Planning Ahead: A 12-Month Guide to Buying Your First Home

by Windermere Staff

Thinking about buying a home can be daunting, especially if it’s your first time. What should be an exciting milestone can feel overwhelming without a clearly defined roadmap, and diving in headfirst without a solid plan can lead to unnecessary stress, financial surprises, and missed opportunities. However, by establishing a timeline and breaking the process down into manageable steps, you can move forward with confidence and clarity.

Here is your month-by-month guide to preparing for a successful home purchase in the following year.

12 – 10 Months Out

Know Your Why

Understand your motivation for buying. Are you relocating, growing your household, or ready to invest in your future? Clearly defining your “why” will help shape your search criteria and influence your budget, location, and timeline.

Set Clear Goals

Start to think about what you want in your new home. Create a list of your wants versus must-haves, including location, budget, size, and style of home. These goals will act as a compass throughout your search. Be sure to include your ideal timeline and what you hope to get out of the overall experience.

Find an Agent That Prioritizes Your Goals and Timeline

A trusted real estate agent is more than just a facilitator; they’re a guide, negotiator, and advocate. Look for someone who understands your timeline and long-term vision and is familiar with the local market. Ask them to provide a first-time buyer’s guide or checklist to help you get started. Building this relationship early allows your agent to understand your needs and preferences in advance, setting the stage for a smoother process when you’re ready to make your move.

9 – 7 Months Out

Assess Your Finances

Take a close look at your income, debt, and spending habits. Use this time to create a monthly budget that includes future mortgage payments, utilities, insurance, taxes, and home maintenance. Many experts recommend spending no more than 28% of your gross monthly income on housing costs.

Boost Your Credit

Your credit score has a significant impact on your buying power, including your mortgage rate and loan approval. Take the next few months to pay down high-interest debt, stay current on all payments, and avoid opening new credit accounts. Check your credit report for errors and work on improving your score if needed.

Start Saving

You’ll want to have enough set aside not only for a down payment, which is typically 3% to 20% of the purchase price, but also for closing costs, moving expenses, and initial home repairs or furnishings. During this time, try to avoid nonessential major purchases and think about setting up a dedicated home savings account to stay consistent.

6 – 4 Months Out

Talk to a Financial Advisor

A financial advisor can help you align your financial goals with your homebuying plans. They can offer advice on what you can realistically afford and help identify areas to strengthen your financial readiness. You can also use tools like an online mortgage calculator to get a clearer idea of what your future monthly payments might look like.

Research Homebuyer’s Courses & Guides

Take advantage of first-time homebuyer resources, guides, and online courses. The more you know earlier on, the more confident you’ll feel.

3 – 2 Months Out

Familiarize Yourself with the Market

Start browsing homes and monitoring prices in the neighborhoods you’re interested in. Learn whether your local market is currently favoring buyers or sellers and what that could mean for your strategy.

Meet with a Lender and Get Pre-Approved

Meeting with a lender and getting pre-approved can help give you a clear picture of how much you can borrow and what price range to shop within. It also shows sellers that you’re a serious buyer when the time comes to make an offer. Your realtor can recommend trusted lenders to work with and assist you through this process.

Start Your Home Search

Now that you have your list of wants and needs and know your price range, you’re ready to start searching for your dream home. Use online property research tools to filter by location, features, and price to see what’s available in the locations you like. Narrow down your top homes and start scheduling showings and comparing listings.

1 Month Out

Make an Offer

Once you find “the one,” your agent will help you craft a competitive offer, negotiate terms, and guide you through contingencies.

Get a Home Inspection
If your offer is accepted, a licensed inspector will identify any issues with the property before you finalize your purchase. Depending on what comes up, this can give you leverage to negotiate repairs or price adjustments.

The Time Has Come

Closing On Your New Home
You’ve made it! During closing, you’ll sign paperwork, pay final costs, and receive the keys to your new home. Your agent and lender will walk you through the final steps to ensure everything goes smoothly.

A Step-by-Step Guide to a Smooth and Successful Sale

by Windermere Staff

Navigating everything involved with selling your home can seem intimidating. Breaking the process down step by step will keep you organized and ready to work with your agent toward a successful home sale.

1. Choose an Agent

A lot goes into choosing the right agent. If you’re unsure where to start, get referrals from trusted friends, family, and neighbors. Although the ultimate goal is the sale, think about your compatibility outside of the transaction. Their ability to connect with you on a human level through the ups and downs of a home sale is just as important as their expertise and knowledge of the market.

Pro tip: Look for someone who communicates the way you do—whether that’s testing, emailing, or good old-fashioned phone calls. Feeling heard and understood can make all the difference in building trust and making the process more enjoyable.

