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Essex County April 2023 Housing Report

April 15, 2023 Kathleen Sullivan No Comments

Essex County March Housing Report 4/14/2023

The March Banking Crises has subsided and the lingering effect is reduced availability of commercial loans. Inflation continues to decline and the 30 year conforming mortgage rate per Mortgage News Daily, now 6.5%, will likely drift lower particularly if the Federal Reserve tempers its rate increases if we enter a mild recession later this year, likely the 3rd and 4th quarters.

Today’s Bottom Line for Singles and Condos:
Both units sales (+ 35.7%) and prices (+ 9%) surged from February to March as we entered the Spring Market and inventory remained tight. March Year Over Year prices rose +7.3% but units sales fell -9.4% from last year.

Multi-Families: Both units sales (-23.2%) and prices (-7.4%) fell Year Over Year. Prices also fell -1.5% from Feb to March but unit sales rose +10.3%.

 

 

Essex County March Housing Report 3/14/2023

March 14, 2023 Kathleen Sullivan No Comments

Between Friday, March 10 and Monday, March 13, the second and third largest US Bank failures occurred, #2 Silicon Valley Bank (SVB) and #3 Signature Bank, arising from the Fed’s rapid rise in interest rates which dramatically reduced the value of all banks long term investment bonds / notes. These bank failures resulted in a flight to safety by investors to US Treasuries and drove down their interest rates. The odd beneficiary was the 30 year fixed rate mortgage which fell from 7% on Friday to 6.57% on Monday. Rates rose Tuesday, March,14, to 6.75% as the banking crises eased ( Mortgagee rates per Mortgage News Daily).

Federal Reserve conundrum: Keep fighting inflation by increasing rates and possibly generating more bank failures or backing off on their rate increases for now. The Consumer Price Index today was up 0.5% in February and 6% for the year. The Federal Reserve’s goal of 2% inflation.

Today’s Bottom Line for Singles, Condos and Multies:

Units Sales and Active Listings continue to fall both year over year and month over month as mortgage rates rise. Prices softened from Jan to Feb.

 

Essex County Housing Report February 10, 2022

February 11, 2023 Kathleen Sullivan No Comments

Essex County February Housing Report 2/10/2023

As the Federal Reserve is trying to slow the economy, it was disappointed that the January Employment Report was much better than expected - 517,000 jobs added, twice the forecast, and the unemployment rate fell from 3.5% to 3.4%. The Federal Reserve increased the Federal Funds Rate by 0.25% to the 4.5% - 4.75% range and indicated it will continue to raise rates to slow inflation by slowing the economy. Wall Street thinks the Fed Funds Rate could rise to 6%. The conforming 30 year mortgage rate rose from 6% on Feb 2 to 6.5% today per Mortgage News Daily

Bottom Line for Singles and Condos:

Sales activity continues to slow as the Fed fights inflation by raising rates to slow demand.
January Year over Year Singles and Condos: Sold Prices fell -0.8%, Units Sales fell -33.7%, and the Number of Active Listings barely rose, +0.03%. Months of Inventory rose significantly as Unit Sales fell substantially even though Active Listings barely rose.

 

 

 

Top 6 Home Design Trends To Watch in 2023

February 9, 2023 Kathleen Sullivan No Comments

Top 6 Home Design Trends To Watch in 2023

Over the past few years, many of us have spent extra time at home—and that means we appreciate the personal design touches that make a house cozy and comfortable more than ever. Some of us have adapted our dwellings in new ways, from creating functional home offices to upgrading the appliances we use most.

But while it’s important to make your home your own, it’s also smart to think about the long-term impact your renovations could have on its value. Choosing highly-personalized fixtures and finishes can make it harder for future homebuyers to envision themselves in the space. Even if you don’t plan to sell your home soon, investing in popular design choices that are likely to stand the test of time will make things easier down the road.

