Your Needs Matter More Than Today’s Mortgage Rates

If you’re thinking about selling your house right now, chances are it’s because something in your life has changed. And, while things like mortgage rates are a key part of your decision on what you’ll buy next, it’s important to not lose sight of the reason you want to make a change in the first place. It’s true mortgage rates have climbed from the record lows we saw in recent years, and that has an impact on affordability. With rates where they are right now, some homeowners are deciding they’ll wait to sell because they don’t want to move and have a higher mortgage rate on their next home. As Danielle Hale, Chief Economist at Realtor.com, explains: “. . . homeowners who locked in a 30-year fixed rate in the 2-3% range don't necessarily want to give that up in exchange for a rate in the 6-7% range.” But your lifestyle and your changing needs should matter more. Here are a few of the most common reasons people choose to sell today. Any one of these may be more important than keeping your current mortgage rate. As Ali Wolf, Chief Economist at Zonda, says in a recent tweet: “First-time and move-up buyers are both active . . . the latter driven by life changes. Divorce, marriage, new higher paid job, and existing home unsuitable all referenced.”  Relocation Some of the things that can motivate a move to a new area include changing jobs, a desire to be closer to friends and loved ones, wanting to live in a dream location, or just looking for a change in scenery.  For example, if you live in suburbia and just landed your dream job in NYC, you may be thinking about selling your current home and moving to the city for work.  Upgrading Many homeowners decide to sell to move into a larger home. This is especially common when there’s a need for more room to entertain, a home office or gym, or additional bedrooms to accommodate a growing number of loved ones. For example, if you’re living in a condo and decide it’s time to seek out a home with more space, or if your household is growing, it may be time to find a home that better fits those needs.  Downsizing With inflation driving up everyday expenses, homeowners may also decide to sell to reduce maintenance and costs. Or, they may sell because someone’s moved out of the home recently and there’s now more space than needed. It could also be that they’ve recently retired or are ready for a change. For example, you’ve just kicked off your retirement and you want to move to somewhere you can enjoy the warm weather and have less house to maintain. Your new lifestyle may be better suited for a different home.  Change in Relationship Status Divorce, separation, or marriage are other common reasons individuals sell to buy different homes. For example, if you’ve recently separated, it may be difficult to still live under one roof. Selling and downsizing may be better options. Health Concerns If a homeowner faces mobility challenges or health issues that require specific living arrangements or modifications, they might sell their current home to find one that works better for them. For example, you may be looking to sell your home and use the proceeds to help pay for a unit in an assisted-living facility.  With higher mortgage rates, there are some affordability challenges right now – but your needs and your lifestyle matter too. As a recent article from Bankrate says:  “Deciding whether it’s the right time to sell your home is a very personal decision. There are numerous important questions to consider, both financial and lifestyle-based, before putting your home on the market. . . . Your future plans and goals should be a significant part of the equation . . .” Bottom Line If you’re ready to sell your house so you can make a move, connect with a real estate professional. That way you have an expert on your side to help you navigate the process and find a home that can deliver on what you’re looking for.      Prioritizing Your Wants and Needs: Why They Matter More Than the Interest Rate in San Antonio, TX When it comes to purchasing a home in San Antonio, TX, it's natural to be concerned about interest rates and their impact on your mortgage. However, in the midst of rate fluctuations, it's crucial to remember that your wants and needs should take precedence over the interest rate alone. In this comprehensive blog post, we will delve into the reasons why your wants and needs matter more than the interest rate when making a home buying decision. With the expert guidance of Grell Realty Group and The Grell Team, we'll explore the factors that truly shape your homeownership experience in San Antonio. 1. Finding Your Dream Home:The search for your dream home is about more than just the numbers. It's about finding a property that aligns with your lifestyle, preferences, and long-term goals. Focusing solely on the interest rate may limit your options and compromise your ability to find a home that truly meets your wants and needs. 2. Location and Neighborhood:The location of your future home plays a crucial role in your overall satisfaction and quality of life. Consider factors such as proximity to schools, workplaces, amenities, and community resources. Grell Realty Group and The Grell Team possess extensive knowledge of San Antonio's neighborhoods, helping you identify the areas that best match your desired lifestyle. 