2. Set a Timeline

Depending on your local housing market conditions, your timeline for selling your home may vary. However, a timeline is valuable in that it will keep you organized throughout the selling process and allows you to adjust if circumstances change. Your agent will work with you to build the ideal timeline, one that reflects your personal goals, the local marketplace, and any milestones you may be working around. Having a clear plan reduces stress and ensures everyone is on the same page.

3. What is Your Home Worth?

The key to selling quickly is correctly pricing your home from the first day it hits the market. In particular, overpricing can lead to serious complications in the selling process. Your agent can provide you with a Comparative Market Analysis (CMA) to better determine the best price of your home. CMAs provide information on comparable home sales in your area, both pending and sold, within the past six months.

While an agent will always have the best information, you can also explore your home’s potential value with our real-time automated value estimate tool before connecting with your agent. Our seller page features home values and market information about what buyers are looking for in your area.

4. Repair & Upgrade

Now it’s time to get to work on the house! This is the perfect time to tackle any and all outstanding projects or repairs. Create a list separating which repairs can be done yourself and which need professional attention. This is also a great opportunity to consider a pre-sale home inspection to identify structural and mechanical issues or outdated features that could benefit from attention. Even small updates can go a long way—especially those that boost energy efficiency or add smart home appeal.

5. Make the Best First Impression

Creating a strong first impression can have a lasting impact on buyers, so roll up your sleeves and prepare to check off that to-do-list. Start by cleaning up the garden and lawn, clearing out gutters, and adding color to your flower beds. Apply a fresh coat of paint anywhere you spot peeling or cracked paint. A great way to make an impact is by staging your home, with the goal of making each room feel as spacious and welcoming as possible. Professional photography and even a little social media buzz can make your home stand out from the start.

6. Show Your Home

Discuss virtual home tour options with your agent and other ways to generate maximum buyer interest. Consider 3D tours, virtual staging, or even drone footage if your property has outdoor highlights. These features can help your home stand out online and attract more attention, especially as many buyers now begin their home search digitally. For in-person showings, it’s best that you leave the premises so the buyer can freely ask their agent questions and visualize the home as their own.

7. Offers & Negotiation

If you are in a seller’s market—defined by low inventory and high buyer competition—it is likely that you will receive offers at – or above – asking price. You can respond to an offer by a) accepting the offer, b) making a counteroffer, or c) rejecting the offer. Counteroffers should always be made in writing and provide a short window of time for the potential buyer to respond. If you are selling in a buyer’s market, you may have to be more open to negotiation. Discuss negotiation strategies with your agent to work toward a satisfying final price.

8. Prepare for Closing Costs

There are costs throughout the selling process, and as the close date approaches, that remains true. Be sure to budget for your real estate agent’s commission, and other common seller’s costs like title insurance, recording fees, and government transfer tax, among others.

9. Home Inspection

Buyer offers are usually contingent upon a professional home inspection. Ask your agent for a home inspection checklist, so you know what the inspector is looking for ahead of time. They typically inspect the home’s foundation, structure, roof, plumbing and electrical systems, floors, windows, doors, and more for signs of damage and weathering. Some buyers now opt for additional specialized inspections—like sewer scopes or radon testing—so it’s helpful to be prepared in advance for what might come up.

10. Closing Time

Congratulations! Your home is sold, but there are still some final steps before the deal is done. This is the time to ask the buyer to release any contingencies, sign the title, and close escrow before handing over the keys. Consult your real estate agent for any questions about legal documentation and settlement costs.

10 Steps to Get Your Home Clean and Ready for Spring

by Windermere Staff

Warmer months are ahead, so now is the time to plan for spring cleaning and maintenance. A clean home offers a fresh start for the year, and a checklist of tasks guides your efforts towards efficiency. For many homeowners, spring cleaning can be a personal challenge. It can also be one accomplished with the help of the rest of the family or other residents. In some occasions, however, professional assistance may be advised, or even necessary. Regardless, regular home maintenance not only increases your home's value, but it can also make your home more comfortable and enjoyable.

Indoors

Check Your Attic

Once summer arrives, it can be too hot in many regions to comfortably perform an inspection. Use late winter and early spring to ensure the following: there's ample insulation (10 to 14 inches), there are no signs of mice or rats (droppings, strong odor, nests), there are no bugs (flying, crawling, or otherwise), and there are no signs of roof leaks (water stains, etc.).

Schedule HVAC Maintenance

Annual tune-ups on your heating/cooling equipment will reduce your energy bill and help ensure you can maintain a comfortable indoor temperature.

