From Renter to Homeowner: The 5 Biggest Lifestyle Shifts You’ll Make

https://nowbam.com/lawrence-yun-predicts-housing-market-recovery-in-2025/    Becoming a homeowner is an exciting milestone—a dream for many that brings freedom, responsibility, and an entirely new way of living. While it offers incredible opportunities, homeownership is a lifestyle shift that goes far beyond no longer paying rent. Understanding these changes can help you transition smoothly and make the most of this exciting new chapter.   1. Wealth-Building Equity Homeownership transforms your monthly payment from an expense into an investment. Unlike rent, which doesn’t offer long-term returns, mortgage payments build equity—the portion of your home that you truly own. Over time, equity grows as you pay down your mortgage and your property appreciates in value.   Fact: According to NAR Chief Economist Lawrence Yun, homeowners’ net worth is, on average, 40 times that of renters. This is due to the combination of equity and property appreciation. As Yun explains, “Homeowners’ wealth steadily rises while renters’ wealth does not. The sooner you enter the housing market, the sooner you accumulate wealth.”   Pro Tip: Think of your mortgage as an investment in your financial future. While homeownership comes with costs, it also creates opportunities for long-term wealth and stability.   2. Maintenance: The Buck Stops with You When you own a home, there’s no landlord to call for repairs. From plumbing issues to landscaping, all maintenance responsibilities fall squarely on your shoulders. This newfound autonomy is empowering, but it also requires planning and preparation.   Fact: The 2023 HomeAdvisor survey shows that homeowners spend an average of $3,192 annually on maintenance and repairs.   Pro Tip: Create a dedicated emergency fund for home repairs. Experts recommend setting aside 1–3% of your home’s value annually for unexpected expenses, giving you peace of mind when surprises arise.   3. Customization: Your Space, Your Rules Homeownership brings unparalleled freedom to make your space truly your own. No more asking permission to paint walls or swap out light fixtures. Now, you can create a home that reflects your style, needs, and personality.   Pro Tip: Before diving into major renovations, live in your home for a while. Understanding how you use the space ensures your updates align with your daily lifestyle and long-term goals.   4. Community Involvement: Becoming a Stakeholder Owning a home often deepens your connection to the community. You may feel more invested in neighborhood events, local governance, and even home values. This stake in your community encourages active participation in shaping its future.   Pro Tip: Join neighborhood groups, attend homeowner association meetings, or volunteer locally. Not only will you stay informed, but you’ll also build meaningful connections with your neighbors.   5. Predictable Payments: Locked-in Shelter Costs With homeownership comes stability. Unlike renting, where lease renewals often bring unpredictable increases, a fixed-rate mortgage ensures your principal and interest payments remain steady over time. This stability allows you to plan your finances with confidence.   Pro Tip: While your monthly payment may be consistent, don’t forget to budget for property taxes, insurance, and maintenance, which can vary. These costs are part of protecting your investment and ensuring your home stays in top condition.   Final Thoughts Homeownership is a transformative journey that brings freedom, responsibility, and longterm benefits. By embracing these lifestyle shifts and planning ahead, you’ll be well-prepared to thrive in your new role as a homeowner. It’s not just about buying a house—it’s about building a home and a future.   Ready to make the leap? Let’s talk about how to find the right home for you.

How Buyers are Adapting in Today’s Housing Market 

For the first time since 2020, housing affordability is showing signs of improvement. This is mainly due to a drop in mortgage rates, which have eased from 7.07% to 6.09% over the past year. However, despite this positive shift, affordability continues to be a hurdle for many buyers.  Currently, buyers need to earn around $115,000 annually to comfortably afford a median-priced home. Yet, the average household income is about $84,000—roughly 27% less than what's needed. As a result, many buyers are making adjustments and prioritizing what’s most important. This doesn’t mean giving up on homeownership, but rather making thoughtful compromises to secure a home that meets their needs.  Let’s explore the top adjustments buyers are making in 2024 and how to navigate them successfully:  The Top Compromises Buyers Are Making  A recent survey conducted by Homes.com and Apartment Therapy explored "The State of Home Buying." It reveals that buyers and real estate professionals are finding creative ways to enter the market. Here’s what they’re doing:  Condos and Townhomes Are Gaining Popularity With single-family homes becoming pricier, more buyers are exploring condos and townhomes. About 17% of those with budgets under $500,000 are focusing on condos or apartments, and 15% are considering townhomes.  These property types often offer affordability and the convenience of low-maintenance living, sometimes with added perks like gyms and pools. Just remember to account for HOA fees in your overall budget.  Being Flexible on Location Location remains a top priority, but rising prices are pushing buyers to expand their search. About 21% of buyers are purchasing outside their ideal neighborhood, and many more are considering it.  Expanding your search radius by even a few miles can make a big difference. It might open up more options that still meet your key needs—and could even lead to finding a hidden gem!  How to Make Smart Compromises Without Regret  Buying a home always involves some trade-offs, but there’s a big difference between compromising and settling. Here’s how to stay focused on what truly matters:  Focus on What You Can’t Change Look past cosmetic details—paint, fixtures, and flooring can be updated later. Instead, focus on the home’s layout, structure, and location.  Plan for Your Future Needs Think five to ten years ahead. If you’re planning to expand your family or need a home office, keep that in mind during your search.  Stick to Your Budget Stretching your budget can lead to long-term stress. Be sure to account for all costs, including property taxes, insurance, and HOA fees, to secure your financial future.  By focusing on your priorities and staying flexible on less critical features, you can still make a smart and fulfilling purchase. Working with an experienced professional ensures you have the guidance to navigate these decisions confidently.   If you’re thinking about buying or exploring your options, I’d love to help you find a home that’s the perfect fit for both your life and your budget!  Interested in learning more? Reach out by phone or email for a discovery session.      