And if you’re in the market for a new home, it’s wise to keep an eye out for features that might need to be updated soon so you can factor renovation costs into your budget.

We’ve rounded up six trends that we think will influence interior design in 2023, as well as ideas for how you might incorporate them in your own home. Remember, before taking action, it’s always wise to consult with a real estate professional to understand how specific updates and upgrades will affect your property’s value in your local market.

 

Separate Kitchen, Dining and Living Areas

For years, home design has been dominated by open-concept floor plans, particularly for kitchen, dining, and living areas. However, as the pandemic forced families to work and study from home, many struggled to find the privacy and separation they needed. As a result, designers report that more families are choosing to bring back kitchen and dining room walls to break up the space and create quieter areas.1

That doesn’t mean that we’re returning to an era of dark and cramped spaces, however. Even as walls make a return, it’s important to take care to retain a sense of flow and openness within the home and to prioritize natural light. 

If you’re buying or building a new home, consider how you will use the space and whether or not an open floor plan will suit your needs. If you already live in a home with an open floor plan and it isn’t working for you, try rearranging furniture and strategically placing pieces like bookshelves, room dividers, or rugs to create distinct areas within the home and reduce noise.

 
 
 

Nature-Inspired Design

In the past few years, we’ve seen the “biophilia” trend explode, and there are no signs that it will be any less popular in 2023.2 This trend is all about bringing the outside in by adding natural touches throughout your home. 

This year, design experts predict that natural, sustainable materials like bamboo, cork, and live-edge wood will lend character without being overwhelming. Wooden kitchen cabinets and islands will become more common in 2023, with white oak and walnut among the most popular choices.3,4 Wood will also appear in bathroom vanities and shelving and furniture throughout the home. 

Colors inspired by nature (think mossy greens and desert tones) will also play into this trend and will blend seamlessly with wood tones. We’re also seeing a return to natural stone countertop materials like quartzite, marble, dark leathered granite, and soapstone.4,5

If you’re planning to add new shelving or redo your kitchen, consider turning to these materials to embrace the biophilic look. Or, incorporate elements of the trend by choosing nature-inspired paint colors and adding to your houseplant collection.
 
 
 
 
 

Lighting as a Design Feature

Spending more time at home has shown us the importance of having the right lighting for specific tasks and times of the day. As a result, many homeowners are reconsidering the ways they light their homes and using light fixtures to change the usability and mood of their spaces.5

In particular, homeowners are rejecting bright, flat overhead lighting and replacing it with lamps and task-specific options. A layered approach to lighting—such as using a combination of under-cabinet, task, and ambient lighting in a kitchen—enables homeowners to tweak the level of light they’re using based on the time of day and what they are doing. 

In 2023, we expect to see more statement chandeliers, pendants, and wall sconces in a variety of shapes and materials.6 Thinking about switching up the lighting in your home? Start by adding floor or table lamps and swapping out fixtures before you invest in rewiring your space. Take note of what works and what doesn’t and watch how the light in your home changes throughout the day. You can then use that information to make lighting decisions that require a bigger investment. 

 
 
 

 

More Vibrant Color Palettes

After the long dominance of whites and grays, more vibrant colors are coming back as a way to add character and dimension to homes. 

This year, warm and earthy neutrals, jewel tones, and shades of red and pink are particularly popular.7,8 If your style tends toward the subtle, consider options like light, calming greens, blues, and pastels.

Major paint brands have responded to these homeowner preferences with their newest releases. Benjamin Moore’s 2023 color of the year, Raspberry Blush, is a lively shade of pinkish coral, while Sherwin William is embracing warm neutrals with Redend Point, a blushing beige.9,10 Behr’s choice of the year, Blank Canvas, is a creamy off-white that's a warmer version of the stark whites that have been trending over the past few years.11

If you’re planning to put your home on the market soon, it’s better to play on the safer side and avoid extremely bold or bright color choices when it comes to paint or fixed finishes like tile and countertops. Instead, try incorporating pops of color through throw pillows, art, and accessories.

