Owning a Home Helps Protect Against Inflation
You’re probably feeling the impact of high inflation every day as prices have gone up on groceries, gas, and more. If you’re a renter, you’re likely experiencing it a lot as your rent continues to rise. Between all of those elevated costs and uncertainty about a potential recession, you may be wondering if it still makes sense to buy a home today. The short answer is – it does. Here’s why. Homeownership actually shields you from the rising costs inflation brings. Freddie Mac explains how: “Not only will buying today help you begin to build equity, a fixed-rate mortgage can stabilize your monthly housing costs for the long-term even while other life expenses continue to rise – as has been the case the past few years.” Unlike rents, which tend to rise with time, a fixed-rate mortgage payment is predictable over the life of the mortgage (typically 15 to 30 years). And, when the cost of most everything else is rising, keeping your housing payment stable is especially important. The alternative to homeownership is renting – and rents tend to move alongside inflation. That means as inflation goes up, your monthly rent payments tend to go up, too (see graph below): A fixed-rate mortgage allows you to protect yourself from future rent hikes. With inflation still high, when your rental agreement comes up for renewal, your property manager may decide to increase your payments to offset the impact of inflation. Maybe that’s why, according to a recent survey, 73% of property managers plan to raise rents over the next two years. Having your largest monthly expense remain stable in a time of economic uncertainty is a major perk of homeownership. If you continue to rent, you don’t have that same benefit and aren’t as protected from rising costs. Bottom Line A stable housing payment is especially important in times of high inflation. Let’s connect so you can learn more and start your journey to homeownership today.
Buyer Activity Is Up Despite Higher Mortgage Rates
If you’re a homeowner thinking about making a move, you may wonder if it’s still a good time to sell your house. Here’s the good news. Even with higher mortgage rates, buyer traffic is actually picking up speed. Data from the latest ShowingTime Showing Index, which is a measure of buyers actively touring homes, helps paint the picture of how much buyer demand has increased in recent months (see graph below): As the graph shows, the first two months of 2023 saw a noticeable increase in buyer traffic. That’s likely because the limited number of homes for sale kept shoppers looking for homes even during colder months. To help tell the story of why the latest report is significant, let’s compare foot traffic this February with each February for the last six years (see graph below). It shows this was one of the best Februarys for buyer activity we’ve seen in recent memory. In the last six years, we saw the most February buyer traffic in 2021 and 2022 (shown in green above), but those years were highly unusual for the housing market. So, if we compare February 2023 with the more normal, pre-pandemic years, data shows this year still marks a clear rise in buyer activity. The uptick in buyer traffic is even more noteworthy considering the increase in mortgage rates this February. The Freddie Mac 30-year fixed mortgage rate rose from 6.09% during the week of February 2nd to 6.50% in the week of February 23rd. But even with higher rates, more buyers were looking for a home. Jeff Tucker, Senior Economist at Zillow, says the increased buyer activity could continue: “More buyers will keep coming out of the woodwork. We always see a seasonal uptick in home shoppers in March and April . . .” If you’re looking to sell your house, seeing buyers still active in the market this year should be encouraging. It’s a sign buyers are out there and could be looking for a home just like yours. Working with a real estate professional to list your house now will help you get your home in front of eager buyers today. Bottom Line Rising foot traffic is a bright spot for this year’s housing market and indicates that buyers are looking to purchase this year, even with higher mortgage rates. If you’re ready to sell your house, let’s connect.
The Best Little Town in Texas - Georgetown
Georgetown, Texas, located in Williamson County, is a vibrant and thriving city that has a lot to offer its residents. The city has a population of around 79,000 people and is known for its excellent schools, beautiful parks, historic downtown, and vibrant cultural scene. Here are some of the amazing amenities that make Georgetown a great place to live: Outdoor Activities Georgetown is home to several beautiful parks, including San Gabriel Park (https://parks.georgetown.org/san-gabriel-park/), which features a 200-acre natural parkland along the San Gabriel River, hiking and biking trails, picnic areas, and a playground. The Blue Hole Park (https://parks.georgetown.org/blue-hole/), with its clear blue water and limestone cliffs, is a popular spot for swimming, fishing, and picnicking. Other outdoor activities include golfing, kayaking, and fishing. Schools Georgetown has an excellent school system (https://www.georgetownisd.org/), with several highly rated public schools, including Georgetown High School, East View High School, and Georgetown Independent School District. The city also has several private schools, including Grace Academy (https://www.gracetx.org/) and St. Helen Catholic School (https://www.shcslions.org/). Historic Downtown Georgetown's downtown is a charming area filled with historic buildings, art galleries, antique shops, and boutique stores. The area is also home to the Georgetown Palace Theater, which features live performances throughout the year. Seasonal Festivities Georgetown is known for its seasonal festivities, including the Red Poppy Festival (http://poppy.georgetown.org/), which celebrates the city's official flower. The festival features live music, food vendors, and arts and crafts. During the holidays, the downtown area is lit up with festive lights, and the city hosts a Christmas Stroll, complete with carolers, hot chocolate, and holiday treats. Entertainment Georgetown Palace Theatre Georgetown has a vibrant cultural scene, with several art galleries, theaters, and music venues. The Georgetown Art Center hosts rotating exhibitions and workshops, and the Palace Theatre (https://www.georgetownpalace.com/) features live performances throughout the year. The city also has several annual music festivals, including the Two Step Inn Music Festival (https://austin.culturemap.com/news/entertainment/new-country-music-festival-georgetown-two-step-inn/). Restaurants Monument Cafe Georgetown has a diverse dining scene, with several excellent restaurants serving up everything from barbecue to Italian cuisine. Some of the most popular eateries include Monument Cafe (https://www.themonumentcafe.com/), 600 Degrees Pizzeria (https://600degreespizzeria.com/), and El Monumento (https://www.elmonumentogeorgetown.com/). Overall, Georgetown, Texas, is a fantastic place to live, with plenty of amenities to offer residents of all ages. Its beautiful parks, excellent schools, historic downtown, seasonal festivities, entertainment, and restaurants make it an attractive destination for people looking to relocate to the Austin area.
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