This Week's Podcast Episode: Housing Affordability in Maryland, PA, WV & VA

🚀 **This Week's Podcast Episode: Housing Affordability** 🏡💰

📈 As we dive into the dynamics of the housing market, here's what's shaping home affordability this year: Home Prices & Wages.

**1. Home Prices:**
Although prices are projected to rise, they're doing so at a steadier pace than during the pandemic. This is actually good news for buyers, as skyrocketing costs aren't expected. The latest 2024 forecasts from seven different organizations show a hopeful trend for potential homeowners. 📊📉

**2. Wages:**
Good news on the wage front! Data from the Federal Reserve shows wages are climbing faster than usual, which helps ease the home buying process. More income means spending a smaller percentage of your paycheck on your mortgage. 💵📈

** The Shift in Home Building **
Builders are now focusing on crafting smaller, more affordable homes in response to the current affordability crunch. This trend means you have more options within your budget, often accompanied by incentives from builders. 🏗️🏠

**🌟 House of the Week:**
- **Address:** 3519 Starlight St #301, Frederick - $465k
- **Open House:** Saturday & Sunday, 1 PM to 3 PM
- **Community:** 55+ The Woodlands
- **Features:** Over 1,500 sq ft, 2 bed, 2 bath, custom blinds, all-glass shower, spacious primary bedroom with bump-out, garage parking.
- **Lifestyle:** Enjoy a vibrant social life in a community with a clubhouse, pool, trails, fitness center, and more, all close to essential amenities! 🍃🏋️‍♂️🎾

👉 Dive deeper into these topics on our latest podcast episode and discover how you can navigate the real estate market with ease. If you're considering buying soon, let’s connect to explore affordable home options in our area! 🎧💬

**#HomeAffordability #RealEstateTrends #HomeBuyingTips #NewHomes #PodcastEpisode**

Tom Whalen:

I'm Tom.

Jay Day
I'm Jay.

Tom Whalen:
of Jay Day and the Day Home Team at LPT Realty with our Friday morning Real Estate podcast. Always up to the minute information. I mean up to the minute information on the real estate industry.

Jay Day:

Yeah. So this week I figured, let's talk a little bit about what factors are impacting home affordability.

Tom Whalen:
Home affordability is brutal.

Jay Day:

So when we look at home prices, that's a big factor. Obviously, when you think about it, most experts were projecting, and again, remember, I love when we have the expert projections. They were not projecting a massive increase, then it changed. So here's what we have right now as of appreciation. So we've got Goldman Sachs, these a 5%, Zillow, 3.5, Fannie Mae, 3.2, Freddie Mac, 2.5, HPES, 2.4, and the National Association of Realtors thinking there's going to be a 1.4% appreciation. Now, the forecasts are actually good news because before, during the pandemic, they went up much higher percentages than one point half or 2%. Now, the other thing that's pretty interesting, wages, and this one sort of surprised me. I mean it did and didn't because sometimes I drive by and I'll see a sign outside of Roy Rogers or a gas station, and it says what they're paying with their hourly pay is, and these bonuses, and there are some crazy numbers. So wages right now, wages are rising and according to the Federal Reserve, wages have been growing at a higher rate than they ever have been. So when you look at it, and again, I can't show this to people, the blue is the normal and the green is where we are, and you can see the trajectory of how much it has increased. So that can make things a little bit more affordable because people are making more money. The problem is, as we've talked about before, as people are making more money, everything else is going up dramatically as well.

Tom Whalen:

What does the uptick in wages have to do with the value of a property?

Jay Day:

Well, no, it's just the affordability because think about it, if we have, whether people want to admit it or not, we have inflation. Things are happening. So let's say the home prices were going up 2% and wages were staying steady, then obviously people would lose the affordability of being able to have enough money to do that, where the wages are going up at a higher tick than what they normally do, which is keeping it supposedly. And again, everything on a graph and what the experts say compared to what's in real life, wages in general are going up at a faster pace. So they're keeping up the increase of housing costs. So technically it shouldn't be impacting affordability as much. And the reality is if wages weren't going up, then it would 100% impact affordability in a more negative way than what we're seeing right now. The other thing that I have been seeing, because again, I work with a lot of builders, the builders are trying to come up with a way to help with affordability as well, and that is they're building smaller homes. Do you remember back in the day they called it the builders were building McMansions. They were building homes that were really big,

Tom Whalen:

Sure, big mansions. They're prominent on when you travel around, you see, well, that's a McMansion development.

Jay Day:

So the trend is now that they're building smaller homes to try to keep the pricing down. So again, if you're going to build a bigger home, the bigger the home, the more money it's going to cost. So they're building them at a smaller square footage, and that's trying to help people with the affordability or some of the other builders. What I'm seeing is they're doing multi-generational homes. I'm trying to think. There was one builder specifically we don't work with, so I'm not going to name them, but they have an entire line of products of homes. I say product because home is a product, but it's actually for people that have multi-generational living in a house.

Tom Whalen:

I see. I see.