 
 

 

Curved Furniture and Architectural Accents

 
Goodbye, sharp corners. In 2023, arches and curves lend a sleek feel that draws on classical design and retro trends while remaining modern.5,8 Rounded corners feel more relaxed and natural than sharp edges, lending more of a sense of flow and comfort to a home. 

If you want to incorporate the trend into your new build or remodeling plans, curved kitchen islands and bars and arched alcoves are all good options—or you can take it a step further with arched windows and doorways. You can also carry this trend through to your light fixtures by incorporating a bubble chandelier or globe pendants.

It’s easy to embrace this look without renovations, too. Look for a softer feel in furniture, with sofas, chairs, and tables that showcase curved edges. Or, break up your space with an arched folding screen and a circular rug.

 

 
 

Art Deco Revival

 
Art Deco, the architecture and design style that took hold in the 1920s and ’30s, is enjoying a resurgence.12

As a style, Art Deco is marked by bold geometry, textures, and colors, as well as an emphasis on art. But the 2023 interpretation of this style is likely to be a bit less splashy than its historical roots. Designers predict that instead of incorporating all of the elements of the style, which could feel overwhelming, homeowners will pick bursts of color or bold accessories to bring some whimsy to their space. 

Keep an eye out for vintage mirrors, lamps, or vases that bring a touch of Art Deco glam to your home, or embrace bold colors and fabrics like velvet. Choose pillows and throw blankets in bright colors and geometric patterns to nod to the look without diving in all the way. 

 

 
 

DESIGNED TO SELL

Are you thinking about remodeling or making significant design changes to your home? Wondering how those changes might impact your future resale value? 

Buyer preferences vary significantly based on your home’s neighborhood and price range. We’re happy to share our insights on the upgrades that will make it easier (or more difficult!) to sell your home. Give us a call for a free consultation!

The above references an opinion and is for informational purposes only.  It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs. 

Sources:

  1. US News and World Report - https://realestate.usnews.com/real-estate/slideshows/interior-design-trends-for-2023?slide=2
  2. Architectural Digest - 

https://www.architecturaldigest.com/story/design-trends-in-2023

  1. Insider - 

https://www.insider.com/popular-home-decor-trends-for-2023-according-to-experts-2022-

  1. Houzz - 

https://www.houzz.com/magazine/35-home-design-trends-on-the-rise-in-2023-stsetivw-vs~164032473

  1. The Spruce - 

https://www.thespruce.com/2023-design-trends-6743803

  1. The Spruce - 

https://www.thespruce.com/2023-lighting-trends-6891412

  1. The Spruce - 

https://www.thespruce.com/2023-color-trends-6751137

  1. Good Housekeeping - https://www.goodhousekeeping.com/home/decorating-ideas/g42084756/interior-design-trends-2023/
  2. Benjamin Moore -
    https://www.benjaminmoore.com/en-us/paint-colors/color/2008-30/raspberry-blush
  3. Sherwin Williams - 
    https://www.sherwin-williams.com/content/colorforecast/colormix-2023/color-of-the-year-2023
  4. Behr -
    https://www.behr.com/consumer/inspiration/2023-coty/
  5. The Spruce - 

https://www.thespruce.com/art-deco-trend-for-2023-7092174

 

Essex County Housing Report January 14, 2022

January 14, 2023 Kathleen Sullivan No Comments

Essex County Housing Report January 14, 2022

Inflation continues to slow, but remains well above the Federal Reserve’s target of 2%. Federal Reserve will continue its anti-inflationary policies. December CPI (Consumer Price Index) fell to 6.5% from 7.1% in November. Core Inflation, all items index less food and energy, was 5.7%

Mortgage Rates are trending down; Conforming 30 Year Fixed now 6.09%.

