William Piotrowski’s Post

If you’ve been wanting to sell your house and move up to a bigger or nicer home, you’re not alone. A recent Inman survey reveals the top motivator for today’s homebuyers is the desire for more space or an upgraded home (see graph below): But there’s also a good chance you, like many other people, have been holding off on that goal because of recent market challenges. It makes sense – when you’re planning an upgrade that could increase your monthly housing costs, affordability has a huge impact on when you make your move. But there’s good news: now’s actually a great time to make that move happen. Here’s why. You Have a Lot of Equity To Leverage One of the key benefits in today’s market is the amount of equity you’ve likely built up in your current house over the years. Even with recent shifts in the housing market, national home prices have steadily grown, adding to the equity homeowners have today. Selma Hepp, Chief Economist at CoreLogic, explains it well: “Persistent home price growth has continued to fuel home equity gains for existing homeowners who now average about $315,000 in equity and almost $129,000 more than at the onset of the pandemic.” What does that mean for you? If you’ve been in your home for a few years, you’re probably sitting on a significant amount of equity. You can put that toward the down payment on your next home, helping keep the amount you borrow within a comfortable range. This can make upgrading more achievable than you might think. If you’re curious how much you’ve built up over the years, ask your real estate agent for a professional equity assessment. Mortgage Rates Have Fallen, Boosting Your Purchasing Power And there’s another big reason why now’s a great time to make your move: mortgage rates are trending down. Lower rates can help make your future monthly payments more manageable, and they also increase your purchasing power. As Nadia Evangelou, Senior Economist and Director of Real Estate Research at the National Association of Realtors (NAR), points out: “When mortgage rates fall, the interest portion of monthly payments decreases, which lowers the total payment. This makes it easier for more borrowers to . . . qualify for mortgages that may have been unaffordable at higher rates.” That gives you more flexibility when shopping for homes and may allow you to afford a house at a price point that was previously out of reach. A trusted lender can work with you to figure out the best plan for your budget. If you’re ready to sell your current home and find the bigger, nicer home you’ve been dreaming of, don’t wait. Your equity, paired with lower mortgage rates, puts you in a great position to make that move today. To make the best decisions and get the most out of your current market advantage, let’s connect so you have an expert guide through every step of the homebuying process.

If you’ve been wanting to sell your house and move up to a bigger or nicer home, you’re not alone. But there’s also a good chance you, like many other people, have been holding off on that goal because of recent market challenges. It makes sense – when you’re planning an upgrade that could increase your monthly housing costs, affordability has a huge impact on when you make your move. But there’s good news: now’s actually a great time to make that move happen. Here’s why.   You Have a Lot of Equity To Leverage One of the key benefits in today’s market is the amount of equity you’ve likely built up in your current house over the years. Even with recent shifts in the housing market, national home prices have steadily grown, adding to the equity homeowners have today. Selma Hepp, Chief Economist at CoreLogic, explains it well: “Persistent home price growth has continued to fuel home equity gains for existing homeowners who now average about $315,000 in equity and almost $129,000 more than at the onset of the pandemic.”   What does that mean for you? If you’ve been in your home for a few years, you’re probably sitting on a significant amount of equity. You can put that toward the down payment on your next home, helping keep the amount you borrow within a comfortable range. This can make upgrading more achievable than you might think. If you’re curious how much you’ve built up over the years, ask your real estate agent for a professional equity assessment.   Mortgage Rates Have Fallen, Boosting Your Purchasing Power And there’s another big reason why now’s a great time to make your move: mortgage rates are trending down. Lower rates can help make your future monthly payments more manageable, and they also increase your purchasing power. As Nadia Evangelou, Senior Economist and Director of Real Estate Research at the National Association of Realtors (NAR), points out: “When mortgage rates fall, the interest portion of monthly payments decreases, which lowers the total payment. This makes it easier for more borrowers to . . . qualify for mortgages that may have been unaffordable at higher rates.”   That gives you more flexibility when shopping for homes and may allow you to afford a house at a price point that was previously out of reach. A trusted lender can work with you to figure out the best plan for your budget.   Bottom Line If you’re ready to sell your current home and find the bigger, nicer home you’ve been dreaming of, don’t wait. Your equity, paired with lower mortgage rates, puts you in a great position to make that move today. To make the best decisions and get the most out of your current market advantage, let’s connect so you have an expert guide through every step of the homebuying process. #gosusanclark   

