An Expert Advisor Will Give You the Best Advice in Today’s Market

Having an experienced guide coaching you through the process of buying or selling a home is important in a normal market – but today’s market is far from normal. As a result, an expert real estate advisor isn’t just good to have by your side, they’re essential.

Today’s housing market is full of extremes. Experts project mortgage rates will continue to rise this year, and that’s driving significant demand for homes as buyers want to make their purchases before rates climb even higher. At the same time, an absence of sellers is leading to record-low housing inventory. This imbalance in supply and demand is creating bidding wars and driving home price appreciation as well as considerable gains in home equity.

These market conditions can feel overwhelming, but you don’t have to go at it alone. Having a trusted expert to coach you through the process of buying or selling a home gives you clarity and confidence through each step.

Here are just a few of the ways a real estate expert is invaluable:

Contracts – Agents help with the disclosures and contracts necessary in today’s heavily regulated environment.

Experience – In an unprecedented market, experience is crucial. Real estate professionals know the entire sales process, including how it’s changed over the past two years.

Negotiations – Your real estate advisor acts as a buffer in negotiations with all parties throughout the entire transaction and advocates for your best interests.

Education – Knowledge is power in today’s market, and your advisor will simply and effectively explain market conditions and translate what they mean for you.

Pricing – Finally, a real estate professional understands today’s real estate values when setting the price of your home or helping you make an offer to purchase one.

A real estate agent is a crucial guide through this unprecedented market, but not all agents are created equal. A true expert can carefully walk you through the whole real estate process, look out for your unique needs, and advise you on the best ways to achieve success. Finding an expert real estate advisor – not just any agent – should be your top priority when you’re ready to buy or sell a home.

What’s the key to choosing the right expert?

It starts with trust. You’ll want to know you can trust the advice they’re giving you, so you need to make sure you’re connected with a true professional. No one can provide perfect advice because it’s impossible to know exactly what’s going to happen at every turn – especially in today’s unique market. But a true professional can give you the best possible advice based on the information and situation at hand. They’ll help you make the necessary adjustments along the way, advocate for you throughout the process, and coach you on the essential knowledge you need to make confident decisions. That’s exactly what you want and deserve.

Bottom Line

It’s critical to have an expert on your side who’s well versed in navigating today’s rapidly changing market. If you’re planning to buy or sell a home this year, let’s connect so you have a real estate professional on your side to give you the best advice and guide you along the way.

4 Simple Graphs Showing Why This Is Not a Housing Bubble

A recent survey revealed that many consumers believe there’s a housing bubble beginning to form. That feeling is understandable, as year-over-year home price appreciation is still in the double digits. However, this market is very different than it was during the housing crash 15 years ago. Here are four key reasons why today is nothing like the last time.

1. Houses Are Not Unaffordable Like They Were During the Housing Boom

The affordability formula has three components: the price of the home, wages earned by the purchaser, and the mortgage rate available at the time. Conventional lending standards say a purchaser should not spend more than 28% of their gross income on their mortgage payment.

Fifteen years ago, prices were high, wages were low, and mortgage rates were over 6%. Today, prices are still high. Wages, however, have increased, and the mortgage rate, even after the recent spike, is still well below 6%. That means the average purchaser today pays less of their monthly income toward their mortgage payment than they did back then.

In the latest Affordability Report by ATTOM Data, Chief Product Officer Todd Teta addresses that exact point:

“The average wage earner can still afford the typical home across the U.S., but the financial comfort zone continues shrinking as home prices keep soaring and mortgage rates tick upward.”

Affordability isn’t as strong as it was last year, but it’s much better than it was during the boom. Here’s a chart showing that difference:

If costs were so prohibitive, how did so many homes sell during the housing boom?

2. Mortgage Standards Were Much More Relaxed During the Boom

During the housing bubble, it was much easier to get a mortgage than it is today. As an example, let’s review the number of mortgages granted to purchasers with credit scores under 620. According to credit.org, a credit score between 550-619 is considered poor. In defining those with a score below 620, they explain:

“Credit agencies consider consumers with credit delinquencies, account rejections, and little credit history as subprime borrowers due to their high credit risk.”