Bottom Line:

Housing, Single Families and Condos, sales activity continues to slow as the Fed fights inflation. December Year over Year: Sold Price increases slowed, +2.8%, Units Sales fell -32.5%, Active Listings fell -6.5%.

Month Over Month, December 2022 vs November 2022

  • Median Sold Prices:


    Single Families -10%; Condos -.01%; Multi-Families -3%

  • Unit Sales: â€¨

    Single Families -8.4%, Condos -24.2%, Multi-Families -5.7%

  • Active Listings:


    Single Families -30.1%, Condos -19.9%, Multi-Families -27.9%

  • Current Months of Inventory: â€¨

    Single Families 1.3, Condos 1.6, Multi-Families 2

    Year Over Year, December 2022 vs December 2021

Housing Market Forecast 2023

December 23, 2022 Kathleen Sullivan No Comments

What To Expect From the Housing Market in 2023


The 2022 housing market has been defined by two key things: inflation and rapidly rising mortgage rates. And in many ways, it's put the market into a reset position.

As the Federal Reserve (the Fed) made moves this year to try to lower inflation, mortgage rates more than doubled – something that’s never happened before in a calendar year. This had a cascading impact on buyer activity, the balance between supply and demand, and ultimately home prices. And as all those things changed, some buyers and sellers put their plans on hold and decided to wait until the market felt a bit more predictable.

But what does that mean for next year? What everyone really wants is more stability in the market in 2023. For that to happen we’ll need to see the Fed bring inflation down even more and keep it there. Here’s what housing market experts say we can expect next year.

What’s Ahead for Mortgage Rates in 2023?

Moving forward, experts agree it’s still going to be all about inflation. If inflation is high, mortgage rates will be as well. But if inflation continues to fall, mortgage rates will likely respond. While there may be early signs inflation is easing as we round out this year, we’re not out of the woods just yet. Inflation is still something to watch in 2023.

Right now, experts are factoring all of this into their mortgage rate forecasts for next year. And if we average those forecasts together, experts say we can expect rates to stabilize a bit more in 2023. Whether that’s between 5.5% and 6.5%, it’s hard for experts to say exactly where they’ll land. But based on the average of their projections, a more predictable rate is likely ahead (see chart below):

What To Expect from the Housing Market in 2023 | MyKCM

That means, we’ll start the year out about where we are right now. But we could see rates tick down if inflation continues to drop. As Greg McBride, Chief Financial Analyst at Bankrate, explains:

“. . . mortgage rates could pull back meaningfully next year if inflation pressures ease.”

In the meantime, expect some volatility as rates will likely fluctuate in the weeks ahead. If we see inflation come back under control, that would be good news for the housing market.

What Will Happen to Home Prices Next Year?

Homes prices will always be defined by supply and demand. The more buyers and fewer homes there are on the market, the more home prices will rise. And that’s exactly what we saw during the pandemic.

But this year, things changed. We’ve seen home prices moderate and housing supply grow as buyer demand pulled back due to higher mortgage rates. The level of moderation has varied by local area – with the biggest changes happening in overheated markets. But do experts think that will continue?

The graph below shows the latest home price forecasts for 2023. As the different colored bars indicate, some experts are saying home prices will appreciate next year, and others are saying home prices will come down. But again, if we take the average of all the forecasts (shown in green), we can get a feel for what 2023 may hold.

What To Expect from the Housing Market in 2023 | MyKCM

The truth is probably somewhere in the middle. That means nationally, we’ll likely see relatively flat or neutral appreciation in 2023. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:

“After a big boom over the past two years, there will essentially be no change nationally . . . Half of the country may experience small price gains, while the other half may see slight price declines.”

Bottom Line

The 2023 housing market is going to be defined by mortgage rates, and rates will be determined by what happens with inflation. The best way to keep a pulse on what experts are projecting for next year is to lean on a trusted real estate advisor. Let’s connect.