One of biggest the reasons I sell real estate is to help homeowners build personal and generational wealth. Surely, that’s one of the biggest reasons you bought a home. Buying a home plants the seed, equity is the result. I’ve had countless conversations over the past several years with homeowners that want to sell their home and move on yet feel stuck. This is a recurring theme regardless of what’s going on in any and every real estate market. Why then do sellers who wish to move on to the next stage of life stay where they’re at? The mortgage rates excuse? Perhaps. The ‘I don’t know where to go’ thought. Sure. The ‘homes are so expensive; I can’t afford to move’ thought. That’s a valid concern. Fear? Yes. But at what cost? What if there was a way to offset high borrowing costs and the money you feel you need you already have. The money you need probably already exists in the current amount of equity you have in your home. In simple terms, home equity is the difference between how much your home is worth and how much you owe on your mortgage. The equity you have depends on several factors. Your initial down payment at time of purchase, the amount of time you have owned your home, improvements you’ve made, and any line of credit taken out against the home. These all contribute to how much equity exists. The biggest equity factor is time. Like most investments, time and paying down your mortgage builds equity. While your equity grows as you pay down your loan over time, home prices climb. Due to incredible home value growth over the past several years, you may have a whole lot more equity than you realize. The latest from the Census and ATTOM shows more than two out of three homeowners have either completely paid off their mortgages or have more than 50% equity in their home. That’s a life changing amount of equity. Danielle Hale, Chief Economist for Realtor.com says: “A consideration today’s homeowners should review is what their home equity picture looks like. With the typical home listing price up 40% from just five years ago, many home sellers are sitting on a healthy equity cushion. This means they are likely to walk away from a home sale with proceeds that they can use to offset the amount of borrowing needed for their next home purchase.” Being an all-cash buyer or making a large down payment can help you get out of your rut and move on to what you genuinely want. The current mortgage balance on your home vs the current value of your home will give you a good idea of how much equity you have. To understand the current market value of your house, consult a professional realtor to give you an honest assessment. You can also pay for an independent appraisal. Once you look ahead and see what’s possible, you’re one step closer to making a move you may not have thought was realistic – but truly want. Thank your equity, it’s there to help you. Audrey Morguess 310.926.6337

Newly Built Homes Could Be a Game Changer This Spring: Buying a home this spring? You’re probably navigating today’s affordability challenges and dealing with the limited number of homes for sale. But, what if there was a solution that could help with both? If you’re having a hard time finding a home you love, and mortgage rates are putting pressure on your budget, it may be time to look at newly built homes. Here’s why. New Home Construction Is an Inventory Bright Spot When looking for a home, you can choose between existing homes (those that are already built and previously owned) and newly constructed ones. While the number of existing homes for sale has increased this year, there are still fewer available than there were in more typical years in the housing market, like back in 2018 or 2019. So, if you’re looking to expand your pool of options even more, turning to newly built homes can help. As Danielle Hale, Chief Economist at Realtor.com, explains:“The shortage of existing homes For Sale has opened up the possibility of new-home construction to more buyers who may not have once considered it.” And the good news is, there are more newly built homes to pick from right now. The graphs below use data from the Census to show how new home construction is ramping up in two key areas (see most recent spike in green): Starts, or homes where builders just broke ground, have seen a big increase lately. And completions, homes that builders just finished, are also up significantly. So, if you want a new, move-in ready home or you want to get in early and customize your build along the way, you have more options right now. Builders Are Offering Incentives To Help with Affordability And to sweeten the pot, builders are offering things like mortgage rate buy-downs and other perks for homebuyers right now. This can help offset today’s affordability challenges while also getting you into your dream home. Mark Fleming, Chief Economist at First American, explains why you may find builders have more wiggle room to offer more for you than the typical homeowner:“Builders aren't rate locked-in. They would love to sell you the home because they're not living in it. It costs money not to sell the home. And many of the public home builders have said in their earnings calls that they are not going to be pulling back on incentives, especially the mortgage rate buydown, so that will help the new-home market continue to perform well in the spring home-buying season.” An article from HousingWire also says this about what builders are offering right now: ". . . the use of sales incentives still shows some momentum as 60% of respondents reported using them, up from 58% in February. " Just remember, buying from a builder is different from buying from a home seller, so it’s important to partner with a local real estate agent. Builder contracts can be complex. A trusted agent will be your advocate…

