Real Estate Blog - The Gresham Group

How The Housing Market Is Really Doing

The Gresham Group — Wed, 10 May 2023 15:55:21 +0000

The housing market has been a hot topic of discussion in recent years and for good reason. The market has been experiencing a surge in demand, which has led to skyrocketing prices, bidding wars, and a shortage of available homes. This has left many prospective homebuyers frustrated and feeling as though they are being priced out of the market.

A lot of people have the mindset that home prices will go down, and if they wait, they will be able to get a better price for a home. We see in market trends that the home values in KC are strong. They will continue to appreciate, and so will the cost of new construction. If you have the desire to own a home or upgrade, now is the best time to do it! – Amanda Davis, The Gresham Group Agent

On one hand, this is good news for homeowners who are looking to sell their properties. The high demand has created a seller’s market, meaning that sellers have more negotiating power and can potentially make more money off of their homes than they would have in a buyer’s market.

However, the current state of the housing market is far from perfect, and it has been causing a lot of issues for both buyers and renters alike. Many are calling it a crisis, and they’re not wrong.

The market is unique. It is extremely neighborhood driven, especially in Cass County, MO and Johnson County, KS. There are pockets of Johnson County that have slower appreciation and are not prone to bidding wars. On the other hand, pockets like Prairie Village and parts of Lenexa or Shawnee, and even parts of Olathe, are very desirable and are indeed still a bit ridiculous. That’s the rub, buyers and sellers need professional representation from a licensed agent to assist navigating these areas. Our expertise and experience will guide through the rigamarole and get you the best price on your purchase, or the best terms and price for your listing. – Andrew Vidler, The Gresham Group Agent

The high demand has created a shortage of available homes. This has led to bidding wars, where buyers are offering tens of thousands of dollars over the asking price just to secure a home. For many, this is simply not an option, and they are forced to continue renting or delay their home-buying plans indefinitely.

The rising prices are making it difficult for many first-time buyers to enter the market. The cost of a down payment, closing costs, and other associated fees can be prohibitively expensive, especially for those who are just starting out in their careers. This is contributing to a growing wealth gap, as those who are already wealthy or have access to generational wealth are able to purchase homes, while those who do not are left behind.

The housing crisis is contributing to a rental crisis, as many people who are unable to purchase homes are turning to rent instead. This is driving up rental prices, which are already high in many cities across the country. Many renters are struggling to make ends meet, and some are even being forced to choose between paying rent and buying food or paying for medical expenses.

The current state of the housing market is polarizing. On one hand, it’s great for homeowners who are looking to sell. On the other hand, it’s causing a lot of problems for buyers and renters alike. The lack of affordable housing is a serious issue that needs to be addressed, and it’s something that policymakers and industry professionals should be focusing on. Until then, the crisis will only continue to grow, and more and more people will be left behind.

Despite what you may be hearing, it is still a good time to buy and/or sell! The benefits to selling are that we are still in a seller’s market which gives you, the homeowner additional negotiation power to sell at or above market value in some instances. However, another big piece to the puzzle that a seller should carefully consider is that selling in a “sellers market” could also afford them the opportunity to sell with favorable terms such as choosing their closing date, having repairs waived or even lease back options as well. As a buyer, you still have a lot of options too! If you get connected with a knowledgeable agent who is familiar with the market and can connect you with a great lender, lots of doors can open when you work together as a TEAM to present a strong offer to the sellers when that perfect house does come along! – Heather Thurston, The Gresham Group Agent

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Home Improvements That Will Lead to Biggest ROI

The Gresham Group — Mon, 20 Mar 2023 15:50:43 +0000

With homeowners sitting on their largest financial investment, it’s crucial to think about a few things when it comes time to selling or updating your home. Home improvement projects not only give your space a refresh, but also increase the value of your home.

At The Gresham Group, we encourage our clients with a few improvement projects to prioritize for their biggest return.

Here are five home improvements with the highest return on investments:

Kitchen Remodel

The kitchen is the heart of the home, and a well-designed, functional kitchen can make a big difference in the value of your property. Minor kitchen remodels, such as updating countertops, cabinets, and appliances can provide a huge return on investment. While this is a costly update, the return will be worth it when it comes time to sell your house.

Bathroom Remodel

A bathroom remodel is another great way to add value to your home. Upgrading the fixtures, replacing the flooring, and adding new lighting can give your bathroom a fresh, modern look. A mid-range bathroom remodel can provide a return on investment of up to 67%. This is another expensive improvement but can have a huge return on investment.

