Category Archives: Real Estate
Should Baby Boomers Buy or Rent After Selling Their Houses?
Should Baby Boomers Buy or Rent After Selling Their Houses?
Are you a baby boomer who’s lived in your current house for a long time and you’re ready for a change? If you’re thinking about selling your house, you have a lot to consider. Will you move to a different state or stay nearby? Is it time to downsize or do you want more space to accommodate your loved ones? But maybe the biggest consideration boils down to this – will you buy your next home or choose to rent instead?
That decision ultimately depends on your current situation and your future plans. Here are two important factors to help you decide what’s right for you.
Expect Rents to Keep Going Up
The graph below uses data from the Census to show how rents have been climbing steadily since 1988:Rents have been going up consistently over the long run. If you choose to rent, there’s a risk your rental payment will go up each time you renew your lease. Having a higher rental expense may not be something you want to deal with every year.
When you buy a home with a fixed-rate mortgage, it helps stabilize your monthly housing payment. This allows you to lock in your monthly payment for the duration of your home loan. That keeps your payments steady and predictable for the long haul. Freddie Mac sums it up like this:
“. . . homeowners with fixed-rate loans will see little to no change to their monthly housing cost over the life of their loan. You can be confident in knowing that your mortgage payments won’t change much in the long term, even when life’s other costs do.”
Owning Your Home Comes with Unique Benefits
According to AARP, buying your next home is a better long-term strategy than renting:
“Though each option has pros and cons, buying provides more pros, with a broader range of benefits.”
To help you choose what you’ll do after you sell, here are just a few of the benefits of homeownership that article covers:
- Owning your home can help you save money for the future. Your home, and the equity you build as a homeowner, can provide generational wealth that could be passed on to loved ones, giving them a better life.
- You might not have to pay a monthly mortgage payment at all. If you have enough equity to buy your next home outright, you wouldn’t have a monthly mortgage payment. While you might still need to cover property taxes or maintenance fees, not having to worry about a monthly mortgage payment could be a big relief.
- Aging in place can be simpler. If your needs change, owning your home gives you the freedom to make renovations and updates that can make everyday life easier.
Bottom Line
If you’re a baby boomer who’s wondering whether you should buy or rent your next home, let’s connect. With rents going up and homeownership providing so many benefits, it may make sense to consider buying your next home.
Category Archives: Real Estate
What Experts Project for Home Prices Over the Next 5 Years
What Experts Project for Home Prices Over the Next 5 Years
If you’re planning to buy a home, one thing to consider is what experts project home prices will do in the future and how that might affect your investment. While you may have seen negative news over the past year about home prices, they’re doing far better than expected and are rising across the country. And data shows, experts forecast home prices will keep appreciating.
Experts Project Ongoing Appreciation
Pulsenomics polled over 100 economists, investment strategists, and housing market analysts in the latest quarterly Home Price Expectation Survey (HPES). The results show what the panelists project will happen with home prices over the next five years. Here are those expert forecasts saying home prices will go up every year through 2027 (see graph below):If you’re someone who was worried home prices would fall because of stories you’ve read online, here’s the big takeaway. Even though home prices vary by local market, experts project prices will continue to rise across the country for years to come. And these numbers indicate the return to more normal home price appreciation.
And while the projected increase in 2024 isn’t as large as 2023, it’s important to recognize home price appreciation is cumulative. In other words, if these experts are correct, after your home’s value rises by 3.32% this year, it’ll appreciate by another 2.17% next year. This is a good example of why owning a home is a choice that wins big over time.
What Does This Mean for You?
Once you buy a home, price appreciation raises your home’s value, and that grows your household wealth. To see how a typical home’s value could change in the next few years using the expert projections from the HPES, check out the graph below:In this example, let’s say you bought a $400,000 home at the beginning of this year. If you factor in the forecast from the HPES, you could potentially accumulate more than $71,000 in household wealth over the next five years.
So, if you’re thinking about whether buying a home is a good choice, remember how it can be a powerful way to grow your wealth in the long run.
Bottom Line
According to the experts, home prices are expected to grow over the next five years at a more normal pace. If you’re ready to become a homeowner, know that buying today can set you up for long-term success as home values (and your own net worth) grow. Let’s connect to start the homebuying process today.