Fix the Window Screens

It won't be long before you'll want to throw open the windows for fresh air, or relief on a warm afternoon. Take time now to ensure your window screens are ready for the challenge. Many traditional neighborhood hardware stores still offer re-screening services. Contractors also specialize in this service and are available for house calls.

Clean the Ceiling Fans

During the warm weather and the cold, ceiling fans can help moderate the temperature and better distribute the air. But your fans will be far more efficient if you give them a good cleaning a couple times each year. For fans mounted up to 10 feet in the air, you can use a ladder to access the tops of the fan blades. For those mounted on vaulted ceilings, use a long-handled duster.

Apply Weather Stripping

Many homeowners think of weather stripping as a cold-weather commodity, but it's just as important during summer. To keep the cool air in and the hot air out, use any of the many filler materials available to seal gaps around windows, doors, exhaust fans, and any other point where you can see light peeking through.

Outdoors

Look for Damaged Roof Shingles

Use binoculars (with your feet safely planted on the ground) to scan for roof shingles that are curling, broken, or missing. If anything seems compromised, have a roofing company perform an inspection and provide a bid. If you or any members of your family are enterprising drone users, a camera-affixed drone can also be a useful aid in this reconnaissance effort.

Wash the Exterior

An easy way to extend the life of your exterior paint – and make your house look better than ever – is to give the siding a good washing. Use mostly water (to avoid harming any plants) and a stiff pole brush.

Search Out Rotten Wood

While you're washing the exterior, keep an eye out for areas where there may be rot. Use a screwdriver to gently but firmly press on any siding or trim where you see black mold, missing paint, or exposed gray wood. If the area you're probing feels mushy or bone-dry, contact a contractor to assess and stabilize the situation.

Clean the Gutters

All it takes is a handful of leaves to clog a gutter downspout and cause overflow and flooding. Hire a professional to give the gutters a thorough cleaning and you'll avoid the very real dangers of working from a ladder. If you live in an area with lots of trees, consider getting quotes for some of the leaf-less gutter systems.

Prepare Your Lawn to Grow

The winter sets impediments for your lawn, and it takes preparation to help it shine. Rake away any dead grass and aerate the whole lawn to allow nutrients to access the roots. Reseed bare spots and apply a spring fertilizer to ensure your lawn has the fuel it needs to grow strong and beautiful.

Preparing to Sell Your Home: A Complete Checklist

by David Chan

A young man and woman sit on their living room floor next to a pile of boxes.

Getting your home ready to sell can feel like a circus act. Without the right organization, juggling the countless moving parts involved in this stage of the selling process can take its toll. This is the perfect opportunity to create a checklist to keep yourself on track and within your budget. The following information will illuminate the key responsibilities you face as a homeowner as you prepare to hit the market.

We’ve included a comprehensive checklist below of the common tasks required to get your home ready to sell. It is also available as an interactive web page and downloadable pdf here: Get Ready to Sell Checklist

Preparing to Sell Your Home: Working with an Agent

Before you start working on the house itself, it’s best to get the ball rolling on the strategic aspects of selling a home. Working with a real estate agent is the best way to get your home sold for the best price in a timely manner.

A listing agent will represent you throughout the selling process to determine the value of your home, coordinate open houses, market the property, and negotiate with buyers to reach a deal. In the early stages of your discussions with your agent, they will conduct a Comparative Market Analysis (CMA) to see what price your home could fetch on the market, accounting for various factors that influence home prices such as seasonality and local market conditions. Based on the findings of your agent’s CMA, you can discuss whether remodeling fits into your go-to-market strategy, and your agent can provide intel on which remodeling projects could deliver significant ROI based on buying trends, your location, and what comparable listings in your market are offering.

Home value estimation tools can help you get an idea of what your home is worth to facilitate your conversations with your agent. Use our free Home Worth Calculator by clicking the button below:

A middle-aged man and woman sit down with their real estate agent.

Image Source: Getty Images – Image Credit: FG Trade

Preparing to Sell Your Home: A Complete Checklist

Once you’ve found an agent, you’re ready to get your home in tip-top selling shape. The following checklist is available as a free downloadable PDF here:

Get Ready to Sell Checklist – PDF

Exterior

This list of value-adding curb appeal projects will help to form buyers’ first impressions of your home and make your ever-important exterior listing photos stand out amongst the competition.

