Archive for July 2022

Think Home Prices Are Going To Fall? Think Again

Think Home Prices Are Going To Fall? Think Again

Think Home Prices Are Going To Fall? Think Again | MyKCM

Over the last two years, the rate of home prices appreciated at a dramatic pace. While that led to incredible equity gains for homeowners, it’s also caused some buyers to wonder if home prices will fall. It’s important to know the housing market isn’t a bubble about to burst, and home price growth is supported by strong market fundamentals.

To understand why price declines are unlikely, it’s important to explore what caused home prices to rise so much recently, and where experts say home prices are headed. Here’s what you need to know.

Home Prices Rose Significantly in Recent Years

The graph below uses the latest data from CoreLogic to illustrate the rise in home prices over the past year and a half. The gray bars represent the dramatic increase in the rate of home price appreciation in 2021. The blue bars show home prices are still rising in 2022, but not as quickly:

Think Home Prices Are Going To Fall? Think Again | MyKCM

You might be asking: why did home prices climb so much last year? It’s because there were more buyers than there were homes for sale. That imbalance put upward pressure on home prices because demand was extremely high, and supply was record low.

Where Experts Say Prices Will Go from Here

While housing inventory is increasing and buyer demand is softening today, there’s still a shortage of homes available for sale. That’s why the market is seeing ongoing price appreciation. Mark Fleming, Chief Economist at First Americanexplains it like this:

“. . .we’re still well below normal levels of inventory and that’s why even with the pullback in demand, we still see house prices appreciating. While there is more inventory, it’s still not enough.”

As a result, experts are projecting a more moderate rate of home price appreciation this year, which means home prices will continue rising, but at a slower pace. That doesn’t mean prices are going to fall. As Selma Hepp, Deputy Chief Economist at CoreLogicsays:

“The current home price growth rate is unsustainable, and higher mortgage rates coupled with more inventory will lead to slower home price growth but unlikely declines in home prices.”

In other words, even with higher mortgage rates, moderating buyer demand, and more homes for sale, experts say home price appreciation will slow, but prices won’t decline.

If you’re planning to buy a home, that means you shouldn’t wait for home prices to drop to make your purchase. Instead, buying today means you can get ahead of future price increases, and benefit from the rise in prices in the form of home equity.

Bottom Line

Home prices skyrocketed in recent years because there was more demand than supply. As the market shifts, experts aren’t forecasting a drop in prices, just a slowdown in the rate of price growth. To understand what’s happening with home prices in our area, let’s connect today.


Moving Checklist

Moving Checklist


Many moving checklists found on-line have a 6 to 8 week timeline.  However, in the situation of selling your current home, that timeline needs to start weeks before the home goes on the market.If you have a garage, putting packed boxes neatly stacked is “forgivable” or get storage unit.  This means you will already have bought packing boxes or plastic storage containers (use again). Prior to professional photos being taken of the home, declutter needs to start with….

  • Pack collectables that could be valuable and/or might be sitting out that could be broken.
  • Pack seasonal (winter) clothes, coats, shoes, purses not being used.
    Suggest: hanging boxes with shoes in the bottom of the box.
  • Pack Christmas dishes and decorations.
  • Pack valuables like jewelry, family heirlooms, important documents
  • Pack family photos sitting on shelves or tables

All this makes the closets and cabinets more spacious looking.  The more valuable items will probably be transported separately which might be easier in plastic storage containers labeled appropriately.

While going through closets, cabinets, drawers and files, the following should NOT be packed to move. Instead, select a kitchen drawer or closet shelf to collect the following information to stay with the house:

  • Architectural house plans or floor plans.
  • If you bought a new home from a builder, all the information brochures about the features and community.
  • Renovation information like permits, construction information & invoices except financial which would be needed for tax purposes.
  • Photos of renovation work….especially of underground pipes or electric lines.
  • Extra renovation materials such as tile, flooring, plumbing supplies…..but not old paint.
  • Appliance manuals and any warranties
  • Documents including title policy, old survey and elevation certificate, termite treatment info
  • Service providers like yard, roof, exterminator, plumber, electrician


Tips for a smooth move:

Organization needs to start first either on-line or in a binder or file of some kind.

  • 6 weeks before your move

    Get written estimates for movers….that carry liability insurance, automobile insurance, etc. +
    need to have state license. Estimate based on in-person inspection of household goods.
    Also need to know if company is a moving broker who sells your move to a moving company.
    Check current homeowners or rental insurance policies for moving coverage.
    Get written estimates for truck rentals.
    Ask friends for their help and get on their schedules.
    Start notifying magazine subscriptions of change of address…..not first class mail yet.
    Schedule last minute medical appointments and get medical records or forward on-line.

  • 5 weeks before

    Start using up refrigerated and freezer food.
    Host a garage sale or donate items to charity (keep track of donations for tax purposes).

  • 4 weeks before

    Start packing non-essential items.
    Dispose of paints or hazardous materials.
    Use up cleaning supplies because many commercial movers will not move these items.

