Home Prices: What Happened in 2020? What Will Happen This Year?

The real estate market was on fire during the second half of 2020. Buyer demand was way up, and the supply of homes available for sale hit record lows. The price of anything is determined by the supply and demand ratio, so home prices skyrocketed last year. Dr. Lynn Fisher, Deputy Director of the Federal Housing Finance Agency (FHFA) Division of Research and Statistics, explains:

House prices nationwide recorded the largest annual and quarterly increase in the history of the FHFA Home Price Index. Low mortgage rates, pent up demand from homebuyers, and a limited housing supply propelled every region of the country to experience faster growth in 2020 compared to a year ago despite the pandemic.

Here are the year-end home price appreciation numbers from the FHFA and two other prominent pricing indexes:

• Federal Housing Finance Agency House Price Index Report: 10.8%
• CoreLogic Home Price Insights: 9.2%
• S&P Case-Shiller U.S. National Home Price Index: 10.4%

The past year was truly a remarkable time for homeowners as prices appreciated substantially. Lawrence Yun, Senior Economist at the National Association of Realtors (NAR), reveals:

A typical homeowner in 2020, just by being a homeowner, would have accumulated around $24,000 in housing wealth.

What will happen with home prices this year?

Many experts believe buyer demand will soften somewhat as mortgage rates are poised to bump up slightly. Some also believe the inventory challenge will ease as more listings come to market this year.

Based on this, most forecasters anticipate well see strong appreciation in 2021 but not as strong as last year. Here are seven prominent groups and their projections:

Bottom Line

Home price appreciation will be strong this year, but it wont reach the historic levels of 2020. Lets connect if you'd like to find out what your house is currently worth in our local market.

 

Majestic Pointe At Riverstone

Majestic Pointe At Riverstone Real Estate Homes For Sale, Rent & Price Trends

Shayne Stone "Your Rock Solid Choice Realtor" that helps Home Sellers make a Profit and Home Buyers Equity in Majestic Pointe At Riverstone neighborhood / subdivision / community which is located in Sugar Land Texas 77479 zip code in Fort Bend County. Majestic Pointe At Riverstone has 27 single family properties with a median build year of 2015 and a median size of 7,059 Sqft., these home values range between $432 - $2341 K. The sqft. price change data is available through 1998. The median sold price/sqft is $292.31 while the median appraised value is $ 232.23/ sqft. View homes for sale or rent in Majestic Pointe At Riverstone and see new homes, trending properties, Foreclosures and much more.

Sometimes there's nothing listed For Sale in Majestic Pointe At Riverstone - Bookmark the page and check back often or create your own Listing Alert System to Notify you when a property in Majestic Pointe At Riverstone Sugar Land Texas 77479 hits the Market!

Find Majestic Pointe At Riverstone Real Estate and Majestic Pointe At Riverstone Homes For Sale. Majestic Pointe At Riverstone in Fort Bend County can be found using Neighborhood Information Finder. Detailed information includes Majestic Pointe At Riverstone Real Estate Profile, Majestic Pointe At Riverstone Trending Homes , Schools Nearby Majestic Pointe At Riverstone, Places Nearby Majestic Pointe At Riverstone and Events Nearby Majestic Pointe At Riverstone. Click here to find recently sold properties in Majestic Pointe At Riverstone, Foreclosures in Majestic Pointe At Riverstone, recently listed homes in Majestic Pointe At Riverstone.

Majestic Pointe At Riverstone is a subdivision located in Fort Bend County which is within the Texas. The Majestic Pointe At Riverstone subdivision is surrounded with restaurants, education opportunities, entertainment venues, shopping and more. See below for more information on the surrounding resources for the Majestic Pointe At Riverstone subdivision.

 

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Majestic Pointe At Riverstone Real Estate Overview:

• The average price of the homes for sale in Majestic Pointe At Riverstone is $ 2,895,000.
• The average square feet of the homes in Majestic Pointe At Riverstone is 7,059 sqft.

 

For more info on Majestic Pointe At Riverstone of Missouri City Texas or any of the other Communities within the Fort Bend County area CLICK HERE or Text / Call 832-449-6060

 

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How Smart Is It to Buy a Home Today?

