Realty Executives Midwest
Trying to decide between renting or buying a home? One key factor that could help you choose is just how much homeownership can grow your net worth.
Every three years, the Federal Reserve Board shares a report called the Survey of Consumer Finances (SCF). It shows how much wealth homeowners and renters have – and the difference is significant.
On average, a homeowner’s net worth is nearly 40 times higher than a renter’s. Check out the graph below to see the difference for yourself:
Why Homeowner Wealth Is So HighIn the previous version of that report, the average homeowner’s net worth was about $255,000, while the average renter’s was just $6,300. That’s still a big gap. But in the most recent update, the spread got even bigger as homeowner wealth grew even more (see graph below):
As the SCF report says:
“. . . the 2019-2022 growth in median net worth was the largest three-year increase over the history of the modern SCF, more than double the next-largest one on record.”
One big reason why homeowner wealth shot up is home equity.
Equity is the difference between your home’s value and what you owe on your mortgage. You gain equity by paying down your mortgage and when your home’s value goes up.
Over the past few years, home prices have gone up a lot. That’s because there weren’t enough available homes for all the people who wanted one. This supply-demand imbalance pushed home prices up – and that translated into faster equity gains and even more net worth for homeowners.
If you’re still torn between whether to rent or buy, here’s what you should know. While inventory has grown this year, in most places, there’s still not enough to go around. That’s why expert forecasts show prices are expected to go up again next year nationally. It’ll just be at a more moderate pace.
While that’s not the sky-high appreciation we saw during the pandemic, it still means potential equity gains for you if you buy now. As Ksenia Potapov, Economist at First American, explains:
“Despite the risk of volatility in the housing market, homeownership remains an important driver of wealth accumulation and the largest source of total wealth among most households.”
But prices and inventory are going to vary by area. So, lean on a local real estate agent. They’ll be able to give you the local trends and speak to the other financial and lifestyle benefits that come with owning a home. That crucial information will help you decide the best move for you right now. As Bankrate explains:
“Deciding between renting and buying a home isn’t just about cost — the decision also involves long-term financial strategies and personal circumstances. If you’re on the fence about which is right for you, it may be helpful to speak with a local real estate agent who knows your market well. An experienced agent can help you weigh your options and make a more informed decision.”
If you’re not sure if you should rent or buy, keep in mind that if you can make the numbers work, owning a home can really grow your wealth over time.
And if homeownership feels out of reach, connect with a local real estate agent and lender. They can help you explore programs that may make buying possible.
Source: Keeping Current Matters
Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com
Looking to buy a home but feeling like almost everything is out of reach? Here’s the thing. There’s still a way to become a homeowner, even when affordability seems like a huge roadblock – and it might be with a fixer upper. Let’s dive into why buying a fixer upper could be your ticket to homeownership and how you can make it work.
A fixer upper is a home that’s in livable condition but needs some work. The amount of work varies by home – some may need cosmetic updates like wallpaper removal and new flooring, while others might require more extensive repairs like replacing a roof or updating plumbing.
Because they need some elbow grease, these homes typically have a lower price point, based on local market value. In fact, a survey from StorageCafe explains that fixer uppers generally cost about 29% less than move-in-ready homes.
And that’s why, according to a recent survey, more buyers are considering homes that need a little extra work right now (see below):
If you’re looking for an option to get your foot in the door, and you’re willing to roll up your sleeves and do a bit of work, a house with untapped potential may be a good option.
Before you buy a home that may need a makeover, here are a few things to keep in mind:
Remember, the perfect home is the one you perfect after buying it. By starting with a fixer upper, you have the opportunity to customize a home to your liking while saving money on the initial purchase price. With careful planning, budgeting, and a little bit of vision, you can turn a house that needs some love into your perfect home.
Real estate agents are great at finding homes with potential. They know the local market and can guide you to homes where smart upgrades can add value. With their help, you’re more likely to find a house that fits your total budget and has room for worthwhile improvements.
In today’s market, where the cost of homeownership can be intimidating, finding a move-in-ready home that fits your budget can feel like a real challenge. But if you’re open to putting in a little work, you can transform a fixer upper into your ideal home over time. A local real estate agent can help you explore what’s possible and find a place that’ll work for you.
Source: Keeping Current Matters
Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com
Source: Keeping Current Matters
Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com
Homeowners typically slow down their moving plans as the summer months wrap up, and as a result, fewer homes are listed for sale in the fall. It’s a predictable, seasonal trend in real estate. But this year, mortgage rates came down at the same time the number of homes on the market usually starts to decline. So, what happened? More homeowners decided to sell, so more homes came to the market.
The most recent data from Realtor.com reveals that in September, the number of homes put up for sale increased by 11.6% compared to this time last year.
As the green circle in the graph below shows, the typical September decline in homes coming to the market didn’t happen – that number actually went up (see graph below):
Ralph McLaughlin, Senior Economist at Realtor.com, explains why there was an unseasonable rise:
“This sharp increase is largely due to the decline in mortgage rates in mid-August, enticing homeowners to sell.”
So, as rates came down at the end of the summer, more people jumped into the market and decided to make their move.
It means more fresh options to choose from than you’ve had in a while – not the ones that have been sitting around, unsold.
But keep in mind, mortgage rates have been volatile lately, ticking up slightly in recent weeks, which could limit the number of people who feel comfortable with the idea of selling in the months ahead. And in this market, it’s mortgage rates that are largely driving homeowner decisions.
