January 12, 2023

West + Main Homes

Colorado, Colorado Springs, Minnesota, Mountains, National, North Carolina, Oklahoma, Oregon

Wood vs. Gas Fireplaces: Pros and Cons of Each

January 12, 2023

West + Main Homes

Colorado, Colorado Springs, Minnesota, Mountains, National, North Carolina, Oklahoma, Oregon

Whether you're in the market for a fireplace or are just looking to upgrade your existing one, it's important to consider all your options.

Two of the most popular choices are wood and gas fireplaces—but which is right for you? Let's explore the differences between wood and gas fireplaces to help you make an informed decision.

Ease of Use
One obvious difference between wood and gas fireplaces is ease of use. Gas fireplaces are much easier to light than their wood-burning counterparts; all it takes is the push of a button or flip of a switch, and you have instant heat. On the other hand, lighting a wood-burning fireplace requires more effort—you must gather kindling, create a proper airflow and make sure that the logs remain lit. If you're looking for convenience, then gas is certainly the way to go.

Maintenance Considerations
Gas fireplaces require much less maintenance than traditional wood-burning ones; there's no need to constantly clean up ash or chop wood. However, gas fireplaces do require occasional maintenance such as cleaning out creosote buildup in the chimney or inspecting pipes for any potential problems. For those who don't want to deal with regular upkeep efforts, a gas fireplace may be the better choice.

Installation
When it comes to installation, gas fireplaces are typically easier to install than wood-burning versions. Gas insert installation requires less manual labor, as they don't need to be built up from the ground or have a chimney installed. But if you don't already have gas lines in your home, then you'll need to hire an expert who can install the necessary pipes and venting to make sure your gas fireplace is safe. On the other hand, wood-burning fireplaces require more manual labor and usually need a chimney for proper ventilation. So if you're looking for an easier installation process, consider opting for a gas fireplace instead of a wood-burning one.

Environmental Impact
When comparing wood and gas fireplaces, it's important to consider which option is better for our environment. The EPA has deemed that both types can produce hazardous air pollutants when used incorrectly; however, some studies suggest that properly venting a natural gas appliance could reduce certain pollutants by approximately 70%. If preserving our environment is important to you, then investing in a quality venting system might be worth considering if you decide on a natural gas fireplace.

Making an informed decision about what type of fireplace to install can seem overwhelming—especially when considering all factors like cost, convenience, maintenance needs and environmental impact—but this comparison should provide some helpful insight into whether a wood or gas fireplace would be best suited for your home. Ultimately it comes down to personal preference; weigh your options carefully before making your final decision! Whatever option you choose will bring warmth and beauty into your home while providing hours of cozy enjoyment during chilly days and nights!

Keep reading here.

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January 12, 2023

West + Main Homes

Colorado, Colorado Springs, Minnesota, Mountains, National, North Carolina, Oklahoma, Oregon

Mortgage rates have peaked along with inflation

January 12, 2023

West + Main Homes

Colorado, Colorado Springs, Minnesota, Mountains, National, North Carolina, Oklahoma, Oregon

The CPI data cooled even though shelter inflation is lagging

Today’s inflation data has shown that the peak growth rate of inflation is behind us. This should also mean mortgage rates hit their highs. The key phrase I have stressed since I wrote about the case for mortgage rates to go lower on Oct. 27 is thinking 12 months out. The trend is your friend, and the month-to-month data has cooled off noticeably.

That cooling happened even with the biggest inflation component — shelter inflation — still rising in the lagged modeled CPI data. This means shelter inflation isn’t being properly accounted for versus the real-time data.

The Consumer Price Index month-to-month readings show that inflation has peaked, as seen below.

If it weren’t for the lagging CPI shelter index, the biggest component, the headline core print, would be lower today on a year-over-year basis. It’s a positive thing that most people have gotten the memo on this reality about shelter inflation because it shows how the headline year-over-year prints are lower as we speak.

