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Things To Consider WhenBuying a HomeFALL/WINTER2023-2024EDITIONMarkita Woods #196099www.queenofmortgages.com703-929-2274 phonequeen.mortgages@gmail.com

If you’re wondering if it’s the right time to buy a home, you should know you have an opportunity to grow your wealth, s tabilize your expenses, and benefit frommore options for your home search this fall/winte r.1. The Number of Homes for Sale Is IncreasingWhile the number of homes for sale is still low compared to pre-pandemic norms, there is good news for your home search. The number of homes for sale has grown considerably this year. As the National Association of Realtors (NAR) says:“It’s very promising that housing inventory is improving. There are nearly 30% more homes available for sale compared to 60-90 days ago.”If you begin your search now and work with a trusted real estate advisor, you’ll be in a great spot to benefit from those additional options to help you find yourdream home.2. Home Prices Are Appreciating More ModeratelyIf you’re waiting to buy because you think home prices will fall, you should know experts say that’s not projected to happen. According to the latest forecasts, experts project home prices will keep appreciating nationally, just at a more moderate pace than they did over the past year.The good news is, once you do buy a home, any ongoing appreciation will help grow the value of your investment.Should I Buy a Home This Fall?

Bottom LineIt’s s till a s ellers ’ market today, jus t a more modera te one. Let’s connect s oyo u h ave expe rt ad vice on how to make your s tronges t o ffer when you findyour d ream home .3. Make a Strong, but Fair OfferAs the peak intensity of demand is cooling this year, the number of homes sold over asking price is decreasing and so is the typical number of offers on a recently sold home. But you still need to be prepared to come in with your best offer up front because inventory is still low overall and that makes it a sellers' market.Lean on your agent to help you understand the current market value of the home you're interested in and recent sales trends in the area so you can craft your best offer.4. Be a Flexible NegotiatorWhen putting together an offer, your trusted real estate advisor will help you consider which levers you can pull, including contract contingencies (conditions you set that the seller must meet for the purchase to be finalized). Of course, there are certain contingencies you don’t want to give up, like the home inspection. Freddie Mac explains:“A home inspection contingency give s you the opportunity to have the entire home you'd like to purchase examined by a profe ssional beforeyou close on your contract. Without this contingency, you could be contracted on a hous e you can't afford to fix.”

You Can Qualify Even if you don't Have Perfect CreditBy far VA loans have the most lenient underwriting approval guidelines versus other loan types. Common sense underwriting to make the homebuying process smoother .Zero Down payment Requ ire dOne of the biggest roadblocks to homeownership is a down payment you have earned the right to have 100% financing without mortgageinsurance, which is a monthly cost other people have to pay when they have less than a 20% down payment.No Loan Limit CapThe Blue Water Navy Bill of 2020 allows unlimited entitlement with zero money down. However, most lenders cap at 2 Million for a home purchase with zero down payment.What You Need To Know About Your VA Home Loan Benefit

How to Qua lify for a VA LoanYou are eligible for a VA Loan if you have served on active duty for 90 days or more any part which occurred during wartime or:⚬Or s erving fo r a period of 181 days or more during peacetime.⚬Serving on title 10 or title 32 orders fo r a period of 90 days withat leas t 30 days being cons ecutive⚬ Served 6 (good) years in the National Guard or res erves with16 points and received an honorab le dis charge⚬A Veteran is e lig ib le if he/s he s erved on active duty in theArmy, Na vy, Air Force, Ma rine Corps , or Coas t Guard afterSeptember 15th, 1940, and was dis charged under conditionsother dis honorable19Certificate of EligibilityThis is the document from the VA that confirms eligibility for a VA Home Loan. Obtain through the E-benefits or directly from theLender.Documents Needed:1.) Active Duty: Statement of service, current orders.2)Veteran: DD2143)National Guard: NGB22 & NGB234)Reserves: Statement of service and points statement

5If you want to buy a home today, here are a few things experts s ay you s hould know about what to expect and why homeowners hip is s oimportant.Expert Insights for Today’s Homebuyers“Active inventory continued to grow, . . . . the improvement for buyersessentially means they have four choice s today for every three they had one year ago.- Danielle Hale, Chief Economist, realtor.com“Homeowners hip bu ilds financial s ecurity. . . . the net worth of a typica l homeowner is nearly 40 times the net worth of a non-owne r.- National Association of Realtors (NAR)“Homeownership is still considered one of the most re lia ble ways to buildwealth. When you make monthly mortgage payments, you're building equity inyour home. . . . When you rent, you aren't investing in your financia l future thesame way you are when you're paying off a mortgage.- CNET“This is an opportunity for people with a secure job to jump into the market, when other people are a little hesitant because of a possible recession.The y’ll have fewer buye rs to compete with.- Lawrence Yun, Chief Economist, NAR