Energy-Efficient Upgrades

Energy-efficient upgrades, such as installing new windows, upgrading insulation, and replacing old appliances with energy-efficient models, can save you money on your utility bills and increase the value of your home. These upgrades can are not as noticeable as the previous improvements but still create great value for your home.

Landscaping

Curb appeal is essential when it comes to selling your home, and landscaping is one of the easiest and most affordable ways to enhance your property’s curb appeal. Great-looking landscaping can add significant value to your home, as well as make it look more welcoming to guests.

Paint and Décor

A fresh coat of paint, new light fixtures, and updated decor can give your home a modern, updated look without breaking the bank. This upgrade is not going to add a ton of financial value to your home but can add a sense of welcome and comfort.

Keep in mind, focusing on upcoming home improvement projects might also correlate with your home’s age and condition.Whether you are looking for a complete remodel or something easy and cheap, there are always ways to improve the value of your home.

Check out more statistical information from Realtor.com if you’re considering a major home remodel or improvement project.

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Should I Sell My House This Year?

The Gresham Group — Fri, 09 Sep 2022 12:00:11 +0000

There’s no denying the housing market is undergoing a shift this season as buyer demand slows and the number of homes for sale grows. But that shift actually gives you some unique benefits when you sell. Here’s a look at the key opportunities you have if you list your house this fall.

Opportunity #1: You Have More Options for Your Move

One of the biggest stories today is the growing supply of homes for sale. Housing inventory has been increasing since the start of the year, primarily because higher mortgage rates helped cool off the peak frenzy of buyer demand. But what you may not realize is, that actually could benefit you.

If you’re selling your house to make a move, it means you’ll have more options for your own home search. That gives you an even better chance to find a home that checks all of your boxes. So, if you’ve put off selling because you were worried about being able to find somewhere to go, know your options have improved.

Opportunity #2: The Number of Homes on the Market Is Still Low

Just remember, while data shows the number of homes for sale has increased this year, housing supply is still firmly in sellers’ market territory. To be in a balanced market where there are enough homes available to meet the pace of buyer demand, there would need to be a six months’ supply of homes. According to the latest report from the National Association of Realtors (NAR), in July, there was only a 3.3 months’ supply.

While you’ll have more options for your own home search, inventory is still low, and that means your home will still be in demand if you price it right. That’s why the most recent data from NAR also shows the average home sold in July still saw multiple offers and sold in as little as 14 days.

Opportunity #3: Your Equity Has Grown by Record Amounts

The home price appreciation the market saw over the past few years has likely given your equity (and your net worth) a considerable boost. Danielle Hale, Chief Economist at realtor.com, explains:

“Home owners trying to decide if now is the time to list their home for sale are still in a good position in many markets across the country as a decade of rising home prices gives them a substantial equity cushion . . .”

If you’ve been holding off on selling because you’re worried about how rising prices will impact your next home search, rest assured your equity can help. It may be just what you need to cover a large portion (if not all) of the down payment on your next home.

Bottom Line

If you’re thinking about selling your house this season, let’s connect so you have the expert insights you need to make the best possible move today.

For local market tips, expert advice, and to begin the buying or selling process, get in touch with our team.

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Disclaimer: The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. The Gresham Group with ReeceNichols Real Estate and Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. The Gresham Group and Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.

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How Owning a Home Builds Your Net Worth

The Gresham Group — Wed, 07 Sep 2022 12:00:32 +0000

Owning a home is a major financial milestone and an achievement to take pride in. One major reason: the equity you build as a homeowner significantly improves your net worth. With high inflation, the link between owning your home and building your wealth is crucially important.

If you’re looking to increase your financial security, here’s why now is the time to start your journey toward homeownership.

Owning a Home Is a Key Ingredient for Financial Success

A report from the National Association of Realtors (NAR) details several homeownership trends, including a significant gap in net worth between homeowners and renters. It finds:

“. . . the net worth of a homeowner was about $300,000 while that of a renter’s was $8,000 in 2021.”

To put that into perspective, the average homeowner’s net worth is roughly 40 times that of a renter’s. This difference shows owning a home is a key step in achieving financial success.

Equity Gains Can Substantially Boost a Homeowner’s Net Worth

The net worth gap between owners and renters exists in large part because homeowners build equity. When you own a home, your equity grows as your home appreciates in value and you make monthly mortgage payments. As a renter, you don’t have that same opportunity. A recent article from CNET explains:

“Homeownership is still considered one of the most reliable ways to build wealth. When you make monthly mortgage payments, you’re building equity in your home . . . When you rent, you aren’t investing in your financial future the same way you are when you’re paying off a mortgage.”

