Is 2021 going to be a good time to buy a house?

This year’s housing market has been plagued with low inventory, rising home prices, and endless bidding wars, making it hard for some would-be homeowners to get their foot in the door.

Will 2021 be any different? Or, will it be a good time to buy a house? (HousingWire)

If you’ve been eyeing a home purchase but have sat out due to 2020’s competitive market (not to mention the other challenges the year has come with), you might be wondering just that.

Though there’s no crystal ball, a clearer picture is starting to emerge of what next year’s housing market may look like. Here’s what you need to know:

Interest rates should remain low.

The industry’s major players all expect mortgage rates to stay in the low 3% range come 2021. The Mortgage Bankers Association predicts the year will start off at a 3.1% average rate for 30-year loans, while Fannie Mae expects an even lower 2.8%. Freddie Mac projects a 3% average across the entire year.

Low rates like these can reduce the monthly payment that comes with buying a house, and they can also expand your budget, making it more affordable to buy a higher-priced home.

Home prices will probably keep rising.

It’s likely that home prices will continue their upward climb in 2021, though it looks like it may be at a slower pace than in previous years. MBA projects a 2.4% jump in prices (much better than last year’s 5.1%), while Freddie Mac expects an increase of 2.6%.

Fortunately, if prices do rise, low interest rates will help blunt the impact slightly, though it may mean buying a smaller home or dealing with a slightly higher monthly payment.

You may have more homes to choose from.

Prices might rise, but the upside is that you may have more homes to choose from. Housing starts are expected to increase steadily in 2021, meaning more new construction properties should hit the market as we head into the year. Both Fannie Mae and MBA predict the stronger single-family construction than we’ve seen in at least two years.

Don’t forget: Housing is local.

At the end of the day, housing conditions vary by market, so if you’re wondering if 2021 is a good time to buy a house, make sure to talk to a local real estate agent in your area. They’ll be able to fill you in on the conditions in your specific housing market.

If you are wondering how current national and global situations might be impacting your property’s value, your neighborhood, or the Real Estate market in general, we are happy to provide more specific information.

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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9 Ways to Make Your Cheap Furniture Last

Finding an adorable piece of furniture at a reasonable price can feel like such a win—until it gets banged up within days of going on display, and your eye can’t stop being drawn back to that wobbly table or dinged-up bookshelf. The truth is, lower cost materials like particle board and plastic do tend to show wear and tear more quickly than higher-priced materials like wood or metal. But that doesn’t mean that furniture made from these cheaper materials can’t last you a really long time; it’s all about how you treat it.

But professional furniture refurbishers and seasoned DIYers have some tricks up their sleeves when it comes to prolonging the life budget pieces. From swapping out legs to eliminate a wobble and give an item a fresh look, to a wood glue hack that could breathe new life into that IKEA shelving unit you’ve been carting around since college, these are the best tips, tricks, skills, and tools they had to offer.

So read on, but only if you’re prepared to bask in a flurry of compliments about that cheap (but well-loved!) piece of furniture that you’d previously relegated to a dark, unused corner.

Replace the legs

Take it from Jodi Bond of @houseonasugarhill: You never need to be satisfied with the legs that come already installed on budget pieces. “One easy tip when remodeling furniture is to pay attention to things that could easily be switched out on the piece to give it a fresh look,” says Bond. She recommends Scandinavian-style legs from Prettypegs, a store literally designed to help you upgrade the legs of your IKEA furniture.

Upgrade your hardware

Brooke Christen of @nestingwithgrace notes that “one thing that sets inexpensive furniture apart is the quality of the hardware.” So if you want to trick folks into thinking that you paid a lot more for that dresser than you did—as well as give your fingers something a little more substantial to grasp—upgrading the hardware is an easy fix. “I love to find unique knobs and pulls that not only make an ordinary piece prettier, but also serve and function much longer than cheaper alternatives,” Christen says. She’s also quick to note that you don’t have to bust your budget. “When we installed a little IKEA shoe shelf as a pantry in our old kitchen, I took thrifted leather belts to create custom pulls and added a stained wood top to the piece to extend its life and make it special.”

Build once, and limit rebuilds

This may seem like a no-brainer, but for prefab or flatpack furniture, do your best to build it and take it apart as few times as possible. Every time you break the piece down, you run the risk of widening the holes and making the structure wobbly, so even if you’re moving to a new space, try to transport any particle board pieces as-is.

Stabilize drill holes

If you do happen to widen a drill hole, Kelly Sharp of British vintage boutique Thriftys Retro has a quick fix to banish any wobbles. “Use a chopstick or small wooden dowel to fill large drill holes that have become wobbly,” she says. “Push the wood into the hole, secure with wood glue, and saw off the excess. Once it’s dry, then re-drill the hole—it’s a great solution for wonky or broken kitchen cabinet doors.”

