How Inflation Affects the Housing Market

How Inflation Affects the Housing Market Simplifying The Market

Have you ever wondered how inflation impacts the housing market? Believe it or not, they’re connected. Whenever there are changes to one, both are affected. Here’s a high-level overview of the connection between the two.

The Relationship Between Housing Inflation and Overall Inflation

Shelter inflation is the measure of price growth specific to housing. It comes from a survey of renters and homeowners that’s done by the Bureau of Labor Statistics (BLS). The survey asks renters how much they’re paying in rent, and homeowners how much they’d rent their homes for, if they weren’t living in them.

Much like overall inflation measures the cost of everyday items, shelter inflation measures the cost of housing. And for four consecutive months, based on that survey, shelter inflation has been coming down (see graph below):

Why does this matter? Well, shelter inflation makes up about one-third of overall inflation, as measured by the Consumer Price Index (CPI). So, when shelter inflation moves, it leads to noticeable moves in overall inflation. That means the recent dip in shelter inflation might be a sign that overall inflation could fall in the months ahead.

That moderation would be a welcome sight for the Federal Reserve (the Fed). They’ve been working to get inflation under control since early 2022. While they’ve made some headway (it peaked at 8.9% in the middle of last year), they’re still trying to get to their 2% goal (the latest report is 3.3%). 

Inflation and the Federal Funds Rate  

What’s the Fed been doing to lower inflation? They’ve been increasing the Federal Funds Rate. That interest rate influences how much it costs banks to borrow money from each other. When inflation climbed, the Fed responded by raising the Federal Funds Rate to keep the economy from overheating.

The graph below shows the relationship between the two. Each time inflation (shown in the blue line) starts to climb, the Fed raises the Federal Funds Rate (shown in the orange line) to try to get it back to their target of 2% (see below):

The circled portion of the graph shows the most recent spike in inflation, the Fed’s actions to raise the Federal Funds Rate to fight that, and the moderation of inflation that happened in response to that hike. As inflation gets closer to the Fed’s current 2% goal, they may not need to raise the Federal Funds Rate much further.

A Brighter Future for Mortgage Rates?

So, what does all of this mean for you? While the actions coming out of the Fed don’t determine mortgage rates, they do have an impact. As Mortgage Professional America (MPA) explains:

“. . . mortgage rates and inflation are connected, however indirectly. When inflation rises, mortgage rates rise to keep up with the value of the US dollar. When inflation drops, mortgage rates follow suit.

While no one can predict the future for mortgage rates, it’s encouraging to see the signs of moderating inflation in the economy

Bottom Line

Whether you’re looking to buy, sell, or just stay informed about the housing market, connect with a local real estate expert who can help.

Discover the Charms of Living in Whitmore Lake: Your Ideal Home Awaits

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Nestled in the heart of Michigan, Whitmore Lake offers a picturesque blend of natural beauty, a close-knit community, and a range of modern conveniences. This vibrant town presents an ideal balance between small-town tranquility and easy access to urban amenities, making it an attractive destination for families, professionals, and anyone seeking a serene yet connected lifestyle.

A Place to Call Home

As you explore Whitmore Lake’s real estate landscape, you’ll find a diverse range of properties that cater to various preferences and needs. From charming lakeside cottages with stunning views to contemporary family homes with spacious yards, there’s something for everyone. The Arbor Move Real Estate Team, known for their expertise in the local market, can guide you through this journey with their in-depth knowledge and personalized service.

Local Businesses That Define Community

Whitmore Lake boasts a strong sense of community, evident in its range of local businesses that add to the town’s unique character. Take a stroll down Main Street and you’ll discover cozy cafes, boutique stores, and family-run restaurants, each contributing to the town’s inviting ambiance. Café Delight is a local favorite for its artisanal coffee blends and mouthwatering pastries. For those craving hearty meals, Lakeview Diner offers comfort food that warms the soul.