How Smart Is It to Buy a Home Today?

Whether you're buying your first home or selling your current house, if your needs are changing and you think you need to move, the decision can be complicated. You may have to take personal or professional considerations into account, and only you can judge what impact those factors should have on your desire to move.

However, there's one category that provides a simple answer. When deciding to buy now or wait until next year, the financial aspect of the purchase is easy to evaluate. You just need to ask yourself two questions:

1. Do I think home values will be higher a year from now?
2. Do I think mortgage rates will be higher a year from now?

From a purely financial standpoint, if the answer is yes to either question, you should strongly consider buying now. If the answer to both questions is yes, you should definitely buy now.

Nobody can guarantee what home values or mortgage rates will be by the end of this year. The experts, however, seem certain the answer to both questions above is a resounding yes. Mortgage rates are expected to rise and home values are expected to appreciate rather nicely.

What does this mean to you?

Lets look at how waiting would impact your financial situation. Here are the assumptions made for this example:

• The experts are right – mortgage rates will be 3.18% at the end of the year
• The experts are right – home values will appreciate by 5.9%
• You want to buy a home valued at $350,000 today
• You decide on a 10% down payment

Here's the financial impact of waiting:

• You pay an extra $20,650 for the house
• You need an additional $2,065 for a down payment
• You pay an extra $116/month in your mortgage payment ($1,392 additional per year)
• You don't gain the $20,650 increase in wealth through equity build-up

Bottom Line

There are many things to consider when buying a home. However, from a purely financial aspect, if you find a home that meets your needs, buying now makes much more sense than buying next year

 

Drop Ceilings: Pros and Cons

Humans have long had a love/hate relationship with ceilings. On one hand, they help to hide the structure that keeps the rain out; on the other, they can be a pain to install and maintain over time. So when the idea of the drop ceiling started gaining momentum, it followed that two very die-hard camps formed almost immediately. But drop ceilings have changed dramatically since the first patents were introduced in 1919 and subsequent improvements made in the 30s and 50s. Today’s drop ceiling, while building on these same principles, is a very different creature.

Drop Ceilings Aren’t Just for Offices

Most people get their first exposure to drop ceilings in their office or schools, where two foot by four foot styrofoam rectangles are set in a grid, along with harsh fluorescent lights, in place of a more traditional plastered or drywalled ceiling. Because these drop ceilings can be very severe in appearance, the very phrase has become suspect. But there are other drop ceilings that aren’t quite so industrial, and can actually really add to your home’s design and unique interior space. These may mimic stamped tin ceilings, coffered ceilings, or a number of different kinds of decorative wood patterns like beadboard. You may not even recognize a modern drop ceiling simply from looking at it, and that’s really the point.

Pros and Cons of Drop Ceilings

Looks aside, drop ceilings are not for everyone. They aren’t even for every kind of space, contrary to what some people may believe. It also really depends on the installation style you’re working with whether or not a drop ceiling in question is going to be the best choice for your home. But in general you can expect the following truths about drop ceilings.

• They’re simple to install. Drop ceilings are popular with a lot of DIYers because they’re easy to install and don’t require expert drywall skills to get a good result. Unlike drywall, which must be hung, the joints sealed, sanded, primered, painted, and painted again, a drop ceiling comes as a kit and is put together much more like flat-packed furniture. Follow the instructions and you should have the ceiling you expect.
• Maintenance is minimal. Drywall and plaster crack, it’s a fact. It’s also a reason a lot of older homes have newer drop ceilings installed over the originals. Regular patching of ceilings as a home ages and shifts ever so slightly is a headache. Styrofoam ceiling panels have much more give and can flex as a house moves. Bonus points for areas like basements where wood may shrink and swell throughout the year.
• They provide small amounts of insulation. Depending on how a drop ceiling is hung and what type you choose, you can expect a very small amount of insulation gain from them, as well as noise dampening. They’ve been used in homes with tall ceilings successfully to lower the heated envelope of the home from 10 feet to a more energy efficient seven to eight feet across the country, but by doing this, you can also interfere with the way the home’s air exchange was designed to work. Take caution when dropping ceilings dramatically.
• Head space is reduced. Even when you’re using a drop ceiling in a very minimalistic way, there’s going to be loss of headroom. This is because drop ceilings generally have to be hung on special brackets or dropped within a hanging framework. You may not lose a lot of headspace, possibly only inches, but in areas like basements where inches can be too much loss, it’s a serious consideration.
• Lighting solutions can be tricky. You’ll need to plan your lighting carefully when installing a drop ceiling. Because of the gap that tends to be present, even if it’s just a few inches worth, mounting lighting can require a great deal of planning and care. You may have to use special supports or choose different lighting types when you change a ceiling to a drop ceiling, or carefully design lighting if adding a drop ceiling to an area that’s never had a ceiling in it before.

