Date Archives: August 2022

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Real Estate Tips | 25 Posts
August
23

Shifts in the housing market can cause a lot of anxiety for homeowners and prospective buyers a like. If you're keeping up with the commentary surrounding the housing market right now, you might be hearing vastly different advice from economists around the nation. It might make you wonder— who should I be listening to?

The answer to that question is simple, actually. You should listen to advice from a local market expert, especially if you're considering making a move with your real estate investments. Our office, and many others like ours, live and breathe the Knox County housing market, and we have much more insight regarding what you can expect out of your investment.

We don't have a crystal ball, but we can follow local trends closely and make predictions. For example, there are signs showing how Knox County's housing market is supported. Even though there is a correction occurring in the market nation wide, fueled by rising interest rates and buyers being price out, our neighborhoods are currently offering a unique opportunity to make real estate moves this year. There are three reasons we believe right now is great time to buy and sell in our county:

Home sales have slowed, giving buyers increased leverage

We have seen the number of sales decrease this summer, and homes are spending more time in the market before they go pending. This is helpful news for buyers who, over the past few years, have had to make unreasonable concessions like waiving home inspections or covering short appraisals. Multiple offer situations are few and far between these days, meaning buyers can finally breathe a sigh of relief.

This is a sign of a market that is returning to health. We still consider there to be a demand/supply imbalance in the county (we address this below), but the pressure has been lifted enough for everyone in the transaction to have more confidence and clarity about the home they are buying and selling.

Low inventory is still supporting higher prices

Increased buyer leverage does not mean that sellers have a low chance of success. In Knox County, we are experiencing a significant shortage of available homes. For sellers, that means that a well-staged, widely-marketed, move-in-ready home is likely to make for a highly profitable sale. 

Of course, we are seeing and will continue to see some listings experience price drops, but so long as your expectations are reasonable and you've developed a winning strategy with your agent, your chances for success are golden.

Slow home starts & population growth support home appreciation for years to come

Knox County, because of its proximity to Columbus and the Intel project, is on a lot of people's places of interest when it comes to their home search. And we think it should be— our community is idyllic! But we do not currently have infrastructure in place to meet the demands of a growing population.

This means that homes will continue to appreciate. Since 2020, some homeowners have enjoyed an appreciation of 20+ percent. While we certainly think this will decelerate over time, Knox County is likely to be sheltered from any home depreciation. You can have confidence in the investment you've made or will make on a home in the area because its value is supported by demand that will continue to outweigh supply.

We understand that there can be a lot of anxiety about home values whenever there's talk of a market shift. That's why it's really important for you to have a trusted, local real estate consultant who can advise you— especially if you're considering a move. To schedule a consultation with an agent in our office, visit johnyoderteam.com/contact and request a buyer or seller consultation today!

We hope this information is helpful to you!

'Til next time,

John, Nia, Tisha, & Cassie

Key Realty - John Yoder Team

August
15

Are you planning to make some home improvements this year? Well, the Inflation Reduction Act just passed by Congress is making your plans less expensive!

Baked into the legislation are certain tax credits that will ease your cost burden when you choose "green renovations" (energy-efficient alternatives) to improve your home. This includes things like installing solar panels, or replacing windows and doors.

We've seen tax incentives for making your home more energy-efficient in the past, but this bill expands those incentives profoundly— offering a $1,200 credit available for ten years. Additionally, for smaller projects like replacing your HVAC system or water heater, you can receive a $600 tax credit. That's stackable, by the way, meaning to could replace multiple appliances and receive the credit for each.

No matter what, when it comes to taxes, you definitely want to speak with a tax specialist to see how these incentives will work for you. It's especially important to understand what makes a tax credit different from a tax return. In order to receive the credit, you have to have tax liability (i.e. owe taxes). Essentially, the credit is applied to lower your liability dollar for dollar.

That's really good news, especially for those already planning to make improvements to their home in order to lower their burden of energy costs and promote cleaner energy. These kinds of improvements might also add value to your property in the future, as this legislation reflects a growing commitment to clean energy nation-wide.

If you have questions about how to add value to your home with energy-efficient improvements that save you money, please feel free to reach out!

Til next time,

Cassie Johnson

Key Realty - John Yoder Team

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