Natural Treasures Abound

One of Whitmore Lake’s most remarkable features is, of course, the lake itself. With its sparkling waters and tranquil surroundings, the lake serves as a hub for recreational activities such as boating, fishing, and picnicking. Whitmore Lake Preserve provides a beautiful backdrop for hiking enthusiasts, offering trails that wind through lush forests and lead to breathtaking vistas.

Lifestyle and Entertainment

Life in Whitmore Lake embraces both relaxation and excitement. The Whitmore Bowl, an open-air amphitheater, hosts various community events and performances throughout the year. The Whitmore Lake Golf Links welcomes golf enthusiasts of all levels to its scenic fairways. The Fire Department Annual Pancake Breakfast is a beloved tradition that brings neighbors together to enjoy delicious food and connect.

Finding Your Dream Home with Arbor Move

Navigating Whitmore Lake’s real estate market becomes an enjoyable experience with the support of the Arbor Move Real Estate Team. Their commitment to understanding your unique needs ensures that you find a property that suits your lifestyle seamlessly. With a deep understanding of the local market trends and an eye for matching clients with the right homes, they make the process smooth and rewarding.

Embrace Whitmore Lake’s Lifestyle Today

Whitmore Lake invites you to become part of its vibrant tapestry, where natural beauty, community spirit, and modern living converge. With the guidance of Arbor Move Real Estate Team, you’re not just finding a home; you’re embracing a way of life that’s defined by warmth, nature, and endless possibilities. Explore the available properties, connect with local businesses, and make Whitmore Lake your new haven. Your ideal home is waiting to welcome you.

Buyer Traffic Is Still Stronger than the Norm

Buyer Traffic Is Still Stronger than the Norm Simplifying The Market

Are you putting off selling your house because you’re worried no one’s buying because of where mortgage rates are? If so, know this: the latest data shows plenty of buyers are still out there, and they’re purchasing homes today. Here’s the data to prove it.

The ShowingTime Showing Index is a measure of buyers touring homes. The graph below uses the latest numbers available and compares them to the same month in the last normal years to show just how active today’s buyers still are:

As you can see, when June 2023 numbers are stacked alongside what’s typical for the housing market at this time of year, it’s clear buyers are still active. And, they’re actually a lot more active than the norm.

If you’re wondering how this could possibly be true, it’s because buyers are getting used to higher mortgage rates and accepting them as the new reality. As Danielle Hale, Chief Economist,, explains:

“Interest rate hikes continue to further cut into buyers’ purchasing power, although they appear to have adapted to the higher mortgage rate environment . . .”

It’s simple. Buyers will always need to buy, and those who can afford to move at today’s rates are going to do so.

The Key Takeaway for You

While it’s true things have slowed down from the frenzy of the last couple of years, it doesn’t mean today’s market is at a standstill. The reality is: buyer traffic is still strong today. Even with today’s mortgage rates, plenty of buyers are still making their moves. So why delay your own move when there’s clearly a market for your house?

Bottom Line

Don’t put off your plans because you’re worried no one will buy your home. The opposite is true, and more buyers are more active than the norm. Connect with a real estate agent to get your house ready to sell, so it makes the best first impression possible on those eager buyers.

Why You May Still Want To Sell Your House After All

Why You May Still Want To Sell Your House After All Simplifying The Market

Even though you may feel reluctant to sell your house because you don’t want to take on a mortgage rate that’s higher than the one you have now, there’s more to consider. While the financial side of things does matter, your personal needs may actually matter just as much. As an article from Bankrate says:

Deciding whether it’s the right time to sell your home is a very personal decision. There are numerous important questions to consider, both financial and lifestyle-based, before putting your home on the market.”

So, ask yourself this: why did I want to move in the first place?

Chances are your primary motivation wasn’t just financial in nature. Why you’re really thinking about selling likely has more to do with something changing in your life or a shift in what you need out of your house.

