Is Home Price Appreciation Accelerating Again?

At the beginning of the year, industry forecasts called for home price appreciation to slow to about half of the double-digit increase we saw last year. The thinking was that inventory would increase from record-low levels and put an end to the bidding wars that have driven home prices up over the past twelve months. However, that increase in inventory has yet to materialize. The National Association of Realtors (NAR) reports that there are currently 410,000 fewer single-family homes available for sale than there were at this time last year.

This has forced those who made appreciation forecasts this past January to amend those projections. The Mortgage Bankers Association, Fannie Mae, Freddie Mac, the National Association of Realtors, and Zelman & Associates have all adjusted their numbers upward after reviewing first quarter housing data. Here are their original forecasts and their newly updated projections:Even with the increases, the updated projections still don't reach the above 10% appreciation levels of 2020. However, a jump in the average projection from 5.3% to 7.7% after just one quarter is substantial. Demand will remain strong, so future appreciation will be determined by how quickly listing inventory makes its way to the market.

Bottom Line

Entering 2021, there was some speculation that we might see price appreciation slow dramatically this year. Today, experts believe that wont be the case. Home values will remain strong throughout the year.

 

Getting Started With Epoxy Cabinet Refinishing Kits

What do you do when your kitchen needs a facelift? Those cabinets are solid, they’re functional, but man, are they dated! One option many homeowners are turning to is cabinet refinishing kits. Many of these pre-built kits use a water-based epoxy coating to ensure that the cabinets get the most rock-solid finish possible without investing in a lot of professional grade equipment. But there’s a lot more to refinishing cabinets with these materials than opening the can and getting to work.

Prepping for an Epoxy Finish

If you’ve never heard it before, take this away with you: The biggest predictor of success for your DIY project is how well you prep your surfaces and work area. It’s really that simple, even though prep work can be pretty involved. Creating a clean, smooth, ready to coat cabinet door takes a lot of effort, but yields magnificent results. This is the number one secret of the pros, besides having all that fancy painting equipment.

So how do you prep for an epoxy cabinet refinish? There are steps.

1. Remove all the cabinet doors, drawer fronts, and hardware. Label each and store them where they won’t get lost or damaged. Using sticky notes to track cabinet doors can be a really good trick, since doors may look alike but not actually fit the same.
2. Fill any cracked surfaces with a compatible filler and sand it smooth. You can’t simply paint away problems in your cabinetry.
3. Clean your cabinet fronts, cabinet doors, and exposed finish on cabinet bases thoroughly to remove oils, spills, and other messes that will interfere with paint adherence.
4. Cover any surface that you don’t want paint on. This includes your backsplash and your countertops, and even your work area. This is not a material that you can necessarily just peel off should you have a drip.
5. Set up areas for your doors and drawer fronts to cure. Curing can take several days per painted side, so ensure the area is super clean and free of any drafts that could deposit dust and other debris.

Only once you’ve fully prepped your area should you begin the task at hand. Taping your cabinet bases can help keep the paint lines sharp, but remember to remove the tape while the paint is wet for the best results. It’s not always necessary to paint the insides of your cabinets, but should you choose to, remember that the pre-built kits are only designed to cover outer surfaces, so you’ll need extra coating material.

The Right Equipment Matters

Another important thing to know about using an epoxy cabinet refinishing kit is that the right equipment really does matter. Buy the right tools, and don’t just settle for a single brush or a single roller; they come in a variety of options for different jobs. Because rollers and brushes both create different textures depending on their design, it’s going to be really important to make the right choices here. Ask experts if you’re not sure. Rollers are not all the same, and there are lots of differences in naps and roller density. And brushes made of natural material are very different from synthetics.

The size and shape of your rollers or brushes also matter big time. Brushes in particular come in tons of different shapes, each meant to do specific jobs. For example, an angle brush will help you get into corners better, though they can also be used on the flat, open areas too, if you’re careful. Rollers vary dramatically in width, and bigger isn’t always better.

Whatever you do, though, don’t mix brushes with foam applicators of any sort. The resulting texture won’t be consistent and will likely drive you to refinish your cabinets yet again long before the epoxy coating is in need of refreshing.