Remove peeling and chipped paint; replace with a fresh coat
Fix loose trim and fencing
Clear gutters and downspouts
Make sure there is good exterior lighting and all walkway lights and front-door lanterns work
Clean and repair the roof as needed
Clear garage of clutter and tidy shelves
Inspect chimney for cracks and damage

Yard

Mow and trim grass; re-seed and fertilize where necessary
Prune all overgrown trees and shrubs
Weed flowers beds
Remove or replace dead or diseased plants, shrubs, and trees
Clean grease and oil stains from driveway

Decks/Patios

Paint or stain worn areas on wood decks
Remove grass growing in concrete cracks; sweep off debris from shrubs and trees
Clean all deck rails and make sure they’re secure; replace missing slats or posts
Clean outdoor furniture

Front Door

Polish or stain worn areas on wood decks
Add a fresh coat of paint to get rid of nicks
Clean the glass on the storm door; make certain the screen is secure
Make sure the doorbell operates properly and there are no squeaks when the door opens and closes

Windows

Clean all windows inside and out
If needed, add a fresh coat of paint to the window trims and sills
Make sure all windows open and close easily
Replace cracked windowpanes and those with broken seals
Make sure window screens are clean and secure; replace any screens with holes or tears

Front Entry

Clean entryway floors and area rugs
Downsize clutter in the entry and entry closet to give the appearance of spaciousness
Double-check entry lighting to make sure it works

Interior

Not only will these interior projects get your house sparkling clean, but they’re also preparatory steps for staging your home and hosting open houses.

General Interior Cleaning

Clean all floors, carpets, walls, and trim
Replace burned-out light bulbs
Empty trash
Remove family photos, valuables, and prescription drugs
Tidy up clutter

Kitchen

Fix dripping faucets
Organize pantry and cupboards so they appear clean, neat, and spacious
Make sure the refrigerator and freezer are defrosted and free of odors
Clean the oven and cook top thoroughly
Set the table

Living/Family/Dining Rooms

Give rooms a fresh coat of paint as needed
Repair cracks and holes in ceiling and walls
Make sure all wallpaper is secure
Repaint any woodwork that is worn or chipped
Clean or replace draperies and blinds; open them to maximize light
Make sure draperies and blinds open and close
Steam-clean carpets
Clean rugs and wood flooring, and remove any stains or odors
Position the furniture to showcase the size and space of the room
Remove and replace any attached items, such as chandeliers and draperies, that you wish to move with you
Put away toys and hobby supplies; remove extra magazines and books from tables

Bathrooms

Make sure sinks, tubs, showers, and countertops are clean and free of stains
Repair any leaky faucets
Remove grout and soap stains from tile
Replace any missing or cracked tiles or grout
Make sure all joints are caulked
Make sure all fixtures, including heat lamps and exhaust fans are operating
Install a new shower curtain and buy matching towels
Store all supplies, such as toilet paper, shampoo bottles and cleansers, out of sight

Bedrooms

Repair cracks in ceiling and walls
Apply a fresh coat of paint if necessary
Make sure all wallpaper is secure
Clean draperies and blinds; open them to maximize light
Put away toys, clothes, and clutter
Neatly make up the beds

Basement

Check for water penetration or dampness; call for professional repairs if necessary
Get rid of musty odors
Clean furnace, hot water heater, and drains
Make sure light fixtures work
Arrange storage area in a neat and organized manner
Make sure stairway handrail is secure

Tidy Extras

Use air fresheners or bake treats to make the house smell good
Plant flowers to brighten the walkway and enrich the entry
Remove any indoor houseplants that are brown or losing their leaves
Remove all “fixer” cars, campers, and boats from the property
Discard the clutter of magazines on the coffee and end tables
Tidy and declutter all closets
Hide or get rid of worn-out throw pillows
Store pet supplies
At night, turn on the porch light and outdoor lighting
Put away toys and hobby supplies; remove extra magazines and books from tables

The Biggest Home Buying and Selling Mistakes (and How to Avoid Them)

by Windermere Staff

There’s nothing more exciting, rewarding, and fulfilling than buying or selling a home. However, it’s a complex transaction, and there are several steps along the path that can confuse even the most seasoned buyers and sellers. How can you avoid potential selling pitfalls and common buying mistakes? Look to your real estate agent for advice and keep the following guidelines in mind.

Common Buying Mistakes

#1 Review Your Credit Reports Ahead of Time

Review your credit report a few months before you begin searching for homes. You’ll have time to ensure the facts are correct and be able to dispute mistakes before your mortgage lender checks your credit. Get a copy of your credit report from Experian, Equifax, and TransUnion. Why all three? Because, if the scores differ, the bank will typically use the lowest one. Alert the credit bureaus if you see any mistakes, fix any problems you discover, and don’t apply for any new credit until after your home loan closes.