Having Trouble Deciding?

If you don’t know what way to go with your future ceiling, you don’t have to go it alone. Just look in HomeKeepr for a recommendation for ceiling and interior design experts in your area. They can walk through your home with you, and help you choose the best option for your house, your budget, and your lifestyle.

Is It a Good Time to Sell My House?

Last year, many homeowners thought twice about selling their houses due to the onset of the health crisis. This year, however, homeowners are beginning to regain their confidence when it comes to selling safely. The latest Home Purchase Sentiment Index (HPSI) by Fannie Mae shows that 57% of consumers believe now is a good time to sell.

Doug Duncan, Vice President and Chief Economist at Fannie Mae, explains:

Overall, the indexes monthly increase was driven largely by a substantial jump in the share of consumers reporting that its a good time to sell a home, with many citing favorable mortgage rates, high home prices, and low housing inventory as their primary rationale.

Normally, spring is the busiest season in the housing market the time when many homeowners decide to list their houses. While this is obviously not a normal year since the pandemic is still very much upon us, experts are optimistic that consumer positivity around selling will lead to more homeowners making moves this year. Duncan continues to say:

We will pay close attention to see if this newfound optimism develops into a trend.

What does this mean if you're thinking of selling your house?

The fact that there are so few houses available for sale today is one driver that's encouraging consumers to think more positively about selling. The National Association of Realtors (NAR) states:

“Total housing inventory at the end of January amounted to 1.04 million units, down 1.9% from December and down 25.7% from one year ago (1.40 million).

With so few homes available to buy, your house will be more likely to rise to the top of an eager purchasers wish list in this competitive market. Todays high buyer activity is creating upward pressure on home prices and more multiple-offer scenarios. According to the Realtors Confidence Index Survey from NAR, the average home for sale is receiving 3.7 offers today, up from 2.3 offers just one year ago. This makes selling even more enticing.

In this kind of sellers market, you have a huge advantage in the process. And here's another win you can also use your equity toward a down payment on a new home when you move.

Wondering where you'll go if you try to move while its so challenging to find a home to buy? Well, in many areas, there are more homes available at the higher end of the market, so finding a move-up home may be less of an issue if you're ready to search for your dream home this spring.

Bottom Line

If you pressed pause on selling your house last year, now may be the best time to put your plans back into motion while inventory is so low. Lets connect today to get the process started.

Where Have All the Houses Gone?

Where Have All the Houses Gone?

In todays housing market, it seems harder than ever to find a home to buy. Before the health crisis hit us a year ago, there was already a shortage of homes for sale. When many homeowners delayed their plans to sell at the same time that more buyers aimed to take advantage of record-low mortgage rates and purchase a home, housing inventory dropped even further. Experts consider this to be the biggest challenge facing an otherwise hot market while buyers continue to compete for homes. As Danielle Hale, Chief Economist at realtor.com, explains:

With buyers active in the market and seller participation lagging, homes are selling quickly and the total number available for sale at any point in time continues to drop lower. In January as a whole, the number of for sale homes dropped below 600,000.

Every month, realtor.com releases new data showing the year-over-year change in inventory of existing homes for sale. As you can see in the map below, nationwide, inventory is 42.6% lower than it was at this time last year:

Does this mean houses arent being put on the market for sale?