Jay Day:
It's one house and it's a separate living quarter attached to it. They have their own private garage, their own entrance, their own bedroom, their own bathroom, and then the only thing that's shared is the kitchen and general area. But when you look at it, you've got a two bedroom, I mean a two car garage and an entry door. Then you have some separation, another entry door and a single car garage. And it's basically allowing families to live together with a little bit more independence of feeling like, okay, they're not having to go through the same door, move their cars around to try to make it work.

Tom Whalen:
Sure, Yeah. You can lounge on the couch on whatever you want to so somebody can come in. Jay, I had heard that next year in this country, more people are going to turn 65 than in history. So that kind of makes sense. That's a little bit of a niche marketing there.

Jay Day:
Yeah, It was really interesting because when I saw this, I was just looking, and realistically, they're not building those here in this area yet. I was just looking online at some of the trends that are happening with builders, because one of my builders, they started building these smaller homes and it all started out in Colorado and different areas. Then they sort of spread it out here, and I was looking to see what the trends were doing throughout the US and those other areas. And in Florida it is very common. A lot of the neighborhoods have this specific type of home that this builder is doing. And like I said, it's across. I think when I looked, this builder had it in, I think it was like eight or nine different states. And I'm like, I could see that be impossible to do here because we do have people that if people are getting the bigger homes, it's because they're having multi-generational in there, but they're just a normal house that's bigger as opposed to having their separate entrance making them, 

Tom Whalen:

You're talking about renovations, so a lot of times when you bring an older person in big time renovations. 

Jay Day:

Oh yeah. I mean, we ended up having, we had to hire an architect and a contractor to make one of our, we had Christina's grandmother was going to be moving in with us and we had to put in an ADA bathroom, and that was not cheap.

Tom Whalen:
I understand. No, no, it's not. I mean, to put a master bath on the ground floor that's not there, that takes a little bit of funding.

Jay Day:

Oh, yeah. And we ended up, we wanted to do a curbless shower because she was wheelchair bound. So that way, because think about it, if somebody needs to roll somebody into the shower, you can't have a little curb.

Tom Whalen:

That sounds like I'm going to be moving in with you here pretty soon. Sounds like everything that I'm going to be needing here real soon,

Jay Day:

It might be. And then down there we've got the pinball machines too, so you could be down there playing pinball.

Tom Whalen:

That sounds good

Jay Day:

But the deal is, if that happens, Tom, then I know Sam has a little bit of background, so I can have him service them instead of having to have the company come out of Carroll County.

Tom Whalen:

It all comes together. Lemme ask you a question, Jay?

Jay Day:
Sure.

Tom Whalen:
You said that some builders are building smaller homes to make 'em a more affordable, do you see anything like that around here?

Jay Day:
Yes.

Tom Whalen:
Okay. You gave me a definitive Yes. You're the expert.

Jay Day:

Oh yeah. We're seeing that. And I mean, we're even seeing, there's the builder we don't work with. We used to handle their listings in the past, and they've brought back split foyers because split foyers are more affordable to build, and some builders are actually eliminating basements to try to save the cost of pouring foundation walls so that it can be more affordable for people. 

Tom Whalen:

Save it some costs. Yes.

Jay Day:

Yeah. I mean, it really is, and like I said, it was interesting because I'm like, wow, split foyers.

Tom Whalen:

They were 70s, right? Everybody did that. That was the coolest thing ever. Yeah.

Jay Day:

And they're out there now where people can get them just because they're more affordable to build

Tom Whalen:

Interesting. Fascinating.

Jay Day:

Yeah.

Tom Whalen:

You got a home of the week?

Jay Day:

I do. 3519 Starlight Street, unit 301. It's a condo, in Frederick $465,000. This one is in a 55 and up community called the Woodlands. It's just shy of a year old. This unit is over 1500 square feet, two bedrooms, two full bathrooms. Some of the features, custom remote control blinds, a all glass shower upgrade, a spacious primary bedroom with a charming bump out. You have your own private garage parking. The Woodlands Community has a really cool lifestyle vibe to it. It has a clubhouse, a pool, parks, trails, gardens, dog park, State-of-the-Art Fitness Center, a yoga space. You can play bocce. They have pickleball courts, they have golf simulators, and it's basically, they have a ton of activities and clubs. So anyone that's looking for things to do, they've got a ton of things. And even better, it's conveniently located close to restaurants, shopping, commuter routes, and this property specifically tomorrow, Saturday and Sunday. So this weekend, 4/20 and 4/21, we're having open house from 1:00 PM to 3:00 PM So if you come out Saturday or Sunday and you're over 55 years old, we'll be more than happy to show it to you. You don't need a private appointment for it. Again, 1:00 PM to 3:00 PM, 3519 Starlight Street, unit 301. If you go to wfre.com, you can see the photos, and if you like what you see, come out and see us for the open house or reach out to us for a private showing.

Tom Whalen:
I'm Tom.

Jay Day
I'm Jay.

Tom Whalen:
of Jay Day and the Day Home Team at LPT Realty Weekly Real Estate Podcast. Thank you for listening and tell your friends all about it.

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