Stock up on wood filler

For Christina Muscari of @prettydistressed, there’s one particular product she never likes to be without, especially when it comes to budget furniture: “Wood filler is your best friend when dealing with dented or scratched furniture,” she says, advising that DIYers search for one that’s stainable and/or paintable, so the mended area is sure to match the rest of the item. 

Give particle board a boost

But even if you can’t get your hands on any wood filler, Sharp has another solution that works particularly well for particle board. “To extend the life of particle board items, Use polyvinyl acetate (PVA) glue to fill holes and cracks. It dries clear, so it can be poured directly into the damaged area and left to dry.” And whatever you do, don’t shell out for expensive PVA glue. “You can pick up a good-sized bottle of glue from the pound shop,” Sharp notes. (That’s the dollar store, for those of us living stateside.)

Update your finish

Anytime Muscari gets tired of looking at a certain piece, she doesn’t despair, because she knows her stock of furniture paint means an update is well within reach. “A great way to keep your furniture feeling current is updating it with a new finish. Chalk-like furniture paint is an easy way to take an old dresser and give it a fresh new look,” she says. It works especially well for flat-pack furniture, which tends to have a slick finish that makes painting it tricky. Chalky paint doesn’t require priming or sanding before it goes on (though a quick buff with some sandpaper won’t hurt).

For pieces that are starting to show dings and nicks, try contact paper on their surfaces instead. It’ll help mask imperfections and prevent new ones, too.

Add a coat of spray paint

For Muscari, some of the best solutions are also the easiest and most cost-effective, like applying a layer of cheap, easy to use spray paint. “Another top tip for extending the life of a furniture piece is by breathing new life into it with a coat of spray paint. You can change the feel and make something look amazing again with just a couple coats of $6 spray paint,” she says.

Sharp agrees, noting that she’s used spray paint to update all manner of furniture and hardware. “Everything from kitchen cupboards, to wall and floor tiles, clocks, picture frames, furniture feet, and bathrooms,” Sharp says. “Just remember to keep the room ventilated while using and make sure you tape off any area you don’t want to be painted.”

Expand to upholstery

There’s no need to limit your paint to traditional surfaces like particle board, plastic, or wood. For upholstery fabric that’s in good condition but showing signs of fading, Sharp has a surprising recommendation: chalk paint. “Choose your new color chalk paint, and mix some up in a plastic container with about half that quantity of water and mix really well. Then, paint two coats directly onto the fabric, allowing it to dry completely in between,” she says. “Once the fabric is completely dry, work some clear chalk paint wax all over the painted area, and buff it to a soft sheen. This will protect the paint and make it stain and water resistant.” 

To read more, visit Apartment Therapy.

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Fall Tips to Prepare Trees for Winter

Homeowners can take measures now and through spring to help their trees through the oncoming harsh conditions

 Trees in urban and community settings are going dormant, and they require care before and during the winter to remain in top health. Homeowners can take measures now and through spring to help their trees through the oncoming harsh conditions, according to the Forest Service.

Use the following tips to prepare urban trees for winter:

• Wrap the trunk. Thin-barked trees like honeylocust, maple and linden are susceptible to sunscald and frost cracks because of drastic winter temperature fluctuations. To prevent bark damage, wrap the trunks of younger trees up to the first branches using commercial tree wrap. Leave the wrap on until early April.

• Mulch the base. Apply 2 to 4 inches of wood chips, bark or other organic mulch near the base of the tree, but not against it, to reduce soil evaporation, improve water absorption and insulate against temperature extremes. Some community recycling programs provide wood chips free of charge.

• Recycle leaves. Instead of disposing of autumn leaves, consider layering them around the base of each tree as mulch, or blend them into the yard with a mulching mower to retain nutrients.

• Give them a good drink. Before storing the garden hose for winter, water trees in the area extending from the trunk to the extent of the longest branches. Water slowly, with a sprinkler or soaker hose, at the rate of 10 gallons per inch of tree diameter.

• Focus on younger trees. With less-extensive root systems, they require the most care.

• Wait to prune until winter. Late winter is the best time for pruning most tree species, but it can be done whenever trees are dormant over the winter months. Common reasons for pruning are to remove dead branches and improve tree form. Always prune just outside the branch collar – the point where a branch joins a larger one – and don’t remove any branches without good reason.

Wood says urban and other planted trees often also require additional, regular watering over the winter. During extended dry periods (e.g., more than two weeks without snow cover), provide supplemental water per the guidelines above. The best time for winter watering is on warmer days, when snow has melted off and the temperature is above 40 degrees.

For more information about urban tree care, visit our Selecting, Planting & Caring for Trees page.

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If you are wondering how current national and global situations might be impacting your property’s value, your neighborhood, or the Real Estate market in general, we are happy to provide more specific information.

