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SellersVideos July 20, 2023

Why Your House Isn’t Selling as Fast as You’d Like (Video)

If your house isn’t selling as fast as you’d like, there are a few things that could be a factor. Let’s connect to discuss what we can do to re-ignite buyer interest in your house.

Buyers July 20, 2023

Owning Your Home Helps You Build Wealth

You may have heard some people say it’s better to rent than buy a home right now. But, even today, there are lots of good reasons to become a homeowner. One of them is that owning a home is typically viewed as a good long-term investment that helps your net worth grow over time.

Homeownership Builds Wealth Regardless of Income Level

You may be surprised to learn homeowners across various income levels have a much higher net worth than renters who make the same amount. Data from First American helps illustrate this point (see graph below):

What makes wealth so much higher for homeowners? A recent article from Realtor.com says:

“Homeownership has long been tied to building wealth—and for good reason. Instead of throwing rent money out the window each month, owning a home allows you to build home equity. And over time, equity can turn your mortgage debt into a sizeable asset.”

Basically, the wealth you accumulate when you own a home has a lot to do with equity. As a homeowner, equity is built up as you pay down your loan and as home prices appreciate over time. Mark Fleming, Chief Economist at First American, explains how this same benefit isn’t true for renters in a recent podcast:

“Renters as non-homeowners gain no wealth benefit as home prices rise. That wealth actually accrues to the landlord.”

Before you decide to sign another rental agreement, now is a good time to think about whether it would be better for you to buy a home instead. The best way to figure out what makes sense for you is to have a conversation with a real estate expert you trust. That professional can talk you through the benefits that come with owning to determine if that’s the right next step for you.

Bottom Line

If you’re not sure whether to keep renting or to buy a home, know that owning a home, no matter how much money you make, can help build your wealth. Let’s connect now to get started on the path to homeownership.

SellersVideos July 19, 2023

Key Factors in Selling a Home (Video)

Buyers July 19, 2023

Explaining Today’s Mortgage Rates

If you’re following mortgage rates because you know they impact your borrowing costs, you may be wondering what the future holds for them. Unfortunately, there’s no easy way to answer that question because mortgage rates are notoriously hard to forecast.

But, there’s one thing that’s historically a good indicator of what’ll happen with rates, and that’s the relationship between the 30-Year Mortgage Rate and the 10-Year Treasury Yield. Here’s a graph showing those two metrics since Freddie Mac started keeping mortgage rate records in 1972:

As the graph shows, historically, the average spread between the two over the last 50 years was 1.72 percentage points (also commonly referred to as 172 basis points). If you look at the trend line you can see when the Treasury Yield trends up, mortgage rates will usually respond. And, when the Yield drops, mortgage rates tend to follow. While they typically move in sync like this, the gap between the two has remained about 1.72 percentage points for quite some time. But, what’s crucial to notice is that spread is widening far beyond the norm lately (see graph below):

If you’re asking yourself: what’s pushing the spread beyond its typical average? It’s primarily because of uncertainty in the financial markets. Factors such as inflation, other economic drivers, and the policy and decisions from the Federal Reserve (The Fed) are all influencing mortgage rates and a widening spread.

Why Does This Matter for You?

This may feel overly technical and granular, but here’s why homebuyers like you should understand the spread. It means, based on the normal historical gap between the two, there’s room for mortgage rates to improve today.

And, experts think that’s what lies ahead as long as inflation continues to cool. As Odeta Kushi, Deputy Chief Economist at First American, explains:

It’s reasonable to assume that the spread and, therefore, mortgage rates will retreat in the second half of the year if the Fed takes its foot off the monetary tightening pedal . . . However, it’s unlikely that the spread will return to its historical average of 170 basis points, as some risks are here to stay.”

Similarly, an article from Forbes says:

Though housing market watchers expect mortgage rates to remain elevated amid ongoing economic uncertainty and the Federal Reserve’s rate-hiking war on inflation, they believe rates peaked last fall and will decline—to some degree—later this year, barring any unforeseen surprises.”