Reasons Homeowners Still Need To Sell Today

Let’s explore some of the most common reasons sellers are moving today. A recent article from Builder Online helps shed light on this. In this research, they identified the following categories:

  • Marriage – If you just got married, you may find you either need more space than you currently have, or the two of you want to find a new place you picked out together.
  • Divorce – If you’re getting separated or are divorcing your partner, chances are it’ll be difficult to live under the same roof. Selling the place you have, so you can own get your own spot, may be necessary.
  • Births – If your household is growing, you may need more square footage, including more bedrooms. If you’re running out of room for everyone, you may not be able to wait to move.
  • Deaths – If you’ve recently lost a loved one, it can be hard to spend time in that home. You may need to move for financial reasons or because you no longer need all the space.
  • Retirement – If you’re in the process of retiring, or you just did, you may be looking to downsize to cut costs, relocate to be closer to loved ones, or move to a dream location. In this new phase of life, your current home may not be able to deliver what you need. 

You may find you share one of these top motivators. If any of these resonate with you, it may be time to move so you can find a house better suited to your changing needs. A survey from finds other sellers are in the same boat. It says, 1 in 4 sellers are choosing to move for personal reasons, even with current mortgage rates:

“. . . more than half of seller-buyers (56%) who are planning to sell in the next 12 months said they are waiting for rates to come down, while 25% need to sell soon for personal reasons.”

If you need to sell now because something in your own life has changed, don’t let rates hold you back from what you want. You have options to help make that move possible. You can use the equity you already have in your current home toward your next purchase. And with how much equity homeowners have right now, you may be able to finance less than you’d expect, or pay all cash to avoid borrowing at all.

Bottom Line

When you’re ready to prioritize your changing needs, reach out to a trusted real estate professional. They can help you list your house and find a home that delivers on everything you’re looking for.

Gen Z: The Next Generation Is Making Moves in the Housing Market

Gen Z: The Next Generation Is Making Moves in the Housing Market Simplifying The Market

Generation Z (Gen Z) is eager to put down their own roots and achieve financial independence. As a result, they’re turning to homeownership. According to the latest Home Buyers and Sellers Generational Trends Report from the National Association of Realtors (NAR), 30% of Gen Z buyers transitioned straight from living under their parents’ roofs to owning their own homes.

If you’re a member of this generation, and you’re interested in pursuing your own dream of homeownership, here’s some information you may find helpful on why and where your peers are buying.

The Reasons Gen Z Want To Become Homeowners

A recent survey by Rocket Mortgage identifies some of the top motivators driving Gen Z buyers to purchase a home:

Of those surveyed, 34% said that starting or growing their family was their main motivation to buy a home. . . . Along with growing a family comes establishing a home base.”

Another key reason the survey says Gen Z wants to buy is because homeownership can give them more stability (20.8%). That’s because buying a home allows you to stabilize what’s typically your biggest monthly expense: your housing cost.

When you have a fixed-rate mortgage on your home, you can lock in your monthly payment for the duration of your loan, often 15 to 30 years. If you keep renting, you don’t have that same benefit, and you won’t be protected from rising housing costs.

So, if you’re ready to start a new chapter in your life or if you’re craving more stability, know that your peers feel the same way, and those motivators are why they’re turning to homeownership.

Gen Z’s Next Stop: Where Are They Making Their Moves?

If those reasons have you feeling ready to buy, here’s some information on where your peers are finding their homes that could help you with your search. According to a recent Lending Tree survey, Gen Z buyers are focusing on more affordable areas to help boost their buying power and offset the challenges that come with today’s mortgage rates.

Many Gen Z buyers still want the convenience and excitement of city life, but also value the affordability, open air, and space more suburban areas offer. Jacob Channel, Senior Economist at LendingTree, explains:

. . . they want to live in a city, but they also want to be close to nature.”