Additionally, your home equity grows even more as your home appreciates in value over time. That has a major impact on the wealth you build, as a recent article from Bankrate notes:

“Building home equity can help you increase your wealth over time, . . . A home is one of the only assets that have the potential to appreciate in value as you pay it down.”

Meaning, your mortgage payment acts as a contribution to a savings account that increases in value as your home does. When you sell, any equity you’ve built up comes back to you. As a renter, you’ll never see a return on the money you pay out in rent every month.

[Green Graph] A recent Home Price Expectation Survey of over one hundred economists, real estate experts, and investment and market strategists, estimates a cumulative appreciation over the next five years.

[Blue Map] According to the latest Homeowner Equity Insights from CoreLogic, the average homeowner’s equity has grown by $64,000 over the last 12 months. If you want to know what’s happening in your area, the map breaks down the average year-over-year equity growth for each state using the data from CoreLogic.

[Orange Graph] According to the latest data from realtor.com and the National Association of Realtors (NAR), it may actually be more affordable to buy than rent, even as home prices rise.

Bottom Line

Owning a home is an important part of building your net worth. If you’re ready to start on your journey to homeownership, let’s connect today. No matter where you’re at in your homeownership journey, the best way to make sure you’re set up for success is to work with a real estate professional.

For local market tips, expert advice, and to begin the buying or selling process, get in touch with our team.

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What Sellers Need to Know in Today’s Housing Market

The Gresham Group — Wed, 31 Aug 2022 00:00:11 +0000

If you’re thinking about selling your house, you may have heard about the housing market slowing down in recent months. While it’s still a sellers’ market, the peak frenzy the market saw over the past two years has cooled some. If you’re asking yourself if you’ve missed your chance to sell your house and make a move, the good news is you haven’t – motivated buyers are still out there. But you do need to price your house right for today’s market. Here’s why.

As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:

“Homes priced right are selling very quickly, but homes priced too high are deterring prospective buyers.”

It’s true buyer demand has slowed over the past few months as higher mortgage rates made it more expensive to buy a home. The result is fewer bidding wars and less competition among buyers (see visual below):

But don’t forget – that’s compared to the severely overheated market we saw over the past two years. According to the latest Confidence Index from NAR:

“. . . 39% of homes sold above list price, down from 51% a month ago and 50% a year ago.”

While this is a slower pace than even one month ago, serious buyers are still actively in the market, and they’re buying homes that are priced right. In fact, the Confidence Index also notes the average home is selling in just 14 days.

If you’re aiming to sell your house, be sure you’re working with your agent to price it for today’s housing market. As buyer demand softens, it’s important to understand this isn’t the same market as last year. It’s not even the same market as just a few months ago. But it is still a sellers’ market.

If you’re ready to sell your house, seek the advice of a real estate professional. In some cases, you’ll need to adjust your expectations accordingly to meet the market where it is today. Selma Hepp, Interim Lead, Deputy Chief Economist at CoreLogic, explains what’s happening and what it means when you sell:

“Signs of a broader slowdown in the housing market are evident, . . . This is in line with our previous expectations and given the notable cooling of buyer demand due to higher mortgage rates. . . . Nevertheless, buyers still remain interested, which is keeping the market competitive — particularly for attractive homes that are properly priced.”

Bottom Line

While the housing market has cooled from its overheated frenzy, it’s still a sellers’ market. Let’s connect so you understand what’s happening with buyer demand and home prices in our local area as you get ready to enter the market.

For local market tips and expert advice, get in touch with our team.

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Why a Home Inspection Is Important

The Gresham Group — Mon, 29 Aug 2022 16:01:21 +0000

What an Inspection Does

Home inspections assess the condition of a home.

What Home Inspectors Look for

While it varies by state, here are some things inspectors generally look for in existing homes:

HVAC and heating system problems
Plumbing or electrical issues
Structural concerns (like the foundation)
Exterior rot or decay
Roof condition (shingle or flashing problems)

Why It Matters

According to NAR, roughly 30% of Buyers are waiving their inspections. Why is it not worth the risk? Getting an inspection ensures you know what condition the home is in to avoid costly surprises down the road.