Whether you’re looking for a starter home, an upgrade, or hoping to downsize, you have more homes to choose from right now. And if you can find what you’re looking for, know that these new, fresh options won’t be on the market forever. So, staying on top of what’s available in your local area with a trusted agent is key.
And remember, one month doesn’t make a trend. So, what does that mean going forward? Whether more homeowners than normal continue to put their houses on the market will largely depend on what happens with mortgage rates and the economic factors that impact them, like inflation, employment, and the reactions by the Federal Reserve.
With that in mind, now might be your moment, while more homes are available – if you’re ready, willing, and able to buy this fall.
Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains:
“The rise in inventory – and, more technically, the accompanying months’ supply – implies home buyers are in a much-improved position to find the right home and at more favorable prices.”
As rates came down at the end of the summer, sellers started to trickle back into the market, which means buyers have more choices right now. And working with a trusted local real estate agent is the best way to take advantage of your new options before they’re all scooped up.
Source: Keeping Current Matters
Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com
As the cooler months of fall and winter settle in, nothing beats the comforting taste of pumpkin-based dishes. Pumpkins are versatile and can be used in both savory meals and sweet treats, making them the perfect ingredient for warm, cozy recipes. Here are seven of the best meal ideas with pumpkin to try during the cold months to fill your home with delicious aromas and satisfy your cravings.
A bowl of pumpkin soup is the ultimate comfort food for chilly evenings. This creamy and flavorful dish is made using pumpkin, onion, garlic, vegetable broth, and a touch of cream. The secret to a delicious pumpkin soup lies in the spices, with a pinch of nutmeg or cinnamon adding the warmth and sweetness that pairs so well with the natural pumpkin flavor. Serve it with a side of crusty bread for a perfect meal.
An added benefit of this meal idea with pumpkin is the ability to make it in advance or in large batches. Freeze what you do not use for another meal!
Soft and full of seasonal spices, pumpkin bread is a favorite during fall and winter. It is a moist, spiced bread made with pumpkin puree, flour, eggs, and warm spices like cinnamon and cloves. Whether you enjoy it plain, with a smear of butter, or topped with nuts, pumpkin bread makes a wonderful snack or breakfast treat.
To make it healthier, you can use whole wheat flour or add raisins and seeds to pack in more nutrients. This bread also freezes well, making it convenient for quick, warm treats.
No fall or winter gathering is complete without the traditional pumpkin pie. This classic dessert features a smooth pumpkin filling made with pumpkin puree, eggs, sugar, and warm spices baked into a buttery crust. Regardless of the holiday or celebration, pumpkin pie is a timeless favorite. It is typically topped with a generous dollop of whipped cream, making each bite a perfect balance of creamy and sweet.
This is an easy dessert to find in the store, so if you want to skip the baking and head straight to enjoying pie, this is a great option to add to your shopping list!
Start your day with a warm, hearty breakfast of pumpkin pancakes. These fluffy pancakes are packed with pumpkin puree and spices like cinnamon and nutmeg, giving them the unmistakable flavors of fall. You can easily prepare them just like regular pancakes, but with a seasonal twist. Pair them with syrup, butter, or even a sprinkling of cinnamon sugar for an extra touch of sweetness.
For a savory and filling meal idea with pumpkin, pumpkin risotto is a must-try. This dish is made by cooking arborio rice with vegetable broth, pumpkin puree, and a splash of white wine. The creamy texture of the risotto combined with the subtle sweetness of the pumpkin makes for a satisfying meal that is both flavorful and elegant. It is the perfect dish for cozy dinners and can be topped with Parmesan cheese for extra richness. Think about adding additional vegetables to make your risotto unique!
Looking for a hearty and savory dish with a twist? Try pumpkin chili. The pumpkin adds a slight sweetness that balances out the spicy flavors of traditional chili. Combine ground beef or turkey with kidney beans, tomatoes, chili powder, cumin, and pumpkin puree for a unique and comforting meal. Pumpkin chili is a filling dish that is perfect for warming up on a frosty night and goes wonderfully with cornbread.
After carving your pumpkins, do not let the seeds go to waste! Roasted pumpkin seeds are a crunchy and nutritious snack that is easy to make. Simply rinse the seeds, dry them, toss with olive oil and seasonings, and roast in the oven until crispy. These seeds are great for snacking on their own or sprinkling over salads for added crunch. You can experiment with flavors, using savory seasonings like garlic powder and salt or sweet options like cinnamon and sugar.
Pumpkins are an incredibly versatile ingredient, allowing you to create both sweet and savory dishes that are perfect for the fall and winter seasons. From the creamy comfort of soup to the classic delight of pie, these meal ideas with pumpkin will help keep you warm and satisfied when the weather turns cold. Whether you are making a cozy meal for yourself or serving guests, these pumpkin recipes are sure to bring warmth to your table.
Source: Keeping Current Matters
Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com
Realty Executives agents are real estate experts. They have the education and expertise you need to navigate through the process of buying or selling a home. From listing at the right price to making the best offer, our Executives have witnessed the best - and most regrettable - decisions homeowners and homebuyers can make. Every day, they are immersed in every aspect of real estate that includes comparable home price analysis, property surveys, credit reports, open houses, HOA agreements, lenders, title companies, homeowners’ insurance, walk-throughs, terms of sale or purchase, repairs, concessions and closing documents. Let our accomplished Executives help navigate you through the process of buying or selling a home.
