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        <title>Huntsville, Al Real Estate Blog</title>
        <link>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/2023-12/</link>
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    <guid>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/debunking-the-wall-street-journal-key-misses-in-home-buying-analysis.html</guid>
    <link>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/debunking-the-wall-street-journal-key-misses-in-home-buying-analysis.html</link>
        <author>leadrouter@mattcurtisrealestate.com (Matt Curtis)</author>
        <title>Debunking The Wall Street Journal: Key Misses in Home Buying Analysis</title>
    <description> <![CDATA[ 
Debunking The Wall Street Journal: Key Misses in Home Buying Analysis


Let’s get into the housing market insights from The Wall Street Journal's analysis. They've compared monthly mortgage payments to average rent costs, indicating a potential decline in home buying viability against renting. However, the analysis misses key elements like tax deductions, home equity growth, and societal impacts of the growing preference for renting. This report explores the complex factors influencing housing decisions and emphasizes the importance of promptly securing a home amidst changing interest rates and evolving market trends. It's a crucial moment to secure a home amid these shifts.


Wall Street Journal's Take on Buying vs. Renting


The Wall Street Journal recently featured an article discussing the math behind home buying, suggesting it might not add up anymore. Their analysis compared the typical monthly mortgage payment, around $3,300, with the average rent, approximately $2,200.


With a $1,100 difference, they argue that buying a home is becoming less feasible compared to renting. However, I believe their evaluation overlooks crucial factors. They mention that between 2010 and 2018, buying was actually more affordable monthly compared to renting. From 2018 to 2021, the scales tipped towards neutrality, and from 2021 onwards, it became less affordable when factoring in various considerations we've discussed. This shift is attributed to increased prices, driven by inflation, nearly doubling within this timeframe. Yet, this seems like a short-sighted view to me.


Overlooked Aspects: What WSJ Missed in Home Buying vs. Renting


The Wall Street Journal didn’t factor into account several aspects in their analysis. One of these is tax deductions. When you buy a home, typically there are two tax events. First, your closing costs are usually tax deductible in the year of purchase, along with the interest on your mortgage. Despite a $3,300 payment, after deductions for interest and property taxes, your actual payment might be around $2,800, depending on your specific tax situation.


The second point is that a part of that $3,300 payment goes towards your own savings account. This comes from the principal payment you make on your mortgage. You keep the principal and can usually deduct the interest on your taxes. This strategy is influenced by inflation. The government manages inflation by printing money and often uses mortgages for borrowing, hence encouraging mortgage uptake and tax deductions.


Thirdly, there's the aspect of appreciation. This is a significant gain for homeowners and plays a big role despite the $3,300 versus $2,200 comparison. When you make a down payment on a home, let's say 5, you get appreciation on the entire value of the home, not just your down payment. Typical appreciation ranges might be 3 to 5, sometimes even more in recent years. So, with a 5 appreciation and a 5 down payment on a $300,000 home, you potentially double your money in that time frame. A 5 appreciation could mean a $15,000 gain, which is over $1,200 per month, more than the difference between $3,300 and $2,200. 


(For example: If you invest $15,000 (5) as a down payment on a $300,000 home. Within a year, the home’s value rose to $315,000, an appreciation of 5. Yet, your mortgage owed after one year was $285,000. Despite the initial investment being $15,000, the home’s increased value exceeded your remaining mortgage, effectively doubling your initial investment in the property within that time frame.)


This appreciation adds to the savings from paying off your principal and interest. Also, with higher interest rates currently, your price is locked in, but refinancing might enable you to lower your payment in the long term as rates come down – the Fed is projecting three rate cuts next year. Refinancing to a lower payment would help you save money in this way.


Additionally, as inflation continues, consider what happens to your rent. That $2,200 is probably a floor and won't likely be the ceiling; it's expected to increase year after year as the government keeps printing money and causing inflation in our country. Ever wondered why 30 of our homes are now being bought by investors? It's because they grasp this economic concept—that inflation is likely to persist, leading to increasing risks year after year.


WSJ's Oversight: Ignoring Societal Impact of Renter Nation


The Wall Street Journal overlooks another factor: not just the mathematical equation behind this, but also the societal challenges. Generally, homeowners are more engaged and exhibit greater concern for their local community compared to renters, on average. This poses a significant challenge for our society as we move towards this RenterNation trend.


