A real estate bubble occurs when there is a rapid and unjustified increase in housing prices. Often this is caused by speculating investors blowing some hot air đŹïž
Like an overfilled balloon đ, the bubble eventually pops, and then a swift drop đ in home values occurs. This leads to reduced equity or, in some cases, even negative equity đ±
Fortunately, economists donât foresee that happening! đź
Prices are going up because thereâs a very low supply (homes for sale) and high demand (lots of buyers). And those market dynamics arenât expected to change any time soon.
đ Looking for guidance as you navigate this fast-moving market? Contact our team to learn more about current real estate trends and whether now is a good time to buy or sell.Â
The pandemic has changed the way many of us live, work, and attend schoolâand those changes have impacted our priorities when it comes to choosing a home.
According to a recent survey by The Harris Poll, 75% of respondents who have begun working remotely would like to continue doing soâand 66% would consider moving if they no longer had to commute as often. Some of the top reasons were to gain a dedicated office space (31%), a larger home (30%), and more rooms overall (29%).1
And now that virtual school has become a reality for many families, that need for additional space has only intensified. A growing number of buyers are choosing homes further from town as they seek out more room and less congestion. In fact, a recent survey found that nearly 40% of urban dwellers had considered leaving the city because of the COVID-19 outbreak.2
But not everyone is permanently sold on suburban or rural life. Instead, some are choosing to purchase a second home as a co-primary residence or frequent getaway. Without the requirements of a five-day commute, many homeowners feel less tethered to their primary residence and are eager for a change of scenery after spending so much time at home.
If youâre feeling cramped in your current space, youâve probably considered a move. But what type of home would suit you best: a move-up home or a second home? Letâs explore each option to help you determine which one is right for you.
WHY CHOOSE A MOVE-UP HOME?
A move-up home is typically a larger or nicer home. Itâs a great choice for families or individuals who simply need more space, a better location, or want features their current home doesnât offerâlike an inground pool, a different floor plan, or a dedicated home office.
Most move-up buyers choose to sell their current home and use the proceeds as a downpayment on their next one. If youâre struggling with a lack of functional or outdoor space in your current home, a move-up home can greatly improve your everyday life. And with mortgage rates at their lowest level in history, you may be surprised how much home you can afford to buy without increasing your monthly payment.3,4
To learn more about mortgage rates, contact us for a free copy of our recent report! âLowest Mortgage Rates in History: What It Means for Homeowners and Buyersâ
One major benefit of choosing a move-up home is that you can typically afford a nicer place if you spend your entire budget on one property. However, if youâre longing for that vacation vibe, a second home may be a better choice for you.
WHY CHOOSE A SECOND HOME?
Once reserved for the ultra-wealthy, second homes have become more mainstream. Home sales are surging in many resort and bedroom communities as city dwellers search for a place to escape the crowds and quarantine in comfort.5 And with air travel on hold for many families, some are channeling their vacation budgets into vacation homes that can be utilized throughout the year.
A second home can also be a good option if youâre preparing for retirement. By purchasing your retirement home now, you can lock in a low interest rate, start paying down the mortgage, and begin enjoying the perks of retirement living while youâre still fit and active. Plus, itâs easier to qualify for a mortgage while youâre employed, although you may be charged a slightly higher interest rate than on a primary home loan.6
One advantage of choosing a second home is that you can offset a portion of the costsâand in some cases turn a profitâby renting it out on a platform like Airbnb or Vrbo. However, be sure to consult with a real estate professional or rental management company to get a realistic sense of the propertyâs true income potential.
WHICH ONE IS RIGHT FOR ME?
You may read this and think: Iâd really like both a move-up home AND a second home! But if youâre dealing with a limited budget (arenât we all?), youâll probably need to make a choice. These three tactics can help you decide which option is right for you.
Determine Your Time and Financial Budget
You may meet the bankâs qualifications to purchase a home, but do you have the time, energy, and financial resources to maintain it? This is an important question to ask yourself, no matter what type of home you choose.
Most buyers realize that a second home will mean double mortgages, utilities, taxes, and insurance. But consider all the extra time and expense that goes into maintaining two properties. Two lawns to mow. Two houses to clean. Two sets of systems and appliances that can malfunction. Second homes arenât always a vacation. Make sure youâre prepared for the labor and carrying costs that go into maintaining another residence.
Of course, some move-up homes require more work than a second home. For example, if your move-up option is a major fixer-upper, youâll probably invest more energy and capital than you would on a small vacation condo by the beach. Have an honest discussion about how much time and money you want to spend on your new property. Would a move-up home or a second home be a better fit given your parameters?