10 Important People in the Home Buying Process

#2 Get Pre-Approved for a Mortgage

Before getting serious about your hunt for a new house, you’ll want to choose a lender and get pre-approved for a mortgage (not just pre-qualified—which is a cursory review of your finances—but pre-approved for a loan of a specific amount). Pre-approval lets sellers know you’re serious. Most importantly, pre-approval will help you determine exactly how much you can comfortably afford to spend.

#3 Know What You Want

You and your real estate agent should both be clear about the house you want to buy. Put it in writing. First, make a list of all the features and amenities you really want. Then, number each item and prioritize them. Now, divide the list into must-haves and nice-to-haves.

#4 Account for Hidden Costs

In addition to the purchase price of the home, there are additional costs you need to take into consideration, such as closing costs, appraisal fees, and escrow fees. Once you find a prospective home, you’ll want to:

Get estimates for any repairs or remodeling it may need
Estimate how much it will cost to maintain (gas, electricity, utilities, etc.)
Determine how much you’ll pay in taxes monthly and/or annually.
Learn whether there are any Homeowners Association (HOA) fees associated with the property.

#5 Get a Home Inspection

Buying a home is emotionally charged—which can make it difficult for buyers to see the house for what it truly is. That’s why you need impartial third parties who can help you logically analyze the condition of the property. Your agent is there to advise you, but you also need a home inspector to assess any hidden flaws, structural damage, or faulty systems.

Making the Most of a Home Inspection

#6 Research the Neighborhood and Location

When house hunting, it’s easy to get caught up in the details of the home itself—bedrooms, bathrooms, and amenities—while overlooking the subtleties of the surrounding neighborhood. Take time to explore the area at different times of the day, research school options, check crime reports, and visit nearby parks, shops, and restaurants. A great home in the wrong location can quickly become the wrong home.

Common Selling Mistakes

#1 Avoid Getting Too Emotional About the Sale

Once you decide to sell your house, it’s time to strip out the emotion and look at it as a commodity in a business transaction. If you start reminiscing about all the good times you had and the hard work you invested, it will only make it that much harder to price, prepare, and market the home successfully.

Preparing to Sell Your Home: A Complete Checklist

#2 Make Repairs or Price Accordingly

Homes with deferred maintenance and repair issues can take far longer to sell and can be subject to last-minute sale cancellations. These homes also often sell for less than their legitimate market value. If you simply can’t afford to address critical issues, be prepared to work with your agent to price and market your home accordingly.

#3 Don’t Overprice Your Home

Getting top dollar is the dream of every seller. But it’s essential that you let the market dictate that price, not your emotions or financial situation. Allow your agent to research and prepare a market analysis that factors in the value of similar homes in the area and trust those results. Overpricing your home often spells trouble and can leave significant money on the table.

#4 Use High Quality Photos

Most prospective buyers today search for homes online first. To make a good first impression, you need a wealth of high-quality photos showcasing your home and surrounding grounds. In today’s market, buyers also expect virtual home tours, drone photography, and 3d walkthroughs to get a more immersive look at the home before scheduling an in-person visit. Investing in these visual tools can help your home stand out in a competitive market and attract buyers faster. It’s also critical that you stage your home to generate maximum buyer interest.

How to Increase Your Buying Power

by Windermere Staff

Rearview shot of a young couple standing outside their new home

One of the best ways prospective home buyers can empower themselves when purchasing a home is to improve their buying power. The numbers may seem daunting but identifying ways to strengthen your financial standing will help you each step of the way.

When visualizing your dream home, it’s common for buyers to focus on the physical characteristics. But to mortgage lenders, a home is a numbers game. The following categories related to your buying power demonstrate how lenders identify your financial standing and determine your eligibility for a home purchase. Improvements in these areas will increase your buying power, propelling the strength of your offer when you’re ready to put it on the table.

Increase Savings For Your Down Payment

As the saying goes, cash is king. The down payment—often 20% of the home’s sale price—can sometimes be the deciding factor between competing offers for a particular home.

Try stashing away a little of each paycheck to build up your savings over time. Set a savings goal, commit a dedicated amount to each pay period, and watch the savings build as time goes on. If you prefer to keep your money separate, open a new account to which you can dedicate the added savings. Another way to save for your down payment is to generate additional income. If you have interest or experience in an area outside of your current job, explore opportunities for part-time work and dedicate the income earned to your down payment savings.

There are numerous benefits to offering a serious down payment. Putting 20% or more down can help your offer stand out, it may allow you to negotiate a lower interest rate on your mortgage and could remove the need for private mortgage insurance (PMI).

Improve Your Credit Score

Plain and simple—a better credit score leads to better interest rate on your mortgage. Your payment history, amounts owed, length of credit history, credit mix, and new credit all factor into your credit score. Although improving it will not happen overnight, a higher credit score will pay dividends in the long run.