The proportion of first-time homebuyers continues to decline. It was at 38, but now it averages around 33. A 5 difference might not sound substantial or impactful. However, percentages can be deceptive. If you consider 38 of a larger number—let's say, in a regular year, around 5.5 million homes being sold—and compare it to the reduced number we're experiencing now, closer to 4 million homes, there's a gap of approximately 750,000 first-time homebuyers who didn't make a purchase in 2023. This will likely have lasting effects on society.


Additionally, the average median age is evidently increasing for both first-time homebuyers and buyers in general. First-time homebuyers are delaying their initial home purchase by an additional four years. For repeat buyers, the delay has extended to 15 years.


Securing Your Home: Matt’s Advice for a Changing Market Landscape


Once again, the real issue here is the gradual shift toward a society that leans heavily on renting—a sort of RenterNation. This isn't good for our society or for wealth building in our country. As we've talked about before, homeowners typically have around 50 times the net worth compared to renters.


Another point is that when our country was founded over 200 years ago, it was based on the idea of owning land through homestead laws. We wanted to avoid replicating the kind of system seen in other countries, where few people owned all the land and the rest were essentially sharecroppers, just working the land. Some people draw parallels between the increasing number of renters and this sharecropping situation. If big institutions like Wall Street end up owning most homes, it's like sharecropping our own homes, and that's not good for society if this trend continues.


If you're undecided and thinking about buying your first home while currently renting, my best advice is to act now. Find a way to buy a home as soon as possible. If you're eligible for a home loan, negotiate with the seller to lower your interest rate. Consider looking at new constructions where rates are being brought down. Secure a home now because as interest rates decrease, it will become more affordable. This will draw more buyers into the market. Even with fewer home sales and higher interest rates, there's not enough supply to meet the growing demand, which could push prices even higher.


The smartest move at this moment is to fix your purchase price and then explore refinancing options or rate reductions. If you can manage the mortgage rate, aim to secure the price without opting for a rate buy-down. Take advantage of the expected decline in rates over the next 1 to 2 years and then consider refinancing. It might mean enduring slightly higher mortgage payments initially, but it's worth it to secure the best price reduction and the lowest long-term payment for yourself.


 



 ]]> </description>
    <pubDate>Fri, 15 Dec 2023 16:00:00 -0600</pubDate>
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    <guid>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/sneak-peek-listings-for-december-8th--huntsville-al-area-homes-for-sale.html</guid>
    <link>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/sneak-peek-listings-for-december-8th--huntsville-al-area-homes-for-sale.html</link>
        <author>leadrouter@mattcurtisrealestate.com (Matt Curtis)</author>
        <title>Sneak Peek Listings for December 8th | Huntsville, AL Area Homes For Sale</title>
    <description> <![CDATA[ 
Sneak Peek Listings for December 8th














221 Wainscott - $415,000


221 Wainscott Drive, Madison, Alabama 35757


4 Bed | 3 Bath | 2,746 sqft


Talk to an MC Agent today for more info or call 256-270-9393











208 Maltese - $279,900


208 Maltese Court, Huntsville, Alabama 35811


3 Bed | 2 Bath | 1,788 sqft


Talk to an MC Agent today for more info or call 256-270-9393
 ]]> </description>
    <pubDate>Fri, 08 Dec 2023 15:39:00 -0600</pubDate>
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    <guid>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/matt-curtis-real-estate-reaches-7000-homes-sold-milestone.html</guid>
    <link>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/matt-curtis-real-estate-reaches-7000-homes-sold-milestone.html</link>
        <author>leadrouter@mattcurtisrealestate.com (Matt Curtis)</author>
        <title>Matt Curtis Real Estate Reaches 7,000 Homes Sold Milestone</title>
    <description> <![CDATA[ 
Matt Curtis Real Estate Reaches 7,000 Homes Sold Milestone





Matt Curtis Real Estate announces the significant achievement of surpassing 7,000 homes sold in the North Alabama Real Estate market.


 


With a reputation for innovation and providing 5-star service, Matt Curtis Real Estate has consistently demonstrated exceptional performance in the real estate market. The 7,000 homes sold milestone reflects the team's dedication to providing top-notch service and expertise to clients throughout the Huntsville area.