Category Archives: Real Estate
Flu Shot Time: Fighting Off Serious Illness Ahead of Time
As school is back in session and weather changes draw near, pediatricians are reminding parents to schedule flu shots for their children.
This year, pediatricians like Dr. Stanley Spinner, Chief Medical Officer of Texas Children’s Pediatrics are worried, and they are sounding the alarm early.
“The health patterns that occur in the southern hemisphere, where it is winter right now, are normally a good indicator of what is to come for us,” said Dr. Spinner. “For this reason, we are anticipating an extremely busy flu season. We know the virus will be widespread and we want parents to protect their families.”
The flu vaccine is life-saving
According to Dr. Spinner, the absolute best protection against influenza — the flu — is the flu vaccine.
The Centers for Disease Control and Prevention (CDC) recommends that children ages 6 months and older should be vaccinated annually. Anyone younger than 6 months should be protected by having all eligible family members vaccinated.
In addition, the CDC advises families to vaccinate annually because the vaccine is updated every year to protect against the constantly changing flu virus.
Texas Children’s physicians consistently work to increase the rate of flu vaccinations among patients, as it currently sits at around 50%.
“The biggest misconception is that if you take the flu vaccine, you won’t get the flu,” the long-time pediatrician noted. “But this isn’t accurate. You may still get sick, but if you’ve taken the vaccine you are extremely unlikely to become severely ill and the virus will not be life-threatening.”
To make matters even more important, Dr. Spinner said his team is also preparing parents for high rates of respiratory syncytial virus (RSV) and COVID-19 this season. Children are able to get their flu and COVID vaccines during the same appointment.
A healthy immune system helps
Texas Children’s pediatricians teach good nutrition, regular exercise and adequate sleep as building blocks to improving a child’s immunity.
“These behaviors — not any one vitamin or pill — are key to boosting your children’s immunity,” Dr. Spinner said. “And although they are excellent supplements to vaccinations, they cannot replace the protection that vaccines provide. The development and administration of vaccines is second only to clean water in what has improved our public health in the world. The importance of vaccines cannot be overstated.”
Flu vaccine appointments are now available at all Texas Children’s Pediatrics locations.
Category Archives: Real Estate
Planning to Retire? Your Equity Can Help You Make a Move
Reaching retirement is a significant milestone in life, bringing with it a lot of change and new opportunities. As the door to this exciting chapter opens, one thing you may be considering is selling your house and finding a home better suited for your evolving needs.
Fortunately, you may be in a better position to make a move than you realize. Here are a few reasons why.
Consider How Long You’ve Been in Your Home
From 1985 to 2009, the average length of time homeowners stayed in their homes was roughly six years. But according to the National Association of Realtors (NAR), that number is higher today. Since 2010, the average home tenure is just over nine years (see graph below):
This means many homeowners have been living in their houses even longer in recent years. When you live in a home for such a significant amount of time, it’s natural for you to experience changes in your life while you’re in that house. As those life changes and milestones happen, your needs may change. And if your current home no longer meets them, you may have better options waiting for you.
Consider the Equity You’ve Gained
And, if you’ve been in your home for more than a few years, you’ve likely built-up substantial equity that can fuel your next move. That’s because you gain equity as you pay down your loan and as home prices appreciate. And, the longer you’ve been in your home, the more you may have gained. Data from the Federal Housing Finance Agency (FHFA) illustrates that point (see graph below):
While home prices vary by area, the national average shows the typical homeowner who’s been in their house for five years saw it increase in value by nearly 60%. And the average homeowner who’s owned their home for 30 years saw it almost triple in value over that time.
Whether you’re looking to downsize, relocate to a dream destination, or move so you live closer to friends or loved ones, that equity can help. Whatever your home goals are, a trusted real estate agent can work with you to find the best option. They’ll help you sell your current house and guide you as you buy the home that’s right for you and your lifestyle today.
Bottom Line
As you plan for your retirement, let’s connect so we can find out how much equity you’ve built up over the years and plan how you can use it toward the purchase of a home that fits your changing needs.
Category Archives: Real Estate
Get Ready for Smaller, More Affordable Homes
Have you been trying to buy a home, but higher mortgage rates and home prices are limiting your options? If so, here’s some good news – based on what Ali Wolf, Chief Economist at Zonda, has to say – smaller, more affordable homes are on the way:
“Buyers should expect that over the next 12 to 24 months there will be a notable increase in the number of entry-level homes available.”