You may be asking yourself: should I buy right now, or should I wait? While noone can answer that question for you, here ’s some informa tion that could helpyou make your decis ion.The Future of Home Price AppreciationEach quarter, Puls enomics surveys a national panel of over 100 economists, real estate experts, and investment and market strategists to compile projections for the future of home price appreciation. Their survey forecasts home prices will continue appreciating over the next five years (see graph below):The Benefit of Buying a Home NowAs the graph shows, the rate of appreciation will moderate over the next few years as the market shifts away from the feverish pace it saw during the pandemic. After this year, experts project home price appreciation will continue, but at levels that are more typical for the market.Estimated Home Price PerformanceDecember to December, as Forecast in Q2 2022Source: HPES, Q2 20222022 2023 2024 2025 20260.10.0750.050.0250

What Does That Mean for You?Ongoing appreciation should give you peace of mind that your investment in homeownership is worthwhile because you’re buying an asset that’s projected to grow in value in the years ahead. To give you an idea of how this could impact your net worth, here’s how a typical home could grow in value over the next five years using the expert price appreciation projections fromthe Puls enomics survey (see graph below):Source: HPES 2022 2QPotential growth inhousehold wealth over the next five years based sole ly on increased home equity if you purchased a$390K home in January of 2022.$102,787Potential Home Price Growth Over the Next 5 Years Based on Proje ctions from the Home Price Expectation Survey 500,000400,000300,000200,000100,00002022 2023 2024 2025 2026 2027Even at a more typical pace of appreciation, you still stand to gain significant equity.That’s what’s at stake if you delay your plans.

With all the buzz in the media , you may sta rt to worry the housing market is in a bubble. While it’s only natural for concerns to creep in that there could be arepeat of what took place in 2008, the good news is there ’s concrete data to show why this is nothing like the las t time.There’s a Shortage of Homes on the Market Today, Not a SurplusThe supply of inventory needed to sustain a normal real estate market is approximately six months. Anything more than that is an overabundance and will cause prices to fall. Anything less than that is a shortage and will lead to continued price appreciation.For historical context, there were too many homes for sale during the housing crisis, and that caused prices to tumble. Today, supply has grown, but there’s still a shortage of inventory available (see graph below):Why the Housing Market Won’t Crash151050Supply of Homes Is Nothing Like Last TimeAnnual Average of Months’ Supply for 1999-2021Source: NAR

Source: MBALending Standards Today Are Under ControlHistoric Data for the Mortgage Credit Availability Index (MCAI)1,0007505002500Housing Bubble: 868.7Leading up to 2006, banks were creating artificial demand by lowering lending standards and making it easy for just about anyone to qualify for a home loan or refinance their current home. That led to mass defaults, foreclosures, and falling prices.Today, things are different. Purchasers face much higher standards from mortgage companies, and buyers are more qualified. Mark Fleming, Chief Economist at Firs t American, says:“Cre dit s tandards tightened in recent months due to increasing economic uncertainty and monetary policy tightening.”Those stricter standards help prevent a wave of foreclosures like we saw last time.One of the reasons inventory is still low is because of sustained underbuilding. When you couple that with ongoing buyer demand as millennials age into their peak homebuying years, itcontinues to put upward pressure on home prices. That limited supply compared to buyer demand is one of the reasons why experts forecast, nationally, home prices won’t fall this time.Mortgage Standards Were Much More Relaxed During the CrashDuring the lead-up to the housing crisis, it was much easier to get a home loan than it is today. The graph below shows data on the Mortgage Credit Availability Index (MCAI) from the Mortgage Bankers Association (MBA). The higher the number, the easier it is to get a mortgage.

The Foreclosure Volume Is Nothing Like It Was During the CrashThe most obvious difference is the number of homeowners that were facing foreclosure after the housing bubble burst. Foreclosure activity has been on the way down since the crash because buyers today are more qualified and less likely to default on their loans. The graph below helps tell the story:Source: ATTOM Data SolutionsForeclosure Activity Then and NowU.S. Properties with Foreclosure Filings: ATTOM 2001 Ye ar-End Report3,000,000Over 1 Million2,000,0001,000,0000Not to mention, homeowners today have options they just didn’t have in the housing crisis when so many people owed more on their mortgages than their homes were worth. With the pandemic and the forbearance program, many people were able to stay in their homes and work out alternative options.And for those homeowners who still need to make a change due to financial hardship or other challenges, today’s record level of equity is giving themthe opportunity to sell their houses and avoid foreclosure altogether. That’s why there won’t be a wave of foreclosures coming tothe market.

