Real Estate Market

Have Home Values Hit Bottom?

February 23, 2023 by khproperties Leave a Comment

Whether you’re already a homeowner or you’re looking to become one, the recent headlines about home prices may leave you with more questions than answers. News stories are talking about home prices falling, and that’s raising concerns about a repeat of what happened to prices in the crash in 2008.

One of the questions that’s on many minds, based on those headlines, is: how much will home prices decline? But what you may not realize is expert forecasters aren’t calling for a free fall in prices. In fact, if you look at the latest data, there’s a case to be made that the biggest portion of month-over-month price depreciation nationally may already be behind us – and even those numbers weren’t significant declines on the national level. Instead of how far will they drop, the question becomes: have home values hit bottom?

Let’s take a look at the latest data from several reputable industry sources (see chart below):

The chart above provides a look at the most recent reports from Case-Shiller, the Federal Housing Finance Agency (FHFA), Black Knight, and CoreLogic. It shows how, on a national scale, home values have changed month-over-month since January 2022. November and December numbers have yet to come out.

Let’s focus in on what the red numbers tell us. The red numbers are the change in home values over the last four months that have been published. And if we isolate the last four months, what the data shows is, in each case, home price depreciation peaked in August.

While that doesn’t guarantee home price depreciation has hit bottom, it confirms prices aren’t in a free fall, and it may be an early signal that the worst is already behind us. As the numbers for November and December are released, data will be able to further validate this national trend.

Confused About The Housing Market? Lean On Your Realtor

January 16, 2023 by khproperties Leave a Comment

If you’re thinking about buying or selling a home, you probably want to know what’s really happening with home prices, mortgage rates, housing supply, and more. That’s not an easy task considering how sensationalized headlines are today. Jay Thompson, a real estate industry consultant, explains:

“Housing market headlines are everywhere. Many are quite sensational, ending with exclamation points or predicting impending doom for the industry. Clickbait, the sensationalizing of headlines and content, has been an issue since the dawn of the internet, and housing news is not immune to it.”

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Unfortunately, when information in the media isn’t clear, it can generate a lot of fear and uncertainty in the market. As Jason Lewris, Cofounder and Chief Data Officer at Parcl, says:

“In the absence of trustworthy, up-to-date information, real estate decisions are increasingly being driven by fear, uncertainty, and doubt.”

But it doesn’t have to be that way. Buying or selling a home is a big decision, and it should be one you feel confident making. To help you separate fact from fiction and get the answers you need, lean on a local real estate advisor.

A trusted expert is your best resource to understand what’s happening at the national and local levels. They’ll be able to debunk the headlines using data you can trust. And using their in-depth knowledge of the industry, they’ll provide context so you know how current trends compare to the normal ebbs and flows in the industry, historical data and more.

Then, to make sure you have the full picture, they’ll tell you if your local area is following the national trend or if they’re seeing something different in your market. Together, you’ll use all of that information to make the best possible decision for you.

After all, making a move is a potentially life-changing milestone. It should be something you feel ready for and excited about. And that’s where an agent comes in.

What You Need To Know About Home Prices

December 24, 2022 by khproperties Leave a Comment

If you’re trying to decide whether or not to sell your house, recent headlines about home prices may be top of mind. And if those stories have you wondering what that means for your home’s value, here’s what you really need to know.

What’s Really Happening with Home Prices?

It’s possible you’ve seen news stories mentioning a drop in home values or home price depreciation, but it’s important to remember those headlines are designed to make a big impression in just a few words. But what headlines aren’t always great at is painting the full picture.

While home prices are down slightly month-over-month in some markets, it’s also true that home values are up nationally on a year-over-year basis. The graph below uses the latest data from S&P Case-Shiller to help tell the story of what’s actually happening in the housing market today:

As the graph shows, it’s true home price growth has moderated in recent months (shown in green) as buyer demand has pulled back in response to higher mortgage rates. This is what the headlines are drawing attention to today.

But what’s important to notice is the bigger, longer-term picture. While home price growth is moderating month-over-month, the percent of appreciation year-over-year is still well above the home price change we saw during more normal years in the market.