 


Matt Curtis, Founder and CEO of Matt Curtis Real Estate, expressed his gratitude, stating, &quot;Reaching 7,000 homes sold is a testament to the hard work and dedication of our incredible team. We are honored to have played a role in helping so many individuals and families buy and sell homes. This milestone represents our client’s trust in us over the years.&quot;


 


The achievement comes after Matt Curtis Real Estate's recognition as the 1 Real Estate Team in Alabama for the fourth consecutive year, as highlighted by the RealTrends + Tom Ferry The Thousand ranking program.Matt Curtis Real Estate believes to “whom much is given, much is expected,” which is why they are committed to philanthropy both on the local and global level. In 2023, the Kids to Love Foundation's Child Placing Agency broke ground on the Curtis Cares Center, a new facility made possible by a $250,000 donation from Matt Curtis Real Estate. They have also built 141 homes for families in Nicaragua as part of their vision to build 1000 homes.


 


As Matt Curtis Real Estate celebrates this remarkable milestone, they look forward to continuing their legacy of excellence in real estate services and positively impacting the communities they serve.


 



 ]]> </description>
    <pubDate>Fri, 08 Dec 2023 13:20:00 -0600</pubDate>
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    <guid>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/huntsville-alabama-housing-market-report--october-2023.html</guid>
    <link>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/huntsville-alabama-housing-market-report--october-2023.html</link>
        <author>leadrouter@mattcurtisrealestate.com (Matt Curtis)</author>
        <title>Huntsville, Alabama Housing Market Report | October 2023</title>
    <description> <![CDATA[ 
Huntsville, AL Housing Market Report | October 2023





The Huntsville, Athens, &amp; Decatur Housing Market Report offers a comprehensive view of North Alabama's real estate scene. Focusing on major cities like Huntsville and Athens, the report provides insights into price growth, housing affordability, and sales trends. Huntsville's escalating prices have impacted affordability and sales volumes, while Athens stands out with a higher average sales price, attracting families seeking quality living in smaller-town settings. The report also addresses Morgan County's growth and the increased demand for affordable housing, aligning with Decatur's thriving job market. Detailed discussions on market supply, pending and closed sales, days on the market, and list price received provide a deeper understanding of the region's real estate dynamics. Additionally, the report highlights Huntsville's declining housing affordability index, underscoring the need for sustainable solutions to ensure accessible housing for essential workers and maintain local economic stability.


Huntsville, Athens, &amp; Decatur Housing Market Report


We'll discuss the overall real estate market in North Alabama, but first, let's take a look at some major cities in the North Alabama area. Let's begin with Huntsville. Huntsville has led the way in price growth, experiencing a significant 4.5 increase in the average sales price year over year. Last year, it was at $374,000, and now it's at $391,000, marking a $17,000 increase. This is noteworthy, especially considering the higher interest rate environment in the past 12 months.


This situation has greatly impacted affordability in the Huntsville area. Higher prices and interest rates have unquestionably affected both affordability and the number of homes sold in this market. We witnessed a 21.4 drop, with 519 homes sold compared to 630 homes sold during the same period last year. This decline is a direct consequence of the increased prices and interest rates in this market.


There's some positive news, though. We've observed a 14.5 increase in the number of homes actively available on the market, which is a relief considering the previously weak supply. However, we're still below the desired inventory levels for the Huntsville market, but the trend is moving in the right direction.


Another significant story revolves around the Athens market. The average sales price in Athens has now surpassed that of the Huntsville sales market, coming in at $397,000 compared to $391,000 in Huntsville, marking a $6,000 difference.


The number of homes sold in the Athens area did not decline as much as in the Huntsville area. There's only an 8 drop, with 137 home sales compared to 148. This truly reflects the efforts that the city of Athens has invested in terms of both infrastructure and school improvements. Many families are keen on living in a smaller town setting with excellent schools, good infrastructure, and a short commute to the Huntsville area. Athens has capitalized on that over the past year.


In the Morgan County area, there's continued growth as many seek more affordable housing and aim to commute into the Huntsville market. Of course, Morgan County and the Decatur market offer numerous job opportunities as well.


Prices have increased by $4,000 year over year, from $270,000 last year to $274,000 this year. Although there was a decline in sales, with 102 compared to 123, the Morgan County market remains strong. Especially in the Priceville &amp; Hartselle market, there's a noticeable surge in new construction to meet the rising demand for affordable housing in these areas.