Lower Rates, More Options: Fall Opportunities for Buyers

The past few years have been tough for buyers. If you think back to before the pandemic, you’ll likely remember hearing that spring was always the ideal time to buy a home. After all, that’s when the majority of homeowners list their homes for sale, and more homes on the market means more options for buyers. This fall, however, marketing conditions are aligning in favor of homebuyers in many markets, creating a unique window that hasn’t happened in recent years. Realtor.com even named September 29 - October 5 the best week to buy a home in 2024. "This year, buyers who are looking for that optimum mix of ample options and the potential to save on list price are going to find some of the best market dynamics in years during the first week of October," said Danielle Hale, Chief Economist at Realtor.com®. So, what makes this season stand out? Let's break down the data below. #1 — Lower Mortgage Rates After months of steady climbs, mortgage rates have recently dipped to their lowest levels since February 2023, falling to 6.11% on September 11. This decline offers buyers a chance to lock in more favorable rates and save substantially on their monthly payments. For instance, the monthly payment on a typical home purchase has decreased by over $100 since peaking in May, according to Zillow. But here’s the catch: mortgage rates are unpredictable. While they’re lower now, they could rise again without warning. Acting now could mean the difference between getting a great deal and missing out. #2 — Peak Inventory Levels If you’ve been holding out for more options, your patience has paid off. In August, the number of homes for sale increased by 22.1% compared to the same time last year. And, Realtor.com reports that the first week of October will likely feature 37% more active listings than at the start of the year, offering the widest selection for buyers. "Unlike the past few years, we are seeing ample for-sale inventory which could soak up any late-season demand in many markets, making the fall a great time to buy even if falling mortgage rates amp up more demand than is typical," said Hale. More inventory means more choices — and more opportunities to find the perfect home. It also means less pressure to make a snap decision, allowing you the time to thoroughly consider your options without worrying about losing out to another buyer. #3 — Less Competition Means More Negotiating Power Spring and summer are traditionally hot buying seasons, with a typical cooling in fall and winter. Buyer demand is expected to drop by nearly 30% compared to the spring peak. This reduction in competition could give you a leg up in negotiations, whether that means offering below the asking price or asking the seller to cover some of your closing costs. #4 — Price Reductions are More Common In a market with more inventory and less competition, sellers are often more motivated to make deals happen. In August, 25.9% of listings experienced price cuts nationwide, compared to 23.4% a year ago. If you’ve been frustrated by inflated prices, you might find more opportunities to negotiate a lower price or snag a deal on a home that has been sitting on the market. In addition, Redfin reports that the number of homes sold above their list price has also dropped, from 33% last year to just 27.9% in the four weeks ending September 8. In practical terms, this means that sellers are more willing to negotiate, giving you the opportunity to buy a home for less than you might have expected. ___________________________   While fall is typically seen as a slower season for real estate, it can actually be a strategic time to buy. Many sellers want to close deals before the holiday season, making them more motivated to negotiate. That’s part of the reason why Realtor.com identified the week of September 29 – October 5 as the best week to buy a home this year (along with the reasons above!). If you’re thinking about buying a home, waiting until spring could mean higher rates, fewer options, and stiffer competition. This fall is offering a rare combination of lower mortgage rates, more inventory, reduced competition, and increased negotiating power. If you’re interested in learning more about your options, reach out by phone or email for a discovery session.    Sources: Realtor.com Zillow BAM Redfin    

State Farm Pulls Out of New Applications in California

              State Farm Pulls Out of New Applications in California   Click Here to Subscribe to my YouTube Channel for More Videos About Our Community and the Local Real Estate Market.  Please do not hesitate to contact me if you have any questions about this video or the local real estate market.