Rank Your Priorities
If youâre still undecided, make a wish list of the characteristics youâd like in your new home. Then rank each item from most to least important. This exercise can help you determine your âmust-haveâ featuresâand which ones you may need to sacrifice or delay. Hereâs a sample to help you get started:
#
FEATURE
Dedicated home office
Extra bedroom
Pool
Walk to the beach
Big backyard
Close to friends and family
Short commute to the office
Investment potential
Explore Your Options
Once youâve determined your parameters and priorities, itâs time to begin your home search.
If youâre still not sure whether a move-up home or a second home is right for you, we can help.
Contact us to schedule a free consultation. Weâll discuss your options and help you assess the pros and cons of each, given your unique circumstances.
We can also send you property listings for both move-up homes and second homes within your budget so you can better envision each scenario. Sometimes, viewing listings of homes that meet your criteria can make the decision clear.
LETâS GET MOVING
Whether youâre ready to make a move or need help weighing your options, weâd love to help. We can determine your current homeâs value and show you local properties that fit within your budget. Or, if your heart is set on a second home in another market, we can refer you to an agent in your dream locale. Contact us today to schedule a free, no-obligation consultation!
This year has demonstrated, perhaps more than ever, the importance of our family, friends, neighbors, and community. It truly âtakes a villageâ to keep a community functioning effectively, whether thatâs by keeping our waterways clean, feeding the hungry, teaching our kids, or supporting small businesses.
With the holidays right around the corner, December offers the perfect opportunity to give back to the place we call home. You might want to focus your efforts near home, expand to our larger community, or even help support the people closest to you. Whether youâre passionate about a particular cause or just want to get more involved in general, let these 10 ways, both big and small, inspire you to do good in your town.
GIVE BACK NEAR HOME
1. Attract local wildlife. By making your neighborhood more wildlife friendly, youâre helping to create a balanced and healthy ecosystem. Plus, many of the animals you can attract help with pest control and pollination.1
Ideas:
Add a birdbath to your backyard or create a rain garden to attract wildlife (and filter out local pollutants).
Place bird feeders on your property to feed birds all year long.
Tie corncobs to tree branches to feed squirrels.
Hang birdhouses on your property to provide shelter.
Use native plants in your landscaping to provide food and shelter for birds, bees, butterflies, and other critters.
Take action: While you might not be able to âbreak groundâ until spring, start researching native plants now to design a landscaping plan that provides food, shelter, and water for local wildlife.
2. Clean up our community. Besides beautifying the area, picking up trash keeps it out of our local waterways, which means a cleaner water supply for all of us.
Ideas:
Whether you make this a solo effort or join in an organized group event, pick up trash in your neighborhood, at a local park, or elsewhere in our community.
Depending on your communityâs regulations, you can recycle many home items such as paper, glass, and aluminum.
And donât forget to clean the exterior of your home, where water runoff (such as on your driveway and sidewalks) can carry debris into the local sewer system.2
Take action: Check with your local municipality to learn about environmental clean-up efforts in our community, as well as recycling and composting.
3. Organize or join a neighborhood watch. According to a recent report, neighborhoods with Neighborhood Crime Watch programs experience roughly 16 percent less crime.3 Keeping an eye out for each other instills a sense of safety and security in your neighborhood by increasing surveillance, reducing opportunities, and enhancing information sharing among residents. Even if your neighborhood doesnât have an official program, you can still share crime information via a neighborhood Facebook group or apps like NextDoor.
Ideas:
Make a point of looking out for each other and being observant of whatâs going on.
You can even make it official by joining a neighborhood watch program.
Donât have one? Consider launching a neighborhood watch program with the help of other interested neighbors.
Take action: Some police forces use online mapping tools that provide crime alerts to people in neighborhoods where recent criminal activity occurred.3 Share this information with your neighbors.
HELP OUT LOCAL ORGANIZATIONS
4. Boost your civic engagement. Regardless of your politics, you can get more involved as a citizen to make a positive difference in our community.
Ideas:
Sign a petition to make a needed change in our community.
Join a peaceful march, protest, or rally to support a cause dear to your heart.
Attend local school board meetings, town halls, or city council meetings to understand (and have a voice in) local issues.4
Watch (and read) a variety of local news sources to get balanced reporting on whatâs happening in our community.
If you donât know your neighbors very well, introduce yourself.
Then make a commitment to check in on those who might need help, such as an elderly neighbor.
Get plugged into the resources and events in our town by visiting local museums, taking historical tours, borrowing materials from our local library, and attending community festivals.
Take action:Do you know who our local leaders are, such as our mayor or city councilwoman? Get to know their names, their policies, and their stand on issues that affect our community. Subscribe to their newsletter and follow them on social media.
