Forecast Calls for Housing Market Rebound Later This Year

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Typically, economic forecasts rely on a mix of current and historical data. If you understand where things are today and what’s happened in the past, you can make an educated guess about what the future might look like. This becomes harder, though, when there aren’t obvious historical precedents to use for comparison.

Despite this, Freddie Mac’s most recent quarterly forecast attempts to predict how well the housing market will endure the economic impact of the coronavirus. So, what do they see? According to Sam Khater, Freddie Mac’s chief economist, we may begin to see a rebound during the second half of the year.

Specifically, Freddie Mac sees home sales and price increases slowing this year before rebounding in 2021.

Source: National Association of REALTORS

Start your Ann Arbor Area home search today by visiting https://nexthomevictors.realgeeks.com/dani-hallsell/

To your health, Dani

6 Bad Household Habits to Break

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Bad habits are so easy to fall into. But in the end, we know they only make us miserable. They’re the opposite of what makes you happy. They’re what make you miserable. Here are 6 bad household habits to break now for a happier you (and a fatter bank account):

#1 Taking Long, Steamy Showers (I’m guilty!)

Spending 20 minutes in the steam may be good for your pores, but it’s also great for mold and mildew. Run the exhaust fan while you’re singing in the shower, squeegee the walls afterward, and scrub that grout every few months.

#2 Keeping Out the Sun

Shutting your shades on winter days might seem smart. More insulation from the chilly weather, right? Your energy bill disagrees. A sunny window can warm your home and lower your heating costs. And as a bonus, you could see a decrease in seasonal depression.

#3 Compulsively Buying Bargains

Finding a deal feels so good, but cheaper isn’t always better. In fact, budget buys might cost you more in the long run. For instance, dollar paintbrushes will leave annoying streaks, requiring a costly re-do. And when it comes to appliances, permit a little splurge — especially if selling your home is on the horizon.

#4 Running a Half-Full Dishwasher

You get a gold star for always remembering to start your dishwasher before bed, right? Clean dishes every morning! Go you! Yeah, about that: Your dishwasher wastes water unless it’s completely full.

#5 Mega-Mulching

Your precious trees really are precious. Each one can add $2,000 or more to your home’s value while saving on energy costs. A “tree volcano” is actually damaging your foliage. Too much mulch suffocates your tree, causing root rot and welcoming invasive insects.  Protect your precious trees by packing mulch loosely, letting water filter properly toward the trunk.

#6 Going on a Remodeling Rampage

Don’t break out the sledgehammer for a demo three weeks after moving in unless your home needs serious, obvious work. Give yourself time to understand the home’s quirks before renovating. For instance, you could dump $15,000 into a kitchen remodel — only to realize the original layout would have worked better for holiday parties. Or you paint a room your favorite color, Wild Plum, only to realize the natural light in the room makes it look more like Rotten Plum. Whoops.

Breaking habits takes time, so it’s important to be kind to ourselves when we slip up. When we create new habits, we’re building new wiring, but it’s not like the old wiring disappears. Don’t turn slip-ups into give-ups.

Have any real estate related question? Send me message using the box to the right of this page.

Dani

Looking to the Future: What the Experts Are Saying

Looking to the Future: What the Experts Are Saying | MyKCM

As our lives, our businesses, and the world we live in change day by day, we’re all left wondering how long this will last. How long will we feel the effects of the coronavirus? How deep will the impact go? The human toll may forever change families, but the economic impact will rebound with a cycle of downturn followed by economic expansion like we’ve seen play out in the U.S. economy many times over.

Here’s a look at what leading experts and current research indicate about the economic impact we’ll likely see as a result of the coronavirus. It starts with a forecast of U.S. Gross Domestic Product (GDP).

According to Investopedia:

“Gross Domestic Product (GDP) is the total monetary or market value of all the finished goods and services produced within a country’s borders in a specific time period. As a broad measure of overall domestic production, it functions as a comprehensive scorecard of the country’s economic health.”

When looking at GDP (the measure of our country’s economic health), a survey of three leading financial institutions shows a projected sharp decline followed by a steep rebound in the second half of this year:Looking to the Future: What the Experts Are Saying | MyKCMA recent study from John Burns Consulting also notes that past pandemics have also created V-Shaped Economic Recoveries like the ones noted above, and they had minimal impact on housing prices. This certainly gives hope and optimism for what is to come as the crisis passes.

With this historical analysis in mind, many business owners are also optimistic for a bright economic return. A recent PricewaterhouseCoopers survey shows this confidence, noting 66% of surveyed business owners feel their companies will return to normal business rhythms within a month of the pandemic passing, and 90% feel they should be back to normal operation 1 to 3 months after:Looking to the Future: What the Experts Are Saying | MyKCMFrom expert financial institutions to business leaders across the country, we can clearly see that the anticipation of a quick return to normal once the current crisis subsides is not too far away. In essence, this won’t last forever, and we will get back to growth-mode. We’ve got this.

Bottom Line

Lives and businesses are being impacted by the coronavirus, but experts do see a light at the end of the tunnel. As the economy slows down due to the health crisis, we can take guidance and advice from experts that this too will pass.

To your health, Dani

COVID-19’s Effect on the Michigan Real Estate Market

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During these unprecedented times, I have received a lot of questions regarding the home buying/selling process and how it is being affected by the government order to “stay in place”.  Here are the major take-aways:

  • Real estate brokers and salespersons are not “critical infrastructure workers”and therefore may not leave their homes for work.  The only narrow exception to the order is the instance where work is absolutely necessary to assist those with a genuine and emergent need, such as an immediate lack of shelter.   Real estate services, like the showing of homes and other property, open houses, and other client contact should be considered to be non-critical and travel to do so is prohibited through April 13, 2020.
  • Mortgage Lenders and Title Companies fall under the “critical infrastructure workers” category and will continue working. Lenders are working remotely, so you can still get a pre-approval, apply for a mortgage, re-finance a mortgage, and receive funds to close on a home. Title companies are offering “drive up” closing; they overnight the closing package to the buyer & seller for signatures, then you drive to the office where an employee will collect the closing documents and payments. If the buyer/seller requests to close in the building, the real estate agent will not be allowed to attend. Real estate brokerages have the ability to participate in closings via conference calls or other video conferencing methods to comply with the Governor’s order.
  • Home inspectors do not fall into the “critical infrastructure workers” category. If you have an accepted offer during the “stay in place” order, have your real estate agent include an addendum for a delayed inspection.
  • Michigan Realtors® have provided real estate agents an “Addendum to Purchase Agreement COVID-19 Condition Extension”. This addendum states that if COVID-19 causes a shutdown or work stoppage of a governmental entity or settlement service provider makes it temporarily impossible for either party to perform as required under a Purchase Agreement, or in the event Purchaser or Seller becomes the subject of a medically required quarantine, then all outstanding contract deadlines may be extended for as long as these conditions continue, but in no event longer than thirty calendar days.

If you are planning to make a move this year, this is a good time to plan. Talk to a lender to find out how much you can afford to pay each month, what amount you will need for a down payment and how much you will need to save for closing cost. Use the links above to search homes for sale, this will give you an idea of what is available in your price range. If you have a home to sell, use the link above to get an idea of your current market value.

In closing, I am always available to answer questions and provide recommendations for local lenders and service providers. You can reach me via phone, text, email or visit me on social media.

Wishing you good health, Dani