The sun is shining, flowers are blooming, and the spring housing market is heating up—right? Once the market cooled off at the end of 2022, real estate experts predicted the 2023 housing market to warm up in the spring months. However, as inventory remains low and mortgage rates rise, some fear another housing market crash.
Not to worry, The Angelo Group is here to tell you why that isn’t the case. Keep reading to learn why you shouldn’t fear the worst for the 2023 housing market.
Let’s look back at 2008.
1. Slipping Mortgage Standards
Looking back at the statistics in 2008, it’s easy to see that nearly anyone could get a mortgage for a home they couldn’t afford. Banks were creating artificial demand by granting loans with few restrictions. This led to many homeowners defaulting on their loans and ushering in a new wave of foreclosures. The economy took a huge hit from all these loans crumbling beneath faulty restrictions—and luckily, the mortgage industry has taken many steps to learn from their errors in the past.
2. Overflowing Inventory
Because of the banks’ artificial demand, homes were being built right and left for anyone who would buy them. Then, once the foreclosures hit the market, there were too many homes and insufficient demand—forcing national home prices to plummet at an alarming speed.
So, what’s the deal today?
1. Unsteady Interest Rates
Many experts predicted the mortgage rates to ease off at the end of 2022 and into early 2023, but the recent hikes in the market are starting to turn some heads. These increasing mortgage rates are still a direct result of increasing inflation.
The Feds are keeping a close eye on the rates as they continue to assess the nation’s inflation. So, it’s possible to see the rates yo-yo up and down throughout the beginning of the year as the Feds decide when to conclude the uptick in mortgage rates.
2. Sellers Are “Rate Locked
What do we mean by “rate locked”? A large portion of the nation’s homeowners are sitting on a mortgage rate of around 4% or lower, and they are hesitant to enter the market and swap their rate for the current percentage. This has contributed to another inventory shortage as we ease into the warmer months of the year.
How can this benefit you?
As we compare the current market trends to the housing bubble of 2008, it’s clear that we are tackling much different hurdles—and luckily, these seem to be temporary trials. Experts foresee the mortgage rates leveling out throughout the year as the market picks up in the spring and summer months.
And as for home prices, we are still experiencing a inventory shortage. As long as demand outweighs supply, you can expect your home to continue to appreciate, even if it’s at a slower pace than the last few years.
Buyers: We’re seeing an influx of buyers pull out of the market now that the interest rates are again peaking. However, hunting for a home without competition is a great opportunity. And with so many builders offering new-build incentives, now is a great time to sneak into the market while the waters are calm. Lisa Sturtevant, Chief Economist at Bright MLS, spells out the mindset of today’s buyers:
“For some buyers, higher mortgage rates will be a hurdle but ultimately will not keep them from getting back into the market after sitting on the sidelines for months.”
Sellers: You can expect the market to work in your favor whenever there’s an inventory shortage. With fewer people willing to sell, you will stand out to prospective buyers. Jeff Tucker, Senior Economist at Zillow, says:
“Sellers who price and market their home competitively shouldn’t have a problem finding a buyer.”
Overall, the increase in mortgage rates has caused some waves in the housing market, but we expect the market to settle into calmer waters as the year progresses. If you are looking to buy or sell your home in the coming months, it is always beneficial to work with an experienced agent to guide you through the ups and downs of the market. The Angelo Group is always happy to assist with your real estate needs.
Do you have financial goals but don’t know where to start? Setting a budget is the first step to financial success. However, many people will create a budget and fail to stick to the parameters they’ve put in place.
So much for a budget, right?
If managing money is not your forte, consider these five tips to keep you on track:
1. Budget as a Team
If your budget will affect more than one person, include them in the budgeting process. This keeps you and all involved parties on track to achieve the same financial goals. Make sure to set a dedicated time every month—or even quarterly if you’re a pro—to check in and reassess your spending habits.
2. Expect Monthly Differences
Let’s be honest, not every month in the year is created equal. To stay on top of your budgeting, try to predict when you will spend larger amounts due to certain life events. Do you have a month that’s a little birthday-heavy? Summer vacations? Don’t forget those new clothes and back-to-school supplies in August! You know your lifestyle better than anyone else, so try to predict the expenses and budget for them ahead of time.
3. Start with the Essentials
When deciding where to funnel your earnings, try to consider life’s top four essentials. Everyone requires food, shelter, utilities, and transportation. These four necessities in life should be prioritized when creating a budget. After these needs are met, then you can get creative about where to distribute the rest of your funds.
4. Don’t Set it and Forget It
Once you create a budget, it’s common for people to set it aside and let it collect dust. However, your budget should adapt to your lifestyle changes. Did you get a promotion? Congrats! You can now adjust your budget to reflect your new financial goals and lifestyle. Did you have an unexpected medical expense? You might need to reflect on your budget and see how to adjust and accommodate.
5. Online Budgeting Tools
Welcome to the 21st century! While we love a great Excel Sheet as much as the next person, there are helpful apps and software programs that can keep track of your budget for you. Take a look at apps such as Mint, EveryDollar, and Goodbudget to craft a budget in a pinch!
Setting a budget is the first step in a long road of financial possibilities. Believe in yourself and know you are capable of creating positive habits that will help you achieve success in the future.
If owning a home plays a part in your financial goals, The Angelo Group would be happy to assist you when the time comes. We believe real estate is an excellent investment and we’re here to help you achieve your financial and homeownership dreams.
