99% of Experts Agree: Home Prices Will Increase

Some believe that the combined effects of the new tax code and rising mortgage rates will have an adverse impact on residential real estate prices in 2018. However, the clear majority of recently surveyedhousing experts believe that home values will continue to rise this year.

What is the Home Price Expectation Survey?

Each quarter, Pulsenomics surveys a nationwide panel of economists, real estate experts and investment & market strategists. Those surveyed include experts such as:

  • Daniel Bachman, Senior Manager, U.S. Economics at Deloitte Services, LP
  • Kathy Bostjancic, Head of U.S. Macro Investors Service at Oxford Economics
  • David Downs, Real Estate Finance Professor at VCU
  • Edward Pinto, Resident Fellow at American Enterprise Institute
  • Albert Saiz, Director at MIT Center for Real Estate

Where do these experts see home values headed in 2018?

Here is a breakdown of where they see home values twelve months from now:

  • 21.6% believe prices will appreciate by 6% or more
  • 71.6% believe prices will appreciate between 3 and 5.99%
  • 5.7% believe prices will appreciate between 0 and 2.99%
  • Only 1.1% believe prices will depreciate

Bottom Line

Almost ninety-nine percent of the top experts studying residential real estate believe that prices will appreciate this year, and over 93% believe home values will appreciate by at least 3%.

 

Posted by The KCM Crew

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The Cost of Waiting: Interest Rates Edition [INFOGRAPHIC]

Some Highlights:

  • Interest rates are projected to increase steadily heading into 2019.
  • The higher your interest rate, the more money you end up paying for your home and the higher your monthly payment will be.
  • Rates are still low right now. Don’t wait until rates hit 5% to start searching for your dream home!

 

Posted by The KCM Crew

Are you ready to buy? Visit our website to meet our agents and start searching for homes!

How to Set a Home Renovation Budget

Before you start picking out tile and paint chips, be sure you know how much it will cost to remodel your house.

Ready for a kitchen renovation? Anxious for a bathroom remodel? The easy part is knowing your goal for home remodeling — whether you’re trying to keep up with your growing family, add office space, or increase your home’s value.

But figuring out how to plan a home renovation that doesn’t break the bank can be tricky.

Here are five key steps in planning your home remodeling project.

1. Estimate home renovation costs

As a general rule of thumb, you should spend no more on each room than the value of that room as a percentage of your overall house value. (Get an approximate value of your home to start with.)

For example, a kitchen generally accounts for 10 to 15 percent of the property value, so spend no more than this on kitchen renovation costs. If your home is worth $200,000, for example, you’ll want to spend $30,000 or less.

A kitchen remodel should cost no more than 10 to 15 percent of your home’s value. Photo from Offset.

Something else to keep in mind: Contrary to popular belief, kitchen renovations offer among the lowest return on investment, according to analysis from Zillow Talk: The New Rules of Real Estate. Every dollar you spend on a kitchen remodel increases the value of your home by 50 cents.

The highest return on investment? A mid-range bathroom remodel.

2. Consider home remodeling loan options

If you plan on borrowing money to fund your home renovations, there are a number of loans out there to help with just that.

  • Refinancing. Depending on your current interest rate, you might be able to refinance your mortgage at a lower rate and/or for a longer loan term, which could lower your monthly payments and help you save up for your renovations.
  • Cash-out refinance. If you have enough equity, you could also consider a cash-out refinance, which means refinancing your existing loan for an amount that’s higher than what you owe. Going this route, you pay off your original mortgage and have cash left over. Use a refinance calculator to see if refinancing makes sense for you.
  • HELOC. If refinancing sounds like too big of a leap, a home equity line of credit (HELOC) might work better. A HELOC works a lot like a credit card in the sense that it has a set limit that you can borrow against.
  • Home equity loan. Although it sounds similar to a HELOC, a home equity loan is a bit different. This loan requires you to take out all the cash at one time. They’re often referred to as “second mortgages” because homeowners get them in addition to their first mortgage.

Refinancing, getting a HELOC or taking out a home equity loan are all big decisions, and it can be tough to know which one makes the most sense for you. As with any new loan, consult with a lender to see which option is best for your situation.

3. Get home renovation quotes from contractors

Some contractors will give you an estimate based on what they think you want done, and work completed under these circumstances is almost guaranteed to cost more. You have to be very specific about what you want done, and spell it out in the contract — right down to the materials you’d like used.

Make sure that contractors’ estimates include the full scope of your project. Photo from Shutterstock.

Get quotes from several contractors, tossing out the bid from the one who gives you the lowest estimate. Going with this choice could be asking for problems, as low-priced contractors are known to cut corners — at your expense.

4. Stick to the home remodeling plan

As the renovation moves along, you might be tempted to add on another “small” project or incorporate the newest design trend at the last minute. But know that every time you change your mind, there’s a change order, and even minor changes can be costly. Strive to stick to the original agreement, if possible.

Even minor changes to your remodeling project’s scope can add significant costs. Photo from Offset.

5. Account for hidden home renovation costs

Your home may look perfect on the outside, but there could be issues lurking beneath the surface. In fact, hidden imperfections are one of the reasons renovation projects end up costing more than you anticipated.