Buyers can still qualify for a mortgage with a credit score that low, but they’re considered riskier borrowers. Here’s a graph showing the mortgage volume issued to purchasers with a credit score less than 620 during the housing boom, and the subsequent volume in the 14 years since.

Mortgage standards are nothing like they were the last time. Purchasers that acquired a mortgage over the last decade are much more qualified. Let’s take a look at what that means going forward.

3. The Foreclosure Situation Is Nothing Like It Was During the Crash

The most obvious difference is the number of homeowners that were facing foreclosure after the housing bubble burst. The Federal Reserve issues a report showing the number of consumers with a new foreclosure notice. Here are the numbers during the crash compared to today:

There’s no doubt the 2020 and 2021 numbers are impacted by the forbearance program, which was created to help homeowners facing uncertainty during the pandemic. However, there are fewer than 800,000 homeowners left in the program today, and most of those will be able to work out a repayment plan with their banks.

Rick Sharga, Executive Vice President of RealtyTrac, explains:

“The fact that foreclosure starts declined despite hundreds of thousands of borrowers exiting the CARES Act mortgage forbearance program over the last few months is very encouraging. It suggests that the ‘forbearance equals foreclosure’ narrative was incorrect.”

Why are there so few foreclosures now? Today, homeowners are equity rich, not tapped out.

In the run-up to the housing bubble, some homeowners were using their homes as personal ATM machines. Many immediately withdrew their equity once it built up. When home values began to fall, some homeowners found themselves in a negative equity situation where the amount they owed on their mortgage was greater than the value of their home. Some of those households decided to walk away from their homes, and that led to a rash of distressed property listings (foreclosures and short sales), which sold at huge discounts, thus lowering the value of other homes in the area.

Homeowners, however, have learned their lessons. Prices have risen nicely over the last few years, leading to over 40% of homes in the country having more than 50% equity. But owners have not been tapping into it like the last time, as evidenced by the fact that national tappable equity has increased to a record $9.9 trillion. With the average home equity now standing at $300,000, what happened last time won’t happen today.

As the latest Homeowner Equity Insights report from CoreLogic explains:

“Not only have equity gains helped homeowners more seamlessly transition out of forbearance and avoid a distressed sale, but they’ve also enabled many to continue building their wealth.”

There will be nowhere near the same number of foreclosures as we saw during the crash. So, what does that mean for the housing market?

4. We Don’t Have a Surplus of Homes on the Market – We Have a Shortage

The supply of inventory needed to sustain a normal real estate market is approximately six months. Anything more than that is an overabundance and will causes prices to depreciate. Anything less than that is a shortage and will lead to continued price appreciation. As the next graph shows, there were too many homes for sale from 2007 to 2010 (many of which were short sales and foreclosures), and that caused prices to tumble. Today, there’s a shortage of inventory, which is causing the acceleration in home values to continue.

Inventory is nothing like the last time. Prices are rising because there’s a healthy demand for homeownership at the same time there’s a shortage of homes for sale.

Bottom Line

If you’re worried that we’re making the same mistakes that led to the housing crash, the graphs above show data and insights to help alleviate your concerns.

Are You Ready To Fall in Love with Homeownership

Financial benefits are always a key aspect of homeownership, but it’s also important to understand that the nonfinancial and personal benefits are why so many people genuinely fall in love with their homes. When you own your home, you likely feel a sense of emotional attachment because of the comfort it provides, but also because it’s a space that’s truly yours.

Over the past two years, we’ve learned to love our homes even more as we’ve stayed home more than ever due to the ongoing pandemic. As a result, the personal and emotional benefits our homes provide have become even more important to us.

As the most recent State of the American Homeowner from Unison puts it:

“Despite the upheaval and uncertainty of the past year, one thing has stayed the same: the home continues to be of the utmost importance and a place of security and comfort.”