While still hot, the year-over-year inflation growth rate is falling, see below. All this is happening with the labor market still very tight, which means the Fed doesn’t need to create a job-loss recession to bring inflation down. The best way to fight inflation is to add more supply, demand destruction is not the most effective way, and it will impact future production.

The jobless claims data on Thursday, as you can see below, was still solid and running at 205,000 for the headline, with a four-week moving average of 212,500.

For those who were saying we needed an unemployment rate above 6% to bring down inflation, you must feel sick to your stomach as that advice would have meant millions of Americans would have lost their job for no reason.

How did the bond market react to this inflation data? It was a mild day compared to what we saw back in November of 2022. However, as I am writing this, the 10-year yield is at 3.45%, which is the third time we are trying to lower this area.

This does mean mortgage rates should be getting better today. We are getting closer to a five-handle in mortgage rates and farther away from the 8%-10% mortgage rates people were talking about late last year when rates peaked at 7.37%.

Digging into the inflation data

From BLS:
The Consumer Price Index for All Urban Consumers (CPI-U) declined 0.1 percent in December on a seasonally adjusted basis, after increasing 0.1 percent in November, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 6.5 percent before seasonal adjustment. The index for gasoline was by far the largest contributor to the monthly all items decrease, more than offsetting increases in shelter indexes. The food index increased 0.3 percent over the month with the food at home index rising 0.2 percent. The energy index decreased 4.5 percent over the month as the gasoline index declined; other major energy component indexes increased over the month.

Breaking down some of the internals is key to understanding the CPI data. Of course, the biggest component of inflation is housing. I stressed in late 2020 that shelter inflation was going to take off, but the opposite is the reality now. However, the CPI data lags badly here.

Thankfully, the Federal Reserve understood this and created its own index in December to account for the lag. Back in September, on CPI inflation day, I talked about how this would be a positive story in 2023. I said by January or February, it would be evident that the growth rate of shelter inflation was falling, and people have gotten the memo. I could not have asked for a better outcome than where we are today.

Read the full article on Housing Wire.

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January 12, 2023

West + Main Homes

Colorado, Colorado Springs, Minnesota, Mountains, National, North Carolina, Oklahoma, Oregon

Why Purchasing New Construction Can Be a Smart Move for First-Time Homebuyers

January 12, 2023

West + Main Homes

Colorado, Colorado Springs, Minnesota, Mountains, National, North Carolina, Oklahoma, Oregon

Many first-time homebuyers might presume they’re better off going used rather than new—in other words, purchasing a pre-existing property rather than pricey new construction.

While it’s true that brand-new homes often come with a heftier price tag upfront, these properties can actually end up being a good—even great—deal for first-time buyers.

“It is true that new-construction homes, on average, are 10% to 15% higher in sales price than resale homes, but that doesn’t mean that they are less affordable,” says Bob Seeman, vice president of sales for New Homes at Realtor.com. “Simply put, total homeownership costs are more than a monthly mortgage payment alone.”

Here’s why first-time homebuyers shouldn’t rule out new construction, and how these opportunities can be a better deal than many might think.

Low inventory means first-time buyers should explore all options

In a housing market that’s still dealing with extremely limited inventory, the reality is first-time homebuyers can’t afford to dismiss this option.

According to the National Association of Realtors®, the inventory of existing homes on the market in December 2022 was at an all-time low of 910,000. That was a year-over-year decrease of 18%, and marks 31 straight months of declines in available homes.

“The housing shortage will get worse over the next year—we simply don’t have enough supply,” says John Hunt, chief analyst for MarketNsight.

For example, Hunt says, to get back to “normal” and meet demand, Atlanta alone would need 66,000 additional homes on the market over the next 12 months.

Compounding the problem is that homeowners who might normally sell aren’t doing so because they’re reluctant to buy a new home—and get a new mortgage—when interest rates are so high.

Translation: Unless you want to be waiting a long time to buy your first home, you should consider new-construction homes because there just aren’t enough homes of any kind to satisfy the current demand.

