Pre-Approval Is a Critical First Step on Your Homebuying Journey

If you’re planning to buy a home this year, one of the first steps on your journey is getting pre-approved.

Especially in today’s market when mortgage rates are higher than they were just a few months ago, getting a mortgage pre-approval can be a game changer. Here’s why.

What Is Pre-Approval?

To better understand why pre-approval is key, it’s important to know what pre-approval is. The Mortgage Reports explains it like this:

“When you’re ready to take the leap into homeownership, your first step is mortgage preapproval. . . . A mortgage preapproval is when a lender determines you’re qualified for a home loan. Your preapproval letter shows the maximum loan amount you’re approved for (your home buying budget), as well as the specific interest rate and loan term you can expect.”

As part of the pre-approval process, a lender will look at your finances to determine what they’d be willing to loan you. From there, your lender will give you a pre-approval letter to help you understand your true price range and how much money you can borrow. That can make it easier when you set out to search for homes because you’ll know your overall numbers. And with mortgage rates rising and impacting affordability, a solid understanding of your numbers is even more important.

Pre-Approval Can Signal You’re a Serious Buyer

Another added benefit is that pre-approval lets the seller know you’re qualified to buy their house. A recent article from realtor.com notes:

“. . . getting pre-approved can actually improve your chances of falling into the sellers’ good graces, and you’ll want to get it done as early as you possibly can in the home-buying process.”

Even though bidding wars are easing this year as the market shifts, preapproval is still an important part of making a strong offer. It can help a seller feel more confident because it shows you’re serious about their home and that you’re a qualified buyer.

Bottom Line

Getting pre-approved for a mortgage is critical. It helps you better understand what you can borrow and shows sellers you’re serious about purchasing their home. Connect with a local real estate professional and a trusted lender so you have the tools you need to succeed as a homebuyer in today’s market.

Learn more on Keeping Current Matters.

Related Links

• There are only 4 U.S. cities where the average American can afford a starter home

• These Interior Design Trends Will Take Off in 2023

• Expensive regions see the biggest dip in home sales

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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Expensive regions see the biggest dip in home sales

Existing home sales fell 1.5% in September from the prior month.

Higher mortgage rates continued to impact home sales over the last month, with existing home sales declining in September for the eighth consecutive month, according to a report from the National Association of Realtors (NAR). 

“The housing sector continues to undergo an adjustment due to the continuous rise in interest rates, which eclipsed 6% for 30-year fixed mortgages in September and are now approaching 7%,” NAR Chief Economist Lawrence Yun said in a statement. “Expensive regions of the country are especially feeling the pinch and seeing larger declines in sales.”

Per the report, existing single-family home, townhome, condominium and co-op sales fell by 1.5% from August to September, with three out of four major U.S. regions experiencing month over month contractions.

The seasonally adjusted sales rate for existing home sales also declined in all regions on a year over year basis. According to the NAR, home sales declined by 23.8% on a year over year basis, dropping to 4.71 million from 6.18 million in September 2021.

This is the 13th consecutive month in which year over year home sales have declined nationwide.

Sales of existing homes are now at the lowest level since 2014, excluding the decline that occurred during the pandemic, and home sales are expected to continue to decline over the next few months.

“Existing home sales are being impacted by higher mortgage rates,” housing analyst Bill McBride of Calculated Risk said in a post Thursday. “Rates have increased sharply in October, and that will impact closed sales in November and December – so I expect further declines in sales later this year.”

According to Freddie Mac, the average rate in September for a 30-year, conventional, fixed-rate mortgage was 6.11%, up from 5.22% the month prior. In contrast, the average rate in 2021 was 2.96%.

While higher mortgage rates have had a clear impact on existing home sales, it’s likely that rising home prices over the last 127 months (10.5 years, roughly) have also played a role. 

As of September, the median home price was $384,800 for existing homes of all types, according to the NAR. That’s an 8.4% increase year over year compared to September 2021, when the median home price was $355,100. The year over year median price change peaked at 25.2% in May 2021. 

The trend of month over month median home price growth has reversed course over the last few months, however. Per the report, September marked the third month in a row in which the median sales price retracted. The NAR cites regular seasonal price trends as the cause of the decline in median home price.

Housing inventory also decreased last month, but just slightly, dropping from 1.25 million available units in September from 1.28 million the month prior. Per the NAR, this drop in inventory was likely due, at least in part, to the seasonal inventory decline that typically occurs during December and January. 

The months of supply remained unchanged from August to September at 3.2 months.

According to the NAR, the region that experienced the most significant decline in existing home sales was the South, with home sales declining by 1.9% from August to September, and by 23.8% from this time last year. 