When the health crisis began, the world around us changed almost overnight, and our homes were redefined. Our needs shifted, and our shelters became a place that protected us on a whole new level. The same study from Unison notes:

• 91% of homeowners say they feel secure, stable, or successful owning a home

• 64% of American homeowners say living through a pandemic has made their home more important to them than ever

• 83% of homeowners say their home has kept them safe during the COVID-19 pandemic

It’s no surprise this study also reveals that homeowners now love their homes even more as our emotional attachments to them have grown:

That sense of emotional connection genuinely reaches far beyond the financial aspect of homeownership. Because they’re our shelters – ones that we can genuinely call our own. Our homes touch our hearts and can also positively impact our mental health.

As JD Esajian, President of CT Homes, LLC, says:

“Aside from the financial factors, there are several social benefits of homeownership and stable housing to consider. It has long been thought that buying a home contributes to a sense of accomplishment. Still, most individuals fail to realize that homeownership can benefit your mental health and the community around you.”

Whether you’re thinking of buying your first home, moving up to your dream home, or downsizing to something that better fits your changing lifestyle, take a moment to reflect on what Mark Fleming, Chief Economist at First American, notes:

“Buying a home is not just a financial decision. It’s also a lifestyle decision.”

Bottom Line

There are so many reasons to fall head over heels for homeownership. Your home will provide a place to customize and call your own, in addition to stability and security. If you’re ready to fall in love with homeownership, let’s connect so you can get started on your homebuying journey today.

Want Top Dollar for Your House? Now’s the Time To List It.

When you’re selling any item, you usually want to sell it for the greatest profit possible. That happens when there’s a strong demand and a limited supply for that item. In the real estate market, that time is right now. If you’re thinking of selling your house this year, here are two reasons why now’s the time to list.

1. Demand Is Very Strong This Winter

A recent article in Inman News explains:

“Spring, the hottest time of year for homebuyers and sellers, has started early, according to economists. . . . ‘Home shopping season appears to already be in full swing!’”

And they aren’t the only ones saying buyers are already out in full force. That claim is backed up with data released last week by ShowingTime. The ShowingTime Showing Index tracks the average number of monthly buyer showings on active residential properties, which is a highly reliable leading indicator of current and future trends for buyer demand. The latest index reveals this December was the most active December in five years (see graph below):

As the data indicates, buyers are very active this winter. Last December saw even more showings than December of 2020, which was already a stronger-than-usual winter. And remember – you want to sell something when there’s a strong demand for that item. That time is now.

2. Housing Supply Is Extremely Low 

Each month, realtor.com releases data on the number of active residential real estate listings (listings currently for sale). Their most recent report reveals the latest monthly number is the lowest we’ve seen in any January since 2017 (see graph below):

And don’t forget, the best time to sell an item is when there’s a limited supply of it available. This graph clearly shows how extremely low housing supply is today.

Even Though Supply Is at a Historic Low, Home Sales Are at a 15-Year High 

According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), existing-home sales totaled 6.12 million in 2021 – the highest annual level since 2006. This means the market is hot and homeowners are in a great place to sell now while sales are so strong.

NAR also reports available listings by calculating the current months’ supply of inventory. They explain:

“Months’ supply refers to the number of months it would take for the current inventory of homes on the market to sell given the current sales pace.”

The current 1.8-months’ supply is the lowest ever reported. Here are the December numbers over the last five years (see graph below):

The ratio of buyers to sellers favors homeowners right now to a greater degree than at any other time in history. Buyer demand is high, and supply is low. That gives sellers like you an incredible opportunity.

Bottom Line

If you agree the best time to sell anything is when demand is high and supply is low, let’s connect to begin discussing the process of listing your house today.

