Your Home is a Powerful Investment

Going into 2023, there was a lot of talk about a possible recession that would cause the housing market to crash. Some in the media were even forecasting home prices would drop by as much as 10-20%—and that might have made you feel a bit unsure about buying a home. But here’s what actually happened: home prices went up more than usual. Brian D. Luke, Head of Commodities at S&P Dow Jones Indices, explains: “Looking back at the year, 2023 appears to have exceeded average annual home price gains over the past 35 years.” To put last year’s growth into context, the graph below uses data from Freddie Mac on how home prices have changed each year going back to 1980. The dotted line shows the long-term average for appreciation: The big takeaway? Home prices almost always go up. As an article from Forbes says: “. . . the U.S. real estate market has a long and reliable history of increasing in value over time.” In fact, since 1980, the only time home prices dropped was during the housing market crash (shown in red in the graph above). Fortunately, the market today isn’t like it was in 2008. For starters, there aren’t enough available homes to meet buyer demand right now. On top of that, homeowners have a tremendous amount of equity, so they’re on much stronger footing than they were back then. That means there won’t be a wave of foreclosures that causes prices to fall. The fact that home values went up every single year except those four in red is why owning a home can be one of the smartest moves you can make. When you’re a homeowner, you own something that typically becomes more valuable over time. And as your home’s value appreciates, your net worth grows.  So, if you’re financially stable and prepared for the costs and expenses of homeownership, buying a home might make a lot of sense for you. Bottom Line Home prices almost always go up over time. That makes buying a home a smart move, if you’re ready and able. Connect with a local real estate agent to talk about your goals and what’s available in our area. -Keeping Current Matters-

First time home buyers

Buying your first home is an exciting milestone in anyone's life. It's a significant decision that involves careful planning and consideration. As a first-time homebuyer, there are several key factors to keep in mind throughout the process. In this blog post, we will discuss important topics such as the buyers themselves and the mortgage options available.First and foremost, it's crucial for first-time homebuyers to understand their needs and budget. Determine what kind of home you are looking for, including the location, size, and amenities. Knowing your preferences will help narrow down your search and make the process more efficient.Once you have a clear idea of your needs, it's time to explore various mortgage options. As a first-time homebuyer, you may be eligible for special programs and incentives. For example, the Federal Housing Administration (FHA) offers loans with low down payment requirements, making homeownership more accessible for those with limited funds for a down payment.Another important aspect to consider is the length of your mortgage. The most common mortgage terms are 15 or 30 years. While a 30-year mortgage may have lower monthly payments, a 15-year mortgage allows you to pay off your loan faster and accumulate less interest over time. It's essential to carefully evaluate your financial situation and long-term goals to determine the right mortgage length for you.Don't forget to factor in additional costs associated with homeownership. These may include property taxes, insurance, maintenance, and potential renovation or remodeling expenses. It's essential to create a comprehensive budget that accounts for all these costs to ensure you can comfortably afford your new home.Furthermore, as a first-time homebuyer, it's wise to seek guidance from professionals in the real estate industry. Real estate agents can provide valuable insights, help negotiate prices, and guide you through the entire process. Additionally, consulting with mortgage brokers or lenders will give you a better understanding of your financial options and what you can afford.In conclusion, being a first-time homebuyer involves careful planning, understanding your options, and creating a realistic budget. By considering your needs, exploring mortgage options, and seeking guidance, you can navigate the home buying process smoothly and make an informed decision. Remember, buying your first home is not only an investment in property but also an investment in your future.

The Benefits of Downsizing When You Retire

If you’re taking a look at your expenses as you retire, saving money where you can has a lot of appeal. One long-standing, popular way to do that is by downsizing to a smaller home. When you think about cutting down on your spending, odds are you think of frequent purchases, like groceries and other goods. But when you downsize your house, you often end up downsizing the bills that come with it, like your mortgage payment, energy costs, and maintenance requirements. Realtor.com shares: “A smaller home typically means lower bills and less upkeep. Then there’s the potential windfall that comes from selling your larger home and buying something smaller.” That windfall is thanks to your home equity. If you’ve been in your house for a while, odds are you’ve built up a considerable amount of equity. And that equity is something you can use to help you buy a home that better fits your needs today. Daniel Hunt, CFA at Morgan Stanley, explains: “Home equity can be a significant source of wealth for retirees, often representing a large portion of their net worth. . . . Retirement planning can be complex, but your home equity shouldn’t be overlooked.” And when you’re ready to use that equity to fuel your next move, your real estate agent will be your guide through every step of the process. That includes setting the right price for your current house when you sell, finding the home that best fits your evolving needs, and understanding what you can afford at today’s mortgage rate. What This Means for You If you’re thinking about downsizing, ask yourself these questions: Do the original reasons I bought my current house still stand, or have my needs changed since then? Do I really need and want the space I have right now, or could somewhere smaller be a better fit? What are my housing expenses right now, and how much do I want to try to save by downsizing? Then, meet with a real estate agent to get an answer to this one: What are my options in the market right now? A local real estate agent can walk you through how much equity you have in your house and how it positions you to win when you downsize. Bottom Line Want to save money in retirement? Consider downsizing – it could really help you out. When you’re ready, connect with a local real estate agent about your goals in the housing market this year.

For Sale - 112 Bluegrass Dr, Smyrna, TN

  Charming 3-bedroom, 1-bathroom home nestled on an expansive lot, offering a perfect blend of comfort and space. This well-maintained residence boasts stylish laminate flooring throughout, providing a modern and easy-to-maintain aesthetic. The home's climate is efficiently controlled by a recently installed (2023) HVAC system, complete with an Ecobee thermostat for optimal energy management. Enjoy the abundance of natural light streaming through newer windows (3 years old), creating a bright and inviting atmosphere. The property is equipped with a vapor barrier and an auto-close vent (3 years old), enhancing energy efficiency and overall comfort. With thoughtful updates such as Ethernet cabling, new light and plug receptacles, and a functional layout, this home provides a cozy haven for its fortunate occupants.