• Your Debt Amount (relative to your credit limits): When it comes to your available credit amount, the less you’re using, the better. Focus on keeping this number as low as possible.

• Credit Applications: If you’re looking to buy, don’t apply for other credit. When you apply for new credit, it could result in a hard inquiry on your credit that drops your score.

When you’re ready to start the homebuying process, a lender will be able to assess which range your score falls in and tell you more about the specifics for each loan type.

Bottom Line

With affordability challenges today, prioritizing ways you can have a positive impact on your credit score could help you get a better mortgage rate. If you want to learn more, connect with a trusted lender.

Read on.

Related Links

• Have a Backyard You Don’t Know What to Do With? Here’s Some Inspiration…

• The Main Reason Mortgage Rates Are So High

• 5 Tips for Creating a Cute, Cozy, Kid-Friendly Play Area

If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

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