The Lock-In Effect: Why Homeowners Are Staying Put Instead of Selling Many homeowners find themselves experiencing a peculiar dilemma: they want to sell, but they feel like they can't. It's called the lock-in effect, and it's like being stuck in a home-shaped trap—except this trap has a great interest rate and a low monthly payment. If you're one of those homeowners, you’re not alone. The lock-in effect is when homeowners feel reluctant to sell their current property because they’d lose the benefit of a low mortgage rate. For many, it's hard to justify buying a new home at a higher rate (and possibly a higher price) when they’ve got such a good deal on their current place. How Did We Get Here? Back in the good ol' days (a few years ago), interest rates were at historic lows, and homeowners locked in those sweet deals, 2-4% interest rates that made mortgage payments feel like a steal. Today, rates have risen significantly. If you're a homeowner with a sub-4% interest rate, selling and buying a new home with rates that are now higher can feel like a financial punch in the gut. Combine that with home prices that have climbed steadily, and the idea of selling and moving into something "better" just doesn’t seem as appealing. And that is the lock-in effect in action. How to Navigate the Lock-In Effect If you're on the fence about selling, here are some strategies to consider: Run the numbers: Sometimes the thought of higher rates is scarier than the actual financial impact. Talk to a mortgage professional (or me!) and get a clear picture of what a new mortgage would look like for you. You might be surprised that the gap isn’t as big as it seems. Consider alternative financing options: There are different types of mortgages and financing options that could help ease the transition into a new home, even in a higher interest rate environment. Focus on long-term gains: Remember, a real estate move isn’t just about the immediate costs. If your new home better fits your long-term needs, the emotional and financial benefits could far outweigh the fear of losing your low interest rate. Wrapping It Up The lock-in effect is real, and it’s affecting a lot of homeowners who feel stuck between the comforts of their current mortgage and the reality of today's market. But just because you’re locked in doesn’t mean you don’t have options. If you’ve been thinking about making a move, it might be time to evaluate what’s truly holding you back. A conversation with a real estate professional (yes, that’s me again!) can help clarify your goals and whether staying put or selling is the best move for you. After all, homes are meant to fit your life—not lock you in. Need help unlocking the potential in your home? Let's talk about your options.

Is It Better To Rent Than Buy a Home Right Now?: You may have seen reports in the news recently saying it’s more affordable to rent right now than it is to buy a home. And while that may be true in some markets if you just look at typical monthly payments, there’s one thing that the numbers aren’t factoring in: and that’s home equity. Here’s a look at how big of an impact equity can have and why it’s worth considering as you make your decision. What the Headlines Are Based on The graph below uses national data on the median rental payment from Realtor.com and median mortgage payment from the National Association of Realtors (NAR) to compare the two options. As the graph shows, especially if you’re not looking for a lot of space, it can be more affordable on a monthly basis to rent:   But if you’re looking for something with 2 bedrooms, the gap between the median rent and the median mortgage payment starts to shrink to a difference that may be more doable. The median monthly mortgage payment is $2,040. The median monthly rent for 2 bedrooms is $1,889. That’s a difference of about $151 a month. But here’s what happens when you factor in equity too. How Equity Changes the Game If you rent, your monthly rental payments only go toward covering your housing costs and your landlord’s expenses. So other than saving a bit more per month and maybe getting your rental deposit back when you move, the money you spent on housing each month is gone – forever. When you buy, your monthly mortgage payment pays for your shelter, but it also acts as an investment. That investment grows in the form of equity as you make your mortgage payment each month and chip away at what you owe on your home loan. Your equity gets an extra boost as home values climb – which they typically do. To give you a clearer idea of how equity can really stack up fast, here’s some data for you. Each quarter, Fannie Mae and Pulsenomics publish the results of the Home Price Expectations Survey (HPES). It asks more than 100 economists, real estate professionals, and investment and market strategists what they think will happen with home prices. In the latest release, those experts say home prices are going to keep going up over the next five years. Here's an example of how equity builds based on the projections from the HPES (see graph below): Imagine you purchased a home for $400,000 at the start of this year. Chances are, since you bought, you plan to stay put for a while. Based on the HPES projections, if you live there for 5 years, you could end up gaining over $83,000 in household wealth as your home grows in value. Here’s how that stacks up compared to renting, using the overall median rent from above:   While you may save a bit on your monthly payments if you rent right now, you’ll also miss out on gaining equity. So, what’s the big takeaway? Whether it makes more sense to rent or buy is going to vary based…