5. Support local businesses. Our community has been impacted by the pandemic, with many businesses being forced to limit capacity, instill social distancing efforts, and even shutter entirely in some cases. Help keep money in our local economy by shopping local instead of relying on online shopping from national chains.
Ideas:
From handcrafted soaps and one-of-a-kind apparel to locally produced chocolate and small-batch wines, youâll find plenty of unique gifts at the small businesses that dot our community.
Consider purchasing tickets to attend live-streamed holiday concerts and shows.
Buy cookies and other baked goods from our local bakery.
Get takeout from our local restaurants.
Support local farmers by purchasing fresh fruits and vegetables at community farmerâs markets.
Take action: If youâre concerned about shopping in person right now, many of these businesses, though small, offer online shopping, with options for in-store pick-up, curbside delivery, and/or mail options.
6. Donate to local charities. Nonprofits could always use your financial support, so consider making a monetary donation to help them carry out their mission in our community. But if money is tight (or you want to support in other ways), think beyond just donating dollars.
Ideas:
Consider donating to a charity in someone elseâs name as an altruistic gift on behalf of a friend or relative.
Give blood to our local blood bank.
Donate new or used books to our community library.
Send school supplies to our neighborhood elementary school.
Help struggling neighbors by donating blankets to the homeless.
Pick out toys to give to a charity that caters to families. 5
Take action: Many collection efforts run by charitable organizations and businesses take place during the holidays. Look to see whatâs already taking place in our community and choose one or more to give to this season.
CARE FOR YOUR NEIGHBORS
7. Organize a holiday food drive. This year, in particular, people are struggling to pay their bills and put food on the table. The pandemic has caused many businesses to close or reduce their staff size, putting many people out of work.
Ideas:
If you personally know someone who needs help buying groceries, reach out and offer to help that one family.
If not, partner with a local food bank, soup kitchen, nonprofit or community organization that feeds people in need.
Round up a few friends, family, co-workers, or neighbors to collect food for a few weeks. Then deliver the bounty in time for the holidays.
Take action: Take advantage of your grocery store coupons and buy-one-get-one offers to inexpensively stock up on nonperishable goods.
8. Adopt a family or an individual. The holidays can be a struggle, especially financially, for some families. They might not be able to buy a Christmas tree or presents for their children. Maybe their holiday meal consists of boxed macaroni and cheese because they canât afford a turkey and fresh vegetables. You can make a difference by âadoptingâ a particular family (or even just a child) to help make their holiday special.
Ideas:
If you know a needy family, help them directly.
If not, ask a community group for the name of a family or individual in need.
Some businesses even sponsor toy drives or âangel treesâ where you can pick the name of a needy family off the tree and buy from their wish lists.
Take action: This works great as a family project. Get the kids in your life involved to help make holiday cards and pick out toys to give to the children in the adopted family.
9. Volunteer. Depending on your schedule and your preferences, you might be able to volunteer in-person or from home, whether itâs a one-time effort or ongoing project. Itâs a great way to meet like-minded people in your community as you make a positive impact together for a shared cause.
Ideas:
Give your time to a cause or organization that really matters to you, such as your local school, animal rescue organization, mental health awareness group, or environmental nonprofit.6
Tap into a skill you already have, like creating videos, and offer your services.
Or learn a new skill (like fundraising) to benefit your cause of choice.
Take action: Start with your local community to see where its needs are the greatest. Make a point to help this holiday season, perhaps extending your commitment throughout 2021.
10. Perform random acts of kindness. Donât think you need to âgo big or go homeâ in your give-back efforts. You can make a big difference one small act at a time.
Ideas:
Give a generous tip to a waitress.
Pay for the coffee of the car behind you in the drive-through.
Take care of a neighborâs pet while theyâre out of town.
Send holiday cards to deployed military personnel.
Deliver a plate of homemade holiday cookies to our local fire or police station.
Smile at a stranger.
Rake leaves for an elderly neighbor.
Thank your childâs teacher for all their hard work this year.
Send an uplifting text to a friend.
Compliment someone.
Help a coworker with an unpleasant task.
Take action:Need more ideas? Visit randomactsofkindness.org for hundreds of inspiring ways to make someoneâs day a little brighter.
HOW WE CAN HELP YOU?
As real estate experts in our local community, weâre tuned into the unique needs of the place we all call home. Reach out to us today to discuss more ways to make a positive impact in our communityâthis holiday season and beyond. And we want to make sure youâre taken care of, too. If youâre thinking about buying or selling a home now or in the near future, let us help you!