In some ways, smaller homes are already here. When the pandemic hit, the meaning of home changed. People needed the space their home provided not only as a place to live, but as a place to work, go to school, exercise, and more. Those who had that space were more likely to keep it. And those that didn’t were in a position where they were trying to sell their smaller house to move up to a larger one. That meant the homes coming to the market during the pandemic were smaller than those on the market before the pandemic – and that trend continues today (see graph below):This graph also shows how the size of homes on the market changes seasonally. Larger homes tend to come on the market during the summer months when households with children who are out of school are looking to move.
That seasonality means, based on historical trends and the fact that fall is now approaching, we can expect smaller, more affordable homes to come to the market throughout the rest of the year.
That’s great news because, as Robert Dietz, Chief Economist at the National Association of Home Builders (NAHB), states, the need for these types of homes has gone up recently:
“. . . as interest rates increased in 2022, and housing affordability worsened, the demand for home size has trended lower.”
What Does This Mean for You?
The seasonal trend of smaller homes coming to the market in the later months of the year, coupled with builders bringing smaller, more affordable newly built homes to the market right now, is good news – especially if you’re finding it difficult to afford a home. Mikaela Arroyo, Director of the New Home Trends Institute at John Burns Real Estate Consulting, says this about a potential increase in the availability of smaller homes:
“It’s not solving the affordability crisis, but it is creating opportunities for people to be able to afford an entry-level home in an area.”
Bottom Line
If a smaller, more affordable home sounds appealing to you, good news – they’re coming. To keep up with what’s available in our area, let’s connect.
Category Archives: Real Estate
Mortgage Rates: Past, Present, and Possible Future
If you’re hoping to buy a home this year, you’re probably paying close attention to mortgage rates. Since mortgage rates impact what you can afford when you take out a home loan – and affordability is a challenge today – it’s a good time to look at the big picture of where mortgage rates have been historically compared to where they are now. Beyond that, it’s important to understand their relationship with inflation for insights into where mortgage rates might go in the near future.
Giving Context to the Sticker Shock
Freddie Mac has been tracking the 30-year fixed mortgage rate since April of 1971. Every week, they release the results of their Primary Mortgage Market Survey, which averages mortgage application data from lenders across the country (see graph below):
Looking at the right side of the graph, mortgage rates have increased significantly since the start of last year. But even with that rise, today’s rates are still below the 52-year average. While that historical perspective is good context, buyers have gotten used to mortgage rates between 3% and 5%, which is where they’ve been over the past 15 years.
That’s important because it explains why the recent jump in rates might have you feeling sticker shock even though they’re close to their long-term average. While many buyers have adjusted to the elevated rates over the past year, a slightly lower rate would be a welcome sight. To determine if that’s a realistic possibility, it’s important to look at inflation.
Where Could Mortgage Rates Go in the Future?
The Federal Reserve has been working hard to lower inflation since early 2022. That’s significant because, historically, there’s been a connection between inflation and mortgage rates (see graph below):
This graph shows a pretty reliable relationship between inflation and mortgage rates. Looking at the left side of the graph, each time inflation moves significantly (shown in blue), mortgage rates follow suit shortly after (shown in green).
The circled portion of the graph points out the most recent spike in inflation, with mortgage rates following closely behind. As inflation has moderated a bit this year, mortgage rates haven’t yet made a similar move.
That means, if history is any guide, the market is waiting for mortgage rates to follow inflation and head back down. It’s impossible to accurately predict where mortgage rates will go for sure, but moderating inflation means mortgage rates going down in the near future would fit a well-established trend.
Bottom Line
To understand where mortgage rates may be going, it’s helpful to look at where they’ve been in the past. There’s a clear connection between inflation and mortgage rates, and if that historical relationship holds true, the recent decline in inflation may mean good news for the future of mortgage rates and your homeownership goals.
Category Archives: Real Estate
Expert Home Price Forecasts Revised Up for 2023
Toward the end of last year, there were a number of headlines saying home prices were going to fall substantially in 2023. That led to a lot of fear and questions about whether there was going to be a repeat of the housing crash that happened back in 2008. But the headlines got it wrong.