Locating a home that offers both of those things requires expertise. Working with a trusted real estate professional can help you find a home in your budget and desired area. Your agent will know the most affordable neighborhoods to search in. They can also highlight the amenities and features that location offers and how those are aligned with your goals. They’ll also be able to walk you through how things like remote work can help you cast a broader net for your search

Bottom Line

If you’re a member of Gen Z and are just getting started on your homebuying journey, or if you want to learn more about the process, it’s important to connect with a trusted real estate agent. Their expertise will guide you to a home that fits both your lifestyle and your budget.

Today’s Housing Market Has Only Half the Usual Inventory [INFOGRAPHIC]

Today’s Housing Market Has Only Half the Usual Inventory [INFOGRAPHIC] Simplifying The Market

Some Highlights

  • There are only about half the number of homes for sale compared to the last normal years in the market.
  • That means buyers don’t have enough options right now. So, if you work with an agent to list your house, it should be in the spotlight
  • If you’re thinking of selling, get in touch with a local real estate agent so your house can stand out while there’s such a shortage of supply and buyers are craving more options.

More Jobs and Better Pay Leads to More Buyer Demand

More Jobs and Better Pay Leads to More Buyer Demand Simplifying The Market

There’s been talk about a recession for quite a while now. But the economy has been remarkably resilient. Why? One reason is employment and wages have stayed strong. Let’s look at the latest information on each one and why both are good news if you’re thinking about selling your house.

More Jobs Are Being Created

Instead of facing the job losses typical of any recession, the economy has been growing and adding jobs. According to the Bureau of Labor Statistics (BLS), 187,000 jobs were created in July, which is up from the 185,000 created in June. That means more people are finding work. In fact, so many jobs are being added that the unemployment rate is far lower than the long-term average of 5.7% (see graph below):

A low unemployment rate means that most people who want to work are finding jobs. When people have jobs, they have steady incomes – and that can help set them up to consider homeownership.

People Are Making More Money

And data also shows hourly earnings have been going up pretty steadily over the past few years (see graph below):

When wages rise, people have more money that they could save or use toward buying a home. This increase in income helps offset some of the affordability challenges in the housing market today. Affordability depends on three main factors: wages, home prices, and mortgage rates. With higher home prices and mortgage rates right now, Builder Online summarizes how growing wages can help:

The housing market has been a beneficiary of the strong economy and labor market. Many of those employed have saved money over the past few years and used those funds toward a down payment on a home.”

If you’re thinking about selling your house, a strong job market, growing wages, and the resulting buyer demand is fantastic news. It means there’s a larger pool of potential buyers out there who are in a position to pursue their dreams of homeownership.

Bottom Line

With more jobs and rising wages creating eager buyers, there’s a lot going in your favor. Reach out to a local real estate agent so you have someone who can guide you through the process of selling your house, from setting the right price to getting your home ready to show.

Why You Need a True Expert in Today’s Housing Market

Why You Need a True Expert in Today’s Housing Market Simplifying The Market

The housing market continues to shift and change, and in a fast-moving landscape like we’re in right now, it’s more important than ever to have a trusted real estate agent on your side. Whether you’re buying your first home or selling once again, it’s mission critical to work with an expert who can guide you through each unique step of the process. 

The reality is, not all agents operate the same way. To truly make a powerful and confident decision as you buy or sell a home, you need a real estate expert who uses their knowledge of what’s really happening with home prices, housing supply, industry projections, and more to give you the best possible advice. Someone who can provide clarity and trust like that is essential to your success. Jay Thompson, Real Estate Industry Consultant, explains:

“Housing market headlines are everywhere. Many are quite sensational, ending with exclamation points or predicting impending doom for the industry. Clickbait, the sensationalizing of headlines and content, has been an issue since the dawn of the internet, and housing news is not immune to it.”

Unfortunately, when information in the media isn’t clear, it can generate a lot of fear and uncertainty for consumers. As Jason Lewris, Co-Founder and Chief Data Officer at Parcl, says:

“In the absence of trustworthy, up-to-date information, real estate decisions are increasingly being driven by fear, uncertainty, and doubt.”

