62% of Buyers Are Wrong About Down Payment Needs

62% of Buyers Are Wrong About Down Payment Needs

62% of Buyers Are Wrong About Down Payment Needs | MyKCM

According to the ‘2019 Home Buyer Report conducted by Nerdwallet, many first-time buyers still believe they need a 20% down payment to buy a home in today’s market:

“More than 6 in 10 (62%) Americans believe you must put at least 20% down in order to purchase a home.”

When potential homebuyers think they need a 20% down payment to enter the market, they also tend to think they’ll have to wait several years (in some markets) to come up with the necessary funds to buy their dream homes. The report continues to say,

“The truth: 32% of current U.S. homeowners put 5% or less down on their home, according to census data.” (as shown below):

62% of Buyers Are Wrong About Down Payment Needs | MyKCMThe lack of knowledge about the home-buying process is unfortunately keeping many motivated buyers on the sidelines.

Bottom Line

Don’t let a lack of understanding keep you and your family out of the housing market. Let’s get together to discuss your options today.

Swan Lake Estates: A Hidden Gem in Gulfport, MS

Swan Lake front

Swan Lake Estates is a covenant protected neighborhood with an HOA that strives to keep this neighborhood a crown jewel of neighborhoods on the MS Gulf Coast. Located in the northeast section of Gulfport,  it is convenient to just about anywhere you want to be on the coast. Heading west out of the neighborhood you will reach Highway 49 within 5 minutes. Hwy 49 takes you to downtown Gulfport, Saucier, or Wiggins all within 20 or 30 minutes. If you go east out of Swan Lake, a couple of turns and you will be at Hwy 605. Hwy 605 leads you to the interstate which will take you to Biloxi or Ocean Springs within half an hour. If you are up for a little longer drive you can be in New Orleans, LA or Mobile, AL under an hour and a half. It reaSwan Lake sunsetlly is centrally located and convenient to so many adventures here on the MS Gulf Coast, but …. on those days you just don’t want to get in the car, you want to enjoy time at home with your family and slow down a bit, Swan Lake offers it’s own adventure. Fire up the smoker or grill, enjoy a nice meal and then head over to the pool for a swim, bring the kayaks and go out on the lake. Make sure to bring the fishing poles along and catch some fish while you are out on the lake or cast a line out on the pier. Little ones just want to play? Take them over to the shaded playground and nature trail located just across from the lake and pool. End  your Swan Lake adventure by watching the gorgeous sunsets over the lake, like the one pictured above.

Swan Lake Estates really has it all: location, amenities, neighborhood social events, unique homes, large yards and great neighbors all coupled with affordable prices, insurance, taxes and HOA fees. All this makes it one of the best neighborhoods to buy a home  and settle down here on the MS Gulf Coast. You get a lot of bang for your buck!

Fishing on Swan Lake
Fishing on Swan Lake

If you would like to take a private tour of Swan Lake Estates and all the available homes to purchase there, give Morgan or Kristy Young a call at 228.239.0371 or 228.697.1575. Office # is 228.215.2545. Morgan and Kristy are your local experts, they have sold multiple homes with happy clients in Swan Lake. Morgan and Kristy know the ins and outs of this neighborhood and the surrounding areas. Watch this video and have a a bird’s eye view of Swan Lake Estates.

We hope we can help you find your Next Home whether it be in Swan Lake or one of the other great neighborhoods or areas the MS Gulf Coast has to offer! Check out the current available homes in Swan Lake Estates by clicking this link: Swan Lake Estates homes for sale.

The MS Gulf Coast is growing and has so many hidden gems just like Swan Lake Estates, including awesome restaurants, entertainment, shopping and so much more. Take the time to slow down and discover “The Secret Coast”. Check out some of the offerings of our “Secret Coast” here: Coastal MS : The Secret Coast . Here are a couple of our favorite spots to eat:

We hope you find your place here on the MS Gulf Coast and we would be honored to help you find it!

welcome ms gulf coast

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Homeownership Will Always Be a Part of the American Dream

On Labor Day we celebrate the hard work that helps us achieve the American Dream. Growing up, many of us thought about our future lives with great ambition. We drew pictures of what jobs we wanted to have and where we would live as a representation of a secure life for ourselves and our families. Today we celebrate the workers that make this country a place where those dreams can become a reality.

According to Wikipedia,

Labor Day honors the American labor movement and the contributions that workers have made to the development, growth, endurance, strength, security, prosperity, productivity, laws, sustainability, persistence, structure, and well-being of the country.”

The hard work that happens every day across this country allows so many to achieve the American Dream. The 2019 Aspiring Home Buyers Profile by the National Association of Realtors (NAR) says,

“Approximately 75% of non-homeowners believe homeownership is part of their American Dream, while 9 in 10 current homeowners said the same.”

Looking at the number of non-owners, you may wonder, ‘If they believe in homeownership, why haven’t they bought a home yet?’. Well, increasing home prices and low inventory can be part of the reason why some haven’t jumped in, but that does not mean there is a lack of interest. The same report shows the increase in the desire to buy in the last year (as shown in the graph below):Homeownership Will Always Be a Part of the American Dream | MyKCMAs we can see, there are more and more people each quarter who want to buy a home. The good news is, as more inventory comes to the market, more non-homeowners will be able to fulfill their dreams. Finally, they’ll be able to move into that home they drew when they were little kids!

Bottom Line

If you’re a homeowner considering selling, this fall might be the right time, as there are buyers in the market ready to buy. Let’s get together to determine how you can benefit from the pent-up housing demand.

Housing Supply

Housing Supply Not Keeping Up with Population Increase

Housing Supply Not Keeping Up with Population Increase | MyKCM

Many buyers are wondering where to find houses for sale in today’s market. It’s a true dilemma. We see an increase in buyer demand, but the supply available for purchase isn’t keeping up.

The number of new housing permits issued prior to the great recession increased for 15 years until 2005 (from 1.12 million in 1990 to a pre-recession peak of 2.16 million in 2005). According to Apartment List,

From 1990 to 2005, the number of single-family permits issued more than doubled, while the number of multi-family permits grew by 49 percent.

When the housing market crashed, the number of new homes permitted decreased to its lowest level in 2009 (see below):Housing Supply Not Keeping Up with Population Increase | MyKCMSince then, supply and demand have been out of balance when it comes to new construction. According to the same report,

Construction of single-family homes has recovered much more slowly — the number of single-family housing units permitted in 2018 was barely half the number permitted in 2005.”

Why is new construction so important?

As the U.S. population increases, there is also an increase in the need for new homes. Today, new construction is not keeping up with the increase in the nation’s population. The report continues:

“The total number of residential housing units permitted in 2018 was roughly the same as the number permitted in 1994, when the country’s population was 20 percent less than it is today.”

Essentially, the dip in home building coupled with the steadily increasing U.S. population means there is now a selling opportunity for homeowners willing to list their current houses.

Bottom Line

If you’re considering selling your home to move up, now is a great time to get a positive return on your investment in a market with high demand. Let’s get together to determine the specific options available for you and your family.