While there was a slight home price correction after the sky-high price appreciation during the ‘unicorn’ years, nationally, home prices didn’t come crashing down. If anything, prices were a lot more resilient than many people expected.
Let’s take a look at some of the expert forecasts from late last year stacked against their most recent forecasts to show that even the experts recognize they were overly pessimistic.
Expert Home Price Forecasts: Then and Now
This visual shows the 2023 home price forecasts from seven organizations. It provides the original 2023 forecasts (released in late 2022) for what would happen to home prices by the end of this year and their most recently revised 2023 forecasts (see chart below):
As the red in the middle column shows, in all instances, their original forecast called for home prices to fall. But, if you look at the right column, you’ll see all experts have updated their projections for the year-end to show they expect prices to either be flat or have positive growth. That’s a significant change from the original negative numbers.
There are a number of reasons why home prices are so resilient to falling. As Odeta Kushi, Deputy Chief Economist at First American, says:
“One thing is for sure, having long-term, fixed-rate debt in the U.S. protects homeowners from payment shock, acts as an inflation hedge – your primary household expense doesn’t change when inflation rises – and is a reason why home prices in the U.S. are downside sticky.”
A Look Forward To Get Ahead of the Next Headlines
For home prices, you’re going to continue to see misleading media coverage in the months ahead. That’s because there’s seasonality to home price appreciation and they’re going to misunderstand that. Here’s what you need to know to get ahead of the next round of negative headlines.
As activity in the housing market slows at the end of this year (as it typically does each year), home price growth will slow too. But, this doesn’t mean prices are falling – it’s just that they’re not increasing as quickly as they were when the market was in the peak homebuying season.
Basically, deceleration of appreciation is not the same thing as home prices depreciating.
Bottom Line
The headlines have an impact, even if they’re not true. While the media said home prices would fall significantly in their coverage at the end of last year, that didn’t happen. Let’s connect so you have a trusted resource to help you separate fact from fiction with reliable data.
Category Archives: Real Estate
SOLD – 11940 Jelicoe Drive, Houston,TX 77047
SOLD – 11940 Jelicoe Drive, Houston,TX 77047
Manda is an amazing person, the success she’s had in her life are inspiring. It was my privilege to work with her and help her and her family in this important step. Thank you Manda you are a joy to work with. We will always be here for you.
LEAVE US A REVIEW!
https://g.page/r/CfZQNNFYH55SEB0/review
CALL or TEXT me today at 832-721-0442 and START PACKING!
#5starreview #justsold#GaryEvans#EvansRealtyGroup#erg#katyrealtor#texasrealtor#houstonrealtor#houstonrealestate#katyrealestate#texasrealestate#texashomes#katyhomes#houstonhomes#houstonhomesforsale#katyhomesforsale#texashomesforsale
Category Archives: Real Estate
How Inflation Affects the Housing Market
Have you ever wondered how inflation impacts the housing market? Believe it or not, they’re connected. Whenever there are changes to one, both are affected. Here’s a high-level overview of the connection between the two.
The Relationship Between Housing Inflation and Overall Inflation
Shelter inflation is the measure of price growth specific to housing. It comes from a survey of renters and homeowners that’s done by the Bureau of Labor Statistics (BLS). The survey asks renters how much they’re paying in rent, and homeowners how much they’d rent their homes for, if they weren’t living in them.
Much like overall inflation measures the cost of everyday items, shelter inflation measures the cost of housing. And for four consecutive months, based on that survey, shelter inflation has been coming down (see graph below):
Why does this matter? Well, shelter inflation makes up about one-third of overall inflation, as measured by the Consumer Price Index (CPI). So, when shelter inflation moves, it leads to noticeable moves in overall inflation. That means the recent dip in shelter inflation might be a sign that overall inflation could fall in the months ahead.
That moderation would be a welcome sight for the Federal Reserve (the Fed). They’ve been working to get inflation under control since early 2022. While they’ve made some headway (it peaked at 8.9% in the middle of last year), they’re still trying to get to their 2% goal (the latest report is 3.3%).
Inflation and the Federal Funds Rate
What’s the Fed been doing to lower inflation? They’ve been increasing the Federal Funds Rate. That interest rate influences how much it costs banks to borrow money from each other. When inflation climbed, the Fed responded by raising the Federal Funds Rate to keep the economy from overheating.
