Hey! Welcome back to The Update. I can finally say it’s (sorta) starting to feel like spring; so hopefully I can move some of those sweaters back into the winter box. Of course, being Wisconsin everyone knows the moment you do it’ll drop 20 degrees again.. But I’m hopeful that won’t happen. I hope you’ve been doing okay and staying dry after that nasty storm yesterday. We have a lot to cover, so lets get to it!
Market Update
So, what does it all mean and what do rising interest rates have to do with what we’re currently seeing?
Well in terms of interest rates, they’re on the rise. According to local sources a 30 year mortgage is currently asking around a 5% interest rate; up almost half from the historic 2.5% interest rates from the start of the pandemic in 2020.
A report from the Milwaukee Business Journal also notes that sellers are putting their properties on the market earlier than expected as they’re trying not to miss the peak time to sell; while other sellers are already reducing prices but buyers are still feeling defeated. Why is that? Let’s break it down.
Sellers trying to sell while there’s still a peak- It’s always said to never try to ‘time’ the market, because you’ll never be right and that’s true. If you had asked me when the best time to sell would have been I would have told you Spring or Summer of last year. We still had record low interest rates, which allowed more buyers to be eligible to purchase a home. Now that’s not to say that the market has totally turned and sellers should not sell because that simply isn’t true. It’s still a sellers’ market, it’s just not screaming white hot like last year. Low supply of homes with a high demand of buyers is still making it a competitive market-you just won’t see homes selling for insane prices like they have the last 2 years. Which goes to the second point.
Buyers are feeling defeated- As if they haven’t been feeling this way for the last 3 years, its only gotten worse. The largest group within the American population, Millennials, are now finally entering into the home buying market. Most of us are now at our youngest our mid-late 20’s, with elder millennials well into a career, and possibly a family. These are now adults, not teenagers-who have the financial ability (sort of, lots of us are still in debt) to be able to purchase a home of our own.
However, because (most) Millennials are first time home buyers there’s not much for them to pull from; many don’t have equity in the another home to draw from, and many don’t have cash on hand to be able to beat a growing number the home buyers they’re competing against: cash investors, and older generations looking to downsize.
Now, raise the interest rate (and cost of living in general), and buyers that could once afford to live in the area they wanted are easily priced out and have three options-look in a different area, lower the price range they’re looking in, or keep renting and hope that the market turns.
For those who choose to keep looking those buyers are telling us, their Realtors®, “we need to lower our price, our lender wasn’t able to get us (rate) we had discussed months ago because of interest rates rising.” So we do. And what ends up happening is buyers offering less on properties- not because they’re trying to get a good deal, or low ball a seller, but because that’s all they can comfortably afford. And no one should be mortgage poor. Which leads to:
(Some) Sellers are starting to reduce their price- No one can time the market. Nobody. Homes that are priced to sell will sell, usually fairly quick. But for some sellers who wanted to get the most for their money but didn’t want to sell last year, are trying to this year.
Right now, comps do technically support what sellers may want to sell for. But most of those comps use properties that have sold within the last year, and don’t include current interest rates rising. Because of this, the home that was priced 20k over the others in the area (that would have gotten what they were asking for last year) is now considered overpriced. Buyers can’t offer that anymore. Offers drop in price, and the property sits on the market. Eventually, some sellers reduce until it sells. And again, this isn’t applicable to all sellers. Those who price to sell, do. Even looking at this months’ numbers. It’s still a strong market. Overall there are not many homes available without accepted offers right now. People are writing offers and going under contract. But we’ll have to wait and see to learn about what happens to the overall price of the home.
Gardening 101: Tips & Tricks to Get Started
If you’ve been watching the news, checking social media, or even going to get gas you know one thing is on the rise; inflation, and it sounds like it’s here to stay for a while. If you’re anything like me, you’ll be looking for a place to cut that bill somewhere. Maybe it’s cutting back on buying meat or switching to generics, using cruise control on your car to keep at a constant speed, switching to an energy saving smart thermostat (Like an Ecobee or Nest!) there’s plenty of ways to shrink your cost.
A great way to help reduce what’s being spent at the store is starting a garden! Helps cut cost and knowing exactly where your food is coming from. So, if you’ve been thinking about starting a veggie garden this year, he’s a curation of tips and tricks to help you get going.
Know your hardiness zone & when to plant to your veggies.
In order to get the most out of your garden it’s important to know when your first and last frost is. It’s also helpful to know what to plant and when to ensure that your plants are thriving. I recommend this website to learn more.
Plan your garden
What you put in your garden, and where you put it matters! On a piece of paper layout where you want all your vegetables to go. This also makes it easier when determining when to harvest & water them, as you’ll know exactly where they are!
Location matters!
Just like real estate, the location of your garden is key. Make sure it’s in a spot where you’ll see it (so it isn’t out of sight and out of mind) and in an area where it’s getting plenty of sun.
Feed and water your plants regularly.
Everyone knows to water their plants, but making sure they’re getting plenty of nutrients by feeding them too. Pick up some plant food, or if you want to go the extra step start making your own compost and use it!
Start Small
Start small and expand if needed! If it helps, try raised garden beds that will give you a clear boundary like these from Home Depot!
Consider an Aerogarden
Live in a city, apartment, or a place with a tiny backyard where a garden is basically impossible? Consider an aerogarden! These indoor planters come with lamps and water reservoirs (the fancy ones put it on a timed schedule) where you can plant seeds for some of your favorite fruits, veggies, or herbs!
Plant High-Yielding Veggies
Make the most for the money you spent! While you can certainly grow whatever you want (hey it’s your garden) consider planting vegetables with a high yield (like tomatoes, peas, onions, celery, etc.,) so you have more to harvest! Not sure what to do with them? Consider canning or freezing them.
Don’t overcrowd your garden
Of course, you want to make sure you have everything planted that you want; you’ll be using it. However, if you overcrowd your garden your veggies won’t have enough room to thrive and grow. Give em some space!
Keep a journal
This way you can track what does well in your garden and where. It’s good to keep record for next year!
Enjoy your garden!
Of course you may have started this garden with an idea to help save a few bucks; but it shouldn’t feel like a job or a chore. Enjoy your garden and the fruits (or veggies) of your endeavor!
Listing of The Month
924 Hagerer St Racine, Wisconsin 53402
Price: $79,900.00
Bedrooms: 4
Bathrooms: 1.5
Est. Square Feet: 2,235sqft
Taxes: $3,038.00 (as of 2021)
Water/Waste: Municipal Water, Municipal Sewer
Garage Space: 0
Basement: Full
Description: This large 4 bed, 1.5 bath property could be your next home or even an investment opportunity! Currently being used as a Non-Conforming duplex, upper has separate entrance, boasts large eat in kitchen, LR, and 2 BR's. Upper does not have a tub/shower/sink, solely a toilet room for the half bath. Room is large enough for a sink to be added! Lower features an eat in kitchen, DR, LR and 2 BR's. Lower has direct access to the full basement. Most windows updated in the last 10-15 yrs, new roof in 2014, new water heater in 2021. Home has 1 HVAC system, lower controls thermostat. Home is being sold ''AS-IS'' owner will not make any repairs. Inspections are for reference only. Also listed as Two Family property.
Learn more about this property here.