But it doesn’t have to be that way. Buying a home is a big decision, and it should be one you feel confident making. You can lean on an expert to help you separate fact from fiction and get the answers you need.

The right agent can assist you in figuring out what’s going on at the national level and in your local area. They can debunk headlines using data you can trust. Experts have in-depth knowledge of the industry and can provide context, so you know how current trends compare to the normal ebbs and flows in the housing market, historical data, and more.

Then, to make sure you have the full picture, an agent can tell you if your local area is following the national trend or if they’re seeing something different in your market. Together, you can use all that information to make the best possible decision.

After all, making a move is a potentially life-changing milestone. It should be something you feel ready for and excited about. And that’s where a trusted expert comes in.

Bottom Line

If you want sound advice and trusted information about the housing market, reach out to a local real estate professional today.

Unveiling Excellence: Your Path to Discovering the Best Realtor in Saline, Michigan

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Embarking on your real estate journey in Saline, Michigan, necessitates finding the paramount realtor, and that’s where we come in. Our goal is to equip you with the insights and expertise to not only meet your real estate aspirations but to exceed them. Welcome to a comprehensive guide that not only empowers you to achieve your goals but also positions you to outshine the competition in your quest for the finest realtor.

Mastering the Craft: Identifying the Best Realtor in Saline, Michigan

As Saline, Michigan’s real estate market flourishes, your search for the best realtor becomes a strategic endeavor requiring keen judgment and foresight. Our dedication to excellence sets us apart as the quintessential resource to elevate your real estate journey in this vibrant locale.

Qualities of Distinction: Defining the Premier Realtor

Seasoned Expertise

A hallmark of the best realtor is a wealth of experience, marked by a history of successful transactions and profound insight into the local Saline market. Our real estate professionals bring extensive experience to the table, ensuring that you’re guided by insights honed through years of dedicated practice.

Local Mastery, Global Perspective

In Saline, Michigan, the best realtor marries an intimate knowledge of the local landscape with a global perspective that transcends borders. Our team is equipped to offer a panoramic view of the market, providing you with insights that encompass regional trends and the broader real estate spectrum.

Effective Communication

Clear and consistent communication forms the cornerstone of a productive realtor-client relationship. We take pride in our transparent and efficient communication practices, ensuring that you’re kept informed at every step of the real estate journey. Regardless of whether you’re buying, selling, or investing, our communication lines remain open to address your inquiries and provide timely updates.

Custom Strategies, Amplified Success

Each real estate venture is unique, and a one-size-fits-all approach is inadequate. The best realtor tailors strategies to your distinct objectives. Whether you’re in search of your dream home, exploring investment opportunities, or aiming to optimize returns, our realtors craft solutions that align with your specific goals.

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Navigating the Journey: How to Identify the Best Realtor

Define Your Objectives

Initiate your journey by defining your real estate goals. Whether you’re in pursuit of a suburban haven, a modern condominium, or a savvy investment, clarifying your objectives is the starting point for identifying a realtor who specializes in your preferred niche.

Harness the Power of Research

Leverage online resources and tap into recommendations from your network. Online reviews, testimonials, and word-of-mouth referrals provide valuable insights into a realtor’s reputation and client satisfaction.

The Interview Process

Conduct comprehensive interviews with prospective realtors. Inquire about their experience, local knowledge, marketing strategies, and negotiation skills. In-depth conversations enable you to assess their compatibility with your vision and goals.

Empowering Your Real Estate Journey: The Time Is Now

With dedication to excellence and an unwavering commitment to your success, we are poised to be your trusted ally on your journey to discovering the best realtor in Saline, Michigan. At Arbor Move, we transcend conventional real estate services, elevating your experience to unparalleled heights.

In Conclusion: Your Odyssey Begins Here

The pursuit of the best realtor in Saline, Michigan, is an odyssey that demands foresight, expertise, and the pursuit of excellence. At Arbor Move, we stand ready to accompany you on this transformative journey, armed with experience, insight, and an unwavering commitment to realizing your real estate aspirations.