Exciting News for Future Homeowners! Hey everyone! Karolina Gabov here with Right at Home Realty, and I've got some fantastic updates on Ontario mortgage rates after a recent meeting with Kevin Aguiar from The Mortgage Group. Let's dive into it! Optimistic Outlook for Mortgage Rates Great news! Mortgage rates are projected to keep dropping beyond June 2025 and continue decreasing for another year and a half. The current variable rate is slightly higher than the fixed rate, which is unusual. Banks are encouraging people to lock in fixed rates now, expecting even lower rates in the future. Positive Signs for Interest Rates While predicting the future is tough, experts are optimistic. With inflation under control, rate cuts are likely on the horizon. The Bank of Canada (BoC) has lowered its policy rate to 3.75% from 5.0%, but we still haven't reached the "neutral zone." Analysts believe rates need to hit 2.50% to 3.00% to stop restricting demand and might go even lower to stimulate the economy. What to Expect Next With inflation back at 2%, analysts predict the BoC will cut rates by another 1.00% to 1.50% by Q4 2025, making it an ideal time to consider buying a home. Fixed vs. Variable Rates: A Win-Win Situation! Most Canadians prefer fixed mortgage rates. Fixed rates are based on Government of Canada (GoC) bond yields, not directly on the BoC's moves. Since GoC yields are influenced by U.S. Treasury rates—which have been rising—you might not see fixed rates drop as quickly as variable rates when the BoC cuts its policy rate. Historically, variable rates have always been lower than fixed rates, so this trend might balance out soon. The Housing Market: A Perfect Opportunity The housing market is cooling, with more listings than buyers waiting for lower rates. However, forecasts suggest home prices will climb by 4.4% by 2025. This makes it an ideal time to purchase a home. By buying now, even with a higher variable mortgage rate, you can lock in the rate whenever it reaches a comfortable low, building equity over time. Get ready to seize these fantastic opportunities and make your dream of homeownership a reality! Stay tuned for more updates and let’s embark on this exciting journey together! Contact me today for all your Real Estate Needs: Karolina Gabov with Right at Home Realty. Call 416-938-0934 or email karolina@propertyontario.ca PropertyOntario.ca Karolina Gabov For additional Mortgage information, Contact Kevin Aguiar with TMG The Mortgage Group . Call (416) 797-3635,or email mortgages@kevinaguiar.ca, www.kevinaguiar.ca #HomeBuyers #MortgageRates #HousingMarket #PositiveTrends #DreamHome #RealEstate #OntarioHousing #HomeInvestment #FixedRates #VariableRates #FirstTimeHomeBuyers #HomeBuyingTips #MortgageAdvice

