Welcome to Christopher Garguilo’s Blog.

Welcome to my new blog.  I always wanted to have a professional looking blog, and have given this a lot of thought.  The template is called the “Hemingway Rewritten”, and I figured I always wanted to write and have lots of characteristics of this great American writer like a round belly and white beard.  But seriously, the header photo has a beautiful country image, a site that I enjoy seeing now living in Virginia.  But my roots are from Brooklyn, New York, and grew up in a land of concrete front lawns and the smell of asphalt on a hot summer morning.  And on that hot summer day, you cooled down by not going to a beach a few minutes from your house (I am right by Buckroe Beach), but by opening up a fire hydrant, (aka Johnny pump) and using a seared open tin soda can to jettison the water on your friends and oncoming cars.

I will always love Brooklyn, and do miss it (I spent 49 years there), but Hampton is now my home.  I’ve grown accustomed to say hello to strangers I pass on the street, enjoy having the beach 3 minutes away, enjoy a bit slower pace (but really not that much slower) and love not having to spend 45 minutes looking for a parking space.

After teaching for over 21 years in Brooklyn, my main profession now is Real Estate, (however, I was also a Real Estate Agent there as well) and my blog will be focused mostly on those matters. Sure I will talk about new listings, mortgage rates and new construction. But real estate is much more than that.  It is about what concerts, shows, and exhibits that are happening in the area as well as sporting events.  It is about new stores and restaurants and the local economy.  And that is what I am going to accomplish in my new blog.

But those who know me as friends, clients, students and social media friends, you know that I love comedy as well, so you will see some funny posts as well.

On my sidebar, I have listed centers of music, arts, plays, performers, etc.  The list will increase as I add more to my blog.  For me, the area to which you reside has to be fun, and entertaining.  I hope you agree.

I hope you enjoy, I hope you come back, often!

Americans Choose Real Estate as the Best Investment [INFOGRAPHIC]

Americans Choose Real Estate as the Best Investment [INFOGRAPHIC] | MyKCM

Some Highlights

  • According to a Gallup poll, real estate has been rated the best long-term investment for eight years in a row.
  • Real estate tops the list because you’re not just buying a place to call home – you’re investing in your future. Real estate is typically considered a stable and secure asset that can grow in value over time.
  • Let’s connect today if you’re ready to make real estate your best investment this year.

Buyers Want To Know: Why Is Housing Supply Still So Low?

Buyers Want To Know: Why Is Housing Supply Still So Low? | MyKCM

One key question that’s top of mind for homebuyers this year is: why is it so hard to find a house to buy? The truth is, we’re in the ultimate sellers’ market, so real estate is ultra-competitive for buyers right now. The number of buyers searching for a home greatly outweighs how many homes are available for sale.

While low inventory in the housing market isn’t new, it’s a challenge that continues to grow over time. Here’s a look at two reasons why today’s housing supply is low and what that means for you.

1. New Home Construction Fell Behind for Several Years

The graph below shows new home construction for single-family homes over the past five decades, including the long-term average for housing units completed. Builders exceeded that average during the housing bubble (shown in red on the graph). The result was an oversupply of homes on the market, so home values declined. That was one of the factors that led to the housing crash back in 2008.

Since then, the level of new home construction has fallen off. For the last 13 straight years, builders haven’t been able to construct enough homes to meet the historical average (as illustrated in green on the graph). That underbuilding left us with a multi-year inventory deficit going into the pandemic.

Buyers Want To Know: Why Is Housing Supply Still So Low? | MyKCM

2. The Pandemic’s Impact on the Housing Market

Then, when the pandemic hit, it fueled a renewed appreciation and focus on the meaning of home. Having a safe space to live, work, school, and exercise became even more important for Americans throughout the country. So, as mortgage rates dropped to at or below 3%, buyers eagerly entered the market looking to capitalize on those low rates to secure a home that would fulfill their changing needs. At the same time, sellers hesitated to put their houses on the market as concerns about the pandemic mounted.

The result? The number of homes available for sale dropped even further. A recent article from realtor.com explains:

Last month, the number of home listings dropped 26.8% compared with the same time a year earlier. This meant there were about 177,000 fewer homes listed in what’s already typically a slower month due to the holidays and colder weather. . . .”

What Does All of This Mean for You?

For a buyer, low inventory can be a challenge. You want to find the home of your dreams, and you don’t want to settle. But what if there just aren’t that many homes to choose from?