Builders can help first-time buyers with better financing

Let’s face it, price matters. That’s true whether you’re buying your first home or third luxury vacation property. The difference with a new-construction purchase, however, is you might be able to save money through builder incentives.

These promotions—meant to attract buyers to a certain development project—frequently come in the form of financing help, and this is what can make a new-construction home purchase workable for a first-time buyer.

“What many first-time buyers most need are cash to close and monthly payments that they can afford,” says Seeman. “Because many builders can offer financing through their company’s mortgage arm or through a lender affiliate, they have programs to help reduce the amount of cash a buyer needs to close on a home.”

A reduction in the initial cash outlay can make all the difference for a first-time homebuyer. Many builders are also currently offering much lower mortgage rates through their lenders as well in order to attract first-time buyers who would otherwise be priced out of the market.

“We’re seeing builders get creative with financing—offering rates as low as 4.99% to 5.99% right now, which is lower than what you’ll see for existing homes,” says Alex Toth, director of homebuilder partnerships at Opendoor.

Since mortgage rates spiked in October to over 7% for a 30-year fixed-rate loan for the first time in 20 years, this could indeed determine if a first-time buyer can qualify for a home or not.

Another benefit of working with a builder’s lender is that the lender is usually well-versed in FHA and VA loan options. These low or no-down payment loans might also be a huge benefit to first-time homebuyers trying to secure a mortgage if they qualify.

Learn more on Realtor.com

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January 10, 2023

West + Main Homes

Colorado, National, Oklahoma, Colorado Springs, Mountains, Oregon

As Featured in West + Main Home Magazine: Simple Fixes, Big Changes

January 10, 2023

West + Main Homes

Colorado, National, Oklahoma, Colorado Springs, Mountains, Oregon

When West + Main agent Caitlin Carow first moved in to her home in Lakewood, the kitchen was on the top of her list for things that had to change.

“Both are spaces I knew we’d be using A LOT. I wanted to enjoy our time spent in these rooms… but I had a very limited budget. What do you do when you have a limited budget? You put your big girl pants on and buy a paint sprayer!”

The overall kitchen revamp consisted of two major things. New countertops and cabinet color changes.

“The cabinets were high quality and in good condition so I did a fair bit of second guessing myself about wanting to paint them. I knew that lightening up the countertops would radically improve the kitchen mood.”

In the back of her mind, she wanted to keep things low budget since in the future they may completely rip out the kitchen, so a lot of strategic decisions were made around that fact.

“I was extremely motivated to choose the most economical countertop solution that would achieve the light and bright look I was seeking. Enter IKEA laminate countertops, which come in two handy lengths. We used two slabs of marble looking laminate countertops to cover our cabinets and we cut everything to fit, including the whole for the sink.”

Caitlin’s pro-tips after going through this renovation:

Summon your inner organization freak - Number inside your cabinet boxes and, on your cabinet fronts, in the space where the hinge sits (cover this with painters tape - remove the tape when you finish painting to reveal the cabinet door number). Keep all hardware (hinges, screws, etc) in a baggie.
Set up your drying station in advance - I used utility shelves and boxes/props and made sure I had a space to lay out each cabinet door after I painted them.
Always paint the cabinet INSIDES/BACKS, first. That way, if there are any blemishes from your paint triangles (whatever is holding the cabinet door up for you to paint) the blemishes are on the inside, not the outside/front.
Paint the edges, turning as you go, all the way around, first. The over spray will get a good portion of the front, too. Then, paint the inside trim, spinning as you go, all the way around the cabinet door. Finally, spray paint back and forth across the top, main face of the cabinet door.
Handle with care! Pick up your cabinet doors from underneath the surface you painted and place them down to dry with care.

The Three Major Time Consuming Aspects of painting (according to Caitlin):

Educating yourself and getting mentally prepare
Prep (Labeling cabinets, protecting surfaces around your project and creating a space to spray your cabinet fronts, cleaning and prepping surfaces to be painted.)
PAINTING