Keith Bailey Realtor Florida Real Estate Blog

  Your Home Is a Powerful Investment Going into 2023, there was a lot of talk about a possible  recession  that would cause the housing market to crash. Some in the media were even forecasting home prices would drop by as much as 10-20%—and that might have made you feel a bit unsure about  buying a home . But here’s what actually happened:  home prices  went up more than usual. Brian D. Luke, Head of Commodities at  S&P Dow Jones Indices ,  explains : “Looking back at the year, 2023 appears to have exceeded average annual home price gains over the past 35 years.” To put last year’s growth into context, the graph below uses  data  from  Freddie Mac  on how home prices have changed each year going back to 1980. The dotted line shows the long-term average for appreciation: The big takeaway?   Home prices almost always go up. As an article from  Forbes   says : “. . . the U.S. real estate market has a long and re...

  What To Know About Credit Scores Before Buying a Home If you want to  buy a home , you should know your credit score is a critical piece of the puzzle when it comes to  qualifying for a mortgage . Lenders review your credit to see if you typically make payments on time, pay back debts, and more. Your credit score can also help determine your mortgage rate. An article from  US Bank   explains : “A credit score isn’t the only deciding factor on your mortgage application, but it’s a significant one. So, when you’re house shopping,  it’s important to know where your credit stands and how to use it to get the best mortgage rate possible .” That means your credit score may feel even more important to your  homebuying plans  right now since  mortgage rates  are a key factor in  affordability . According to the  Federal Reserve Bank of New York , the median credit score in the U.S. for those taking out a mortgage is  770 . But t...

  Over the past year, a lot of people have been talking about  housing affordability  and how tight it’s gotten. But just recently, there’s been a little bit of relief on that front. Mortgage rates have gone down since their most recent peak in October. But there’s more to being able to  afford a home  than just mortgage rates. To really understand home affordability, you need to look at the combination of three important factors:  mortgage rates, home prices, and wages . Let’s dive into the latest data on each one to see why affordability is improving. 1. Mortgage Rates Mortgage rates  have come down in recent months. And looking forward, most experts expect them to  decline further  over the course of the year. Jiayi Xu, an economist at  Realtor.com ,  explains : “While there could be some fluctuations in the path forward …  the general expectation is that mortgage rates will continue to trend downward , as long as the econom...