3. Property Features and Amenities:Your wants and needs encompass the specific features and amenities that are important to you. Whether it's a spacious backyard, a gourmet kitchen, or a home office, these elements contribute to your daily comfort and enjoyment. Prioritizing your wants and needs allows you to focus on properties that offer the features and amenities you desire, enhancing your overall homeownership experience. 4. Long-Term Value and Appreciation:While interest rates may affect your monthly mortgage payment, the long-term value and appreciation potential of a property are equally important considerations. By selecting a home that aligns with your wants and needs, you are more likely to make a sound investment that can appreciate over time. Grell Realty Group and The Grell Team can provide insights into San Antonio's real estate market trends and help you identify properties with excellent long-term potential. 5. Emotional Satisfaction and Well-Being:Your home is a place where you should feel happy, comfortable, and emotionally fulfilled. It's a reflection of your personality and a sanctuary for you and your loved ones. Prioritizing your wants and needs allows you to create a space that truly resonates with you, promoting your overall well-being and happiness. 6. Future Flexibility and Adaptability:Life is dynamic, and your needs may change over time. By prioritizing your wants and needs, you can select a home that offers flexibility and adaptability to accommodate potential future changes. This ensures that your home remains suitable and supportive of your evolving lifestyle. 7. Expert Guidance and Support:Grell Realty Group and The Grell Team understand the importance of prioritizing your wants and needs. Their expertise and personalized approach ensure that your home buying journey is centered around what matters most to you. They can help you navigate the San Antonio real estate market, analyze your options, and guide you towards properties that align with your specific wants and needs. Conclusion:While interest rates play a role in your home buying decision, it's essential to prioritize your wants and needs above all else. By focusing on factors such as location, property features, long-term value, emotional satisfaction, and future adaptability, you can find a home in San Antonio that truly meets your unique requirements. Trust Grell Realty Group and The Grell Team to provide expert guidance, empowering you to make informed decisions and find the perfect home that brings you joy and fulfills your wants and needs.  

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Are Home Prices Going Up or Down? That Depends…

Media coverage about what’s happening with home prices can be confusing. A large part of that is due to the type of data being used and what they’re choosing to draw attention to. For home prices, there are two different methods used to compare home prices over different time periods: year-over-year (Y-O-Y) and month-over-month (M-O-M). Here's an explanation of each.  Year-over-Year (Y-O-Y): This comparison measures the change in home prices from the same month or quarter in the previous year. For example, if you're comparing Y-O-Y home prices for April 2023, you would compare them to the home prices for April 2022. Y-O-Y comparisons focus on changes over a one-year period, providing a more comprehensive view of long-term trends. They are usually useful for evaluating annual growth rates and determining if the market is generally appreciating or depreciating. Month-over-Month (M-O-M): This comparison measures the change in home prices from one month to the next. For instance, if you're comparing M-O-M home prices for April 2023, you would compare them to the home prices for March 2023. Meanwhile, M-O-M comparisons analyze changes within a single month, giving a more immediate snapshot of short-term movements and price fluctuations. They are often used to track immediate shifts in demand and supply, seasonal trends, or the impact of specific events on the housing market. The key difference between Y-O-Y and M-O-M comparisons lies in the time frame being assessed. Both approaches have their own merits and serve different purposes depending on the specific analysis required. Why Is This Distinction So Important Right Now?  We’re about to enter a few months when home prices could possibly be lower than they were the same month last year. April, May, and June of 2022 were three of the best months for home prices in the history of the American housing market. Those same months this year might not measure up. That means, the Y-O-Y comparison will probably show values are depreciating. The numbers for April seem to suggest that’s what we’ll see in the months ahead (see graph below): That’ll generate troubling headlines that say home values are falling. That’ll be accurate on a Y-O-Y basis. And, those headlines will lead many consumers to believe that home values are currently cascading downward. However, on a closer look at M-O-M home prices, we can see prices have actually been appreciating for the last several months. Those M-O-M numbers more accurately reflect what’s truly happening with home values: after several months of depreciation, it appears we’ve hit bottom and are bouncing back. Here’s an example of M-O-M home price movements for the last 16 months from the CoreLogic Home Price Insights report (see graph below): Why Does This Matter to You? So, if you’re hearing negative headlines about home prices, remember they may not be painting the full picture. For the next few months, we’ll be comparing prices to last year’s record peak, and that may make the Y-O-Y comparison feel more negative. But, if we look at the more immediate, M-O-M trends, we can see home prices are actually on the way back up. There’s an advantage to buying a home now. You’ll buy at a discount from last year’s price and before prices start to pick up even more momentum. It’s called “buying at the bottom,” and that’s a good thing. Bottom Line If you have questions about what’s happening with home prices, or if you’re ready to buy before prices climb higher, connect with a local real estate agent.   