Existing home sales also declined in the Midwest, dropping by 1.7% from the month prior, and by 19.7% from September 2021. Home sales dropped in the Northeast as well, declining by 1.6% from August to September, and by 18.7% compared to September 2021.

The West was the only region that did not experience a decline in existing home sales month over month. Home sales in the West were identical from August to September, but were down 31.3% from the year prior.

But while home sales and inventory have declined across much of the nation, the trend of homes selling above list price has continued, according to Yun.

“Despite weaker sales, multiple offers are still occurring with more than a quarter of homes selling above list price due to limited inventory,” Yun said. “The current lack of supply underscores the vast contrast with the previous major market downturn from 2008 to 2010, when inventory levels were four times higher than they are today.”

Get more like this on Housing Wire.

Related Links

• There are only 4 U.S. cities where the average American can afford a starter home

• These Interior Design Trends Will Take Off in 2023

• 8 Things That Make Your Living Room Look Outdated By Kathleen Willcox

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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These Interior Design Trends Will Take Off in 2023

From bold marble to double islands, here's what industry experts expect to see more of next year.

As we near the end of this year, it’s time to start planning ahead by thinking about what will be trending in 2023. Naturally, we asked industry leaders what their interior design predictions are for the fresh season ahead—and they delivered. From an emphasis on meaningful collections to bathrooms with undercounter refrigerators, get ready to ruminate on these elements that designers expect to see everywhere next year.

Meaningful Objects

Prepare to lean into authenticity and prioritize joy. "Quiet greens and calming blues can combat a tumultuous political landscape, but ultimately it's the objects we fill our homes with that hold the most power to ease our anxieties,” says Jean Lin, the founder of design co-op and firm Colony. “Maybe it's your grandfather's collection of fly fishing lures, or maybe you're zealous for antique maps—whatever it is that brings your truest self to your living space is on trend."

Here, design firm Chused & Co. filled the parlor of the 2022 Brooklyn Heights Designer Showhouse with well-loved vintage furniture and art from around the world.

Wine Displays

"Homeowners are moving away from hiding their wine cellars and are using wine storage like an art installation," says designer Jeff Andrews. "It is a collection after all!"

Here, Sire Design fashioned a wall of wine that adds intrigue and acts as art in a client's living room, which was recently featured on the Netflix show Designing Miami.

Bold Marble

“More and more homeowners are incorporating bold statement pieces of marble in their kitchens to create a focal point and add a touch of drama," says designer Hilary Matt. "You can achieve this look with a bolder use of colors, unique veining styles, or both!” 

Organic Materials and Shapes

Earth tones and organic shapes are expected to draw popularity—according to Elad Yifrach, the founder of L'Objet—because they’re rough and refined at the same time. “This trend towards softer, curvaceous forms and imbuing elements of nature within our homes reflects a desire for comfort, albeit in a more sophisticated and refined manner with the incorporation of metals, rocks, and harder textures to add juxtaposition and visual complexity,” Yifrach says.

The brand's TIMNA collection features prime examples, including porcelain vases and bowls glazed in rich mineral tones and “smooth undulations and bulges” that mimic forms found in nature.

Sleek Appliances

"Cabinetry and kitchen islands are statement pieces within the home, and consumers are opting for bold looks and wanting their appliances to compliment the overall design," says Andrews. "Induction cooktops and ranges are especially gaining traction because of their sleek look, safety, and efficiency. I recently renovated my dream home and installed a Wolf induction cooktop that not only looks great in the space but also offers powerful performance."

Induction cooktops are even becoming widely available on more traditional-looking ranges, like in this kitchen by Nicole White.

An Emphasis on Wellness

Wellness is a driving factor of design for 2023. “Adding elements that help promote self-care and well-being can transform any space into an oasis,” says Andrews. “Adding a pair of undercounter refrigerators to a home spa to store beauty products and chilled towels is something our clients are loving.” 

The designer recommends Sub-Zero’s designer undercounter refrigerator to enhance convenience and serenity in the bathroom, living room, or primary bedroom.

Interior design by Elizabeth Roberts.

More Island Space

"Traditional kitchens are evolving and extending into other parts of the home," Matt says. "In the coming year, I predict larger—and even double—kitchen islands will be integrated to accommodate for larger entertaining and gathering space in the kitchen."

Interior design by Alice Lane.

Coffee Beyond the Kitchen

Coffee machines naturally find a home in the kitchen, but brewing your favorite drink doesn't have to take place there. "Clients are now adding the luxurious comfort of an at-home coffee station to spaces like home offices and home theaters," Andrews says. Adding one to a bedroom would make waking up with a cup of coffee in hand even quicker.

Get more like this on Apple News.

