To Sell or Upgrade Your Home?

Continued Low Home Inventory and Recent Refinance Boom Could be the Right Mix for Staying in Place and Making the Home Improvements You Need or Always Wanted

You can’t check social media, turn on the TV or read the paper without hearing news and commentary about tight real estate markets, rising interest rates and inflation. If you’ve been thinking about moving over the past year, your plans may have been delayed or changed focus. In this market environment, now could be a good time to make some changes or upgrades to your home.

Recent insights into the local real estate market.

Millennials make up about 40% of current buyers and as rents have escalated, home buying remains a priority for this group. In addition, other homeowners with increasing equity may have refinanced and lessened their payments and/or created additional cash flows. In each case, moving or renovating your home can be a good decision.

Let’s look a bit deeper.

Locally the supply of homes for sale is limited and this has caused price increases of about 16% versus one year ago according to experts. In Montgomery County, the Greater Capital Area Association of Realtors reported that listings are up 7% since March but remain down by 14% year over year. The median sale price is $587,000, up almost 10% from last year. Howard County statistics are similar. Home inventory is down by 20% this year over last year and prices are up about 3%. All that said, most houses sell within days. The market is challenging for many homebuyers yet still accessible to most looking to buy in this area says Clare Tock, RLAH realtor.

In addition to the low supply of homes on the market, the rise in interest rates is making homeownership more expensive. Mortgage rates have increased 2% from January to May of this year and most pros expect rates to increase. However, the low-interest rates during the previous few years led to mass refinance thus giving homeowners increased home equity, lower monthly payments, and cash-out payments.

Spending more time at home during COVID and additional available cash has led to an increase in home renovation and upgrades over the past two years.  After sheltering in place, most folks are ready to make a change.

To Sell or Upgrade Your Home?

For both new home buyers and current homeowners, equity is critical. Both loving your home and having a sound investment is critical. What factors into home value? Community, local economy, schools, and the appeal of the home. Both Tock and Jack Marr, President of Marr Construction, agree that increased square footage, upgraded kitchens and bathrooms, high-efficiency features and curb appeal are value adds that build equity.

According to Tock, homebuyer preferences have changed since the pandemic. Home office and outdoor spaces are coveted for millennials. For those closer to retirement, main level living including bedroom, bathroom and laundry are necessary conveniences.

Marr Construction could not agree more. Since 2020, Marr Construction has built additions, sunrooms, screen porches, and patios at record numbers, in addition to refinishing basements, upgrading kitchens and baths, and opening floor plans. See photos below.

Thinking about upgrades at home? Recent trends we see include:

• Creation of multi-use spaces that are flexible and functional. Think of a four-season sunroom that can be used as an office, dining, family room, and entertaining space. Or, homeowners are finishing their basement to include a living area, workout space, game area, bedroom, and bathroom.
• Renovations that incorporate a permanent home office now that virtual work is here to stay.
• A focus on outdoor spaces. This includes creating living spaces for entertaining, cooking, and relaxing with privacy. These upgrades are both enjoyable and equity building. The possibilities are endless!
• Construction plans that include the maximum use of natural lighting. For example, Marr Construction recently renovated a kitchen to include a full wall of windows overlooking a beautiful backyard. This brought the outdoors in to compliment a modern, sophisticated space. In addition, open floor plans take advantage of natural light while creating a welcoming multi-use space with an easy traffic flow.
• Kitchen designs that create a comfortable family hub. Kitchen islands with seating and open floor plans achieve this result.
• Kitchen and bathrooms that make the most of counter space and storage. If you have not looked at cabinetry recently you’ll be pleased to see innovations that really work for homeowners.
• Large-scale renovation planning vs spaced-out projects. Tackling more than one project at a time minimizes the inconveniences of home renovation and allows you to enjoy your home! This spring, Marr Constructed completed a sunroom addition, kitchen renovation, and deck construction for a Potomac homeowner. Photos coming soon!

If you love your current home or community, you may be surprised about the options to transform your home. Take a look at our recent projects at www.marrconstruction.com and give us a call at 301.254.4694. Now is a good time to plan for a future project!

Questions about the value of your home or selling? Contact Clare Tock, Realtor, Tamara Kucik Team, RLAH, 301.642.4364, email, https://www.tamara4homes.com/