Essex County Housing Report December 14, 2022

December 15, 2022 Kathleen Sullivan No Comments

Essex County December Housing Report 12/14/2022

Inflation is slowing, but is way above the Federal Reserve’s target of 2%.  
November CPI (Consumer Price Index) fell to 7.1% from 7.7% in October.
November PPI (Producer Price Index) fell to 7.4% from 8.1% in October. PPI measures wholesale Prices
To fight inflation, the Federal Reserve continues to raise interest rates and sell off their Balance Sheet Assets to tighten credit (Quantitive Tightening).  
Federal Funds Rate increased +0.5% to 4.25% - 4.5% 
Mortgage Rates are trending down; Conforming 30 Year Fixed now 6.33%.

Bottom Line:
Housing Listing and Sales activity continues to moderate as the Fed fights inflation.
Year over Year price increases are slowing, +6.3%, Units Sales fell -26%, Active Listings fell -16%.  Months of Inventory rose +21% as Unit Sales fell more the Active Listings.  

Month Over Month, November 2022 vs October 2022

  • Median Sold Prices:
    Single Families +4.4%;  Condos -1.1%;  Multi-Families  -1.5%
  • Unit Sales:
    Single Families -4.2%, Condos +29.3%, Multi-Families +1.9%
  • Active Listings:
    Single Families -14.2%, Condos -6.3%, Multi-Families -10.6% 
  • Current Months of Inventory:
    Single Families 1.6, Condos 1.4, Multi-Families 2.4

Year Over Year, November 2022 vs November 2021

  • Median Sold Prices: 
    Single Families +6.6%; Condos +6.0%;  Multi-Families +2.2% 
  • Unit Sales:
    Single Families -23.1% , Condos -34.0%, Multi-Families -44.8%.
  • Active Listings:
    Single Families -4.3%; Condos -23.9%; Multi-Families -16.0% 
  • Change in Months of Inventory:
    Single Families +23.1%, Condos  16.7%, Multi-Families +50.0%.

    Terry Sullivan

Essex County Housing Report November 18, 2022

November 19, 2022 Kathleen Sullivan No Comments

Essex County November Housing Report 11/18/2022

Inflation shows signs of slowing, but is excessively high. October Consumer Price Index was 7.7% down from 8.2% in September and the Producer Price Index (wholesale Prices) was 8% down from 8.5% in September. October Core inflation (CPI less food and energy) was 6.3%, a long way from the Federal Reserves target of 2%. The Federal Reserve will continue to raise interest rates and shrink its balance sheet (Quantitative Tightening) to fight inflation.

Bottom Line:
Even though Active Listings Continue to fall, unit sales are dropping at a faster pace which is increasing Months of Inventory as buyers adjust to rising mortgage rates. Expect more softening in Unit Sales and Prices as the Federal Reserve continues to fight inflation.

           Month Over Month, October 2022 vs September 2022

  • Median Sold Prices:

    Single Families -5.7%; Condos +5.5%; Multi-Families -2.9%

  • Unit Sales: â€¨
    Single Families -19.1%, Condos -34.8%, Multi-Families -38.1%

  • Active Listings:

    Single Families -2.5%, Condos +0.7%, Multi-Families -9.7%

  • Current Months of Inventory: â€¨
    Single Families 1.7, Condos 1.9, Multi-Families 2.5

    Year Over Year, October 2022 vs October 2021

  • Median Sold Prices: â€¨
    Single Families +3.8%; Condos +19.9%; Multi-Families +3.0%

  • Unit Sales:

    Single Families -25.2% , Condos -32.7%, Multi-Families -48.5%.

  • Active Listings:

    Single Families -6.5%; Condos -32.4%; Multi-Families -26.6%

  • Change in Months of Inventory:

    Single Families +30.8%, Condos 0%, Multi-Families +38.9%.