Bottom Line

If you’re either a first-time home buyer or a current homeowner thinking of moving into a home that better fits your current needs, keep on top of what’s happening with mortgage rates and what experts think will happen in the coming months.

Michigan July 18, 2023

Choosing an RV for the “Light” Reasons

 

More and more people are choosing to purchase RVs, hit the road, go camping, and go camping. Michigan has always has been an attractive destination for RVers for decades.

As potential RV owners look to purchasing their own RVs, lightweight and ultra-lightweight RV models continue to be of high interest. “Since 2020 we have seen this segment blow up. They are not ‘intimidating’ to tow, and it has allowed a lot of first-time buyers to come into the market. The main segment we see is retired couples and single travelers. We do sell some families in this segment, but it’s very rare to see that,” explains Matt Veurink, Veurink’s RV, Grand Rapids.

These RVs range from 1,000 pounds to around 6,000 pounds, dry weight, which has a lot to do with the chosen materials. “Lightweight generally refers to laminated-built trailers,” says Veurink. “What this means is that instead of a traditional wood frame and aluminum exterior, the manufacturers will build the trailers with aluminum framing and fiberglass siding. They finish the process by laminating the walls to create a superior bond and strength. On average, the same size camper can be around 10% lighter. The manufacturer also uses lighter materials in the walls to keep the weight down but not cause issues to the integrity of the wall. This is a more expensive construction, but many consider a much superior build.” Michael Fegan, Woodland Airstream, Grand Rapids, adds: “Lightweight means that you do not need a full-size pickup truck to be able to tow.  With Airstreams, we would say anything under 5,000 GVWR, or fully loaded with all your gear, would be called lightweight.”

Sound interesting? Let’s go through some of the reasons why a lightweight RV might be a good option to consider.

Towability.

Many lightweight RVs and ultralightweight RVs can be towed by a wider range of vehicles. “If you have a SUV or mini-van you are limited on what you can tow. But a family can fit into this vehicles, so the RV manufacturers build trailers light enough for a family to comfortably travel and camp!” says Veurink. It’s also a “safer towing experience for newbies” says Fegan.

Check the towing capacity of any existing vehicle that you intend to use for towing to see if it matches the RV you would like to purchase. Better yet, start with this information and trim down your search by your tow vehicle’s tow rating, which can be found in your owner’s manual. “Everyone has an opinion on what you can and should tow,” says Veurink. “My recommendation is to leave 800-1000 pounds between what you can tow and what the RV weighs unloaded.” Using an existing vehicle is helpful in that you don’t need to think about purchasing a new vehicle to accommodate an RV’s weight. Don’t simply take an RV’s “dry” weight (meaning, unloaded) as your starting point. Your tow vehicle needs to be able to tow the RV fully loaded with all your gear and any possible liquids.

Price Point.

Compared to a lot of RV types, a lightweight or ultralightweight towable RV is more cost effective to purchase, new or used. It’s a great way to get started with RV camping and traveling with an RV in tow if you’ve never done so before. A lightweight or ultralightweight travel trailer on the upscale side can run $20,000-$40,000, but you can definitely find models that are much lower than that. “You can get into a small light weight camper in the low to mid-teens price point,” explains Veurink. “NuCamp [which is sold at Veurink’s RV dealership] start as low as $20,000 and can range over $60,000.” At Airstream, their lightweight model is called Basecamp. “Used Basecamps can be anywhere from $30-50K depending on year and size. New Basecamps are between $50-60K depending on size and options,” says Fegan.

Portability.

Not only are lightweight RVs and ultralightweight RVs easy to tow, they are easier to travel with and maneuver. Larger, longer, and heavier RVs sometimes are restricted from certain campgrounds, national parks, or roadways. Smaller, lighter RV trailers often have enhanced aerodynamic designs, making them easier to trail and easier on your gas mileage. This is a nice bonus if the environment is on your mind, as a lightweight or ultralightweight RV requires less energy to move and utilize.

Materials win.

