Bill Diebenow Properties

Build a proper context and gain a clear perspective. Volatility in the financial markets can cause anxiety.  It's understandable.  Especially with the speed of change brought on by the Fed tackling inflation through the hikes in interest rates. But consider these 2 points in proper context across time. It Remains a Seller's Market Housing has cooled but equity-rich homeowners are still in the driver's seat. Why? Years of tighter mortgage lending standards and sharp home appreciation mean homeowners have less debt and substantial amounts of equity. Because of this, we are unlikely to see the domino effect of an over-leveraged environment and price instability like we experienced at the outset of the Global Financial Crisis over a decade ago. That will keep inventory constrained. Low inventory means buyers’ options will remain limited. Check out the insightful article (click link) penned by the senior economist at Zillow Group. Yes, listings are up and sales have slowed. Bu...

  Participate in RE Beyond Ownership of your Primary Home Have you considered investing in rental property? It may not be as big a leap as you imagine. The moderation of the residential real estate market could create opportunities for you to participate beyond ownership of your primary home. Recounted in the WSJ article linked below, home purchases by investors large and small climbed to record levels during the pandemic, reaching a high of 28% of all single-family home sales in February of 2022, up from 17% during the same month in 2019 (housing data firm CoreLogic).   Assess the Housing Market   The first step would be to assess the long-term direction of the housing market. As I wrote last week, residential real estate trends are best viewed from both national and location-specific perspectives. On a nationwide basis, there is a well-documented home inventory shortage. Match this with demographic pressures, the  catch-up growth in Millennial purchases will drive ...

Shout out to The Money Guy Show produced here in Franklin, TN. Hosts Brian Preston and Bo Hanson ask, "Who’s Right About the Housing Market? (Dave Ramsey vs. Graham Stephan)." Well, it depends! Brian and Bo offer 5 practical steps as we come through this transitional period. Check out the video linked above, it's informative and entertaining. The first step is to assess where home prices are going. They turn to financial expert Dave Ramsey who proclaims that prices aren't going down and to buy now. And then YouTube sensation Graham Stephan, who states that location matters and certain markets are overvalued. Location Matters For Middle TN, both words of advice happen to be correct and positive. Residential real estate trends are best viewed from both national and location-specific perspectives. Brian and Bo reference the long-term trajectory of our Middle TN market. I have included an appreciation graph that maps out the 5.9% historic annual gain. Nobody expects a re...