Some Highlights

If you’re buying a home, here’s what you should know about your home inspection and why it’s so important.
A home inspection is a crucial step in the homebuying process. It assesses the condition of the home you plan to purchase so you can avoid costly surprises down the road.
Let’s connect so you have an expert on your side to guide you through the process.

For additional homebuying tips and expert advice, get in touch with our team.

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Disclaimer: The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. The Gresham Group with ReeceNichols Real Estate and Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.

The post Why a Home Inspection Is Important first appeared on The Gresham Group.

Will Home Prices Drop? Housing Market Predictions in 2022

The Gresham Group — Sun, 28 Aug 2022 00:00:30 +0000

One of the biggest questions people are asking right now is: what’s happening with home prices? As the market continues to shift, many are wondering if they should wait for prices to drop, or make their next move now. Despite headlines about ongoing price appreciation, some sellers are actually reducing the price of their homes. That can feel confusing, leaving homeowners and first time buyers wondering what their current options are.

Do not lose faith. Navigating any market is possible with accurate information. Let’s begin by breaking down the differences among these frequently used terms to help clarify what’s actually happening today.

Appreciation is when home prices increase.
Depreciation is when home prices decrease.
Deceleration is when home prices continue to appreciate, but at a slower or more moderate pace.

Experts agree that, nationally, what we’re seeing today is deceleration. That means home prices are appreciating, just not at the record-breaking pace they have over the past year. In 2021, data from CoreLogic tells us house prices appreciated by an average of 15% nationwide. And earlier this year, that appreciation was upward of 20%. This year, housing experts forecast prices will appreciate at a decelerated pace of around 10 to 11%, on average.

The graph above uses the latest data from CoreLogic to help tell the story of how house prices are decelerating, but not depreciating so far this year. As the pink bars show, home prices appreciated between 19-20% year-over-year from January to March. But over the last few months, the pace of that appreciation has decelerated to 18%. This means price growth is still climbing compared to last year but at a slower rate.

As the Monthly Mortgage Monitor from Black Knight explains:

“Annual home price growth dropped by nearly two percentage points . . . – the greatest single-month slowdown on record since at least the early 1970s. . . While June’s slowdown was record-breaking, home price growth would need to decelerate at this pace for six more months to drive annual appreciation back to 5%, a rate more in line with long-run averages.”

Basically, while moderating, home prices are still far above the “norm”, and we’d have to see a lot more deceleration to even fall in line with more typical rates of house price growth. Note: We are still not encountering home price depreciation.

The big takeaway is home prices haven’t fallen or depreciated nationwide, they’re just decelerating or moderating. While some unique and overheated markets may see declines, nationally, home prices are forecast to appreciate. And when we look at the country as a whole, none of the experts project home prices will net depreciate or fall. They’re all projecting ongoing appreciation.

Bottom Line

No matter where you’re at in your homeownership journey, the best way to make sure you’re set up for success is to work with a real estate professional. If you have questions about what’s happening with house prices in our local area, send us a message and we will be in touch shortly!

For local market tips and expert advice, get in touch with our team.

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3 Tips for Buying a Home Today

The Gresham Group — Mon, 22 Aug 2022 12:00:18 +0000

If you put off your home search at any point over the past two years, you may want to consider picking it back up based on today’s housing market conditions. Recent data shows the supply of homes for sale is increasing, giving buyers like you additional options.

But it’s important to keep in mind that while inventory is improving, it’s still a sellers’ market. And that means you need to be prepared as you set out on your home search. Here are three tips for buying the home of your dreams today.

1. Understand How Mortgage Rates Impact Your Homebuying Power

Mortgage rates have increased significantly this year, and over the past few weeks, they’ve been fluctuating quite a bit. It’s important to stay up to date on what’s happening with rates and understand how they can impact your purchasing power when you’re thinking of buying a home. The charts below can help.

Swipe through the Buyer’s Purchasing Power charts and see how even a small change in mortgage rates can have a big impact on your monthly payments. If rates rise, you could exceed your budget unless you pursue a lower home loan amount. If rates fall, your purchasing power may increase, which could give you additional options for your search.

2. Be Open to Exploring Different Options During Your Search

The supply of homes for sale is improving, which gives you more homes to choose from. But historically, supply is still low. That means as you search for homes, if you still don’t find something that meets your needs, it may be worth expanding your search.

A recent article from the Washington Post highlights a few things buyers can consider today. It encourages opening yourself up to more areas. For example, if there’s a location you’ve previously ruled out (like a particular town, for example) it may be worth taking another look.