Disclaimer: The information provided in this article is accurate as of its publication date. For the latest information on real estate services in Saline, Michigan, please refer to current sources.

Please note that while I have tailored the content to your instructions, achieving optimal search engine rankings involves a comprehensive SEO approach that considers various factors beyond content quality.

Unveiling the Ultimate Guide to Finding the Best Realtor in Brighton, Michigan

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Your home is waiting.

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In the pursuit of your dream home or making a strategic real estate move, securing the services of a top-notch realtor can make all the difference. Welcome to the definitive guide that not only unlocks the secrets to finding the best realtor in Brighton, Michigan, but also equips you with actionable insights and expert advice to navigate the intricate world of real estate with confidence.

Unraveling Excellence: The Pinnacle of Realtor Services

When it comes to real estate endeavors, choosing the right realtor is paramount. At [Your Company Name], we understand that the task of finding the best realtor in Brighton, Michigan, can be a pivotal decision that shapes your entire experience. Our unwavering commitment to excellence sets us apart as a beacon of trust and expertise in the industry.

Decoding Excellence: The Qualities of a Premier Realtor

Experience That Matters

In your quest for the best realtor in Brighton, Michigan, experience reigns supreme. Our team of seasoned professionals brings years of industry expertise to the table. With a track record of successful transactions and a profound understanding of the local real estate landscape, we are primed to guide you towards your real estate goals.

Local Expertise, Global Perspective

Our realtors possess an intimate knowledge of the Brighton, Michigan area, coupled with a broader perspective that extends to the global real estate market. This unique combination empowers us to offer you insightful advice that aligns with local nuances while considering broader trends that can impact your investment decisions.

Unparalleled Communication

Effective communication is the cornerstone of a successful real estate partnership. We pride ourselves on our transparent and timely communication, ensuring that you’re informed every step of the way. From answering your questions to keeping you updated on market trends, our commitment to communication is unwavering.

Tailored Strategies for Success

Every real estate journey is unique, and a one-size-fits-all approach simply won’t suffice. At Arbor Move, we craft personalized strategies that cater to your specific goals. Whether you’re buying, selling, or investing, our realtors tailor their expertise to align with your vision.

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The Art of Finding the Best Realtor: A Strategic Approach

Refine Your Requirements

Begin by outlining your real estate goals and expectations. Are you searching for a family home, an investment property, or a vacation retreat? Defining your requirements sets the stage for finding a realtor who specializes in your desired niche.

Research and Recommendations

Tap into your network and online resources to gather recommendations and reviews of realtors in Brighton, Michigan. Word-of-mouth referrals and online testimonials provide invaluable insights into a realtor’s professionalism and client satisfaction.

Interview and Inquire

Take the time to interview prospective realtors. Inquire about their experience, local knowledge, marketing strategies, and communication practices. A face-to-face or virtual meeting offers the opportunity to gauge their compatibility with your objectives.

Empowering Your Real Estate Journey: Step into the Future

At Arbor Move, we believe that your real estate journey should be guided by professionalism, expertise, and a commitment to your success. As you embark on the mission to find the best realtor in Brighton, Michigan, trust us to be your dedicated partner, offering unparalleled service and a holistic approach to your real estate aspirations.

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In Closing: Your Journey Begins Today

The search for the best realtor in Brighton, Michigan, is a journey that demands diligence, expertise, and a shared vision of success. At Arbor Move, we stand ready to embark on this journey with you, armed with experience, local insights, and a passion for delivering exceptional real estate outcomes. The future of your real estate aspirations starts with us.

Disclaimer: The information provided in this article is accurate as of its publication date. For the latest information on real estate services in Brighton, Michigan, please refer to current sources.

Please note that while I have created an informative and keyword-rich article as per your instructions, search engine rankings can be influenced by various factors beyond content quality. It’s advisable to consider a holistic approach to SEO for optimal results.