Factors That Influence Affordability

Lately, you can’t discuss residential real estate without commenting on the affordability challenges that today’s consumers face. There’s no question that properties in El Dorado Hills and other areas are much less affordable today than they were over the past few years, but that doesn’t imply homes are now truly unaffordable. There are 3 factors used to establish home affordability which includes home prices, loan rates, and wages. Here is a closer look at those components.

Home Prices

The latest Home Price Insights report provided by CoreLogic shows that home values have increased by 22% from last March of 2021 to our current month (March 2022). This is one reason affordability has declined over the past year.

Mortgage Rates

While the current global uncertainty makes it difficult to project home loan rates, we do know current rates are almost one full percentage point higher than they were at this time last year. According to Freddie Mac, the average rate for last February was 2.81% whereas this February it was 3.76%. That increase in the mortgage rate also contributes to homes being less affordable than they were last year.

Wages

The one big and positive component within the affordability equation is a rise in American wages. In a recent article by RealtyTrac, Peter Miller addresses that point:

“Prices are up, but what about wages? ADP reports that jobholder incomes increased 5.9% last year but rose 8.0% for those who switched employers. In effect, some of the higher cost to buy a home has been offset by more cash income.”

The National Association of Realtors (NAR) also recently released some data that examines income and affordability. The NAR report provides a comparison of the current median family income versus the qualifying income for a median-priced home in each region of the country. While the figures might range in certain locations within each region, it’s important to note that it was found that in most of the country, homes are still affordable.

In the end, when you think about affordability you must remember that the picture includes more than just home prices and mortgage rates. While they do have a significant impact, wages need to be factored into affordability as well. Because wages have been rising, they’re a big reason that, while less affordable a few years ago, homes are not unaffordable today.

What to Look for in a World-Class Equestrian Estate

When it comes to lifestyle properties, equestrian estates have appealed to luxury homebuyers for centuries. Often grand and historic, they are devoted entirely to enjoying one’s passion for horses. If you’ve ever considered purchasing a property where you can ride, train and care for these beloved animals, these features are essential for an equestrian estate that leaves nothing to be desired. 

First-Class Facilities
A well-designed stable with an adequate number of stalls, a wash rack and a tack room for your equipment is perhaps the most important item on the list. Some all-encompassing estates take it a step further, however. On these properties, you’re also likely to find a riding arena and a spacious paddock for the horses to spend time outside. 

Riding Trails
Part of the grandeur of equestrian estates is that they’re often built on large tracts of land with their own riding trails. For an equine enthusiast, there’s quite simply no greater luxury than being able to leave their private stable on horseback and leisurely roam the property’s scenic trails. Although not all horse properties enjoy this feature, they’ll likely still have access to nearby trails.

Equestrian Community
Community, of course, is always important. If horses are your passion, then chances are you’ll appreciate being around others who share this. Not to mention, you can expect many important benefits, like an abundance of nearby services and specialists to help with caring for your animals. Equine veterinarians, trainers and nearby supply stores are just a few things that you’ll be thankful for having easy access to. 

Ample Accommodations
Lastly, let’s not forget that equestrian estates tend to be used as gathering places. Multiple generations of families and large groups of friends come together at these prized homes to spend quality time away from the hustle and bustle of their everyday lives. For this reason, it’s common to see numerous dwellings on a sprawling equestrian estate, like a manor house, guest house, staff quarters and more. 

Why You Should Have a Buyer's Agent

A listing agent represents a seller. If you want to buy a house, find a buyer’s agent to work on your behalf.

An exclusive buyer’s agent will show you any properties that suit your needs, regardless of which company listed them and how much money the agent could make.

A buyer’s agent and seller’s agent will split the commission.

Find a buyer’s agent online or through word of mouth. Look for someone who understands the local market and is a good listener.

If you don’t have a buyer’s agency agreement, the agent represents the seller.

Make sure the contract says the agent has a fiduciary duty to represent your interests.