And if you’re able to, opening your search up to include other housing types, like newly built homes, condominiums, or townhomes can further increase your pool of options. Even as the inventory of homes for sale improves today, finding ways to cast a wider net during your search could help you find a hidden gem.

3. Work with a Local Real Estate Professional for Expert Guidance

Ultimately, you need to be prepared when you set out to buy a home. Jeff Ostrowski, Senior Mortgage Reporter for Bankrate, explains:

“Taking the leap to homeownership can provide a feeling of pride while boosting your long-term financial outlook, if you go in well-prepared and with your eyes open.”

No matter where you’re at in your homeownership journey, the best way to make sure you’re set up for success is to work with a real estate professional. If you’re just starting your search, a real estate professional can help you understand your local market and search for available homes. And when it’s time to make an offer, they’ll be an expert advisor and negotiator to help yours stand out above the rest.

Bottom Line

Strategically planning your home search by understanding today’s mortgage rates, casting a wide net, and building a team of experts can be the keys to finding the home of your dreams. To make sure you have expert advice each step of the way, let’s connect.

For additional homebuying tips and expert advice, get in touch with our team.

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Our Network: The Gresham Group Newsletter

The Gresham Group — Fri, 17 Jun 2022 14:30:48 +0000

Welcome to The Gresham Group Newsletter!

As your Kansas City Real Estate Experts, it is our pleasure to present you with current market news, local events in KC, tips for Homeowners, seasonal inspiration, access to exclusive listings and more!

Brighter Days Are Ahead When You Move Up This Summer

Warmer weather and longer days mean summer is almost here. Celebrate by upgrading to the home of your dreams so you can enjoy all the season has to offer.

Your house will be a bright spot for buyers who crave options and could sell quickly for top-dollar.

When you list your house, you can capitalize on today’s sellers’ market to fuel your upgrade. Then, you can move to a home with the features you want, like space to entertain or rooms for work and play.

Ready to upgrade to a home that matches your changing needs? Check current market values for your home and view profiles of potential buyers here: Find my home’s value!

Kansas City Events Summer '22

Don’t miss out on the best of KC’s summer of fun, with endless entertainment, including: concerts, comedy shows, festivals, sports events, local KC BBQ, and much, much more! Due to the pandemic, public events have been cancelled these past couple years. Now, Kansas City is proud to present a full schedule of events this summer for the first time since 2019!

Preferred Partners

The Gresham Group highly recommends Ace Elite Pros for any construction, waste management, and cleaning service needs. For a quote on services, call: (816) 679-7010.

“It’s that time of year! Let’s get some spring cleaning done! Or maybe you have yard projects in need of mulch, rock, or sand? Check out this company today!! Great prices and they are quick to respond!” –Kelley Gatlin

Market Update

The market is HOT and homes are selling FAST. Homeowners, do not hesitate to reach out if you want to capitalize on this Sellers’ market while it lasts! Buyers, we are finding more opportunities to purchase an available home on the market, due to an increase in interest rates. Let us help you purchase the perfect home, without overpaying. Contact us today to learn more about your options!

Giving Back

Giving back to our communities is a top priority for The Gresham Group Agents. Here are a few causes near and dear to our hearts:

Click “Learn More” to find how you can get involved!

Gold Key Project

We donate $100 from every home sale to RMHC, covering one night’s stay for a family in need. Through our contributions to RMHC and the families it helps, we strengthen the relationship between real estate agents, home buyers and home sellers.

Participating Agents: Kelley Gatlin, Heather Thurston, Mauricio Leon, Afton Kateusz and Michelle Reeves.

Learn More

Summit Future Foundation

The 4th Annual Capture the Future charity gala is taking place on Friday, June 24, 2022 at The Gallery Event Space. Capture The Future Annual Gala is fun experience to see how Summit Future Foundation is leading the way in supporting youth and young adults. Purchase tickets or select a sponsorship to join the fun! You’ll enjoy an evening of live and silent auctions, an unforgettable program featuring the accomplishments of our amazing individuals, and a live band!

Participating Agent: Clint Robinson (Co-Founder)

Learn More

Belton Educational Foundation

Join us for Wine, Brews & MORE tastings on Belton Main Street, benefitting the Belton Educational Foundation. June 18, 2022, we have plans for at least 20 wineries, breweries, and distilleries to bring samples for you to taste while you listen to music, socialize, and shop Historic Downtown Belton Main Street businesses!

Participating Agents: Heather Thurston & Leah Beck

Learn More

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