Talking Real Estate with Hope Leitner

 

October 2022   This month's newsletter covers our ever-changing real estate market. The word "recession" is being thrown around a lot in the media these days - How will the affect Real Estate? The infographic offers some insight into this question.    The markets and inflation are starting to be felt across all market sectors, including Real Estate, but also construction. You may be contemplating a move that will allow you to pursue your passions and fulfill your lifestyle goals, explore how that would look below. You might have questions regarding the effects of our current economics, even if you're just curious, give me a call. I love hearing from everyone on this email list. I am here to support you whatever your real estate needs might be.     PONDER THIS - “I went to the woods because I wished to live deliberately, to front only the essential facts of life, and see if I could not learn what it had to teach, and not, when I came to die, discover that I had not lived.” Henry David Thoreau - We are all moving through life in our own good time. Some people jump on change to make it happen! Other people contemplate their options. Are you contemplating a change?   As always, I am here for you, your family, and friends.   Hope Leitner, CRS, CalDRE #01874321 Hope Opens Doors

HOMEBUYERS, HOMEOWNERS, HOME SELLERS, HOME IMPROVEMENT, LIFESTYLE   Is Now the Time to Remodel?   With today’s runaway inflation and rising interest rates, it may seem like a good idea to put your remodeling plans on hold. Or, maybe not.   According to the Leading Indicator of Remodeling Activity (LIRA) by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University,  remodeling expenditures are expected to cool down from 17.4 percent in 2022 to 10.1 percent by Q2-2023, citing steep slowdowns in homebuilding, retail sales of building materials, and renovation permits. While that may appear ominous, researchers say remodeling expenditures should reach $450 billion, well above the five percent historical average.   As existing and new home sales decelerate, so will the need for contractors and materials. BusinessInsider.com reports that lumber prices are already down to $604.50 per thousand board feet in July 2022, falling 47% year-to-date, and 65% off from the 2021 high of $1,733 per thousand board feet. Inventories are starting to pile up at both sawmills and home improvement stores, making contractors more affordable and available. As the cost to build declines, inflationary pressures on the housing market should subside. But as long as overall inflation is still a problem, the Federal Reserve will keep raising overnight borrowing rates to banks, increasing the likelihood of a recession. Economists polled by Bloomberg.com say that over the next 12 months, a mild, brief recession is 47.5% likely.   If you decide to remodel, it’s wise to stay in your home for at least five years to comfortably weather any housing market volatility.   MOVING, RELOCATION, HOMEBUYERS   Buying Lifestyle Real Estate   As you dream about how you’d like to live in your next home, you’re joining a growing cadre of homebuyers who value lifestyle over luxury and quality over quantity. The property you choose is paramount to having more comfort and convenience in your daily life.   For some, lifestyle is about displaying wealth, such as a big home in a pricey neighborhood. For others, it’s about location, like living on the beach or in a ski-in/ski-out mountain chalet. And for some, it’s about exclusivities, such as a guard-gated community or an over-55 master-planned development with golf, swimming, walking trails, and clubhouses.   Lifestyle is about having the time, space, and equipment to do the things you want to do. According to LuxuryActivist.com, time is the ultimate luxury. Your home should facilitate more time for family and friends, hobbies and interests, and healthy exercise. When you shop for a home, look carefully at how space is allocated for each room and activity. Is the kitchen arranged comfortably for family meal preparation? Is there space for you and your partner to each have a home office? Can you also have a weight room, an art studio, or a media room? Your lifestyle may also prioritize sustainability through solar-power and xeriscaped lawns.   Your lifestyle should be free from compromise, like suffering a long daily commute to fund a dream home. Once you’ve moved, take the time to enjoy your home, play with your children, and watch glorious sunset views from your balcony.