THE POWER OF PRE-APPROVAL

If you’re buying a home this spring, today’s housing market can feel like a challenge. With so few homes on the market right now, plus higher mortgage rates, it’s essential to have a firm grasp on your homebuying budget. You’ll also need a sense of determination to find the right house and act quickly when you go to put in an offer. One thing you can do to help you prepare is to get pre-approved.

To understand why it’s such an important step, you need to know what pre-approval is. As part of the process, a lender looks at your finances to determine what they’d be willing to loan you. From there, your lender will give you a pre-approval letter to help you understand how much money you can borrow.

Freddie Mac explains it like this:

“A pre-approval is an indication from your lender that they are willing to lend you a certain amount of money to buy your future home. . . . Keep in mind that the loan amount in the pre-approval letter is the lender’s maximum offer. Ultimately, you should only borrow an amount you are comfortable repaying.”

Basically, pre-approval gives you critical information about the homebuying process that’ll help you understand how much you may be able to borrow so you have a stronger grasp of your options. And with higher mortgage rates impacting affordability for many buyers today, a solid understanding of your numbers is even more important.

Pre-Approval Helps Show You’re a Serious Buyer

That’s not the only thing pre-approval can do. Another added benefit is it can help a seller feel more confident in your offer because it shows you’re serious about buying their house. And, with sellers seeing a slight increase in the number of offers again this spring, making a strong offer when you find the perfect house is key.

As a recent article from the Wall Street Journal (WSJ) says:

“If you plan to use a mortgage for your home purchase, preapproval should be among the first steps in your search process. Not only can getting preapproved help you zero in on the right price range, but it can give you a leg up on other buyers, too.”

Bottom Line

Getting pre-approved is an important first step when you’re buying a home. It lets you know what you can borrow for your loan and shows sellers you’re serious. Connect with the Rural KC Team-Keller Williams Partners and a trusted lender so you have the tools you need to purchase a home in today’s market.  If you need help finding a lender, please go to Ruralkc.com and click on "Resources" and choose "Business Directory".  We have several great lenders to choose from.  

THE BIG ADVANTAGE IF YOU SELL THIS SPRING

 

Thinking about selling your house? If you’ve been waiting for the right time, it could be now while the supply of homes for sale is so low. HousingWire shares:

“. . . the big question is whether we are finally starting to see the seasonal spring increase in inventory. The answer is no, because active listings fell to a new low last week for 2023 . . .”

The National Association of Realtors (NAR) confirms today’s housing inventory is low by looking at the months’ supply of homes on the market. In a balanced market, about a six-month supply is needed. Anything lower is a sellers’ market. And today, the number is much lower:

“Total housing inventory registered at the end of February was 980,000 units, identical to January and up 15.3% from one year ago (850,000). Unsold inventory sits at a 2.6-month supply at the current sales pace, down 10.3% from January but up from 1.7 months in February 2022.”

Why Does Low Inventory Make It a Good Time To Sell?

The less inventory there is on the market when you sell, the less competition you’re likely to face from other sellers. That means your house will get more attention from the buyers looking for a home this spring. And since there are significantly more buyers in the market than there are homes for sale, you could even receive more than one offer on your house. Multiple offers are on the rise again (see graph below):  

If you get more than one offer on your house, it becomes a bidding war between buyers – and that means you have greater leverage to sell on your terms. But if you want to maximize the opportunity for a bidding war to spark, be sure to lean on your expert real estate advisor. While we’re still in a strong sellers’ market, it isn’t the frenzy we saw a couple of years ago, and today’s buyers are focused on the houses with the greatest appeal. Clare Trapasso, Executive News Editor at Realtor.com, explains:

“Well-priced, move-in ready homes with curb appeal in desirable areas are still receiving multiple offers and selling for over the asking price in many parts of the country. So, this spring, it’s especially important for sellers to make their homes as attractive as possible to appeal to as many buyers as possible.”

Bottom Line

If you’ve been waiting for the right time to sell your house, low inventory this spring sets you up with a big advantage. Reach out to the Rural KC Team-Keller Williams Partners today to make sure your house is ready to sell. 