For a Faster, Harder Coating…

If you’re not sure you want to live with the excitement that is refinishing your cabinets, you’ve got another option: you can call in a painter. Professional painters often use harder coatings like lacquers and oil-based epoxies, as well as paint sprayers to ensure a smooth and even finish. Because they can take your cabinet doors away to their shop, it’ll also minimize the mess you have to live with.

Not sure where to find a painter? Just look in HomeKeepr for a recommendation! Make sure to choose a painter who has cabinet-refinishing experience, since there are often specialized tools and racks involved in the process.

Should I Buy Now or Wait?

Some Highlights

• If you're thinking that waiting a year or two to purchase a home might mean you'll save some money, think again.
• Mortgage interest rates are currently very low, but experts across the board are forecasting increases in both home prices and interest rates.
• Buying a home now means you'll spend less in the long run. Lets connect to put your homebuying plans in motion before home prices and mortgage rates climb even higher.

 

How Much Time Do You Need To Save for a Down Payment?

One of the biggest hurdles homebuyers face is saving for a down payment. As you're budgeting and planning for your home purchase, you'll want to understand how much you'll need to put down and how long it will take you to get there. The process may actually move faster than you think.

Using data from the U.S. Department of Housing and Urban Development (HUD) and Apartment List, we can estimate how long it might take someone earning the median income and paying the median rent to save up for a down payment on a median-priced home. Since saving for a down payment can be a great time to practice budgeting for housing costs, this estimate also uses the concept that a household should not pay more than 28% of their total income on monthly housing expenses.

According to the data, the national average for the time it would take to save for a 10% down payment is right around two and a half years (2.53). Residents in Iowa can save for a down payment the fastest, doing so in just over one year (1.31). The map below illustrates this time (in years) for each state:

What if you only need to save 3%?

What if you're able to take advantage of one of the 3% down payment programs available? Its a common misconception that you need a 20% down payment to buy a home, but there are actually more affordable options and down payment assistance programs available, especially for first-time buyers. The reality is, saving for a 3% down payment may not take several years. In fact, it could take less than a year in most states, as shown in the map below:

Bottom Line

Wherever you are in the process of saving for a down payment, you may be closer to your dream home than you think. Lets connect to explore the down payment options available in our area and how they support your plans.

 

82,338 Great Reasons to Buy a Home Today

The financial benefits of buying a home as compared to renting one are always up for debate. However, one element of the equation is often ignored the ability to build wealth as a homeowner.

Most experts are calling for home prices to continue appreciating over the next several years. The most recent Home Price Expectation Survey, a survey of over one hundred economists, real estate experts, and investment and market strategists, expects home appreciation to increase as follows:

• 2021: 6%
• 2022: 4.5%
• 2023: 4%
• 2024: 3.6%
• 2025: 3.5%

Using their annual projections, the graph below shows the equity build-up a purchaser could earn, using a 350,000 home as an example:A homeowner could increase their net worth by over 80,000 in five years. That's an average of 16,000 annually. That number should be in any equation determining the financial benefits of owning a home compared to renting.

Bottom Line

Homeowners are going to make a substantial amount of money in home equity over the next five years. If you're ready to buy a home, lets connect so you can enjoy this great benefit as well.

 

 Whole Home Water Filtration Systems and You

Your home is your castle, but like a lot of castles in the days of yore, the water could probably be better. Unlike in those ancient castles, though, modern technology makes it possible for you to have clean, safe water, no matter what sort of problems plague your fortress’s water supply. Choosing a whole home water filtration system is a big commitment, but depending on your water quality and source, it can make more sense than using filters at specific end points in the house.

Whole House Filters Versus Point of Use Filters

Many homeowners wonder what the advantages are to installing a whole home filtration system versus simply using things like tap filters and refrigerator filters. After all, aren’t those the only places where water quality really matters? Absolutely not.

Hard water, for example, can be very hard on any appliance that has water regularly run through it, from your washing machine to your toilet or dishwasher. Over time, sediment and mineral build-up can shorten the life span of any and all of these often expensive pieces of equipment. Installing a whole home water filtration system automatically removes problematic minerals and particulates from your water before it enters other points in your home, so you won’t have to take your chances on when an appliance will stop working or need repairs.

