Here's this month's roundup of news and resources, just for you.
REACH YOUR GOALS
What Will the 2022 Housing Market Bring Us
With a new year right around the corner, what can we expect to see happen with the housing market? Rest assured, the market will likely be much more normal than it was this year. What else will come?
Buyer-friendly market
With inventory on the rise, buyers should have more options in 2022.
Prices will remain
With strong growth in the market, prices likely won't drop.
A more normal process
The process of purchasing a home will become more balanced. Worrying about multiple offers and outbidding won't be commonplace.
Mortgage rates will increase
While rates won't likely skyrocket, the incredibly low rates we are seeing will tick back up.
Suburbs will stay popular
With many people still working from home, craving a higher quality of life and good schools, the suburbs are attracting many, especially millennials. 1
MORTGAGE IQ
How Appraisal Gaps Work
You finally found a home you love, and the seller accepted your offer! But what happens when the home appraises at a lower value than your offer price?
This is called an appraisal gap, and you have a few options when faced with this situation. Paying the difference in cash between the appraised value and your offer is one option. Or you can try to renegotiate a lower price with the seller.
The worst-case scenario is to walk away from the deal, which is the exact reason to have an appraisal contingency clause. If you want the home but don't have the additional funds and the seller refuses to budge on price, you can request a review or a second appraisal with a new appraiser. The downside to this option? It delays the transaction process, and with the hot market, an impatient seller could move onto the next buyer. 2
FINANCIAL NEWS
Closing Out the 2021 Housing Market
As the end of 2021 is drawing near, here's what the housing market brought us this year:
Purchase applications remain steady
Not much has changed year-over-year with purchase application growth. And housing purchase applications are expected to be high up until mid-February 2022; then, we will start to go back to normal.
Existing home sales up from 2020
If existing home sales are doing well, they should fall between 5,840,000 and 6,200,000 (seasonally adjusted annualized monthly sales rate). Only one time this year did it hit below 5,840,000, showing that existing home sales are where they should be. Sales for 2021 have been higher than 2020.
Inventory remains low
For housing to have a Merry Christmas, inventory will need to grow substantially, as the past two years have given way to a lack of housing and price increases, bringing the Grinch out of some homebuyers and renters. 3
DID YOU KNOW?
Freshen Up the Dirtiest Places in Your Home
Life gets busy, and cleaning takes time. While doing laundry and washing dishes are necessary evils, here are the dirtiest places in your home that you should focus your attention on:
Coffee maker
The water reservoir in your coffeemaker is an incubator of germs that can literally make you sick. Remove the reservoir monthly and scrub with hot, soapy water. And don't forget to flush with vinegar every few months as well.
Stair railing
Think of how many times hands touch that railing daily. Wipe It down every month with a disinfecting cleaner, and when the family is sick or guests visit.
Remote control
Everyone touches it, often while snacking. Dab a cotton ball in some rubbing alcohol and wipe the remote clean.
Toothbrush
Another great home for bacteria, put your toothbrush through the dishwasher to keep it clean and replace it every three months.
Light switches
One of the dirtiest items in your home, light switches, shouldn't be missed when cleaning. Spray with a vinegar and water mixture and wipe the faceplate and switch clean. 4
PERSONAL FINANCES
Where to Put That Down Payment Until You Buy a Home
If your dreams of buying a home have been diminished with this year's housing boom, you may be wondering what you should do with your down payment until you find a home to call your own. Invest your money in accordance with your time frame, as this is more important than yield. If you want to move quickly, keep the money in a savings account if your dream home becomes available.
If you plan to wait a year to buy, consider investing a portion of your down payment in a money-market fund, bond, or another low-volatility investment strategy. Think in three-month increments. If you need funds in three months, keep 100% of the down payment in savings, six months, place 75% in savings and 25% in investments, and if waiting for nine, keep half in savings and put half in investments.
Just remember, when investing, the more aggressive the choices, the greater chance of losing a chunk of your saved down payment. Contact a Financial Advisor to help make the decision that best suits your goals. 5
FOOD
Delightfully Delicious French Toast Bake
Breakfast done right! This overnight French toast bake combines cinnamon, sugar, and fall comfort into one tasty breakfast dish. 6
REAL ESTATE TRENDS
Cozy Up Your Home with These Fall Renovations
Ready to bring a little warmth into your home? Or perhaps you are selling this fall season. No matter the reason, here are five renovations you should focus on to get the most bang for your buck:
Light flooring
Gone are the days of dark flooring. Lighter, blonder woods are all the rage right now.
New appliances
While matte appliances are trending currently, stainless steel is still the best choice for a long-term return.
Smart technology
Imagine a home that your voice can command. This is becoming increasingly attractive to buyers.
Neutral quartz countertops
While the demand for marble countertops will remain, quartz counters in warm neutrals are in high order.
Fun spaces
Try more colors and patterns and less neutral décor and furniture. Just try to keep fixed items in the home a little more predictable. 7
Have any questions? Reach out to us. We are your home loan experts and are up to date with all the market industry information. kevnik@kevnikmortgage.com
Positively Changing Your Home Finance Experience. 🏠
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Sources: 1 fortune.com; 2 realestate.usnews.com; 3 housingwire.com; 4 hgtv.com; 5 wsj.com; 6 tastesbetterfromscratch.com; 7 realtytimes.com