While the hous ing market is going through a s hift, it’s s till competitive for buyers becaus e the overall inventory of homes for s a le is low. Enjoy having more options as s upply continues to grow this year, but keep thes e tips in mind to help you put in a s trong o ffe r once you find the one.1. Know Your BudgetKnowing your budget and what you can afford is critical to your success as a homebuyer. The best first step is working with a lender and getting pre-approved for a loan. Your pre-approval indicates how much you’re able to borrow for your mortgage and shows sellers you’re serious. As the Mortgage Reports explains:“. . . most sellers won’t even consider an offer unless the buyer is pre-approved a t the right price point. Sellers and their agents want to know you’re ready and able to finance your offe r amount.”2. Lean on a Real Estate ProfessionalAs conditions in the housing market moderate today, it’s especially important to rely on a trusted real estate advisor. As Freddie Mac says: “The success of your homebuying journey la rgely depends on the company you keep. . . . be s ure to s elect experienced, trus tedprofes s ionals who will help you make informed decisions and avoid any pitfa lls .”Agents are experts in what’s happening in the housing market and inyour area. They’ll have insight into the latest trends, what they meanfor you, and what’s worked for other buyers.Tips for Making Your Best Offer

4Bottom LineLet’s connect if you’re ready to learn more about the benefits and rewards ofhomeownership. Having a local expert on your s ide is the best way to make your dream a reality this season.3. Homeownership Can Grow Your WealthOnce you own a home, you’ll own a tangible asset that typically grows in value over time. As home prices appreciate, and as you pay your monthly mortgage payment, you’ll build equity in your home. This gives your own net worth and stability a boost. As Freddie Mac says:“Building equity through your monthly principal payments and appreciation is a critica l part of homeownership that can help you create financial s tability.”4. Buying a Home Helps Shield You from Rising CostsCensus data shows the median monthly rent is consistently going up (see chart below) and has been since the late 1980s. To escape rising rents, consider purchasing a home so you can stabilize your monthly housing payment.Homeownership allows you to lock in what’s typically your largest monthly expense: your housing payment.1,5001,0005000Median Asking Rent Since 1988Source: Census

January February Ma rch April Ma y June43210There ’s no denying the housing market has delivered a fair share of challenges to homebuyers over the past two years. Two of the biggest hurdles were the limited number of homes for sale and the intensity and frequency of biddingwars. But those two things have reached a turning point.The Number of Homes for Sale Is GrowingAccording to data from the National Association of Realtors (NAR), the supply of homes for sale has increased consistently this year (see graph below). For you, that means you’ll have more options to choose from, so it shouldn’t be as difficult to find your next home as it has been previously.More Options for Your Home SearchSupply of Homes for Sale Is Increasing This YearMonths’ Supply of Homes for SaleJulySource: NAR

local marke t.0April May June JulyIf you’ve been outbid before or struggled to find a home that meets your needs, breathea welcome sigh of relief. The big takeaway here is you have more options and less competition today. George Ratiu, Manager of Economic Research at realtor.com, confirms this is positive for buyers:“. . . more available properties and le ss competition, . . . point toward a welcome change for buyers who are s till in the market. The upcoming fa ll season may offe r an evenbetter window of opportunity, as long as the inventory landscape continues improving, as we ’ve seen in recent months."Bottom LineWith more options to choose from and le ss intense bidding wars, you could have a unique opportunity in front of you. Let’s connect today to discuss your options in our6427The Intensity of Bidding Wars Is EasingThe good news is having more options may also lead to less intense bidding wars. Data from the Confidence Index from NAR shows this trend has already begun. Their report shows bidding wars are easing month-over-month (see graph below):Bidding Wars Ease in Recent MonthsAverage Number of Offers on Sold Homes (April – July 2023)Source: NAR

Home Price Forecasts Call for Ongoing AppreciationIn 2021, home prices appreciated rapidly because there were far more people looking to make a purchase than there were homes available for sale. Core Logic helps explain how unusual last year’s price gains were:“P rice appreciation averaged 15% for the full year of 2021, up from the 2020 full year average of 6%.”This year, home price appreciation is slowing (or decelerating) from the feverish pace the market saw during the pandemic. According to the latest forecasts, experts say nationwide, prices will still appreciate by roughly 11.3% in 2022 (see graph below):2023 Home Price ForecastsBased on Expert Proje ctions0.2Even though housing supply has grown this year, it’s still low overall due to a long period of underbuilding homes. And experts say that’s going to help keep upward pressure on home prices. If you’re thinking of making a move, you shouldn’t wait for prices to fall.0.150.10.050Average of AllForecasts: 11.3%

As another way to thank you for your service, we are offering an Appraisal Credit up to $600 for all purchases or refinances.Offer good until March 31st, 2024.Claim your FREE Appraisal when buying a home with us.

Let’s Chat.FALL 2023 EDITIONI’m sure you have questions and thoughts about the real estate process.We’d love to talk with you about what you’ve read here and help you on the path to buying your new home. Our contact informationis below, and we look forward to working with you.Markita Woods Mortgage CoachFairway Independent Mortgage17739 Main Street #310Dumfries, VA22026queen.mortgages@gmail.comwww.QueenofMortgages.com703-929-2274