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 Does Home Insurance Cover? The Facts on Fire, Flooding, and More

Few things give new home buyers peace of mind about their real estate purchase as much as a solid home insurance policy. This ensures that if disaster strikes—in the form of a tornado, house fire, or otherwise—homeowners won't be on the hook to foot the bill for expensive repairs on their own.

Exactly what does home insurance cover, though? Are there any key things homeowners might assume are covered that actually aren't?

In this latest installment of our handy Home Buyer's Guide to Home Insurance, we'll explain what's covered under most insurance plans—plus some key exceptions—so you know just how soundly you can sleep at night in your new home.

What does homeowner insurance cover?

A standard home insurance policy generally covers most (but not all!) natural disasters, theft, and accidents.

For instance, when a hailstorm does a number on your roof, you'll file a claim and your home insurance company will help you pay to get it repaired. If the damage to your home has made it uninhabitable, your insurer may even pay for a hotel room until you can move back in.

"Generally, home insurance pays to repair or rebuild your property if it is damaged by fire, wind, lightning or other natural disasters," says Josh Herz, president of Associated Insurance and Risk Management Advisors.

"It also covers your personal belongings, additional living expenses, and liability for you and others—if, say, when someone is injured on your property and litigates for damages."

That said, all policies are different, so you'll want to read through your home insurance documents carefully. Plus you might be surprised by what's not typically covered in the fine print. Here's what you need to know.

Does home insurance cover fire?

Whether you're grappling with damage caused by a wildfire, lightning, electrical problems, a grease fire on your stove, or even a candle you left lit by accident, take heart that most house fires will be covered by home insurance.

And good thing too, since house fires are surprisingly common, with roughly one in every 350 insurance homeowners filing a claim due to fire or lightning each year. On average, insurance companies pay out $11,971 per claim to help repair fire damage.

Does home insurance cover water damage?

Water damage is typically covered by a standard homeowner insurance policy, as long as it was sudden and accidental—i.e., a pipe freezes, bursts, and floods your basement, or your hot water heater explodes.

Roughly one in every 50 insurance homeowners files a claim for water or ice damage every year. On average, insurance companies pay out $10,849 per claim. However, not all water issues are covered (more on that next).

Does home insurance cover water leaks?

While sudden water damage is typically covered, insurance companies generally won't cover water leaks that appear gradually due to wear and tear, or are the result of poor maintenance.

In other words, if your roof is old and springs a slow leak, or if a pipe freezes and bursts because you didn't shut off your water supply when you were away over winter break, good luck—you could be on your own.

It's also important to know that your insurer will help cover the damagecaused by water, but it probably won't help pay to repair or replace the source of the damage. In other words, it won't be buying you a new dishwasher if your own appliance flooded your kitchen.

Does home insurance cover plumbing?

Since plumbing problems can result in water damage, a standard home insurance policy should cover the problem if it appears out of the blue (i.e., a burst pipe). But if your pipes are just generally leaky, old, or poorly maintained, you might be on your own.

Does home insurance cover the roof?

This depends on what caused the damage. If your roof (as well as other parts of your house) gets pummeled by wind, hail, or a healthy tree falling, this is typically covered by home insurance.

It's a good thing, too, since approximately one in every 40 insured homeowners suffers wind and hail damage each year, with claims paying out $11,200 to fix the problem.

Yet once again, your policy won't help you out with normal roof aging and wear and tear. You're responsible for maintaining your roof, which will need to be replaced around every 30 years (give or take, depending on what it's made of).

If a tree falls on your roof because it was dead or rotted out, this could constitute neglect, and you could be on your own.

Does home insurance cover hurricanes?

This also depends, since hurricanes inflict damage in one of two ways—wind and water.

Damage from wind is typically covered, although your insurer may put in place a separate, higher deductible for wind damage caused by hurricanes.

Meanwhile, flooding caused by hurricanes is typically not covered by a standard homeowner insurance policy.

Does home insurance cover theft?

If someone breaks into your home and steals some of your belongings, your insurer will typically help you pay to replace those stolen items. Similarly, if a thief damages your home during the break-in, your home insurance company will help you pay for repairs, too.

Theft is surprisingly common, with approximately one in every 400 insured homeowners suffering property damage or loss caused by theft. On average, these claims pay out $4,391 annually.

Does home insurance cover pet bites and other injuries?

If your dog (or cat!) bites someone in your home, or if a visitor trips and falls down the stairs, your guests may want you to pay for their ensuing medical bills. You might also need to pay for lost wages if the injury prevents them from working.

Most standard insurance policies include what's known as liability coverage, which means that your insurer will help pay for these expenses if someone gets hurt on your property.

This is good for you, since the average claim for bodily injury is roughly $45,000. Approximately one in 900 insured homeowners file claims of this type every year.

Keep reading.

Need help finding the insurance plan for you? Contact us, we’d love to help.