The graph below shows the relationship between the two. Each time inflation (shown in the blue line) starts to climb, the Fed raises the Federal Funds Rate (shown in the orange line) to try to get it back to their target of 2% (see below):
The circled portion of the graph shows the most recent spike in inflation, the Fed’s actions to raise the Federal Funds Rate to fight that, and the moderation of inflation that happened in response to that hike. As inflation gets closer to the Fed’s current 2% goal, they may not need to raise the Federal Funds Rate much further.
A Brighter Future for Mortgage Rates?
So, what does all of this mean for you? While the actions coming out of the Fed don’t determine mortgage rates, they do have an impact. As Mortgage Professional America (MPA) explains:
“. . . mortgage rates and inflation are connected, however indirectly. When inflation rises, mortgage rates rise to keep up with the value of the US dollar. When inflation drops, mortgage rates follow suit.”
While no one can predict the future for mortgage rates, it’s encouraging to see the signs of moderating inflation in the economy.
Bottom Line
Whether you’re looking to buy, sell, or just stay informed about the housing market, let’s connect.
Category Archives: Real Estate
Congenital Diaphragmatic Hernia (CDH) Treatment
A family moves across the world to ensure the best care for their baby with CDH.
They say a mother’s love knows no limits — and certainly no distance.
It is exactly this love that prompted Chava Felsinger and her husband, Ephraim, to move their family from their home in Israel to Houston, Texas, when her youngest child was diagnosed with a congenital diaphragmatic hernia (CDH) during a 20-week ultrasound.
The young mother, who’d already experienced two uncomplicated pregnancies, was surprised and unprepared for this diagnosis and wasn’t sure exactly what it meant. CDH is a hole or opening in the baby’s diaphragm, the muscle that separates the abdomen from the chest. The defect allows the abdominal organs — the stomach, intestine, liver and spleen — to move up into the chest cavity. These other organs crowd the baby’s lungs and prevent them from growing and developing properly. Severe cases of CDH are usually associated with serious diseases or even death after birth.
“We currently live in Israel, and I saw a specialist there,” Chava said. “I started doing a lot of research and discovered all of the success stories that came from Texas Children’s Hospital, while also learning about Dr. Michael Belfort’s reputation for being the best. A friend of mine emailed him, and we began discussing the details involved in saving my baby’s life.”
Dr. Belfort, Obstetrician and Gynecologist-in-Chief at Texas Children’s Hospital and Chair of Obstetrics and Gynecology at Baylor College of Medicine, leads a world-renowned team of gynecologists, obstetricians and fetal surgeons at Texas Children’s Fetal Center.
Within days, Chava and Ephraim traveled to Houston for a consultation with the team. Together, they decided to move forward with a fetoscopic endotracheal occlusion (FETO) , a fetal intervention to help babies with CDH.
A life-changing move
This decision meant that the entire family’s lives would change for several months.
“The Felsingers are not alone,” said Dr. Ahmed Nassr, a maternal-fetal medicine specialist and fetal surgeon at Texas Children’s Fetal Center, and an Associate Professor of Obstetrics and Gynecology at Baylor College of Medicine. “We see families who travel from across the world — from Mexico, the United Emirates and, in this case, Israel. It is a big sacrifice to move your entire family, including schooling for your children, to another country. But when it comes to finding the best care for their baby, families will go the distance for the best outcomes.”
And that’s exactly what the Felsinger family did.
They all moved to Houston, and when Chava was 30 weeks pregnant, Dr. Nassr performed the first surgery, placement of a tiny balloon in the unborn baby’s trachea to simulate lung growth. Five weeks later, he performed the second surgery to remove the balloon.
On May 2, 2022, Simcha Felsinger was delivered full-term and began a weeks-long stay in the neonatal intensive care unit at Texas Children’s Hospital West Tower. After he was discharged from the hospital, the Felsinger family returned to Israel.
Today, Simcha — which means happiness, gladness or joy in Hebrew — is a happy and healthy 11-month-old and is much loved by his siblings, 4-year-old Shamuel and 2-year old Eli.
“When we look at our healthy baby boy, we know that the move to Houston was more than worth it,” Chava said. “There is no doubt that the care we received at Texas Children’s was life-saving for our baby and life-changing for our family.”
Source: Texas Children’s Hospital Blog