What will the new year bring for homebuyers, homeowners and home sellers? Lower or higher home prices? Higher or lower mortgage interest rates? Or a continuation of the overheated pandemic-inspired housing market?

There’s no question that the blistering housing market of the past three years was hard on homebuyers. By October 2022, the average mortgage interest rate for a 30-year fixed is 7.24%, more than double the 3.22% level in January 2022.

According to Fannie Mae, the combination of high inflation, monetary policy tightening, and a slowing housing market is “likely to tip the economy into a modest recession in the first quarter of 2023.”

Many economic forecasters believe housing prices will decline, but that homebuyers shouldn’t fear buying during a declining market. Morgan Stanley predicts a 7% dip in home prices for 2023 that would return housing prices to where they were in January 2022 – 32% higher than prices were in March 2020 when the pandemic began. Economists with Goldman Sachs and Moody Analytics are predicting 5% to 10% declines in home prices, based on lack of homebuyer affordability, slowing housing sales, fewer mortgage applications and a looming recession, however mild.

BusinessInsider.com reports that the Federal Reserve’s overnight rate hikes have raised mortgage interest rates, pushing affordability to new lows, but that a recession could bring interest rates down again. That combined with softer homebuying demand due to inflation and sellers lowering their prices would make spring and summer 2023 great times to buy a home.

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Have you ever needed an extra life jacket when family or friends drop in or have an unexpected need for a different size life jacket?  That is where The Life Jacket Loaner Progam comes in….and we have this service right here at Smith Mountain Lake! The Sea Tow Foundation has helped make this service possible to make Smith Mountain Lake safe and there are 1,000+ life jacket loaner stations that are placed in locations where boaters will have easy access to life jackets to borrow, such as boat ramps, marinas, and parks. See the full map online at http://www.boatingsafety.com/…/life-jacket-loaner…

There is also a great video for more information on the Life Jacket Loaner Program! Sea Tow Foundation

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Exciting News!   Smith Mountian Lake made the  Top 10 places in the U.S. to buy a Lake House in 2023!  Now is a great time to start looking for that great lake house Smith Mountian Lake just might be the perfect place for you and your family! 

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Wishing you peace and happiness for 2023! 

Happy New Year from Jane At The Lake! 

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Painting kitchen and bath cabinets a fresh, new color can give your home the much-needed update it desires for only a few hundred dollars. Make the job simple by using these guidelines to produce a smooth-to-the-touch finish without streaks, wavy lines or drips.

According to HomeDepot.com, the type of paint you buy will depend on what materials the cabinets are made of. Wood or compressed wood can be sanded, then repainted. Laminate cabinets should only be painted with products designed to stick to plastic surfaces. While acrylic and alkyd paints can do a great job, glossy or semi-gloss oil-based paint is best for durability and scratch-resistance. Use good quality synthetic bristle brushes for acrylic and natural bristle brushes for oil paints.

Clear all clutter from countertops, empty the cabinets, remove all hardware and cover backsplashes, appliances and floors with plastic sheeting secured with painter’s tape. Label all drawers and hardware so you know where to put them back. Open windows for ventilation and cover doors with sheeting to keep dust and fumes from the rest of the house.

Begin paint preparation by degreasing the cabinets and sand surfaces smooth. Prime the cabinets with paint primer and use a wood filler on all holes to give hardware a tight secure fit.

Allow plenty of time between coats for the paint to dry thoroughly to prevent thin spots, peeling and bubbling.ThisOldHouse.com recommends finishing with a high-gloss acrylic varnish over the final coat of paint for a rich, modern look.

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Inflation, home prices, and interest rates were higher in 2022 than they’ve been in years, but if you’re planning to become a homeowner in 2023, you’ve got time to improve your buying power.

TheMortgageReports.com recommends talking to a mortgage lender, even if you aren’t ready to buy until later in the year. They can “review all aspects of your financial picture” and help you find sources for a down payment, help you raise your credit score to improve your future borrowing rate, and help you find ways to reduce your existing debt without triggering costly inquiries into your credit history. Most important, they can help you understand the differences between conventional (Fannie Mae, Freddie Mac) and government-guaranteed (FHA, VA, USDA) loan programs and help you choose the right loan so you can work toward qualifying for the most favorable terms.

Your goal for the near term is to save as much as possible toward a down payment. With VA or USDA loans, no down payment is required, but for other loans, you’ll need at least 3.5% of the purchase price of the home you plan to buy as a down payment. At the same time, you want to pay down debts, beginning with the least expensive credit card balances to improve your credit scores. Don’t close any accounts, or incur new debt. Keep your revolving loan balances to 30% or below your credit limits. The higher your credit score, the more loan options are available to you.