Water filters on specific appliances can be sufficient if you really just don’t like the taste of your water, or if you’ve placed in-line filters on your most delicate equipment. But remember that spot filters can only protect the items that are being filtered, and won’t cover other parts of your home that you may not have realized need filtering. They can also get expensive to maintain if you have many filters that need to be changed regularly.

What Can You Filter With a Whole House Filter?

A whole house filter can remove many common contaminants that may be present in your water. It’s a good idea to have a water test before you make a final decision on what you’d like your whole house filter to accomplish. A few things the most popular filtration mediums can reduce or eliminate entirely include:

• Sediment
• Chlorine and chloramine
• Hydrogen sulfide
• Heavy metals
• Bacteria and viruses
• Pesticides and herbicides
• VOCs

Most whole home filters consist of sediment filters, carbon filters, and, if you’re on well water, a UV lamp. However, because these are generally cartridge systems, you ultimately have control over what’s being filtered out. If your water tests show significant problems with heavy metals, you may need additional equipment for drinking water. Reverse osmosis systems can also filter out things like heavy metals and produce very pure water, but they use a lot of extra water and can be very slow, so they’re generally only recommended for spot usage. They’re often used only for drinking and cooking water, so you won’t necessarily need a huge add-on to your whole home filter.

Choosing the Right System for Your Home

The right system for your home is the system that both meets your needs for water usage and is able to filter out the contaminants that are in your water. This is why it’s so important to have a water test before you even start to look at whole home filter systems, even if you already have an idea as to what you think would be good for your lifestyle. You may discover that your water simply doesn’t contain the contaminates you’re most concerned about, which would be great news! Since both municipal water and well water can change over time, a system that allows for multiple interchangeable cartridges, from a company that will support your whole home filter over the long term, is always the ideal. The same can be said for a reverse osmosis system, should you need one in addition to a filtration system.

A professional can help you find the exact system that will meet your needs for many years to come. Don’t be shy, look in the HomeKeepr community for a recommendation for a water quality expert. You’ll have cleaner, tastier water in almost no time!

Planning to Move? You Can Still Secure a Low Mortgage Rate on Your Next Home

This year, mortgage rates have started to slowly climb above recent record-breaking lows. Many homeowners planning to move may feel like they've missed the chance to score a great rate on their next mortgage. In reality, there's still time to secure a rate far below the historic norm. Here's why.

After creeping up for seven consecutive weeks, average mortgage rates have dropped more recently (See graph below). With rates taking a slight dip over the past two weeks at the same time the inventory of houses for sale is so low, homeowners today are sitting in the optimal seat to sell. What's the advantage of selling your house now? Securing a low mortgage rate on your next home.To take advantage of todays real estate market, experts are encouraging homeowners to act now before interest rates climb. Danielle Hale, Chief Economist at realtor.com, explains:

mortgage rates slid for a second week … but we don't expect rates to stay at this level for too long.

Hale continues to say:

For sellers, getting in early optimizes odds of a quick sale at a good price before there's too much competition, but that means acting now In this environment, sellers probably really cant go wrong, and that's especially true in the nations hottest housing markets where homes are selling quickly and getting the greatest number of viewers online.

Most experts agree that rates will continue to trend upward. Sam Khater, Chief Economist at Freddie Mac, states:

Despite the pause in mortgage rates recently, we expect them to increase modestly for the remainder of this year.

In addition, Freddie Mac recently released their Quarterly Forecast, which notes:

We forecast that mortgage rates will continue to rise through the end of next year. We estimate the 30-year fixed mortgage rate will average 3.4% in the fourth quarter of 2021, rising to 3.8% in the fourth quarter of 2022. (See graph below):

While buyers everywhere want to secure the lowest rate possible, its important to remember that todays rates are still much lower than the historic norm. Odeta Kushi, Deputy Chief Economist at First American, emphasizes:

While mortgage rates have trended up in recent months, they are still historically low, so relative to one year ago, housing actually is still more affordable and that's really thanks to this low mortgage rate environment we find ourselves in.

Bottom Line

If you're thinking of moving, don't miss the opportunity to score a great rate on your next home mortgage. Lets connect today so you can get your house ready to sell and find your dream home while mortgage rates are still low.