Rather than scramble to come up with extra money after the fact, give yourself a cushion upfront. Factor in 10 to 20 percent (or more) of your contracted budget for unforeseen expenses, as they can — and do — occur. In fact, it’s rare that any project goes completely smoothly.

 

Posted by Vera Gibbons on Zillow

 

4 Reasons Spring is a Great Time to Buy a Home!

Here are four great reasons to consider buying a home today instead of waiting.

Prices Will Continue to Rise

CoreLogic’s latest Home Price Index reports that home prices have appreciated by 6.6% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 4.3% over the next year.

The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense.

Mortgage Interest Rates Are Projected to Increase

Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage hovered close to 4.0% in 2017. Most experts predict that rates will rise over the next 12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of Realtors are in unison, projecting that rates will increase by nearly a full percentage point by this time next year.

An increase in rates will impact YOUR monthly mortgage payment. A year from now, your housing expense will increase if a mortgage is necessary to buy your next home.

Either Way, You Are Paying a Mortgage

There are some renters who have not yet purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that unless you are living with your parents rent-free, you are paying a mortgage – either yours or your landlord’s.

As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to have equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity.

Are you ready to put your housing cost to work for you?

It’s Time to Move on with Your Life

The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise.

But what if they weren’t? Would you wait?

Look at the actual reason you are buying and decide if it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer, or you just want to have control over renovations, maybe now is the time to buy.

If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.

 

Posted by The KCM Crew

Are you ready to buy? Click HERE to start searching for your next home!

Don’t Be Afraid of the Dark: 6 Beautiful Ways to Add the Color Black in Your Home

KatarzynaBialasiewicz/iStock

It’s time to switch over to the dark side—at least in your home decor.

Yep, that’s right. When it comes to today’s hot trends in interior design, black is the new black. From bold accent walls to chic black-and-white living spaces to onyx kitchen cabinets, designers are increasingly turning to the darkest shade on the spectrum to create a dramatic statement.

Sure, using black can be a little intimidating. But just like a little black dress, it goes with everything.

“Black is a great choice for interiors because it never goes out of style, it goes with every other color, and it conveys a feeling of luxury,” says Val Malnar, principal designer at Orangetree Interiors.

Plus, black works seamlessly with most styles, no matter if your home is Hollywood glamour, Mid-Century Modern, or even industrial (farmhouse chic, anyone?).

Ready to go dark? We asked some top designers to show us the way.

1. On your cabinets

So your kitchen or bathroom needs a style upgrade, but you don’t want to spend a boatload of cash on a major renovation. What’s a homeowner to do?

Paint the cabinets black, says Cynthia Spence, an interior designer in San Francisco.

“It can be very grounding and the hardware can shine against it—be it brass, polished nickel, or even satin nickel,” she says. “It becomes a very different architectural element, and it’s also gender-neutral.”

2. On an accent wall

If you’re feeling brave, a black accent wall can hit all the right notes, says TC Chou, founding partner at Design Determination in New York City. In your bedroom, living room, or dining space, a brush of black can offer a classic look without feeling overwhelming.

“It gives the sense of a cozy, warm space, and is a great backdrop for artwork and statement furniture pieces to pop,” Chou says. “And it’s a less common wall color, so it gives the room a sense of uniqueness.”

3. In a hallway

Photo by No Chintz

If using black in a high-traffic area such as the living room or kitchen is a little too bold for your tastes, consider it in a hallway instead. You can go all-in and slather everything in black or pair it with other dark tones.

In a recent home project with a long vestibule, Spence painted all the doors a semigloss black (with brushed-nickel knobs), and kept the walls and trims a platinum gray.

“The result was quietly impactful and made space more of a destination rather than an eyesore,” Spence says.

In the past, Spence also painted a hallway ceiling black for extra flair.

“It literally made the ceiling disappear, and the light fixture and wall covering became the focal points,” she says.

4. On the ceiling

Speaking of a dramatic ceiling, don’t limit it to the hallway.

“A black ceiling can help emphasize architectural features in the room such as moldings,” Chou says.

It can also make kitchen fixtures pop and help define an area in an open floor plan, he notes. Plus, if you think about it, black is known in fashion for its ability to cover up any flaws—and the same goes for the home.

“For rooms like basements, it’s a great way to hide exposed ductwork or ceiling tile,” Chou says.

5. With chalkboard paint

Always need to remind yourself to buy more sugar or milk? A space in your kitchen covered with black chalkboard paint that you can write on is just what you need, says Kelley Lauginiger, a lifestyle blogger and home décor expert in Ohio.

“This is also a great option for kids’ rooms or a den/office where you keep lists or notes,” she says.

6. In your accessories

Not ready to devote an entire wall (or ceiling) to the color? You can still make a statement with select black pieces throughout your home.

“Black plates and cutlery add chicness to a dinner party, black-framed mirrors bring elegant drama into a room, and even something as simple as black candleholders can be an eye-catching item on a table,” says New Jersey–based interior and furniture designer Neffi Walker.

And remember: You can’t go wrong when you pair black with it’s BFF, white.

“By mixing in a graphic black and white pillow or a striped black-and-white rug, you get the impact of the black, while the white adds a softness, making it easier to digest,” says Austin-based designer Chloe Smith. “This takes the edge off of blending black into your home.”

 

Posted by Jane Chertoff on realtor.com