Many manufacturers are increasingly making lightweight and ultralightweight RVs with sustainable, lighter materials, so they are better for the environment while remaining as durable as heavier RVs. But they don’t skimp on insulation, which is very important for RV life.

No compromises.

Just because an RV is lighter doesn’t mean it has less than its heavier counterparts. What has Matt Veurink seen lately? “Depends on the price point. But I have seen a lot of our lighter weight RVs come more loaded. Just because they’re smaller doesn’t mean they can’t have great features. But you should expect all the amenities of a bigger camper: stove, refrigerator, A/C, heat, bathrooms and much more! The camper can be quite sizable and spacious inside, yet super light.” Other features can include dedicated sleeping areas, living spaces, good insulation, and storage. As with any RV type, look for the appropriate combination of layout and amenities that match your travel needs.

Lightweight RVs certainly offer a lot of perks. But are there circumstances when a lightweight RV might not be the best choice? “The downfall will be size, as they say in the boating industry, you always want the next size up! If you can tow larger and heavier, go for it! You may find that you don’t need to trade in for the larger model down the road,” explains Veurink. However, lightweight RVs are a great fit for many. “It really comes down to what the potential buyer wants to accomplish.” Dealerships know their RVs and manufacturers inside and out, so take advantage of their knowledge as you take steps toward this investment.

Lightweight RV Options

NuCamp (Veurink’s RV): “When it comes to teardrops or lightweight campers, there is no one better. From the start of production to the final end user, this company goes above and beyond. They only source the best materials in their RVs. They are always working on something new behind the scenes that will make their company grow but also improve quality. They are a relationship-type company and take what their dealers say very seriously. I highly recommend the brand to other dealers and of course, our customers.”

Basecamp (Woodland Airstream): Basecamp is for a customer that loves being active and is sick of tent camping… likes to bring gear like bikes, kayaks, fishing gear, etc.  Basecamp is Airstream’s #1 selling travel trailer across the board.”

For Original Article CLICK HERE

Michigan July 18, 2023

Michigan’s Shipwreck History: A Glass Bottom Tour Adventure

Featured image from Shipwreck Tours, Munising, Michigan

Driving time: 3 hours, 38 minutes

Mileage: 217 miles

The Great Lakes are not only stunningly beautiful but also hold a treasure trove of history beneath their waters. Poor weather conditions have turned these lakes into treacherous waters, claiming numerous vessels of all sizes over the years. Some of these shipwrecks are nationally famous, like the tragic story of the Edmund Fitzgerald, while others remain hidden, waiting to be discovered by adventurous souls. If you’re a history enthusiast and love uncovering hidden treasures, then embarking on a glass bottom shipwreck tour in Michigan is an experience you won’t want to miss. There are three main destinations in Michigan that offer these captivating excursions, and each one is worth exploring.

Stop #1: Alpena

Your journey begins in Alpena, the ultimate destination for underwater exploration and shipwreck diving in Michigan. Nestled on the shores of Lake Huron, this charming town is home to a national marine sanctuary, complete with glass bottom boat tours. The “Lady Michigan” will take you on a captivating journey through Lake Huron’s “Shipwreck Alley,” offering glimpses of two to five shipwrecks. However, this area is a sanctuary, concealing an estimated 200 shipwrecks, many of which remain undiscovered. The ones that have been located are often used for research, diving expeditions, and underwater technology testing. During the summer months, tours depart three times daily at 9:00 a.m., Noon, and 3:00 p.m. Tickets for adults are $39, $14 for ages 6-12, and kids under five can join the 2.5-hour cruise for just $1. An informative guide will narrate the tour, providing historical insights into the wrecks and the local area. Before or after your glass bottom boat tour, make sure to visit the free-entry Great Lakes Maritime Heritage Center. Stroll through historic Alpena, treat yourself to an ice-cream cone at Scoops, explore downtown shops, and perhaps enjoy a pint or two at Austin Brothers.

