Your Home Equity Is Growing [INFOGRAPHIC]

Your Home Equity Is Growing [INFOGRAPHIC]

Your Home Equity Is Growing [INFOGRAPHIC] | Simplifying The Market

Your Home Equity Is Growing [INFOGRAPHIC] | Simplifying The Market

Some Highlights

  • If you’re a homeowner, today’s rising equity is great news. On average, homeowners have gained $51,500 in equity since this time last year.
  • Whether it’s funding an education, fueling your next move, or starting a business, your home equity is a great tool you can use to power your dreams.
  • Ready to sell? Let’s connect to talk about how you can take advantage of your rising equity to reach your goals.
These Are Our Top Cities Of Crow Wing County!

These Are Our Top Cities Of Crow Wing County!

Are you thinking about moving to Crow Wing County and want to know the best cities to choose from? In this episode of Brainerd Redefined, I’m going to walk you through three of the best cities right here in Crow Wing County. We’ll look at the locations, amenities, and housing costs of each community so you can decide which one is right for you.

Brainerd

The first city you’re definitely going to want to check out is Brainerd, located just two hours north of the Minneapolis area. Brainerd is the largest city in Crow Wing County. One of the reasons people love living in Brainerd is the short commute, as it’s just minutes to the airport—which is in the east part of town. 

The area is also known for many lakes, great restaurants, and fabulous golf courses. The average three-bedroom home is going to cost roughly $200,000. If you’re looking for a two-bedroom home, this is going to be in the $145,000 price range. 

If you’re looking to rent in the Brainerd area, you can plan on spending between $1,200 to $1,500 for a three-bedroom home. A two-bedroom in the same area would run roughly $850 to $1,200 a month. 

Crosby

The second city you’re going to want to check out is Crosby, located just 20 miles east of Brainerd. Crosby has grown in leaps and bounds in the past few years. It also features some of the very best bike trails in the entire country. People come from all over the United States to spend a week biking on Crosby’s very challenging trails. 

One of the reasons people love living in Crosby is because of its vicinity to all the lakes in Brainerd. Additionally, the Brainerd Airport is located on the east side of Brainerd, which is really on its way to Crosby. In fact, Crosby is proud to be one of the closest cities to the Brainerd Airport. Crosby is also known for its new reinvigorated downtown featuring a lot of breweries, restaurants, and shops. And of course, there’s the Crosby Mine Pit, which offers great fishing and recreation. 

What about the cost of living in Crosby? On average, a three-bedroom home off water in Crosby will run about $150,000. A two-bedroom off water will be in the $110,000 price range. If you’re planning to rent in the area, you can plan on spending between $900 to $1,200 a month for a three-bedroom home. A two-bedroom would run roughly $800 to $1,200 a month on rent. 

Pequot Lakes

The third city you’re going to want to check out is Pequot Lakes, which is 20 minutes north of Brainerd. One of the reasons people love living in Pequot Lakes is because of its location, including its vicinity to Breezy Point. And similar to Crosby and Brainerd, this area has some great biking trails and a fabulous downtown area. 

The average three-bedroom home in the Pequot Lakes area runs roughly $250,000. A two-bedroom is going to run approximately $165,000 to $175,000. If you prefer to rent in the Pequot Lakes area, a three-bedroom home will run between $1,000 to $1,300 a month. A two bedroom in the same area is going to run between $800 to $1,100 per month. 

Enjoy Minnesota Living In Crow Wing County

I hope this gave you some insight into Crow Wing County and some of the incredible options of where to settle. If you’re looking to relocate here, I recommend any of these amazing cities. And if you have any questions, please don’t hesitate to reach out and ask.

Don’t forget to subscribe to my channel so you never miss an episode of Brainerd Redefined, my show all about the Brainerd Lakes area. Stay tuned to see what I feature next!

Important Distinction: Homes Are Less Affordable, Not Unaffordable

Important Distinction: Homes Are Less Affordable, Not Unaffordable

Important Distinction: Homes Are Less Affordable, Not Unaffordable

It’s impossible to research the subject of buying a home without coming across a headline declaring that the fall in home affordability is a crisis. However, when we add context to the most recent affordability statistics, we soon realize that, though homes are less affordable than they have been over the last few years, they are more affordable than they historically have been.

Black Knight, a premier provider of data and analytics for the mortgage industry, just released their latest Monthly Mortgage Monitor which includes a new analysis of the affordability situation. Here’s what the report reveals:

“The monthly payment required to purchase the average priced home with a 20% down 30-year fixed rate mortgage increased by nearly 20% (+$210) over the first nine months of 2021, . . . It now requires 21.6% of the median household income to make the monthly mortgage payment on the average home purchase, the least affordable housing has been since 30-year rates rose to nearly 5% back in late 2018.”

Basically, the report shows that homes are less affordable today than at any other time in the last three years. However, in a previous report earlier this year, Black Knight calculated that the percentage of the median household income to make the monthly mortgage payment on the average home purchase over the last 25 years was 23.6% (see graph below):Important Distinction: Homes Are Less Affordable, Not Unaffordable | Simplifying The MarketToday’s payment-to-income ratio is more affordable than the average over the last 25 years. Given that context, we can see that American households still have the same ability to be homeowners as their parents did 20 years ago.

This confirms the recent analysis of ATTOM Data resources where Todd Teta, Chief Product and Technology Officer, explains:

“The typical median-priced home around the U.S. remains affordable to workers earning an average wage, despite prices that keep going through the roof. Super-low interests and rising pay continue to be the main reasons why.”