New Listings &amp; Months of Supply


In the Huntsville market, we noted a significant increase in the number of homes available. Overall, new listings have remained relatively unchanged. We're looking at 1,243 listings compared to 1,261 this time last year, indicating a decrease of 1.4.


To be frank, once again, the supply in this marketplace is just not sufficient. We're looking at 3.3 months' worth of supply compared to 2.6 months' worth of supply last year, which is trending in a positive direction. Typically, a balanced market falls between 4 to 6 months. Anything above 6 months is a buyer's market, while anything below 4 months indicates a seller's market. Technically, we're still in a seller's market, even though it doesn't feel like that after experiencing an extreme seller's market with just one month's worth of supply for a prolonged time. We remain in a seller's market but are definitely moving towards a more balanced market. I expect to see that balanced market over the next few months


Pending Sales &amp; Closed Sales


Pending sales have also remained relatively flat year over year. It was around this time last year when we witnessed a substantial drop as interest rates began to rise around August, September, and October. Pending sales stayed level at 893 compared to 877 from this time last year, marking an increase of 1.8.


Closed sales have declined by 16.1, dropping below a thousand to 871 from 1,038. Any month where we're selling fewer than a thousand homes in this Huntsville market is certainly considered slower.


Days on Market &amp; Percent of List Price Received


Days on the market continue to increase, moving towards a more typical level. This time last year, we were at only 22 days, which was actually higher than the previous year, where the number was even lower. It was a period of record sales in terms of how quickly homes were selling. Now, the average stands at about 33 days on the market. Ideally, we'd like to see that number closer to 45 or higher for a more balanced market, but we're moving in that direction.


Another positive trend indicating a more balanced market is the percent of list price received on an offer. Presently, we're at 97.8, while this time last year, it was 98.8. A balanced market tends to hover around 97. This allows for a 3 concession, motivating sellers to cover buyers' closing costs. This helps attract first-time buyers who might otherwise struggle to compete in offers and need assistance with closing costs to step into homeownership.


Huntsville, Alabama Housing Affordability


Another significant statistic to focus on in the Huntsville area is the housing affordability index. A quick reminder: a score of 100 on the housing affordability index indicates that the median household income can afford a home within the median price range. Unfortunately, we've been below that 100 mark for over a year now. Last year at this time, we were at 85. Now, the score has dropped further to 80 due to the higher prices and increased interest rates prevailing in this environment. This is a substantial decrease even from 2021 when we had a score of 134. Just a few years ago, we were above 150. 


Huntsville has significantly declined in terms of affordability, which is something the local economy and city will need to address. It's crucial to have affordable housing available for schoolteachers, nurses, police officers, and others, ensuring they don't have to commute too far to reach their jobs here in the Huntsville area.


As interest rates begin to decrease, housing affordability remains low, and prices continue to rise in the Huntsville market. We'll soon unveil our 2024 real estate predictions. Stay tuned over the next couple of weeks as we release insights on what housing affordability, prices, and interest rates will do in the overall Huntsville area market.


 



 ]]> </description>
    <pubDate>Fri, 01 Dec 2023 11:50:00 -0600</pubDate>
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    <guid>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/sneak-peek-listings-for-december-1st--huntsville-al-area-homes-for-sale.html</guid>
    <link>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/sneak-peek-listings-for-december-1st--huntsville-al-area-homes-for-sale.html</link>
        <author>leadrouter@mattcurtisrealestate.com (Matt Curtis)</author>
        <title>Sneak Peek Listings for December 1st | Huntsville, AL Area Homes for Sale</title>
    <description> <![CDATA[ 
Sneak Peek Listings for December 1st





110 Bennington - $299,900


110 Bennington Way, Huntsville, Alabama 35824


3 Bed | 2 Bath | 1,979 sqft


Talk to an MC Agent today for more info or call 256-270-9393





61 Ransom - $325,000


61 Ransom Road, Laceys Spring, Alabama 35754


3 Bed | 2 Bath | 1,300 sqft | 2 Acres


Talk to an MC Agent today for more info or call 256-270-9393





7518 AL Highway - $359,900


7518 AL Highway 35, Section, Alabama 35771


2 Bed | 3 Bath | 1,461 sqft | 4.2 Acres


Talk to an MC Agent today for more info or call 256-270-9393


 



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    <pubDate>Fri, 01 Dec 2023 07:26:00 -0600</pubDate>
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