Not exactly. While there are fewer existing homes being listed right now, many homes are simply selling faster than they're being counted as current inventory. The market is that competitive! Its like when everyone was trying to find toilet paper to buy last spring and it was flying off the shelves faster than it could be stocked in the stores. That's what's happening in the housing market: homes are being listed for sale, but not at a rate that can keep up with heavy demand from competitive buyers.

In the same realtor.com report, Hale explains:

Time on the market was 10 days faster than last year meaning that buyers still have to make decisions quickly in order to be successful. Todays buyers have many tools to help them do that, including the ability to be notified as soon as homes meeting their search criteria hit the market. By tailoring search and notifications to the homes that are a solid match, buyers can act quickly and compete successfully in this faster-paced housing market.

The Good News for Homeowners

The health crisis has been a major reason why potential sellers have held off this long, but as vaccines become more widely available, homeowners will start making their moves. Ali Wolf, Chief Economist at Zonda, confirms:

Some people will feel comfortable listing their home during the first half of 2021. Others will want to wait until the vaccines are widely distributed.

With more homeowners getting ready to sell later this year, putting your house on the market sooner rather than later is the best way to make sure your listing shines brighter than the rest.

When you're ready to sell your house, you'll likely want it to sell as quickly as possible, for the best price, and with little to no hassle. If you're looking for these selling conditions, you'll find them in todays market. When demand is high and inventory is low, sellers have the ability to create optimal terms and timelines for the sale, making now an exceptional time to move.

Bottom Line

Todays housing market is a big win for sellers, but these conditions wont last forever. If you're in a position to sell your house now, you may not want to wait for your neighbors to do the same. Lets connect to discuss how to sell your house safely so you're able to benefit from todays high demand and low inventory.

The Reason Mortgage Rates Are Projected to Increase and What It Means for You

The Reason Mortgage Rates Are Projected to Increase and What It Means for You

Were currently experiencing historically low mortgage rates. Over the last fifty years, the average on a Freddie Mac 30-year fixed-rate mortgage has been 7.76%. Today, that rate is 2.81%. Flocks of homebuyers have been taking advantage of these remarkably low rates over the last twelve months. However, there's no guarantee rates will remain this low much longer.

Whenever we try to forecast mortgage rates, we should consider the advice of Mark Fleming, Chief Economist at First American:

You know, the fallacy of economic forecasting is don’t ever try and forecast interest rates and/or, more specifically, if you’re a real estate economist mortgage rates, because you will always invariably be wrong.

Many things impact mortgage rates. The economy, inflation, and Fed policy, just to name a few. That makes forecasting rates difficult. However, there's one metric that has held up over the last fifty years the relationship between mortgage rates and the 10-year treasury rate. Here's a graph detailing this relationship since Freddie Mac started keeping mortgage rate records in 1972:There's no denying the close relationship between the two. Over the last five decades, there's been an average 1.7-point spread between these two rates. Its this long-term relationship that has some forecasters projecting an increase in mortgage rates as we move throughout the year. This is based on the recent surge in the 10-year treasury rate shown here:The spread between the two is now 1.53, indicating mortgage rates could rise. Actually, a bump-up in rate has already begun. As Joel Kan, Associate VP of Economic Forecasting for the Mortgage Bankers Association, reveals:

Expectations of faster economic growth and inflation continue to push Treasury yields & mortgage rates higher. Since hitting a survey low in December, the 30-year fixed rate has slowly risen, & last week climbed to its highest level since Nov 2020.

How high might they go in 2021?

No one knows for sure. Sam Khater, Chief Economist for Freddie Mac, recently suggested:

While there are multiple temporary factors driving up rates, the underlying economic fundamentals point to rates remaining in the low 3% range for the year.

What does this mean for you?

Whether you're a first-time buyer or you've purchased a home before, even an increase of half a point in mortgage rate (2.81 to 3.31%) makes a big difference. On a $300,000 mortgage, that difference (including principal and interest) is $82 a month, $984 a year, or a total of $29,520 over the life of the home loan.

Bottom Line

Based on the 50-year symbiotic relationship between treasury rates and mortgage rates, it appears mortgage rates could be headed up this year. It may make sense to buy now rather than wait.