To improve your credit score, focus on paying down your credit cards, especially those with high interest. Refrain from opening new lines of credit that aren’t necessary and stay away from large purchases leading up to the time when you are preparing to make an offer. Keep in mind that student loans factor into your financial picture. Paying them off consistently will improve your financial standing in the eyes of lenders.

Stabilize Your Debt to Increase Buying Power

When assessing what you can afford, banks will examine your debt-to-income ratio. Lenders want to know that you’ll be able to pay your mortgage on top of your remaining debt.

They do this by looking at your housing ratio, or front-end ratio, to determine what portion of your income will go to paying your mortgage. Your front-end ratio is calculated by taking your monthly mortgage payment and dividing by your monthly gross income. The higher the ratio, the higher risk of default.

Next, your back-end ratio, or debt-to-income ratio, is used to determine how much of your monthly income goes toward paying your debts. Your back-end ratio is calculated by taking your monthly debt expense (the principal, interest, taxes, and insurance of your mortgage payments, credit card payments, student loans, and any other loan payments), and dividing it by your gross monthly income.

Similar to your credit score, paying off credit cards, and making steady, consistent progress on your loans will help to decrease your debt and improve your debt-to-income ratios, which will increase your buying power.

Although these aspects of your finances don’t cover everything that goes into the purchase of a home, they do play a significant role in how lenders assess your financial standing and thereby eligibility for approval. Increasing your buying power takes time and strategy. Plan accordingly so that when you find your dream home, you’re in the best position possible to buy it.

2025 Housing Forecast

Hi! I’m Jeff Tucker, Principal Economist at Windermere Real Estate, and I’m here to share my top 5 predictions for 2025. Let’s jump in!

Interest Rates Will Decline

I expect interest rates to fall to around 6.5% in 2025, but in a gradual zigzag fashion. Temporary factors, like election uncertainty, higher Treasury debt issuance, and market volatility, helped push mortgage rates back up by almost one full point last fall. But the big picture hasn’t changed that much. We are still in the cooldown phase of an economic cycle, with decelerating inflation, a slowing job market, and the Fed cutting short-term rates. Still, if we’ve learned one thing in the last two years, it’s that interest rates never get to where they’re going in a straight line.

Existing Home Sales Will Pick Up

Existing home sales have bottomed out and will pick up by as much as 10% year over year in 2025. Sales volume was held back by the low inventory of homes on the market in 2022 and 2023, but we saw sellers return in 2024, and buyer activity really started picking back up as well in the fall. Buyers and sellers feel less uncertainty now and are getting more comfortable with the new normal range for interest rates, all of which is helping to thaw the market.

Home Prices Will Not Fall

Broadly speaking, U.S. home prices will not fall in 2025, but they’ll only rise by around 2% to 4 %. The last three years have seen a roller coaster of gains and slowdowns when it comes to home prices, thanks to the fluctuation in interest rates and the changing supply of available homes for sale. Now that inventory is back to a balanced level, especially in the Western United States, 2025 should see a more consistent market, causing prices to stabilize.

Affordability Will Start to Improve

This might be surprising given the prediction about home prices not falling, but affordability will gradually start to improve in 2025. The main reasons for this are declining interest rates and rising incomes. The median U.S. household saw their income climb $10,000 over 2022 and 2023, from $70,000 to $80,000. Wages continued growing rapidly in 2024 and are expected to do the same in 2025. Those higher incomes, borrowing at somewhat lower interest rates, are helping home buyers start to catch up with all the home price growth that has happened since 2020.

More Parents Will Help with Down Payments

I believe parents helping with down payments will become more common, and more important, than ever in 2025. That’s because the high price of homes today means that homeownership feels out of reach for many first-time home buyers. But those same high prices also mean that the Baby Boom generation has a lot of home equity. So, as they discuss homeownership with their adult children, many parents see a down payment gift as one of the most meaningful ways to help them gain access to the American Dream.

In Summary

This is a picture of a housing market gradually settling into a new normal, after several abnormal years. A bunch of superlatives will be fading in the rearview mirror, like “fastest price appreciation ever”, “lowest inventory ever”, “fewest new listings ever”, “highest interest rates in 20 years.” This is a normalizing market, and that includes Americans learning to live with the new normal.

All right, those are my top five predictions for 2025, based on what I’m seeing in the market right now. I look forward to seeing how the new year plays out in the housing market and analyzing it on behalf of Windermere Real Estate.