Unveiling the San Antonio, TX Real Estate Market: Are House Prices on the Rise or Decline? Exploring the Insights with Grell Realty Group and The Grell Team The San Antonio, Texas real estate market has been the center of attention for homebuyers and investors seeking to capitalize on its growth potential. One common question that arises is whether house prices in San Antonio are trending upwards or heading towards a decline. In this in-depth blog post, we will delve into the factors influencing the San Antonio housing market, analyze the current trends, and provide insights from Grell Realty Group and The Grell Team, trusted experts in the field. Let's explore the dynamics of the San Antonio real estate market and gain a clearer understanding of the direction house prices are taking. 1. The San Antonio Real Estate Market Overview:San Antonio is a thriving city with a strong economy, diverse neighborhoods, and a vibrant real estate market. Understanding the market's current state is crucial when analyzing house price trends. 2. Factors Influencing House Prices in San Antonio:Several key factors impact house prices in San Antonio. It's important to consider these factors to assess whether prices are more likely to rise or decline: a. Supply and Demand: The balance between housing supply and buyer demand plays a significant role in determining house prices. When demand exceeds supply, prices tend to rise, whereas an oversupply may lead to price corrections. b. Economic Factors: Local economic conditions, including job growth, wage trends, and overall economic stability, have a direct impact on the real estate market. A robust economy generally drives demand and supports house price appreciation. c. Interest Rates: Mortgage interest rates significantly influence the affordability of homes. Lower interest rates often stimulate buyer demand, potentially leading to price increases. Conversely, rising rates may temper buyer enthusiasm and potentially impact prices. d. Market Competition: The level of competition among buyers can affect house prices. Multiple offers and bidding wars can drive prices upwards, while reduced competition may exert downward pressure on prices. 3. Current House Price Trends in San Antonio:To determine whether house prices in San Antonio are rising or declining, we must analyze the latest data and market trends. While real estate markets can fluctuate, recent indicators point to an upward trajectory in house prices. a. Appreciation Rates: Over the past few years, San Antonio has experienced consistent house price appreciation. The market has demonstrated steady growth, with rising prices reflecting the high demand for properties. b. Limited Inventory: San Antonio has witnessed a limited housing inventory, which has intensified competition among buyers. This imbalance between supply and demand contributes to upward pressure on prices. c. Neighborhood Dynamics: It's crucial to analyze house price trends at a neighborhood level as each area may experience variations in appreciation rates. Certain neighborhoods may exhibit stronger price growth due to unique factors such as proximity to amenities, schools, or new developments. 4. Insights from Grell Realty Group and The Grell Team:Partnering with experienced realtors like Grell Realty Group and The Grell Team is invaluable when assessing house price trends. They possess extensive knowledge of the San Antonio market, providing valuable insights into local dynamics, neighborhood-specific trends, and emerging opportunities. 5. Tailored Solutions and Market Expertise:Grell Realty Group and The Grell Team offer personalized solutions to meet your real estate goals in the ever-evolving San Antonio market. They utilize their in-depth market expertise, extensive network, and data-driven analysis to guide you in making informed decisions regarding house prices and investment opportunities. 6. SEO and Google Keywords:To ensure this valuable information reaches a wider audience, implementing SEO strategies is essential. By incorporating relevant Google keywords throughout the blog post, such as "San Antonio house prices," "Grell Realty Group," and "real estate market trends," we optimize the chances of the content being discovered by those seeking information on these topics. Conclusion:While the San Antonio, TX real estate market is dynamic, recent trends indicate a positive trajectory for house prices. Factors such as supply and demand dynamics, economic stability, and limited inventory contribute to this upward trend. By leveraging the expertise of Grell Realty Group and The Grell Team, you can gain a comprehensive understanding of the market, make informed decisions, and navigate the San Antonio real estate landscape with confidence.