The bars for January 2019 through mid-2020 show home price appreciation around 3-4% a year was more typical (see bars for January 2019 through mid-2020). But even the latest data for this year shows prices have still climbed by roughly 10% over last year.

What Does This Mean for Your Home’s Equity?

While you may not be able to capitalize on the 20% appreciation we saw in early 2022, in most markets your home’s value, on average, is up 10% over last year – and a 10% gain is still dramatic compared to a more normal level of appreciation (3-4%).

The big takeaway? Don’t let the headlines get in the way of your plans to sell. Over the past two years alone, you’ve likely gained a substantial amount of equity in your home as home prices climbed. Even though home price moderation will vary by market moving forward, you can still use the boost your equity got to help power your move.

As Mark Fleming, Chief Economist at First American, says:

“Potential home sellers gained significant amounts of equity over the pandemic, so even as affordability-constrained buyer demand spurs price declines in some markets, potential sellers are unlikely to lose all that they have gained.”

If you have questions about home prices or how much equity you have in your current home, contact one of our agents and they will be happy to sit down with you and crunch the numbers.

The Holiday Rush – A Real Estate Tradition

November 28, 2018 by khproperties Leave a Comment

The “holiday rush” usually refers to the shopping madness that is known as Black Friday and the last minute crush of people hurrying and scurrying from store to store looking for those last few deals, picking up last minute valentine’s day gifts, and those of us who wait until the last minute for everything. Stores love it because it fills out their bottom line during the waning moments of the year. But in real estate it happens too and for the past few years we’ve seen it even more. There are several reasons why we see a rush to buy heading into the holidays and it keeps us busy and we love seeing it and hope the tradition continues. What creates the holiday rush in real estate? Let’s take a look at some of the factors.

Corporate Relocation

As corporations end their years they make big decisions. Corporate relocations happen all the time, but we see a lot at the end of the year as companies look to the year ahead and shift priorities and personnel. Because the decisions driving the moves are not personal, they can be made without the more emotional ties of things like the holidays or disrupting a school year (often deciding factors for people in their moves).

Tax Considerations

Some people have large tax considerations to take into account and need to offload property or spend cash to help with their taxes. Accountants will recommend different tactics depends on your particular situation, so refer to them for tax advice.

Bargain Shopping

Like shoppers on Black Friday, homebuyers love a good deal. While not a de facto truth, buyers often think that if a seller is on the market during the holidays, they are desperate to unload their property at rock bottom prices. There certainly are some sellers out there in that position, but our experience shows that this is more buyers putting their hopes into their own perception of the end of year. We do find that both buyers and sellers during the holiday season tend to be quite serious about buying/selling and are often quicker to pull the trigger once they find what they want.

New Year, New You

The coming new year provides a big opportunity for change. The familiar phrase “new year, new you” applies to housing as well. Who wouldn’t want to start a fresh new life with a change of setting too? You can start decorating, change your style, have plenty of new DIY projects, and reorganize everything – a new house is a chance to do it all over again and for some people, that’s a dream come true.

Join the Holiday Rush

If you do find yourself looking for a home or need to sell your house during the holidays, let us know. We’d love to help you make the transition, no matter what your reason for doing so. We specialize in making the transitions as easy on you as possible. Happy holidays and happy homeshopping!

image courtesy of B Rosen

Million Dollar Real Estate in and Around San Antonio

September 15, 2016 by khproperties Leave a Comment

What would you do if you won the lottery? Fancy cars? Diamonds? Real estate? If you live in and around San Antonio, there is certainly enough million dollar real estate to choose from (over 300 homes as we write this – and that doesn’t include million dollar condos or the often high priced farm and ranch categories). So we thought we’d take a look to see exactly what is out there and available in the million dollar price range. Our criteria is simple – single family homes that are priced at $1,000,000 or up. Some of the homes are quite spectacular – who wants one? We know we could find a few in this list that we would be more than happy to settle down in.

Million Dollar Real Estate

Below you’ll find a quick sampling of what a million dollars (or more) might get you. To see all of the homes priced at $1,000,000 or up, visit our million dollar homes list.