  • 3 weeks before

    Schedule mail forwarding……only first class mail.
    Many lists suggest scheduling utilities about now BUT be aware that utility companies are Not good about the date and sometimes turn off water or electric early.  Suggest doing this the week of the move.  If moving in the same city, on in both locations.                                                                                                                                                                                                                    Update your mailing address with banks and service providers.  Schedule cleaning crew for day of move or next day.


  • 2 weeks before

    Secure parking spot for moving truck especially with condo & homeowners assoc or gated
    Schedule moving with condo management office for elevator availability.
    Clean out safety deposit box.
    Get car or truck tune-up if traveling.
    Schedule handymen for last minute touch-up at old house.
    Schedule handymen or painters for any jobs needed at new house before move in.
    Refill RX prescriptions.
    Request time off work….if needed.

  • 1 week before

    Finish last minute errands.
    Pack kitchenware and essentials. Use disposable plates & plastic ware.

  • 1 day before

    Pack suitcases and personal essentials. (Keep handy for first days in new home.)
    Give neighbors a heads up about your move and where you’ll park the truck.
    Get cash to tip movers.

  • The day of the move (and hopefully not the closing on the same day)

    Stay hydrated.
    Do a final sweep of your old home. Check DW & clothes dryer.
    Hand over your old keys & security codes…….NOT until after closing and funding.

  • In the days/weeks after your move

Paint, renovate and/or clean your new home before unpacking.

Change the locks AFTER renovations for security.

Should I Buy a Home Right Now?

Should I Buy a Home Right Now?

Should I Buy a Home Right Now? | MyKCM

If you’ve been thinking about buying a home, you likely have one question on the top of your mind: should I buy right now, or should I wait? While no one can answer that question for you, here’s some information that could help you make your decision.

The Future of Home Price Appreciation

Each quarter, Pulsenomics surveys a national panel of over 100 economists, real estate experts, and investment and market strategists to compile projections for the future of home price appreciation. The output is the Home Price Expectation Survey. In the latest release, it forecasts home prices will continue appreciating over the next five years (see graph below):

Should I Buy a Home Right Now? | MyKCM

As the graph shows, the rate of appreciation will moderate over the next few years as the market shifts away from the unsustainable pace it saw during the pandemic. After this year, experts project home price appreciation will continue, but at levels that are more typical for the market. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:

“People should not anticipate another double-digit price appreciation. Those days are over. . . .We may return to more normal price appreciation of 4%, 5% a year.”

For you, that ongoing appreciation should give you peace of mind your investment in homeownership is worthwhile because you’re buying an asset that’s projected to grow in value in the years ahead.

What Does That Mean for You?

To give you an idea of how this could impact your net worth, here’s how a typical home could grow in value over the next few years using the expert price appreciation projections from the Pulsenomics survey mentioned above (see graph below):

Should I Buy a Home Right Now? | MyKCM

As the graph conveys, even at a more typical pace of appreciation, you still stand to make significant equity gains as your home grows in value. That’s what’s at stake if you delay your plans.

Bottom Line

If you’re ready to become a homeowner, know that buying today can set you up for long-term success as your asset’s value (and your own net worth) is projected to grow with the ongoing home price appreciation. Let’s connect to begin your homebuying process today.


What Does an Economic Slowdown Mean for the Housing Market?

What Does an Economic Slowdown Mean for the Housing Market?

What Does an Economic Slowdown Mean for the Housing Market? | MyKCM

According to a recent survey, more and more Americans are concerned about a possible recession. Those concerns were validated when the Federal Reserve met and confirmed they were strongly committed to bringing down inflation. And, in order to do so, they’d use their tools and influence to slow down the economy.

All of this brings up many fears and questions around how it might affect our lives, our jobs, and business overall. And one concern many Americans have is: how will this affect the housing market? We know how economic slowdowns have impacted home prices in the past, but how could this next slowdown affect real estate and the cost of financing a home?

According to Mortgage Specialists:

Throughout history, during a recessionary period, interest rates go up at the beginning of the recession. But in order to come out of a recession, interest rates are lowered to stimulate the economy moving forward.”

Here’s the data to back that up. If you look back at each recession going all the way to the early 1980s, here’s what happened to mortgage rates during those times (see chart below):

What Does an Economic Slowdown Mean for the Housing Market? | MyKCM

As the chart shows, historically, each time the economy slowed down, mortgage rates decreased. helps explain the trend like this:

“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.”

And while history doesn’t always repeat itself, we can learn from it. While an economic slowdown needs to happen to help taper inflation, it hasn’t always been a bad thing for the housing market. Typically, it has meant that the cost to finance a home has gone down, and that’s a good thing.

Bottom Line

Concerns of a recession are rising. As the economy slows down, history tells us this would likely mean lower mortgage rates for those looking to refinance or buy a home. While no one knows exactly what the future holds, you can make the right decision for you by working with a trusted real estate professional to get expert advice on what’s happening in the housing market and what that means for your homeownership goals.