You’ve just finished a mighty game of Tetris with the moving boxes, the family waves goodbye to a house once-called home, and you’ve all settled in for a long road (or plane) trip. It’s official! You’re moving out of state.
Moving can be stressful, but relocating from one state to another requires quite a leap of faith. First came packing, then came the journey to your new community—but surprise! Because you switched to a different state, a few things might have slipped your mind.
No need to worry! The Angelo Group is here with 8 things to add to your to-do list when moving out of state:
1. Visit Your Future Destination
It’s always a good idea to get the lay of the land when it comes to your future home. Drive the neighborhood streets and map out the closest schools, parks, grocery stores, and gas stations. These are important features of everyday life, and having a better understanding of your future surroundings will offer an easier transition.
2. Change Your Billing Address
Don’t forget to switch all your bills to the proper address. Not sure where to start? Here are some examples to remember:
Utilities. Gas, water, electricity, and even garbage pickup! Most of the companies that offer these services vary by state. Tip: Ask your real estate agent for a list of recommended vendors.
Credit Cards. Most people opt for online billing payments, but if you’re one of the few who prefer paper statements, don’t forget to update your address for your credit cards.
Insurance. Moving across state lines could be a good opportunity to start shopping for local rates. If you’re looking for a new insurance source, now could be a good time to switch for a more competitive price.
3. Voter Registration
It’s easy to forget about this item on a to-do list, so don’t put it off until it’s too late! A new state means a whole new pool of political candidates.
4. Pet Registration
Yes, pets need to be registered with the state. Each city varies when it comes to how many furry friends (and which types) you can include in your humble abode, so make sure that you are registered and up to date.
5. Forward Your Mail
Don’t let your favorite magazine subscriptions and family Christmas cards get lost in the mail! Make sure to set up a mail forward with the post office before moving away. USPS will forward your mail to your new address for up to a year.
6. Look for New Wi-Fi & Cable Companies
Are you all about Xfinity? Maybe Google Fiber? Look at what your future neighborhood provides and get your home up. Trust us, people will be asking for your Wi-Fi password the minute those neighbors come over for a backyard BBQ.
7. New Driver’s License
Each state’s deadline varies when it comes to switching over your driver’s license. Research what your new state’s requirements are before you officially relocate.
8. New Driver’s License
The boxes are in, the dust has settled—it’s time to get out and meet some people! Introduce yourself to your neighbors or sign-up for the local gym or rec club. One of the easiest ways to meet people is through a mutual activity or hobby. Moving from place to place is exactly what you make of it—so it’s up to you if you choose to plant roots where you’re at or transplant to the next best location. Either way, you got this!
Entering a new year can be overwhelming. Just like an artist’s empty canvas or a writer’s blank sheet of paper, it’s hard to know where to begin. But remember, starting fresh also offers an abundance of opportunities. Now is the time to take your year by the horns and steer it in the right direction.
Don’t know where to begin? The following 3 steps are a great place to start:
Step 1: Setting Intentions
Setting your intentions at the beginning of the year is like making a map. Without them, how will you know where you’re going? Or, more importantly, how will you know when you get there? It’s hard to find the “X” that marks the spot if you don’t know what you’re looking for.
Okay, pirate lingo aside, it’s important to lock down your annual goals at the beginning of the year. These intentions will help you stay on track whenever you’re feeling lost.
TIP: Write them down in a planner, Word document, or even in the notes app on your phone. Ensure your intentions are documented so you can always refer to them.
Step 2: Creating SMART Goals
Do you have your intentions in mind? Great! Now, let’s dig a little deeper.
We want to turn these intentions into SMART goals. This is an acronym meaning goals that are specific, measurable, achievable, realistic, and timely. Adding these parameters will clarify your objectives and help you achieve your desired future.
Specific and measurable goals help you narrow your intentions and track your progress (that way, you know whether you’ve reached your milestones.) Next, be sure to set goals that are achievable and realistic. Nothing is more discouraging than setting a goal you secretly know you won’t achieve. And lastly, make sure you can reach these objectives within the year.
Now your 2023 is REALLY starting to take shape!
Step 3: Creating SMART Goals
While we believe in the power of setting future goals, that may not be for everybody. Instead, consider a word for the year.
Think about your intentions for the year and narrow them down to a single word or phrase. No need for something fancy. How about—inspire? Or maybe reset? Choose something that you would consider meaningful for your year to come. The book One Word That Will Change Your Lifeby Jimmy Page & Dan Britton covers this idea in detail, so consider giving it a read as you establish your word for the year!
Have we turned you into a goal-getter yet?
Don’t forget that setting real estate goals is an important part of planning your year. If your real estate goals for 2023 involve buying, selling, or investing in a home, please text or call us at 602-616-1455 or send an email to email@example.com.
The Angelo Group is celebrating our 20th Anniversary in real estate! Over the last two decades, we’ve had the distinct privilege of serving so many amazing folks across the Valley. We want to express a HUGE THANK YOU to all our clients and business partners who’ve supported us along the way. We wouldn’t be here without you, and we hope to continue to be of service to you!
The kids are back to school, and we are back to our daily routines in the Phoenix Valley. The Angelo Group discusses the current state of the Phoenix real estate market and what to expect in the last quarter of 2022.