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The 3 Factors That Affect Home Affordability

If you’ve been following the San Antonio housing market over the last couple of years, you’ve likely heard about growing affordability challenges. But according to experts, the key factors that determine housing affordability are projected to improve this year. Selma Hepp, Executive, Deputy Chief Economist at CoreLogic, shares: “. . . with slowly improving affordability and a more optimistic economic outlook than previously believed, the housing market could show resilience in 2023.” The three measures used to establish home affordability are home prices, mortgage rates, and wages. Here’s a closer look at each one. 1. Mortgage Rates Mortgage rates shot up to over 7% last year, causing many buyers to put their plans on hold. But things are looking different today as rates are starting to come down. George Ratiu, Senior Economist at realtor.com, explains: “Let’s celebrate some good news. . . . mortgage rates are down. With inflation showing a tangible slowdown, I do expect mortgage rates to follow suit in the months ahead.” Even a small change in rates can impact your purchasing power. Nadia Evangelou, Director of Forecasting for the National Association of Realtors (NAR), gives this context: “With a 6% rate instead of 7%, buyers pay about $2,700 less every year on their mortgage. As a result, owning a home becomes affordable to about 1.4 million more renters and 4.3 million more homeowners.” If 7% rates paused your homebuying plans in San Antonio last year, this could be the opportunity you need to get back in the game. Be sure to work with a team of experts who know the latest on mortgage rates and can give you the best advice for the current market. 2. Home Prices The second factor at play is home prices. Home prices have made headlines over the past few years because they skyrocketed during the pandemic. When discussing home prices in 2023, Lawrence Yun, Chief Economist at NAR, says: “After a big boom over the past two years, there will essentially be no change nationally . . . Half of the country may experience small price gains, while the other half may see slight price declines.” So, while prices will likely be flat this year in some markets, others could see small gains or slight declines. It all depends on your local area. For insight into what’s happening in your market and how prices are impacting affordability, reach out to a trusted real estate professional. 3. Wages The final component in the affordability equation is wages. The graph below uses data from the Bureau of Labor Statistics (BLS) to show how wages have increased over time:     When you think about affordability, remember the full picture includes more than just mortgage rates and prices. Wages need to be factored in as well. Because wages have been rising, many buyers have renewed opportunity in the market.   While affordability hurdles are not completely going away this year, based on current trends and projections, 2023 should bring some sense of relief to homebuyers who have faced growing challenges. As Mike Fratantoni, Chief Economist at the Mortgage Bankers Association (MBA), says: “Rates are expected to move lower for the year, and home price growth is expected to cool, both of which will help affordability challenges.”   Bottom Line If you have questions, let’s connect. You’ll also want to make sure you have a trusted lender so you can explore your financing options. You may be closer to owning a home than you think.         Pre-Approval in 2023: What You Need To Know One of the first steps in your homebuying journey is getting pre-approved. To understand why it’s such an important step, you need to understand what pre-approval is and what it does for you. Business Insider explains: “In a preapproval [sic], the lender tells you which types of loans you may be eligible to take out, how much you may be approved to borrow, and what your rate could be.” Basically, pre-approval gives you critical information about the homebuying process that’ll help you understand your options and what you may be able to borrow. How does it work? As part of the pre-approval process, a lender will look at your finances to determine what they’d be willing to loan you. From there, your lender will give you a pre-approval letter to help you understand how much money you can borrow. That can make it easier when you set out to search for homes because you’ll know your overall numbers. And with higher mortgage rates impacting affordability for many buyers today, a solid understanding of your numbers is even more important. Pre-Approval Helps Show You’re a Serious Buyer Another added benefit is pre-approval can help a seller feel more confident in your offer because it shows you’re serious about buying their house. A recent article from Forbes notes: “From the seller’s perspective, a preapproval [sic] letter from a reputable local lender often can make the difference between accepting and rejecting an offer.” This goes to show, even though you may not face the intense bidding wars you saw if you tried to buy during the pandemic, pre-approval is still an important part of making a strong offer. In fact, Christy Bieber, Personal Finance Writer at The Motley Fool explains it may be the most important part of making an offer: “Pre-approval maximizes the chances you’ll be able to actually close the deal – and sellers want to see that. The fact that a pre-approval gives you a better chance of getting your offer accepted is undoubtedly the most important reason to complete this step . . .” Bottom Line Getting pre-approved is an important first step towards buying a home. It lets you know what you can borrow and shows sellers you’re serious about purchasing their home. Connect with a local real estate professional and a trusted lender so you have the tools you need to purchase a home in today’s market.       