Preparing Your Garage for an Electric Vehicle

by Windermere Staff

As manufacturing technologies continue to drive down production costs and increase the availability of electric vehicles (EVs), they are becoming more affordable and accessible than ever. And as the shift from gas-powered cars to EVs continues to accelerate, more and more consumers are recognizing the significant benefits of this transition, like lower running expenses, a smaller carbon footprint, and improved driving ranges. Additionally, many EV owners find that at-home charging stations provide the ease of refueling at home while alleviating the pressure on the overburdened public charging infrastructure, becoming an essential asset for their daily routines and enhancing their overall EV ownership experience. Before making the switch to an EV, preparing your home for this new lifestyle is important. Here are some key preparation tips to ensure you are set up for success when welcoming an EV into your garage.

Selecting a Charging Level

Charging at home has become the most convenient and cost-effective way to maintain a healthy charge for your EV. Countless EV owners express an appreciation for being able to organize a personalized charging schedule, optimize energy use, save on costs, and avoid the hassle of searching for available public chargers. As you are considering making the switch to an EV or setting up an at-home charging station, it’s necessary to acknowledge the different levels of EV charging to determine which best suits your lifestyle and offers peace of mind.
There are currently three models of EV charging: Level 1, Level 2, and Level 3 or DC fast charging. Deciding the right level depends on your driving habits, current home electrical setup, and the model of your car or if it is a full battery electric vehicle (BEV) or plug-in hybrid electric vehicle (PHEV).

Level 1 Charging

Level 1 is the slowest option available and uses a standard 120-volt outlet that you can typically find in any room of your home, including your garage, which means there may be no additional installation work needed. Oftentimes, when you purchase an EV, it may come equipped with a level 1 charging cable; however, this approach can take up to 50 hours to fully charge a BEV, making it a more suitable and sufficient option for those with lower mileage and range needs, or owners of a PHEV which can be fully charged in 5-6 hours.

Level 2 Charging

Most used for residential installations are Level 2 chargers, which utilize a 240-volt outlet, like those used for an electric stove or dryer. These can charge BEVs from empty to full in about 4-10 hours and PHEVs in just 1-2 hours, making them the efficient choice for those looking to maximize charging speed and convenience. Level 2 chargers have higher upfront costs and installation processes because they often require upgrades to your electrical system and a licensed electrician for professional installment. However, the benefits far outshine this initial investment, as with level 2 charging, owners can optimize time efficiency and integrate a charging schedule by plugging in at night, guaranteeing a full charge in the morning, saving them money on fuel prices, and reducing reliance on public charging.

Level 3 or DC Rapid Charging

DC rapid charging is the fastest charging method available, using 480 volts to charge EVs in as little as 30 minutes. DC rapid chargers are primarily found at public charging stations, making them ideal for quick “fill-ups” on road trips. They are rarely installed in homes due to high costs and the significant electrical upgrades that would be required.

Safety Measures for Preparing Your Garage and Using an At-Home EV Charger

It’s important to follow specific safety procedures when preparing your space for installation. Start by checking if your current electrical infrastructure is up to code and ready to support your new charging system. This may require help from a licensed electrician who will do a full assessment beforehand and recommend any necessary upgrades. Once your home’s electrical panel capacity can handle the load of the EV charger, you are now ready to follow these few safety measures to prepare your garage and start using your EV charging system:

Always invest in certified equipment that meets current safety regulations and is covered by a warranty. Low-quality equipment can lead to safety hazards, damage to your vehicle, or expensive repairs.
Consider the location of your charging station and make sure it is easily accessible, adequately placed three to four feet off the ground, and away from any water source or flammable materials.
Climate-control your garage with proper insulation to maintain charging efficiency, especially in cold climates, as colder temperatures can adversely affect charging times.
Only utilize a dedicated circuit, and never use multiple adapters or extension cords.
Avoid overcharging your EV or leaving your EV plugged in longer than necessary.
Regularly inspect the charging station, cable, and outlet for signs of damage or wear and tear that could be potentially dangerous. Avoid attempting to repair electrical equipment on your own.

Installing an At-Home Charging Station

Now that you’ve taken all the safety measures, you can install your EV charging system. If you’ve opted for a level 2 charger, the best thing you can do is get in touch with a licensed electrician. Consulting with a professional is recommended for more than just assessing your home’s electrical capacity but also verifying that your setup meets safety standards and that the electrical connections are securely installed and working correctly. With the proper installation and precautions in place, you can now enjoy safe, reliable, and efficient at-home EV charging!

The Life Expectancy of Your Home

by Windermere Staff

A man places a level on a cabinet while his dog watches.