Fall and Winter Home Selling Tips: Don’t Let Your Value Fall

While many people believe that spring is traditionally the most popular time to put a home on the market, selling during other seasons does come with some possible advantages. Additionally, life plans don’t always coincide with the seasons. If you find yourself putting your home on the market during the fall or winter, make the most of it by increasing your home’s value so that it gains the attention of buyers who are in the same boat as you in the colder weather: moving. With some ingenuity, and hard work from an experienced agent like those at The Maria Barr Team, your home can welcome potential buyers in from the cold.

Buyers will judge the cover

While the saying “don’t judge a book by it’s cover” has merit, when you’re selling your home, most buyers will decide whether they want to go inside by how your home looks outside. That’s okay, though, because many exterior improvements are those you can do yourself, and other items just require regular upkeep. This includes keeping your lawns free of leaves in the fall, and then keeping your sidewalks and doorsteps clear of snow and ice in the winter. Consider power-washing your deck and home, including your foundation, before the colder weather sets in. Other good DIY projects include adding some outdoor lighting; strings of clear bulbs allow you to keep them up before and after the holidays, while still adding a festive appeal during. Also, you may not have thought much about your mailbox day in and day out, but take a look now and see if a new one is in order. While you can choose from some whimsical designs, make sure your selection doesn’t appeal to a narrow taste and that it complements your home and neighborhood.

More serious investments

Other projects may be best left to a professional, such as exterior painting, roof repair and replacement, or window upgrades. Improved landscaping is also a great way to increase your home’s curb appeal and value. Talk to a professional landscaper – ideally before the snow hits – about a new walkway installation, and planting shrubs and trees mature and colorful enough to provide a welcome contrast against the dullness of the cold, short days. Using container plants is also a great approach to providing quick and easy color. If your landscaping ideas are hampered by drainage and erosion issues, talk to your landscaper about what landscape grading services you could get that would help. If you trust your landscaper you can ask for references, or connect with local landscape grading contractors in your area by searching online for “yard grading near me.” You can then read their online reviews before getting a quote. Some companies may offer deals or credits which can help you

offset costs. Speaking of costs, be sure you keep all of your receipts for improvements you’ve paid for and capture your home’s look both before and after your improvements with pictures. In most cases, a buyer will need to get an appraisal done as part of the home buying process, and your receipts and photos will document the investment you’ve made in your home with your improvements, both those you paid a professional to do and those you’ve done yourself.

A season of serious buyers

Remember, buyers may not be as plentiful in the fall and winter, but at The Maria Barr Team, we’ve often found that those who are actively looking are typically serious ones, eager to find that perfect place to call home for the rest of the winter. By taking a few steps to increase your home’s appeal and its value, they may feel a warm welcome as soon as they step through the door.

Written by Clara Beaufort

Photo by Jonathan Francisca on Unsplash

Tips to Make Your New Year's Resolution Attainable

goal /ɡōl/ n. - the object of a person's ambition or effort; an aim or desired result.

We all know that January is the month to establish and implement your New Year Resolution (goal). Whether it's a need such as "I need to lower my blood pressure to get my health in control”, or a desire - "I want to go on vacation", each goal must have an action plan! Setting a resolution/goal can give us a sense of direction in our day - “does buying this new dress help me in my goal of paying my debt?” Hangs dress back up and exits store.

If you're not sure what would be a suitable resolution for you, try skimming this list to spark a little passion.

Set Both Long and Short-Term Goals

What do you do now that you set your goal?

GET GOING WITH IT RIGHT AWAY!

Short-term targets will help pave the way for success. Breaking it down into easier to attain mine goals is also a way to make your journey a celebratory one!

An example of this is, let's say you want to lose 30 pounds in 6 months - the first short-term goal could be to drink more water, the next goal is to increase vegetable consumption, the next goal is to add 30 minutes of exercise per day. When these short-term objectives are achieved, we are closer to achieving that final long-term resolution and have little checkpoints to celebrate our success.

Thinking about the 30 pound long-term main goal may seem impossible, but adding more water to your day - easy! Okay, what happens next? - increase vegetable intake - DONESO! Starting with short-term "check points" will help simplify the process and create an obtainable road map to a successful resolution for this year without being overwhelmed by the overall picture!

