Today’s Real Estate Market Explained

As we move into the second half of the year, one thing is clear: the current real estate market is one for the record books. The exact mix of conditions we have today creates opportunities for both buyers and sellers. Here’s a look at four key components that are shaping this unprecedented market.

A Shortage of Homes for Sale

Earlier this year, the number of homes available for sale fell to an all-time low. In recent months, however, inventory levels are starting to trend up. The latest Monthly Housing Market Trends Report from realtor.com says:

“In June, newly listed homes grew by 5.5% on a year-over-year basis, and by 10.9% on a month-over-month basis. Typically, fewer newly listed homes appear on the market in the month of June compared to May. This year, growth in new listings is continuing later into the summer season, a welcome sign for a tight housing market.”

This is good news for buyers who crave more options. But even though we’re experiencing small gains in the number of available homes for sale, inventory remains a challenge in most states. That’s why it’s still a sellers’ market, giving homeowners immense leverage when they decide to make a move.

Buyer Competition and Bidding Wars

Today’s ongoing low supply, coupled with high demand, creates a market characterized by high buyer competition and bidding wars. Buyers are going above and beyond to make sure their offer stands out from the crowd by offering over the asking price, all cash, or waiving some contingencies. The number of offers on the average house for sale broke records this year – and that’s great news for sellers.

Today’s Real Estate Market Explained Through 4 Key Trends | MyKCM

The latest Confidence Index from the National Association of Realtors (NAR) says the average home for sale receives five offers (see graph below):For buyers, the best way to put a compelling offer together is by working with a local real estate professional. That agent can act as your trusted advisor on what terms are best for you and what’s most appealing to the seller.

Home Price Appreciation

The competition among buyers is driving prices up. Over the past year, we’ve seen home price appreciation rise across the country. According to the most recent Home Price Index (HPI) from CoreLogic, national home prices increased 15.4% year-over-year in May:

“The May 2021 HPI gain was up from the May 2020 gain of 4.2% and was the highest year-over-year gain since November 2005. Low mortgage rates and low for-sale inventory drove the increase in home prices.”

Rising home values are a big part of why real estate remains one of the top sought-after investments for Americans. For potential sellers, it also means it’s a great time to list your house to maximize the return on your investment.

A Rise in Home Values and Equity

The equity in a home doesn’t just grow when a homeowner pays their mortgage – it also grows as the home’s value appreciates. Thanks to the jump in price appreciation, homeowners across the country are seeing record-breaking gains in home equity. CoreLogic recently reported:

“…homeowners with mortgages (which account for roughly 62% of all properties) have seen their equity increase by 19.6% year over year, representing a collective equity gain of over $1.9 trillion, and an average gain of $33,400 per borrower, since the first quarter of 2020.”

That’s a major perk for households to leverage. Homeowners can use that equity to accomplish major life goals or move into their dream homes.

Bottom Line

If you’re thinking about buying or selling, there’s no time like the present. Let’s connect to talk about how you can take advantage of the conditions we’re seeing today to meet your homeownership goals 🙂

7 Tips for Saying Goodbye to Sentimental Belongings

When I moved to Door County, back in 2007, I had to leave a whole life behind. All that I treasured wasn’t going to fit in my two allowed international luggage. I had no choice but to only keep what truly mattered. I chose my favorite clothing items, and pictures. I packed my bags, and bye bye. No, it wasn’t easy, but the move taught me something very important: what truly matters is not physical, and I survived leaving a whole life of material goods behind.

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When Your Heart Is Born

When my daughter was born, I knew right away: nothing would ever be the same.

Love like I had never known overflowed inside me, and with all that love, vulnerability. And with vulnerability, fear. Motherhood is a work of balance, constantly. Sometimes I look at my girl, and love takes over me, overpowers me, and at the height of that feeling, I also feel a weird understanding that I have given away all control. I have no control over my daughter’s choices, over her moving around and falling, over her heart and her heartbreaks. When you become a Mother, your give birth to your heart. Your heart, beautiful and vulnerable. Your heart, full of love and potential. Your heart, brave and scared, all at the same time. And we have to let go. We have to allow our children to be. We have to allow them to fall and get hurt. We have to allow them to have pain and suffering. And that… is hard. It is hard to look outside of you and watch your heart, out there, living, and being vulnerable to Life.

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Home Is Where Love Resides

“Home is where love resides, memories are created, friends always belong, and laughter never ends”. Unknown

This past weekend I was home, mostly resting, after my second vaccine. Being home is healing, my family took care of me, and I felt the love.

It is easy to take home for granted, isn’t it? We get home from work, or school, often tired. We are crabby, overwhelmed. Sometimes I come home and the first thought that crosses my mind is: “oh my, I have so much cleaning to do, look at this mess, oh, the dishes, the laundry”, and so on. Yeah, life will always get a little dirty.

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That New Office Feeling

Do or do not. There is no try.” — Yoda, The Empire Strikes Back

It was a snowy winter day, and I was hard at work sewing. Than it happened: the thought that started it all. All of the sudden, and I mean that, I decided that I was changing careers. I decided that real estate was it. I knew it, right then, at a moment’s notice, that my life was about to change.

Let me take you back to twenty years ago, 2001, when I started Law School. It was my institution of choice, my career of choice, and I was determined. But as fate would have it, on my fourth year of Law (it is a five year program in Brazil), I decided to switch directions for a little while, and enrolled in a work and travel exchange program. I lived for one year in beautiful Door County, Wisconsin, USA, where I made friends, fell in love with the Great Lakes, and with a handsome local. Truth is, if you know Door County, and I hope you do, then you know that you can’t help but to fall in love with the Peninsula. The way it feels, the way you breath when you are here. Rumor has it that when you are on or above the 45th parallel… magic happens.

My change of direction for a little while, became a life change – a move across the world. I did go back to Brazil to see family and friends, and to complete my law degree. Soon after I started researching and planning my move, and six months after graduating I started studying Economics at the University of Wisconsin – Green Bay. I did not finish the course, and after my first semester, I moved to Door County, and never looked back.

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