Stop #2: Cheboygan

Continue your adventure by heading north on U.S. 23, following the picturesque Lake Huron coastline. This scenic drive offers numerous beaches and roadside parks for leisurely stops and lunches. Your next destination is Cheboygan, where Nautical North Family Adventures has been providing shipwreck enthusiasts with an up-close look at Lake Huron’s wrecks since 2018. Their vessel, the “Yankee Sunshine,” takes you along the Cheboygan River, passing three lighthouses and skimming over three shallow water shipwrecks. If you’re feeling adventurous, you can even add snorkeling to your tour, with gear provided. Adult tickets are $29, children aged 6-12 are $14, and those under five years old can join for $5. Discounts are available for seniors and military personnel. After the tour, consider exploring the town for some delicious food and shopping. Don’t miss the fantastic farmer’s market on Wednesdays and Saturdays from 8 a.m. to 1 p.m. if you’re in town on those days.

Stop #3: Munising

To reach your final destination, leave Cheboygan and drive 20 minutes north to the majestic Mackinac Bridge, spanning five miles across Michigan’s two vast peninsulas. Crossing this iconic bridge is an experience in itself. Once you reach the Upper Peninsula side, it’s just a short drive to Munising. This town is renowned for its breathtaking waterfalls and serves as the gateway to Pictured Rocks National Lakeshore. Munising is also home to the only glass bottom shipwreck tour on Lake Superior, operated by Shipwreck Tours. These tours run seven days a week until September 30, rain or shine, with five tours daily during July and August. The website proudly describes the tours as “fully narrated, educational, and entertaining.” During the two-hour tour, you’ll explore two historical shipwrecks—the Bermuda (sank in 1870) and Herman H. Hettler (sank in 1926). Along the way, you’ll cruise by the Grand Island’s East Channel Lighthouse, colorful rock cliffs, caves, beaches, and pristine wilderness. Tickets for adults are $38, seniors over 62 are $34, children are $14, and those under five can join for just $1. Weekends tend to be busier, so if possible, plan your visit during the week. It’s advisable to bring a jacket or sweatshirt, as it can be much cooler on the water than expected. Conveniently, all three glass bottom shipwreck tour companies offer online booking, allowing you to secure your tickets well in advance. With multiple tours departing daily, you’ll have a better chance of securing a spot on your preferred day of exploration. Don’t miss this extraordinary opportunity to delve into Michigan’s fascinating shipwreck history and witness the hidden wonders beneath the Great Lakes.

Sellers July 18, 2023

Homebuyers Are Getting Used to the New Normal

Before you decide to sell your house, it’s important to know what you can expect in the current housing market. One positive trend right now is homebuyers are adapting to today’s mortgage rates and getting used to them as the new normal.

To better understand what’s been happening with mortgage rates lately, the graph below shows the trend for the 30-year fixed mortgage rate from Freddie Mac since last October. As you can see, rates have been between 6% and 7% pretty consistently for the past nine months:

According to Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), mortgage rates play a significant role in buyer demand and, by extension, home sales. Yun highlights the positive impact of stable rates:

“Mortgage rates heavily influence the direction of home sales. Relatively steady rates have led to several consecutive months of consistent home sales.”

As a seller, hearing that home sales are consistent right now is good news. It means buyers are out there and actively purchasing homes. Here’s a bit more context on how mortgage rates have impacted demand recently.

When mortgage rates surged dramatically last year, escalating from roughly 3% to 7%, many potential buyers felt a bit of sticker shock and decided to hold off on their plans to purchase a home. However, as time has passed, that initial shock has worn off. Buyers have grown more accustomed to current mortgage rates and have accepted that the record-low rates of the last few years are behind us. As Doug Duncan, SVP and Chief Economist at Fannie Mae, says:

“. . . consumers are adapting to the idea that higher mortgage rates will likely stick around for the foreseeable future.”

In fact, a recent survey by Freddie Mac reveals 18% of respondents say they’re likely to buy a home in the next six months. That means nearly one out of every five people surveyed plan to buy in the near future. And that goes to show buyers are planning to be active in the months ahead.