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When you apply for a mortgage loan, or any credit, the lender relies on information that is supplied by lenders, landlords, government agencies, courts, and credit card companies to three credit reporting bureau, Equifax, Experian, and TransUnion. Numerical values are assigned to defaults and late payments, income-to-debt ratios, types of credit and other data. The values are compiled into credit scores which provide a snapshot of your credit worthiness to anyone authorized to make inquiries.

According to a 2021 investigation by ConsumerReports.org, more than one-third of 6,000 surveyed consumers found at least one mistake in their credit reports and nearly as many found incorrect personal information such as names and addresses while 11 percent found account information errors. These errors can cause your credit scores to fall, making you pay more in interest for loans and credit lines, or in the worst cases, being denied credit altogether.

What can you do? Get a three-bureau report and check for errors. One bureau may have accurate data while another can have incorrect or outdated information that can lower your credit scores. Sometimes, the incorrect data comes from the data furnisher – the lender, landlord, lien holder, etc. You’ll have to contact the data furnisher with proof of payment or release of lien or other evidence. Obtain a written statement of resolution to give to the credit bureau and to your mortgage lender via certified mail to make sure they get it.

Keep checking your credit at least once a year.

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As much as you’d like to rely on the professionalism of remodeling contractors (or yourself if you’re DIYing the renovation your home) the most important thing to be done is to keep the work site as dust-free and clean as possible.

Dust is one of the biggest dangers to the health of people and pets during a remodeling project. According to Buildclean.com, dust can include harmful substances such as dirt; organic matter from rodent feces and dead bugs; drywall, cement and sawdust materials; silica, asbestos and lead particles; mold and mildew; and volatile organic compounds like aerosols, paint, cleansers and solvents. The smaller the particles, the more dangerous they are, says the Environmental Protection Agency, especially those not visible to the naked eye.

Protective measures should include personal protective equipment for dust-generating work, such as facial masks, safety glasses, Tyvek disposable coveralls, shoe covers, and chemical-resistant gloves. Don’t allow anyone unauthorized to enter the work space, especially without protective gear. Because dust is so easily airborne, no one should eat or drink inside the work space.

Prevent airborne dust from traveling to other parts of the residence. Limit traffic to and from the work space to prevent dust and debris being tracked elsewhere in the house. Turn off ceiling fans and air conditioning during dust-generating work. Cover vents, doorways and floors with plastic sheeting. Remove or cover furniture, wall décor, house plants and decorative accessories. Clean up, seal off and remove excess dust and debris from the work site daily.

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With today’s runaway inflation and rising interest rates, it may seem like a good idea to put your remodeling plans on hold. Or, maybe not.

According to the Leading Indicator of Remodeling Activity (LIRA) by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University,  remodeling expenditures are expected to cool down from 17.4 percent in 2022 to 10.1 percent by Q2-2023, citing steep slowdowns in homebuilding, retail sales of building materials, and renovation permits. While that may appear ominous, researchers say remodeling expenditures should reach $450 billion, well above the five percent historical average.

As existing and new home sales decelerate, so will the need for contractors and materials. BusinessInsider.com reports that lumber prices are already down to $604.50 per thousand board feet in July 2022, falling 47% year-to-date, and 65% off from the 2021 high of $1,733 per thousand board feet. Inventories are starting to pile up at both sawmills and home improvement stores, making contractors more affordable and available. As the cost to build declines, inflationary pressures on the housing market should subside.

But as long as overall inflation is still a problem, the Federal Reserve will keep raising overnight borrowing rates to banks, increasing the likelihood of a recession. Economists polled by Bloomberg.com say that over the next 12 months, a mild, brief recession is 47.5% likely.

If you decide to remodel, it’s wise to stay in your home for at least five years to comfortably weather any housing market volatility.

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As you dream about how you’d like to live in your next home, you’re joining a growing cadre of homebuyers who value lifestyle over luxury and quality over quantity. The property you choose is paramount to having more comfort and convenience in your daily life.

For some, lifestyle is about displaying wealth, such as a big home in a pricey neighborhood. For others, it’s about location, like living on the beach or in a ski-in/ski-out mountain chalet. And for some, it’s about exclusivities, such as a guard-gated community or an over-55 master-planned development with golf, swimming, walking trails, and clubhouses.

Lifestyle is about having the time, space, and equipment to do the things you want to do. According to LuxuryActivist.com, time is the ultimate luxury. Your home should facilitate more time for family and friends, hobbies and interests, and healthy exercise.

When you shop for a home, look carefully at how space is allocated for each room and activity. Is the kitchen arranged comfortably for family meal preparation? Is there space for you and your partner to each have a home office? Can you also have a weight room, an art studio, or a media room? Your lifestyle may also prioritize sustainability through solar-power and xeriscaped lawns.

Your lifestyle should be free from compromise, like suffering a long daily commute to fund a dream home. Once you’ve moved, take the time to enjoy your home, play with your children, and watch glorious sunset views from your balcony.

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