HOMEBUYER ACTIVITY SHOWS SIGNS OF WARMING UP FOR SPRING

The spring season appears to be warming up in housing as more and more buyers enter the market. And after rising mortgage rates sidelined so many buyers last year, that’s a good sign for sellers. Realtor.com has the latest:

“Spring is officially here, and like green shoots emerging from the bleak winter, new data suggests that more buyers are back in the market, although more subdued compared to a year ago.”

We know buyer activity is trending up because of mortgage purchase application data. According to Investopedia:

“A mortgage application is a document submitted to a lender when you apply for a mortgage to purchase real estate.”

 

That means the number of mortgage applications shows how many buyers are applying for mortgages. Put another way, an increase in mortgage applications means an increase in buyer demand – and as Joel Kan, VP and Deputy Chief Economist at the Mortgage Bankers Association (MBA), explains, application activity started ramping up as mortgage rates fell steadily in March:

“Application activity increased as mortgage rates declined . . . recent increases, along with data from other sources showing an uptick in home sales, is a welcome development.”

In fact, we can see how mortgage rates have a direct impact on applications over time. As rates rose dramatically last year, applications fell in response (see graph below):

 

The recent uptick in mortgage applications, as well as the decline in mortgage rates, is good news for sellers because it means more buyers are actively looking for homes.

What This Means for You

Buyers are coming this spring, which is typically the busiest time of the year in real estate. And as Realtor.com tells us, if you’re a seller, you need to prepare:

“If homeowners are planning to sell in 2023, now is the time to get ready.”

The means working with a local real estate agent to maximize your home’s appeal and get it listed at the ideal price for your area.

Bottom Line

The housing market is warming up for spring. If you’re thinking about selling your house and taking advantage of this recent uptick in buyer activity, partner with the Rural KC Team-Keller Williams Partners.  We can and would love to help you.

TRYING TO BUY A HOUSE? HANG IN THERE!

 

We’re still in a sellers’ market. And if you’re looking to buy a home, that means you’re likely facing some unique challenges, like difficulty finding a home and volatile mortgage rates. But keep in mind, there are some benefits to being a buyer in today’s market that give you good reason to stick with your search. Here are a few of them.

Long-Term Benefits Outweigh Short-Term Challenges

Owning a home grows your net worth – and since building that wealth takes time, it makes sense to start as soon as you can. If you wait to buy and keep renting, you’ll miss out on those monthly housing payments going toward your home equity. Freddie Mac puts it this way:

“Homeownership not only builds a sense of pride and accomplishment, but it’s also an important step toward achieving long-term financial stability.”

The key there is long-term because the financial benefits homeownership provides, like home value appreciation and equity, grow over time. Those benefits are worth the short-term challenges today’s sellers’ market presents.

Mortgage Rates Are Constantly Changing

Mortgage rates have been hovering around 6.5% over the last several months. However, as Sam Khater, Chief Economist at Freddie Mac, notes, they’ve been coming down some recently:

“Economic uncertainty continues to bring mortgage rates down. Over the last several weeks, declining rates have brought borrowers back to the market . . .”

Lower mortgage rates improve your purchasing power when you buy, and that can help make homeownership more affordable. Hannah Jones, Economic Data Analyst at realtor.com, explains:

“As we move into the spring buying season, mortgage rates have ticked lower, a welcomed sign of progress towards affordability.”

The recent drop in mortgage rates is good news if you couldn’t afford to buy a home when they peaked.

Home Prices Will Increase

According to the Home Price Expectation Survey, which polls over 100 real estate experts, home values will go up steadily over the next few years after a slight decline this year (see graph below):

Rising home prices in the coming years means two things for you as a buyer:

• Waiting to buy a home could mean it’ll become more expensive to do so.
• Buying now means the value of your home, and your net worth, will likely grow over time.

Bottom Line

If you’ve been trying to buy a home, hang in there. Mortgage rates have ticked down a bit recently, home prices are forecast to increase in the coming years, and the long-term benefits of homeownership outweigh many of the short-term challenges.  If you are looking for a rural realtor, give the Rural KC Team-Keller Williams Partners a call.  We would love to help!  913-837-0760 or 913-837-0411.