Of course, mortgage rates aren’t the sole factor affecting buyer demand. No matter where mortgage rates stand, people will always have reasons to move, whether it’s for job relocation, changing households, or any other personal motivation. As a seller, you can feel confident there is a market for your house today. And that demand is pretty strong as buyers settle into where rates are right now.

Bottom Line

The way buyers perceive today’s mortgage rates is shifting – they’re getting used to the new normal. Steady rates are contributing to strong buyer demand and consistent home sales. Let’s connect so we can get your house on the market and in front of those buyers.

BuyersSellers July 17, 2023

Home Prices Are Rebounding

If you’re following the news today, you may feel a bit unsure about what’s happening with home prices and fear whether or not the worst is yet to come. That’s because today’s headlines are painting an unnecessarily negative picture. If we take a year-over-year view, home prices did drop some, but that’s because we’re comparing to a ‘unicorn’ year when prices peaked well beyond the norm.

To avoid an unfair comparison to that previous peak, we need to look at monthly data. And that tells a very different and much more positive story. While local home price trends still vary by market, here’s what the national data tells us.

The graphs below use recent monthly reports from three sources to show the worst home price declines are already behind us, and prices are appreciating nationally.

Looking at this monthly view, we can see the past year in the housing market can be divided into two parts. In the first half of 2022, home prices were going up, and fast. However, starting in July, prices began to go down (shown in red in the graphs above). By around August or September, the trend started to stabilize. But, looking at the most recent data for early 2023, these graphs also show that prices are going up again.

The fact that all three reports show prices have been going up for three or more straight months is an encouraging sign for the housing market. The month-over-month data indicates a national shift is happening – home prices are rising again.

Craig J. Lazzara, Managing Director at S&P Dow Jones Indices, says this about home price trends:

“If I were trying to make a case that the decline in home prices that began in June 2022 had definitively ended in January 2023, April’s data would bolster my argument.”

Experts believe one of the reasons prices didn’t crash like some expected is because there aren’t enough available homes for the number of people who want to buy them. Even with today’s mortgage rates, there are more people looking to buy than there are homes available for sale.

Mark Fleming, Chief Economist at First American, explains how more demand than supply keeps upward pressure on prices:

“History has shown that higher rates may take the steam out of rising prices, but it doesn’t cause them to collapse entirely. This is especially true in today’s housing market, where the demand for homes continues to outpace supply, keeping the pressure on house prices.”

Doug Duncan, Senior VP and Chief Economist at Fannie Mae, states home price growth is exceeding expectations thanks to that high demand:

“. . . housing prices continue to show stronger growth than what was previously expected . . . Housing’s performance is a testimony to the strength of demographic-related demand . . .”

Here’s How This Affects You

  • Buyers: If you’ve been holding off on buying because you were worried the value of your home would go down, knowing home prices have bounced back should bring you some relief. It also gives you the opportunity to own something that usually becomes more valuable as time goes on.
  • Sellers: If you’ve been waiting to sell your house because you were concerned about how changing home prices would affect its value, it might be a good idea to team up with a real estate agent to list your house. You don’t have to wait any longer because the latest data suggests things are turning in your favor.

Bottom Line

If you delayed your moving plans because you were concerned about home prices dropping, the latest data reveals the worst is already over, and prices are appreciating nationally. Let’s get in touch so you know what’s happening with home prices in our area.

InfographicsSellers July 14, 2023

Low Housing Inventory Is a Sweet Spot for Sellers

Some Highlights

  • Today’s housing inventory is still well below more normal years.
  • This low inventory is why homes that are priced right are still selling quickly and seeing multiple offers.
  • If you want to sell your house, now is a great time because inventory is still low. Let’s connect to start the process.
Videos July 13, 2023

Expert Insights for the Rest of the Year in Housing (Vidceo)

Here’s what experts have to say about what lies ahead for inventory, mortgage rates, and home prices. Let’s connect so you know what to expect in the housing market for the rest of the year.