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Should I Pay My Mortgage Early? Advice from the Experts.

If you have a roof over your head (and you’re not renting), you’re probably paying a mortgage.

Mortgages account for one of the most common loans Americans have. Like most people, you might also be dreaming about the day you’re free of this debt. And depending on your loan terms, that might take up to 30 years to come true. The long wait can be daunting and it’s natural to think about paying it off as soon as possible.

But how do you know if you should put your extra cash towards your loan payment? Is it actually smart to finish up your mortgage early? What steps can you take to help pay for your mortgage ahead of schedule? Let’s talk about it! (CORE Finance Group)

How Do You Know You’re Ready?

You Don’t Have Other Lingering Debts

If you have other debts, make sure that the interest rate on them is much lower than your mortgage payment. If it is higher, it might be better to focus on that first. Prolonging your payment on a loan that has a bigger interest rate would actually cost you more money in the long run. It is much better to close that door first before jumping into your mortgage.

You’re Aware of Pre-Payment Penalties

Consult your loan officer to know about the terms of your mortgage. In some cases, you might be required to pay a penalty for finishing up your loan early. This might be a percentage of your total mortgage, and you have to decide if that amount is worth paying. If it costs too much then paying off your mortgage early might not be worth it after all. It is also important to note that all loans are different, and this penalty might not be even in your contract. Revisit your loan agreement to know for sure.

You Have Extra Cash and an Emergency Fund

Maybe you’ve received a raise, gotten your annual bonus, or earned your inheritance. If this money is just something extra that you don’t have anywhere else to put into, paying off a chunk of your loan might be a good idea.

That’s provided that your emergency fund is safe and secure. Always make sure to set aside money for medical or family emergencies. You may consult your financial advisor for a good amount to save for the rainy days. If you don’t have that amount in your savings, place your extra cash in the emergency fund instead.

You’re Invested for Retirement

Paying off your home completely is just one of the gifts you can give yourself for retirement. After all, complete homeownership is your goal for paying your mortgage early. But you also have to make sure that your other funds are all set up.

Financial experts advise against prioritizing your mortgage payment over preparing for retirement. Ideally, you have a retirement account that was paid for or matched by your company. Other investment accounts can also help secure your future. Working at an older age isn’t the most ideal scenario, so you have to make sure that you have enough money to live a comfortable life.

Why Should You Pay Your Mortgage Early?

Now that you’ve seen what it takes, what are the benefits of paying your mortgage early on?

You Can Save Interest Payments

The longer you carry a loan, the longer you shoulder its interest. Paying off your mortgage early means you’ll save on interest expenses because you won’t be paying it for much longer. If your loan is a variable rate, you’ll also avoid the unpredictability of rates rising over the years which can increase your monthly payment.

If you can take advantage of low rates, which we currently have now, you can save yourself a decent amount of future payments. We’re talking about saving thousands of dollars in the long run.

You Can Protect Yourself from an Unstable Housing Market

Being free from monthly mortgage payments can give you a massive advantage over an unstable housing market. If the Great Recession happens again, the value of homes is likely to sink. If your home has been paid off (or nearly paid off) and its value goes down, it won’t matter because you’ll still have plenty of equity.

Whereas, if you have very little equity, you could find yourself owing more than your home is worth. It would be difficult to maximize the return from your property because its value has probably decreased. You’ll have to wait for the market to stabilize for you to sell your home without much loss. If your mortgage has been paid off, you’ll always have a safe place to call home no matter how the market behaves.

You Can Have the Freedom to Pursue Other Ventures

If you lucked out and things go according to plan, you’ll have plenty of money to spare for leisure activities. The extra money you have can be put towards things that weren’t your priority in the first place. Maybe it’s your dream to travel the world or relocate somewhere different than your hometown. It would be amazing to do these nice things because you made smart financial decisions.

Maybe it’s also your desire to have your own business. May it be a local coffee shop, a small bookstore, or your own clothing line. Your extra cash could sustain your dreams. You can allocate a chunk of your savings to help you start off a business you like. The earnings of that business can even help you out throughout your retirement.

Having no monthly mortgage payments gives you the flexibility to put your money into other investments. You can let your money grow in different investment accounts. You have a larger cash flow, so the possibilities are endless. You have every opportunity to make your hard-earned money grow so you can enjoy it in the future. The payments you skipped on can very well be spent on these other ventures.

No matter what you decide, it’s important to keep in mind that this is a big decision. You have to figure out what works best for your situation and what can help you achieve your short and long-term financial goals. Just make sure you get an expert opinion before making up your mind. You have to do what feels good and feels right.

Contact CORE Finance Group for more information or an analysis of your personal situation!

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If you are wondering how current national and global situations might be impacting your property’s value, your neighborhood, or the Real Estate market in general, we are happy to provide more specific information.

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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