    Terry Sullivan

 

Essex County Housing Report October 18, 2022

October 19, 2022 Kathleen Sullivan No Comments

Essex County September Housing Report 10/18/2022 

The Federal Reserve’s war on inflation is dampening real estate sales as the Fed continues to raise interest rates and reduce its purchase of Mortgage Backed Securities to fight inflation. After the last CPI Report which was a surprisingly high 8.2% inflation rate on 9/13/2022, the 30 year mortgage rate rose to 7.16% and the 10 year Treasury Notes rose to 4% on 9/14/2022.

Units Sales and Active Listings continue to fall and days on market are now rising in response to rising mortgage rates. Price increases are slowing.

Bottom Line:

Inventory will remain low as high mortgage rates deter home sellers with low mortgage rates from listing their homes. At the same time, buyers are resisting rising prices because of high mortgage rates / affordability. Hence, prices will continue to flatten or turn negative as sellers and buyers try to reach an equilibrium.

Month Over Month, September 2022 vs August 2022

  • Median Sold Prices:


    Single Families +1.5%; Condos +0.3%; Multi-Families +7.7%

  • Unit Sales: â€¨

    Single Families -10.2%, Condos +1.8%, Multi-Families -3.4%

  • Active Listings:


    Single Families -8.9%, Condos -14.8%, Multi-Families -15.2%

  • Current Months of Inventory: â€¨

    Single Families 1.3, Condos 1.2, Multi-Families 1.6.

    Year Over Year, September 2022 vs September 2021

  • Median Sold Prices: â€¨
    Single Families +10.0%; Condos +8.7%; Multi-Families +14.8%

  • Unit Sales:

    Single Families -8.8% , Condos -13.4%, Multi-Families -20.8%.

  • Active Listings:

    Single Families -10.4%; Condos -37.0%; Multi-Families -30.6%

  • Change in Months of Inventory:

    Single Families -7.1%, Condos -25.0%, Multi-Families -11.1%.


 

 

Should I Sell My House This Year?

September 22, 2022 Kathleen Sullivan No Comments

 

Should I Sell My House This Year?

There’s no denying the housing market is undergoing a shift this season as buyer demand slows and the number of homes for sale grows. But that shift actually gives you some unique benefits when you sell. Here’s a look at the key opportunities you have if you list your house this fall.

Opportunity #1: You Have More Options for Your Move

One of the biggest stories today is the growing supply of homes for sale. Housing inventoryhas been increasing since the start of the year, primarily because higher mortgage rates helped cool off the peak frenzy of buyer demand. But what you may not realize is, that actually could benefit you.

If you’re selling your house to make a move, it means you’ll have more options for your own home search. That gives you an even better chance to find a home that checks all of your boxes. So, if you’ve put off selling because you were worried about being able to find somewhere to go, know your options have improved.

Opportunity #2: The Number of Homes on the Market Is Still Low

Just remember, while data shows the number of homes for sale has increased this year, housing supply is still firmly in sellers’ market territory. To be in a balanced market where there are enough homes available to meet the pace of buyer demand, there would need to be a six months’ supply of homes. According to the latest report from the National Association of Realtors (NAR), in July, there was only a 3.3 months’ supply.

While you’ll have more options for your own home search, inventory is still low, and that means your home will still be in demand if you price it right. That’s why the most recent datafrom NAR also shows the average home sold in July still saw multiple offers and sold in as little as 14 days.

Opportunity #3: Your Equity Has Grown by Record Amounts

The home price appreciation the market saw over the past few years has likely given your equity (and your net worth) a considerable boost. Danielle Hale, Chief Economist at realtor.com, explains:

“Home owners trying to decide if now is the time to list their home for sale are still in a good position in many markets across the country as a decade of rising home prices gives them a substantial equity cushion . . .” 

If you’ve been holding off on selling because you’re worried about how rising prices will impact your next home search, rest assured your equity can help. It may be just what you need to cover a large portion (if not all) of the down payment on your next home.

Bottom Line

If you’re thinking about selling your house this season, let’s connect so you have the expert insights you need to make the best possible move today.

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