Related Links

• There are only 4 U.S. cities where the average American can afford a starter home

• 4 Common Roofing Problems and How to Spot Them

• 8 Things That Make Your Living Room Look Outdated By Kathleen Willcox

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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West + Main Homes Announces North Carolina Expansion

Carteret County, North Carolina

For immediate release:

West + Main Homes, Inc. is happy to announce its expansion into Eastern North Carolina’s beautiful Crystal Coast. We will now be at the beach, serving Carteret County + surrounding areas. The beach has been on our dream board ever since a few of our original agents made the move to NC. We are thrilled to be here and have felt so welcomed!

“We couldn’t be more thrilled to have one of our first agents, Gray Blount Busch, starting the North Carolina branch of West + Main Homes,” said Stacie Staub, CEO of West + Main Homes. “Gray brings so much real estate knowledge to the table from her experience selling + remodeling homes in both Colorado and North Carolina. On top of that, she is truly a great person and representative of the West + Main brand.

West + Main Homes is excited to bring a fresh update on the traditional real estate brokerage, with a culture that celebrates collaboration, education, thoughtful + intentional marketing and excellent service to the North Carolina market.

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About Gray Blount Busch: Gray is originally from Colorado with deep family roots in North Carolina. Her family spent summers enjoying the Crystal Coast, until they decided to make it their permanent home. Gray is a second generation Realtor, literally growing up in the business. Buying, fixing up and selling her own homes has given her an eye for potential investments. She has a passion for short term rental investment opportunities and loves helping her clients build wealth through real estate. Gray has also played an active role in her husband’s residential remodeling business, giving her superior knowledge in the construction field. Gray’s attention to detail and her dedication make her clients feel at ease throughout the entire buying or selling process. Her communication and negotiation skills paired with her local market knowledge make working with Gray an excellent experience. When Gray is not helping her clients, she and her husband are scoping out their next investment property, working on their own remodeling projects or enjoying the beach with their kids and dogs.

About West + Main Homes: Founded in 2017, West + Main is an independently owned and operated boutique Real Estate brokerage specializing in residential and commercial properties in Downtown Denver and across Colorado’s Front Range, as well as greater Oklahoma City, and Oregon.

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We're hiring new and experienced agents!

Let us tell you how West + Main Homes can help you transform your real estate business.

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Ready to start your home search?

Let's talk about how we can make your real estate dreams come true.

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There are only 4 U.S. cities where the average American can afford a starter home

With homeownership costs doubling since last year, the market for starter homes has become unaffordable for most buyers in all but four major U.S. cities, according to a recent study published by real estate site Point2.

Those cities are:

• Detroit

• Tulsa, Oklahoma

• Memphis, Tennessee

• Oklahoma City

Starter homes are generally thought of as the first home a family can purchase, so they tend to be smaller and cheaper than other homes listed for sale. But due to homeownership costs, the starter home is becoming the "stuff of myths," according to Point2.

For the purposes of Point2's analysis, starter homes are those valued in the bottom third of all homes available in a given market. To measure affordability, the study follows the common personal finance rule that a mortgage payment shouldn't exceed 30% of a homeowner's gross monthly income.

Here's a closer look at the four cities where starter homes are actually affordable for those earning the area's median household income.

1. Detroit
Median annual income: $25,004
Income needed to afford a starter home: $19,103
Median starter home price: $48,129

2. Tulsa, Oklahoma
Median annual income: $35,039
Income needed to afford a starter home: $29,521
Median starter home price: $95,481

3. Memphis, Tennessee
Median annual income: $30,093
Income needed to afford a starter home: $27,966
Median starter home price: $87,174

4. Oklahoma City
Median annual income: $37,211
Income needed to afford a starter home: $37,071
Median starter home price: $126,442

Why starter home costs have risen

Aside from a chronic shortage of housing that predates the Covid-19 pandemic, supply constraints and growing costs for building materials have contributed to increasing home prices, says Lawrence Yun, chief economist at the National Association of Realtors.

And with home prices up by nearly 30%, "we know for sure people's incomes have not risen by 30%," he says. 

The market will likely remain discouraging, at least until mortgage rates drop and the supply of homes catches up with demand, says Yun. Unfortunately for potential homebuyers, home building has slowed recently due to economic uncertainty.

"The starter home market has become increasingly difficult over the past 20 years," says Yun. This has created a "social divide" between homeowners and non-homeowners, who "simply feel like they cannot catch up."

Keep reading.

Related Links

• Pre-Approval Is a Critical First Step on Your Homebuying Journey

• 4 Common Roofing Problems and How to Spot Them

• 8 Things That Make Your Living Room Look Outdated By Kathleen Willcox

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.

Search Homes in Colorado

Search Homes in Oklahoma

Search Homes in Oregon