There is some good news. Experts are projecting more homes will soon become available thanks to sellers re-entering the market. Danielle Hale, Chief Economist at realtor.com, shares this hope, but offers perspective:

We expect that we’ll start to see a turnaround and inventory will stabilize and start to go up a little bit in 2022. . . . But that means we’re looking at inventory levels of roughly half of what we saw before the pandemic. For buyers, the market is likely to continue to move fast. If you see a home you like, you want to jump on it right away.

Basically, inventory is still low, even though more homes are coming. But you shouldn’t put your plans on hold because you’re waiting for those additional houses to hit the market.  Instead, stick with your search and persevere through today’s low inventory. You can find your next home if you’re patient and focused.

Remember your goals and why finding a home is so important. Those things should be the driving force behind your search. Share them with your agent and be clear about your priorities. Your trusted advisor is your greatest support as you navigate today’s low housing supply to find the home of your dreams.

Bottom Line 

If you’re planning to buy this year, the key to success will be patience given today’s low inventory. Let’s connect to discuss what’s happening in our area, what homes are available, and why it’s still worthwhile to prioritize your home search today.

With Mortgage Rates Climbing, Now’s the Time To Act

With Mortgage Rates Climbing, Now’s the Time To Act | MyKCM

Last week, the average 30-year fixed mortgage rate from Freddie Mac jumped from 3.22% to 3.45%. That’s the highest point it’s been in almost two years. If you’re thinking about buying a home, this news may have come as a bit of a shock. But the truth is, it wasn’t entirely unexpected. Experts have been calling for rates to rise in their 2022 projections, and the forecast is now becoming a reality. Here’s a look at the projections from Freddie Mac for this year:

  • Q1 2022: 3.4%
  • Q2 2022: 3.5%
  • Q3 2022: 3.6%
  • Q4 2022: 3.7%

As the numbers show, this jump in rates is in line with the expectations from Freddie Mac. And what they also indicate is that mortgage rates are projected to continue climbing throughout the year. But should you be worried about rising mortgage rates? What does that really mean for you?

As rates increase even modestly, they impact your monthly mortgage payment and overall affordability. If you’re looking to buy a home, rising mortgage rates should be an incentive to act sooner rather than later.

The good news is, even though rates are climbing, they’re still worth taking advantage of. Historical data shows that today’s rate, even at 3.45%, is still well below the average for each of the last five decades (see chart below):

With Mortgage Rates Climbing, Now’s the Time To Act | MyKCM

That means you still have a great opportunity to buy now with a rate that’s better than what your loved ones may have paid in decades past. If you buy a home while rates are in the mid-3s, your monthly mortgage payment will be locked in at that rate for the life of your loan. As you can see from the chart above, a lot can change in that time frame. Buying now is a great way to protect yourself from rising costs and future rate increases while also securing your payment amount for the long term.

Nadia Evangelou, Senior Economist and Director of Forecasting at the National Association of Realtors (NAR), says:

Mortgage rates surged in the second week of the new year. The 30-year fixed mortgage rate rose to 3.45% from 3.22% the previous week. If inflation continues to grow at the current pace, rates will move up even faster in the following months.”

Bottom Line

Mortgage rates are increasing, and they’re forecast to be even higher by the end of 2022. If you’re planning to buy this year, acting soon may be your most affordable option. Let’s connect to start the homebuying process today.

Sellers: Don’t Wait Until Spring To Make Your Move

Sellers: Don’t Wait Until Spring To Make Your Move | MyKCM

As you plan out your goals for the year, moving up to your dream home may top the list. But, how do you know when to make your move? You want to time it just right so you can get the most out of the sale of your current house. You also want to know you’re making a good investment when you buy your new home. What you may not realize is, that opportunity to get the best of both worlds is already here.

You don’t want to wait until spring to spring into action. The current market conditions make this winter an ideal time to move. Here’s why.

1. The Number of Homes on the Market Is Still Low

Today’s limited supply of houses for sale is putting sellers in the driver’s seat. There are far more buyers in the market than there are homes available, and that means buyers are eagerly waiting for your house. Listing your house now makes it the center of attention. As a seller, that means when it’s priced correctly, you can expect it to sell quickly and get multiple strong offers this season. Just remember, experts project more inventory will come to market as we move through the winter months. The realtor.com 2022 forecast says this:

“After years of declining, the inventory of homes for sale is finally expected to rebound from all-time lows.”

Selling now may help you maximize the return on your investment before your house has to face more competition from other sellers.