Bottom Line

It’s true that it’s less affordable to buy a home today than it has been the last few years. However, it’s more affordable to buy today than the average over the last 25 years. In other words, homes are less affordable, but they’re not unaffordable. That’s an important distinction.

Looking To Move? It Could Be Time To Build Your Dream Home.

Looking To Move? It Could Be Time To Build Your Dream Home.

Looking To Move? It Could Be Time To Build Your Dream Home.

While today’s supply of homes for sale is still low, the number of newly built homes is increasing. If you’re ready to sell but have held off because you weren’t sure you’d be able to find a home to move into, newly built homes and those under construction can provide the options you’ve been waiting for.

The latest Census data shows the inventory of new homes is increasing this year (see graph below):Looking To Move? It Could Be Time To Build Your Dream Home. | Simplifying The MarketWith more new homes coming to the market, this means you’ll have more options to choose from if you’re ready to buy. Of course, if you do consider a newly built home, you’ll want to keep timing in mind. The supply shown in the graph above includes homes at various stages of the construction process – some are near completion while others may be months away.

According to Robert Dietz, Chief Economist and Senior VP for Economics and Housing Policy for the National Association of Home Builders (NAHB):

28% of new home inventory consists of homes that have not started construction, compared to 21% a year ago.”

Buying a home near completion is great if you’re ready to move. Alternatively, a home that has yet to break ground might benefit you if you’re ready to sell and you aren’t on a strict timeline. You’ll have an even greater opportunity to design your future home to suit your needs. No matter what, your trusted real estate advisor can help you find a home that works for you.

Bottom Line

If you want to take advantage of today’s sellers’ market, but you’re not sure if you’ll be able to find a home to move into, consider a newly built home. Let’s connect today so you have a trusted real estate advisor to guide you through the sale of your house and discuss your homebuying options.

What Does the Future Hold for Home Prices?

What Does the Future Hold for Home Prices?

What Does the Future Hold for Home Prices?

If you’re looking to buy or sell a house, chances are you’ve heard talk about today’s rising home prices. And while this increase in home values is great news for sellers, you may be wondering what the future holds. Will prices continue to rise with time, or should you expect them to fall?

To answer that question, let’s first understand a few terms you may be hearing right now.

It’s important to note home prices have increased, or appreciated, for 114 straight months. To find out if that trend may continue, look to the experts. Pulsenomics surveyed over 100 economists, investment strategists, and housing market analysts asking for their five-year projections. In terms of what lies ahead, experts say the market may see some slight deceleration, but not depreciation.

Here’s the forecast for the next few years:What Does the Future Hold for Home Prices? | Simplifying The MarketAs the graph above shows, prices are expected to continue to rise, just not at the same pace we’ve seen over the last year. Over 100 experts agree, there is no expectation for price depreciation. As the arrows indicate, each number is an increase, which means prices will rise each year.

Bill McBride, author of the blog Calculated Risk, also expects deceleration, but not depreciation:

“My sense is the Case-Shiller National annual growth rate of 19.7% is probably close to a peak, and that year-over-year price increases will slow later this year.”

Ivy Zelman of Zelman & Associates agrees, saying:

“. . . home price appreciation is on the cusp of flipping to a decelerating trend.”

A recent article from realtor.com indicates you should expect:

“. . . annual price increases will slow to a more normal level, . . .”

What Does This Deceleration Mean for You?

What experts are projecting for the years ahead is more in line with the historical norm for appreciation. According to data from Black Knight, the average annual appreciation from 1995-2020 is 4.1%. As you can see from the chart above, the expert forecasts are closer to that pace, which means you should see appreciation at a level that’s aligned with a more normal year.

If you’re a buyer, don’t expect a sudden or drastic drop in home prices – experts say it won’t happen. Instead, think about your homeownership goals and consider purchasing a home before prices rise further.

If you’re a seller, the continued home price appreciation is good news for the value of your house. Work with an agent to list your house for the right price based on market conditions.

Bottom Line

Experts expect price deceleration, not price depreciation over the coming years. Let’s connect to talk through what’s happening in the housing market today, where things are headed, and what it means for you.

Sellers: Your House Could Be an Oasis for Buyers Seeking More Options

Sellers: Your House Could Be an Oasis for Buyers Seeking More Options

Sellers: Your House Could Be an Oasis for Buyers Seeking More Options

Sellers have a great opportunity this season as buyer demand still heavily outweighs the current supply of homes for sale. According to the National Association of Realtors (NAR), today’s housing inventory sits at only a 2.6-month supply. To put that into perspective, a neutral market typically features a 6-month supply. That places today’s market firmly in the sellers’ market category.

That same NAR data also shows today’s inventory of single-family homes is trailing behind the level we saw last year (see graph below):Sellers: Your House Could Be an Oasis for Buyers Seeking More Options | Simplifying The MarketBecause of the ongoing supply challenges, buyers can feel like they’re wandering across a vast, empty desert when searching for their next home. That means your house could provide an oasis for buyers thirsty for options – and it could increase the chances of buyers entering a bidding war for your home.

The latest Realtors Confidence Index Survey from NAR shows houses are receiving an average of 3.8 offers. A multiple-offer scenario lets you select the best offer and gives you incredible leverage when you sell this fall.

Bottom Line

Buyers today are looking for relief as they wander today’s inventory desert. Listing your house this fall – before more options appear – gives your house the best chance to be noticed by multiple buyers. Let’s connect today so your house can stand out as the oasis it truly is.

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