Homeowners typically slow down their moving plans as the summer months wrap up, and as a result, fewer homes are listed for sale in the fall. It’s a predictable, seasonal trend in real estate. But this year, mortgage rates came down at the same time the number of homes on the market usually starts to decline. So, what happened? More homeowners decided to sell, so more homes came to the market. The most recent data from Realtor.com reveals that in September, the number of homes put up for sale increased by 11.6% compared to this time last year. As the green circle in the graph below shows, the typical September decline in homes coming to the market didn’t happen – that number actually went up (see graph below): a graph of a number of homesRalph McLaughlin, Senior Economist at Realtor.com, explains why there was an unseasonable rise: “This sharp increase is largely due to the decline in mortgage rates in mid-August, enticing homeowners to sell.” So, as rates came down at the end of the summer, more people jumped into the market and decided to make their move. What Does This Mean If You’re Looking To Buy a Home? It means more fresh options to choose from than you’ve had in a while – not the ones that have been sitting around, unsold. But keep in mind, mortgage rates have been volatile lately, ticking up slightly in recent weeks, which could limit the number of people who feel comfortable with the idea of selling in the months ahead. And in this market, it’s mortgage rates that are largely driving homeowner decisions. Why Buy Now, Rather Than Wait? Whether you're looking for a starter home, an upgrade, or hoping to downsize, you have more homes to choose from right now. And if you can find what you’re looking for, know that these new, fresh options won’t be on the market forever. So, staying on top of what’s available in your local area with a trusted agent is key. And remember, one month doesn’t make a trend. So, what does that mean going forward? Whether more homeowners than normal continue to put their houses on the market will largely depend on what happens with mortgage rates and the economic factors that impact them, like inflation, employment, and the reactions by the Federal Reserve. With that in mind, now might be your moment, while more homes are available – if you’re ready, willing, and able to buy this fall. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains: “The rise in inventory – and, more technically, the accompanying months’ supply – implies home buyers are in a much-improved position to find the right home and at more favorable prices.” Bottom Line As rates came down at the end of the summer, sellers started to trickle back into the market, which means buyers have more choices right now. Let’s connect to make sure you have a trusted advisor to help you navigate the new options before they’re all scooped up.

Homeowners typically slow down their moving plans as the summer months wrap up, and as a result, fewer homes are listed for sale in the fall. It’s a predictable, seasonal trend in real estate. But this year, mortgage rates came down at the same time the number of homes on the market usually starts to decline. So, what happened? More homeowners decided to sell, so more homes came to the market. The most recent data from Realtor.com reveals that in September, the number of homes put up for sale increased by 11.6% compared to this time last year. As the green circle in the graph below shows, the typical September decline in homes coming to the market didn’t happen – that number actually went up (see graph below): a graph of a number of homesRalph McLaughlin, Senior Economist at Realtor.com, explains why there was an unseasonable rise: “This sharp increase is largely due to the decline in mortgage rates in mid-August, enticing homeowners to sell.” So, as rates came down at the end of the summer, more people jumped into the market and decided to make their move. What Does This Mean If You’re Looking To Buy a Home? It means more fresh options to choose from than you’ve had in a while – not the ones that have been sitting around, unsold. But keep in mind, mortgage rates have been volatile lately, ticking up slightly in recent weeks, which could limit the number of people who feel comfortable with the idea of selling in the months ahead. And in this market, it’s mortgage rates that are largely driving homeowner decisions. Why Buy Now, Rather Than Wait? Whether you're looking for a starter home, an upgrade, or hoping to downsize, you have more homes to choose from right now. And if you can find what you’re looking for, know that these new, fresh options won’t be on the market forever. So, staying on top of what’s available in your local area with a trusted agent is key. And remember, one month doesn’t make a trend. So, what does that mean going forward? Whether more homeowners than normal continue to put their houses on the market will largely depend on what happens with mortgage rates and the economic factors that impact them, like inflation, employment, and the reactions by the Federal Reserve. With that in mind, now might be your moment, while more homes are available – if you’re ready, willing, and able to buy this fall. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains: “The rise in inventory – and, more technically, the accompanying months’ supply – implies home buyers are in a much-improved position to find the right home and at more favorable prices.” Bottom Line As rates came down at the end of the summer, sellers started to trickle back into the market, which means buyers have more choices right now. Let’s connect to make sure you have a trusted advisor to help you navigate the new options before they’re all scooped up.