Set a plan that works

You have to think about this plan every day!

Whether you add it to a schedule, or utilize a SMART goal setting template or simply a screen saver on your phone with an inspiring reminder/message like the one I use to constantly invite me to live every moment with the mentality of "does this support my intentions for this year?"

We all have what works for us, so find out what's going to keep you pursuing success in this endeavor.

"A goal without a timeline is just a dream." - Rober Herjavec

Assess your Success

How will you measure your success? Do you review your credit score each week on Monday, check your holiday savings every payday, or approach your anxiety by writing in your journal every Sunday?

Whatever the goal, you need to check in - you need to develop an accountability system.

It is common that most New Year's resolutions are something big, (go big or go home - right?)

However, a smaller goal does not minimize its importance in your life. No matter what you dream of doing this year, you have to be able to check in and check back often. - reassess your success! See where changes may need to be made. Be sure to give yourself grace, but make the changes that will help you to be more successful as you move forward. Maybe it's joining a social media support group, maybe it's updating some of your goals in the short term, maybe you need to build a dream board and have a visual in front of you every day.

However, at the end of the day your resolution should be something that you want, that you're passionate about, something that thrills you, otherwise maybe the whole goal needs to be reexamined, after all you need to be the one who chooses to pursue it. - Heather Etzel

National Blood Donor Month

“No Manifestation of this generosity of spirit is more expressive, and no gift more priceless in time of personal crisis, than the donation of one’s blood. The voluntary blood donor truly gives life itself.”

President Richard Nixon proclaimed January 1970 as the first National Blood Donors Month on December 31, 1969, as requested by Senate Joint Resolution 154, to pay tribute to voluntary blood donors and encourage new donors to join. The Red Cross supplies about 40% of our nation's blood and blood components, all from generous volunteer donors. But the supply cannot always satisfy the demand because only about 3% of age-eligible people donate blood yearly. Each new donor helps meet patient needs.

Quick Facts

1 in 7 patients admitted to a hospital will use blood

1 out of 83 births will require a blood transfusion

A single car accident victim may need up to 100 pints of blood to survive.

Type O negative red cells can be administered to patients of all blood types.

Only 7% of people in the U.S. have type O negative.

Type AB positive plasma can be transfused to patients of all blood types.

Only 3% of people in the U.S. have AB positive blood

Blood and platelets cannot be manufactured; they can only come from voluntary donors.

How To Donate

Blood donation is a simple, safe process. All you have to do is register, take a mini-medical history test, make a donation, then accept free refreshments such as water, Gatorade, granola bars, etc. Donors must have proof of the required minimum age of 17 in most states, a minimum weight of 110 pounds, and present a primary form of identification or two secondary forms of ID. To schedule check the A.A.B.B. (formerly the American Association of Blood Banks) locator, visit the Red Cross website, or call (800) RED-CROSS. If you live in New York City, contact the New York Blood Center. You can also find information through the America’s Blood Centers website or call (202) 393-5725.

As an incentive, starting from June 15 and for at least several months thereafter, any person who gives blood, platelets, or plasma with the Red Cross will be tested to detect the presence of Covid-19 antibodies to see if they have had the virus.

(To be clear, this is a test for antibodies, not coronavirus itself.) -Ashley Ford

Capital District Tree Farms

Bob’s Trees

1227 West Galway Road, Hagaman, NY 12086

Bob's trees have been a family-owned business for the past 80 years. They offer cut your own Christmas trees starting at $50.00 or pre-cut starting from $10 up to $100. During your visit, your family can create yearly photo op mementos with their face cut out props and Santa sleigh. Children enjoy visiting the reindeer that arrive every year just after Thanksgiving, Santa let us know one of them is named “Sebastian”. Due to Covid-19, Santa cannot walk the grounds, instead, they are offering the “Santa Experience” with pre-sale tickets to enjoy cocoa and cookies with the big guy himself, you can give him your list and listen to him read “'T’was The Night Before Christmas”. They are offering walk-up window ordering for their warming chili and snacks! After a day of fun exploring the grounds, a quick 5-minute drive down the road is the Cock and Bull "a friendly place by the side of the road", as their motto goes, offering a farm to table, upscale, menu with a rustic cozy atmosphere of a renovated barn restaurant and a live crackling fire.