What Past Recessions Tell Us About the Housing Market It doesn’t matter if you’re someone who closely follows the economy or not, chances are you’ve heard whispers of an upcoming recession. Economic conditions are determined by a broad range of factors, so rather than explaining them each in depth, let’s lean on the experts and what history tells us to see what could lie ahead. As Greg McBride, Chief Financial Analyst at Bankrate, says: “Two-in-three economists are forecasting a recession in 2023 . . .” As talk about a potential recession grows, you may be wondering what a recession could mean for the housing market. Here’s a look at the historical data to show what happened in real estate during previous recessions to help prove why you shouldn’t be afraid of what a recession could mean for the housing market today. A Recession Doesn’t Mean Falling Home Prices To show that home prices don’t fall every time there’s a recession, it helps to turn to historical data. As the graph below illustrates, looking at recessions going all the way back to 1980, home prices appreciated in four of the last six of them. So historically, when the economy slows down, it doesn’t mean home values will always fall. Most people remember the housing crisis in 2008 (the larger of the two red bars in the graph above) and think another recession would be a repeat of what happened to housing then. But today’s housing market isn’t about to crash because the fundamentals of the market are different than they were in 2008. According to experts, home prices will vary by market and may go up or down depending on the local area. But the average of their 2023 forecasts shows prices will net neutral nationwide, not fall drastically like they did in 2008. A Recession Means Falling Mortgage Rates Research also helps paint the picture of how a recession could impact the cost of financing a home. As the graph below shows, historically, each time the economy slowed down, mortgage rates decreased. Fortune explains mortgage rates typically fall during an economic slowdown: “Over the past five recessions, mortgage rates have fallen an average of 1.8 percentage points from the peak seen during the recession to the trough. And in many cases, they continued to fall after the fact as it takes some time to turn things around even when the recession is technically over.” In 2023, market experts say mortgage rates will likely stabilize below the peak we saw last year. That’s because mortgage rates tend to respond to inflation. And early signs show inflation is starting to cool. If inflation continues to ease, rates may fall a bit more, but the days of 3% are likely behind us. The big takeaway is you don’t need to fear the word recession when it comes to housing. In fact, experts say a recession would be mild and housing would play a key role in a quick economic rebound. As the 2022 CEO Outlook from KPMG, says: “Global CEOs see a ‘mild and short’ recession, yet optimistic about global economy over 3-year horizon . . .  More than 8 out of 10 anticipate a recession over the next 12 months, with more than half expecting it to be mild and short.” Bottom Line  While history doesn’t always repeat itself, we can learn from the past. According to historical data, in most recessions, home values have appreciated and mortgage rates have declined. If you’re thinking about buying or selling a home this year, let’s connect so you have expert advice on what’s happening in the housing market and what that means for your homeownership goals.         Think Twice Before Waiting for 3% Mortgage Rates Last year, the Federal Reserve took action to try to bring down inflation. In response to those efforts, mortgage rates jumped up rapidly from the record lows we saw in 2021, peaking at just over 7% last October. Hopeful buyers experienced a hit to their purchasing power as a result, and some decided to press pause on their plans. Today, the rate of inflation is starting to drop. And as a result, mortgage rates have dipped below last year’s peak. Sam Khater, Chief Economist at Freddie Mac, shares: “While mortgage market activity has significantly shrunk over the last year, inflationary pressures are easing and should lead to lower mortgage rates in 2023.” That’s potentially great news if you’re a buyer aiming to jump back into the housing market. Any drop in mortgage rates helps boost your purchasing power by bringing down your expected monthly mortgage payment. This means the lower mortgage rates experts forecast this year could be just what you need to reignite your homebuying goals. While this opens up a window of opportunity for you, remember: you shouldn’t expect rates to drop back down to record lows like we saw in 2021. Experts agree that’s not the range buyers should bank on. Greg McBride, Chief Financial Analyst at Bankrate, explains: “I think we could be surprised at how much mortgage rates pull back this year. But we’re not going back to 3 percent anytime soon, because inflation is not going back to 2 percent anytime soon.” It’s important to have a realistic vision for what you can expect this year, and that’s where the advice of expert real estate advisors is critical. You may be surprised by the impact even a mild drop in mortgage rates has on your budget. If you’re ready to buy a home now, today’s market presents the opportunity to get a more affordable mortgage rate, find your dream home, and face less competition from other buyers. Bottom Line The recent pullback in mortgage rates is great news – but if you’re ready to buy now, holding out for 3% is a mistake. Work with a local lender to learn how today’s rates impact your goals, and let’s connect to explore your options in our area.

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