More Americans Choose Real Estate as the Best Investment Than Ever Before

    Americans’ opinion on the value of real estate as an investment is climbing. That’s according to an annual survey from Gallup. Not only is real estate viewed as the best investment for the ninth year in a row, but more Americans selected it than ever before. The graph below shows the results of the survey since Gallup began asking the question in 2011. As the trend lines indicate, real estate has been gaining ground as the clear favorite for almost a decade now:   If you’re thinking about purchasing a home, let this poll reassure you. Even when inflation is high like today, Americans recognize owning a home is a powerful financial decision. How an Investment in Real Estate Can Benefit You During High Inflation Because inflation reached its highest level in 40 years recently, it’s more important than ever to understand the financial benefits of homeownership. Rising inflation means prices are increasing across the board, and that includes goods, services, housing costs, and more. When you purchase your home, you lock in your monthly housing payments, effectively shielding yourself from increases on one of your biggest budgetary items each month. If you’re a renter, you don’t have that same benefit, and you aren’t protected from these increases, especially as rents rise. As Danielle Hale, Chief Economist at realtor.com, notes: “Rising rents, which continue to climb at double-digit pace . . . and the prospect of locking in a monthly housing cost in a market with widespread inflation are motivating today’s first-time homebuyers.” When Inflation Has Risen in the Past, Home Prices Have Too Your house is also an asset that typically increases in value over time, even during inflation. That‘s because as prices rise, the value of your home does too. Mark Cussen, Financial Writer for Investopedia, puts it like this: “There are many advantages to investing in real estate. . . . It often acts as a good inflation hedge since there will always be a demand for homes, regardless of the economic climate, and because as inflation rises, so do property values. . . .” And since rising home values help increase your equity, and by extension your net worth, homeownership is historically a good hedge against inflation. Bottom Line Buying a home is a powerful decision. It’s no wonder why so many people view it as the best long-term investment, even when inflation is high. When you buy, you help shield yourself from increases in your housing costs and you own an asset that typically gains value with time. If you want to better understand how buying a home could be a great investment for you, let’s connect today.

View more

What Does the Rest of the Year Hold for the Housing Market?

    If you’re thinking of buying or selling a house, you’re at an exciting decision point. And anytime you make a big decision like that, one thing you should always consider is timing. So, what does the rest of the year hold for the housing market? Here’s what experts have to say.   The Number of Homes Available for Sale Is Likely To Grow There are early signs housing inventory is starting to grow and experts say that should continue in the months ahead. According to Danielle Hale, Chief Economist at realtor.com: “The gap between this year’s homes for sale and last year’s is one-fifth the size that it was at the beginning of the year. The catch up is likely to continue, . . . This growth will mean more options for shoppers than they’ve had in a while, even though inventory continues to lag pre-pandemic normal.” As a buyer, having more options is welcome news. Just remember, housing supply is still low, so be ready to act fast and put in your best offer up front. As a seller, your house may soon face more competition when other sellers list their homes. But the good news is, if you’re also buying your next home, having more options to choose from should make that move-up process easier.   Mortgage Rates Will Likely Continue To Respond to Inflationary Pressures Experts also agree inflation should continue to drive up mortgage rates, albeit more moderately. Odeta Kushi, Deputy Chief Economist at First American, says: “… ongoing inflationary pressure remains likely to push mortgage rates even higher in the months to come.”   As a buyer, work with trusted real estate professionals, including your lender, so you can learn how rising mortgage rate environments impact your purchasing power. It may make sense to buy now before it costs more to do so, if you’re ready. As a seller, rising mortgage rates are motivating some homeowners to make a move up sooner rather than later. If you’re planning to buy your next home, talk to a trusted real estate advisor to decide how to time your move   Home Prices Are Projected To Continue To Climb Home prices are forecast to keep appreciating because there are still fewer homes for sale than there are buyers in the market. That said, experts agree the pace of that appreciation should moderate – but home prices won’t fall. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains: “Prices throughout the country have surged for the better part of two years, including in the first quarter of 2022. . . Given the extremely low inventory, we're unlikely to see price declines, but appreciation should slow in the coming months.”  As a buyer, continued home price appreciation means it’ll cost you more to buy the longer you wait. But it also gives you peace of mind that, once you do buy a home, it will likely grow in value. That makes it historically a good investment and a strong hedge against inflation. As a seller, price appreciation is great news for the value of your home. Again, lean on a professional to strike the right balance of the best conditions possible for both selling your house and buying your next one. Bottom Line Whether you’re a homebuyer or seller, you need to know what’s happening in the housing market, so you can make the most informed decision possible. Schedule a time to speak with our team to discuss your goals and what lies ahead, so you can pick your best time to make a move.

View more

Consider This When Choosing The Location Of Your Next Home

I'm sure you've heard it before, but it doesn't hurt to say again.  When it comes to real estate, location matters.    Location can impact the convenience of getting around, how connected you feel to your friends/family, and your overall experience in the home.    But what goes into finding the perfect location for your next property?   The main factor that will impact your home's location is distance–precisely the distance from necessities, amenities, and safety services.  Necessities At Savant Realty Group, we define necessities as the locations an individual needs to build their physical, financial, spiritual, and mental strength. These are facilities you must consider when purchasing/renting a home.   Having these locations close to your home makes it easier for you to be present and build a sense of community.    Common Necessities: Work School Grocery Stores Preferred Medical Centers Preferred Religious Centers    Amenities  Having these types of locations nearby makes a day/night out easier. These are not mandatory to have close by, but it would be a significant perk.    It also means that the area is favored, and the property value is high, which you can benefit from depending on when you purchase your home.    Common Amenities: Rec Centers Gyms Restaurants  Retail Stores Parks Safety Services These are facilities that provide aid in an emergency.   Being mindful of how far these establishments are from the homes you are considering would be wise if they are ever needed.      Safety Services: Neighborhood Security Fire Station Police Station Hospitals/ Emergency Rooms   Investors  Our Savants advise that you have particular types of tenants in mind before buying a property as an investment.    Once you define the tenants' preferred area, use the advice above as a cheat sheet to determine the kind of property you should invest in.    Unless you plan to employ property managers, you want to get a property that you can readily drive by and check on if necessary.    Whether it's on your way to your day job or close by a place you frequent, you want to make sure it's in an accessible location in case your tenants ever need you.    Conclusion Regardless of whether you are buying or leasing, you want to be aware of the location of your home and how far it is from necessities, amenities, and safety services.   Having these facilities near you will impact how much you enjoy your time in your new home.    If you have questions, need advice, or need resources regarding your real estate journey, book a time to speak with us. Our Savants will be here to guide you every step of the way.   

View more