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Goode Trees

1179 Goode Rd Ballston, NY 12020 US

Offering some of the biggest selection of trees in the area, anything from 5’-16’, Goode Trees has a reputation for its wonderful customer assistance. From selecting the perfect tree to loading it on your vehicle, they help make sure your experience is smooth from start to finish and the memories take center stage. If you’re in need of a new tree stand search no further than in their gift shop, where they offer wreaths, cookies, and holiday decor. On the farm is an apiary! Enjoy farm-fresh, local honey! When you’re done loading the car up with goodies and your tree, stop into the Waterwheel Village Country Store! Reminiscent of the penny candy stores from the ’60s, this little family-run shop has a rich history and even richer cheeses! Create your own charcuterie board, to snack on as you decorate your fresh cut tree, with their array of cheeses (make sure to grab the ever-popular Bear Cheese) and meats, some pickled asparagus, and a jam, but don’t forget the crackers! Before leaving select an old-fashioned pop and a new Christmas decoration from their quaint gift shop in the back of the store. Perfect family traditions start here! 

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Ellms Family Farm

468 Charlton Rd, Ballston Spa, NY 12020

If all-inclusive speaks to you, Ellms Family Farm has it all! Started in 1984, the Christmas Tree Farm opens on the Friday after Thanksgiving, with Santa’s famous Parachuting into the farm, and remains open until December 22. Upon your arrival, take the complimentary trolley ride into the Christmas tree fields and enjoy your celebratory cup of cocoa, all included in the experience at no charge. The farm offers a variety of sizes and 4 varieties of trees, so you are sure to find the perfect pre-cut or cut your own tree. After scoring the best evergreen, be sure to grab some of their freshly made cider donuts! By now I’m sure you have worked up an appetite, drive 3 minutes down the road for an Irish American fare among some of the most beautifully decorated restaurants, with the scent of the fresh fire crackling. The Charlton Tavern,” Where there are no strangers.. only friends who have not met yet” offers an authentically prepared fare with the freshest ingredients, the perfect addition to your family’s day.

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Bailey Family Christmas Trees

530 Center Cambridge Rd, Cambridge NY 12816

“In 1967, we planted a thousand seedlings and began a wholesome family tradition.”

Gather the family and head to Bailey’s Tree’s in Cambridge NY to pick out and cut your own perfect Christmas tree! The farm features 7 different species mainly 7ft to 8ft high, and even few up to 14 ft tall! Open for cutting beginning 11/21 through 12/23 or until sold out. They also offer a variety of accessories and great giftable items including kissing balls, garland, wreaths, table decor, ornament, and folk art. A quick ten minute trip will take you to Greenwich Village Cafe and Bakery offering a menu full of fresh home made bread, seasonal soups and sandwiches, complete with delectable baked goods.

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Zach's Winterland Emporium (Collins Farm)

898 NY-143, Ravena, NY 12143

At Zach’s Winterland Emporium you will be greeted with wonderful customer service that makes it easy to pick the perfect tree for your home.  Offering beautiful fresh cut balsam firs that range from 5ft to 8ft tall, they also have beautiful full wreaths that you can purchase plain, with a bow, or fully decorated. Before you leave we will take a fresh cut off the bottom of your tree, and as a special thanks, turn it into a new keep-sake ornament for free! Netting is also available to make transportation as easy as possible. Snap family portrait at the holiday themed photo area, and enjoy a home made sweet treat from the maple sugar shack! A scenic 5 min drive will take to you the seafood specials at Halfway House Tavern, family operated for nearly 100 years!