GETTING A HANDLE ON SCRATCHES OR DEW POISONING

Scratches, or equine pastern dermatitis (EPD), is not a disease but, rather, a cutaneous reaction pattern. Veterinarians and owners must address the primary, predisposing, and perpetuating causative factors for a successful outcome. Note that treating the predisposing and perpetuating factors is just as important as addressing the primary cause.

Clinical Signs and Pathogenesis

Scratches can affect any breed, but is most prevalent in draft horses due to long pastern hair (“feathers”). It most commonly affects the rear aspect of the hind pasterns and especially nonpigmented skin. Without treatment the lesions can spread to the front of the pastern and fetlock. Clinical signs vary, but initially owners might notice edema (fluid swelling), redness, and scaling, rapidly progressing to oozing, hair matting, and crusting. If the cause is vasculitis (blood vessel wall inflammation), ulcers might form on the skin. Secondary bacterial infection is a common complication and can perpetuate the signs. In chronic cases skin can thicken and fissure due to constant movement and flexion in this area. The lesions are often painful.

Diagnosis

In a veterinarian’s detailed history, he or she should include the horse’s age, month of onset, whether the scratches is seasonal and/or pruritic (itchy), if there has been overzealous use of topical medications or home remedies, and response to prior treatment. He or she should also inspect the environment because wet or chemically treated bedding, along with muddy pastures and insects, can cause allergic contact dermatitis (from allergens touching the skin). If in-contact animals or humans are also affected it might indicate an infectious or zoonotic condition such as dermatophytosis (fungal infection). Another diagnostic rule-out is parasites—chorioptic mange is a common cause of pastern dermatitis in draft horses. But more commonly the cause of pastern folliculitis (a pus-forming skin infection) is bacterial, with Staphylococcus aureus and Dermatophilus congolensis as the culprits. Horses with white extremities can suffer from photosensitization  or immune-mediated pastern leukocytoclastic vasculitis (PLV), both exacerbated by UV light. Based on the information provided, your veterinarian might pursue specific diagnostics such as skin scrapings, fungal cultures, tape impression, skin cytology, skin biopsies, allergy testing, or bloodwork.

Treatments

After your veterinarian identifies the causative factors, it’s time to pursue appropriate therapy. Here are some environmental changes you can make:

1. Avoid turning affected horses out in pastures with mud, water, or sand, which can worsen the condition.
2. Keep horses in clean, dry stalls during wet weather.
3. Do not turn horses out until the morning dew has dried.
4. If you suspect contact allergic dermatitis, try an alternate source of bedding that isn’t treated or aromatic.
5. Clip heavy feathers over the pasterns to reduce moisture retention.
6. If you suspect PLV, avoid UV light exposure by stabling the horse between 10 a.m. and 4 p.m. and/or wrapping the affected legs.
7. Clean affected skin immediately after exercise using an antiseptic shampoo. 

Clinical treatments include topical and systemic therapeutics. Secondary infections with Staphylococcus spp are common and can complicate diagnosis. Available antibacterial shampoos typically contain ethyl lactate, accelerated hydrogen peroxide, 2% benzoyl peroxide, or 2% chlorhexidine. If lesions are exudative, apply astringent solutions, such as lime sulfur or aluminum acetate. 

Ointments such as silver sulfadiazine, fucidin, and 2% mupirocin ointment are available for treating localized bacterial infections. To treat bacteria, dermatophytes, or mites owners can apply lime sulfur dips and spray. Enilconazole spray or dip, along with miconazole shampoo with or without chlorhexidine shampoo, can be used to treat fungal infections. 

Sprays such as hydrocortisone aceponate or 0.015% triamcinolone can be used in conjunction with systemic immunomodulators to treat allergic and immune-mediated conditions such as PLV. In addition, veterinarians have noted success applying 0.1% topical mometasone, 1% betamethasone, or 0.05% aclometasone creams or ointments to lesions. Horses with immune-mediated conditions might also require immunosuppressive doses of dexamethasone or prednisolone. 

Antiparasitic approaches for Chorioptes include ivermectin, topical eprinomectin solution, selenium sulfide shampoo followed by lime sulfur, and fipronil spray.

Feel free to comment on how you deal with Scratches or Dew Poinsoning.

As always, if you are looking to buy or sell rural property, give the Rural KC Team-Keller Williams Partners a call.  We would love to help.