2. Your Equity Is Growing in Record Amounts

Current homeowners are sitting on record amounts of equity thanks to today’s home price appreciation. According to the latest report from CoreLogicthe average homeowner gained $56,700 in equity over the past 12 months.

That much equity can open doors for you to make a move. If you’ve been holding off on selling because you’re worried about how rising prices will impact your own home search, rest assured your equity can help fuel your next move. It may be just what you need to cover a large portion – if not all – of the down payment on your next purchase.

3. While Rising, Mortgage Rates Are Still Historically Low

In January of last year, mortgage rates hit the lowest point ever recorded. Today, rates are starting to rise, but that doesn’t mean you’ve missed out on locking in a low rate. Current mortgage rates are still far below what they’ve been in recent decades:

  • In the 2000s, the average mortgage rate was 6.27%
  • In the 1990s, the average rate was 8.12%

Even with mortgage rates rising above 3%, they’re still worth taking advantage of. You just want to do so sooner rather than later. Experts are projecting rates will continue to rise throughout this year, and when they do, it’ll cost you more to purchase your next home.

4. Home Prices Are Going To Keep Rising with Time

According to industry leaders, home prices will also continue appreciating this year. While experts are forecasting more moderate home price growth than last year, it’s important to note prices will still be moving in an upward direction throughout 2022.

What does that mean for you? If you’re selling so you can move into a bigger home or downsize to the home of your dreams, you want to consider moving now before rates and prices rise further. If you’re ready, you have an opportunity to get ahead of the curve by purchasing your next home before rates and prices climb higher.

Bottom Line

If you’re considering selling to move up or downsize, this may be your moment, especially with today’s low mortgage rates and limited inventory. Let’s connect today to get set up for homebuying success this year.

Achieving the Dream of Homeownership

Achieving the Dream of Homeownership | MyKCM

Homeownership has long been considered the American Dream, and it’s one every American should feel confident and powerful pursuing. But owning a home is also a deeply personal dream. Our home provides us with safety and security, and it’s a place where we can grow and flourish.

Today, we remember the legacy of Dr. Martin Luther King, Jr. Many of us will remember his passion and determination for the causes he championed, including his famous “I Have a Dream” speech in 1963. As we reflect on his message today, it may inspire your own dream of homeownership. And if so, know you’re not alone. With a trusted real estate advisor at your side, you can begin your journey toward homeownership by answering the questions below.

1. Where Do I Start?

The process of buying a home is not one to enter into lightly. You need to decide on key things like how long you plan on living in an area, how much space you need, what kind of commute works for you, and how much you can spend.

Then, when you decide you’re ready to buy, you’ll need to apply for a mortgage. Your lender will look at several factors to determine how much you’re able to borrow, including your credit history. Lenders want to understand how well you’ve managed paying your student loans, credit cards, car loans, and other past debts.

According to Freddie Mac:

“To get a rough estimate of what you can afford, most lenders suggest that you should spend no more than 28% of your monthly gross (pre-tax) income on your mortgage payment, including principal, interest, taxes and insurance.”

2. How Do I Save Enough for a Down Payment?

Speaking of how much you can afford, you’ll want to know what to save for a down payment. While the idea of saving for a down payment can be daunting, there are many different options and resources that can help.

According to Business Insider, automatic savings can bring you one step closer to achieving your target down payment:

“If you receive your paycheck as a direct deposit, you may want to arrange for your company to send a percentage of each check directly into a savings account for the down payment. . . . The automatic-savings strategy makes it so you don’t have to constantly remember to save money.”

Before you know it, you’ll have enough for a down payment if you’re disciplined and thoughtful about your process. And the best part is, you may need to save less for your down payment than you think. Your agent and lender can help you understand your options.

3. How Can I Reach My Financial Goals?

Another way to increase your savings is by sticking to a planned budget. If you’ve never budgeted before, there are tools available. For example, MoneyFit.org provides a budgeting worksheet you can use to create your own plan and five rules to follow when you’re saving. They recommend you:

  1. Identify Goals
  2. Record Expenses
  3. Record Earnings
  4. Compare and Calculate
  5. Fix Weak Spots

If you’re already budgeting, consider finding ways to tighten your spending a bit more to accelerate your journey to homeownership. After all, putting even a little extra into your savings each month can truly add up over time.

Bottom Line

As you set out to realize your dream of homeownership this year, know that it’s achievable with careful planning. Most importantly, let’s connect today so you don’t have to walk alone on this journey.

“Real Estate with Mr. G” Livestream Podcast for 01/15/21

On this Saturday’s (01/22/22) livestream podcast of “Real Estate with Mr. G”, we will discuss: Two Ways Homebuyers Can Win in Today’s Market. Topics include: Act Early and Save, Buy Now and Move Later, Increasing your credit score and much, much more!

Click on the Tab “Broad-cast Live” to view at 7 pm.

(May take a few minutes to start, keep on refreshing screen.)

Resources and Tips to Help You Make the Right Downsizing Plans for Retirement

(Article contributed by Alice Robertson of Tidyhome.info)

Dreaming of downsizing in retirement? If so, you are not alone in your aspirations. Countless older adults make changes to simplify their homes and their lives in preparation for a relaxing and low-stress retirement. Deciding to downsize is only half of the battle since you also need to know where to start when making your own downsizing plans. This list of practical and helpful resources from Real Estate with Mr. G can provide some clarity.

Downsizing Responsibility Without Limiting Possibilities

If what you’re really craving is less responsibility when it comes to caring for your home, you should know that you do have options. Including these creative solutions and tips:

  • First of all, try to focus on right-sizing rather than simply finding a smaller home.
  • You can use this dream home finder from our website to get started.
  • Worried about financing? You can check VA mortgage interest rates and your eligibility for VA home loans.
  • With no upper limits, VA loans could help you secure the home of your dreams.

Managing Potentially Stressful Downsizing and Moving Projects

The whole point of downsizing is to alleviate stress so that you can enjoy your retirement, so there’s no reason why the process should cause you distress. Keep these tips in mind:

  • If it’s been a while since you’ve bought a home, it can help to know what to expect.
  • You should also look for a moving checklist so you can stay organized throughout the process.
  • Need to declutter a lot of stuff before your move? Give yourself plenty of time to do so.
  • It’s also okay if you need to ask for help or hire a professional to help with downsizing.

Finding Other Professionals to Help Manage a Downsizing Move

Working with a senior move manager can be a good call for relieving stress, especially if you have room for it in your budget. These other professionals can also make moving easier:

Your golden years should be all about you and doing what you love. If you’re not in love with your current home or lifestyle, downsizing or right-sizing could be the right call. Be sure to bookmark this guide so you will have the right resources available to smooth the process. And if you plan on looking for your dream home in the Hampton Area, Christopher Garguilo has all of the resources and information you need. Reach out to get started: 757-876-7443.

Photo Credit: Unsplash

When Is the Right Time To Sell [INFOGRAPHIC]

When Is the Right Time To Sell [INFOGRAPHIC] | MyKCM

Some Highlights

  • If you’re trying to decide when to list your house, the time is now. There are plenty of buyers eagerly waiting for your home to hit the market.
  • The latest data indicates home showings are rising. There are more buyers than homes for sale right now. That means you’ll likely receive multiple offers, and your home won’t be on the market long.
  • Today’s market favors sellers. If you’re ready to move, let’s meet to discuss the benefits you can expect when you sell this season.

Housing inventory crisis continues in 2022

Only housing demand weakness can create balance. January 12, 2022, 5:43 pm By Logan Mohtashami

HW+ houses Reno

Early in 2021, when I was talking about how people should worry about home prices overheating, I had a glimmer of hope that maybe toward the end of 2021 we would be spared another seasonal collapse of inventory. Inventory always falls in the fall and winter, but I hoped it wouldn’t be a repeat of 2020.

Unfortunately, that didn’t happen and recent data shows that we are at fresh new all-time lows in housing inventory, with mortgage rates and the unemployment rate both under 4% currently.

Houston, we have a problem.

I have always been mindful that the years 2020-2024 have the potential for unhealthy home-price growth, but now that we are entering year three of this unique five-year period, it’s time to see when mother economics will give us clues about when this madness with meager inventory will end. We are in the middle of January 2022 and spring selling season isn’t too far away. I don’t believe any of us want 2023 to start off with new fresh all-time lows in inventory.

Mortgage demand needs to slow down

A big theme of my work here at HousingWire has been to show you that since 2014 purchase application data has been rising just as total inventory has been slowly moving lower. Demand is growing and stable, excluding the COVID-19 pause. Unfortunately, we need to see weakness in demand for inventory to rise and get into a range that I am 100% rooting for, between 1.52- 1.93 million. This level, while historically still low, will mean the days on market will go higher, and this will give people choices.

Here are two charts from the National Association of Realtors that will show that homes simply come off the market too fast to give housing a breather.

Continue Reading at: https://www.housingwire.com/articles/housing-inventory-crisis-continues-in-2022/