Every component of your home has a lifespan. Common questions asked by homeowners include when to replace the flooring or how long to expect their siding to last. This information can help when budgeting for improvements or deciding between repairing and replacing when the time comes. We’re all familiar with the cliché: They just don’t build things like they used to. And while this may be true when it comes to brick siding or slate roofing, lifespans of other household components have increased in recent years. Here are the life expectancies of the most common household items (courtesy of NAHB):

Appliances:

Among major appliances, gas ranges have a longer life expectancy than things like dishwashers and microwaves.
Chart describing the life expectancy on the most common household appliances.

Kitchen & Bath:

When choosing your countertops, factor in the life expectancies of different materials.

Flooring:

If you’re looking for longevity, wood floors are the way to go. Certain rooms in your home will be better suited for carpeting, but you can expect they’ll need replacing within a decade.

Siding & Roofing:

When choosing roofing and siding for your home, climate and maintenance level factor into the life expectancy of the material. However, brick siding and slate roofing are known to be dependable for decades.

Are extended warranties warranted?

Extended warranties, also known as service contracts or service agreements, are sold for all types of household items from appliances to electronics. They cover service calls and repairs for a specified time beyond the manufacturer’s standard warranty.

You will have to consider whether the cost is worth it to you. For some, it brings a much-needed peace of mind when making such a large purchase. Also consider if the cost outweighs the value of the item. In some cases it may be less expensive to replace a broken appliance than to pay for insurance or a warranty.

Interest Rates Falling & Inventory Rising: Opportunity Knocks!

by Windermere Real Estate North

As we celebrate the start of autumn, the season of change, the leaves on the trees are not the only things that are falling. Interest rates have gradually fallen throughout the year. Just 11 months ago, rates were almost 2 points higher; in the frothy spring market, they were nearly 1.5 points higher. During this same time, the median price in King County and Snohomish County grew. In King County, the median price was recorded at $975,000 this August and at $775,000 in Snohomish County, which are both up 7% year-over-year from August 2023.

Another trend that we are witnessing is a rise in available inventory for sale. August recorded the highest level of available homes for sale since the fall of 2022, two years ago. There were 3,105 available homes for sale in King County in August 2024 compared to 1,207 in January 2024, and 1,147 in Snohomish County in August 2024 compared to 374 in January 2024.

The combination of lower borrowing costs and more selection should be a welcome change for buyers. When the inventory was much tighter in the first half of 2024 and interest rates were higher, prices were increasing at a rapid rate. We are starting to see new buyers enter the market and some who have sidelined themselves return. This indicates that prices will remain stable as we finish out 2024.

Currently, buyers have more selection and the opportunity to grab a lower monthly payment. As you can see from the chart below, buyers have a significant opportunity to afford a higher price point at a lower rate or stay at the same price point and have a lower monthly payment. The reduction in rate over the last year is reducing monthly payments and creating great long-term savings over the life of the loan. The rule of thumb for affordability is a 1-point shift in rate affects a buyer’s buying power by 10%. For example, a home priced at $800,000 with a 7% interest rate will have a similar monthly payment as a home at $880,000 with a 6% rate.

The hesitation we are seeing in the marketplace is a desire for rates to come down even further. The good news is that they are predicted to continue this gradual decline. Where we are concerned is a decrease in selection. If we look at seasonality, it is common for inventory to be low in the first half of the year, especially in Q1 (see the King & Snohomish graphs above). If rates continue their slide and fewer new listings come to market, buyers will find themselves duking it out in 2025. Right now, while there are multiple offers on some properties, there are more properties that are being negotiated into contracts with one buyer.

This has created a more nimble market, particularly for buyers who also have to sell their homes to reposition their equity into a downpayment. While tight inventory provides great leverage for a seller, many sellers are also buyers. Analyzing the market conditions to align the environmental influences to create the best possible outcome for your goals is paramount, and it will not be the same for everyone. Depending on our client’s goals, timing can vary.

Oh, and another sentiment we often hear is, “Will rates under 5% ever be back?” That is rather unlikely and will go down as a historic time in our economy. With that said, if you are in your “forever home” and you captured a historically low rate, kudos to you! Truly, so awesome! If you are not in the home that is right for you, now may be the time to curate a plan to get you into your next home. If homes were selling at a rapid rate and prices were appreciating this last spring with 10% less buyer power, we imagine next spring will be much of the same, if not more.

One final item to note is the election. History shows that post-election year markets are brisk with sales and experience price growth and rate decreases. We are paying attention to key indicators such as inflation figures, unemployment measurements, the gap between the 10-year treasury yield and mortgage rates, and our local market conditions in order to provide our clients with the most accurate and up-to-date information to empower strong decisions.

Are you curious how all of this affects you? Real estate is the number one tool for building wealth, and you also get to live there. We think that is pretty important, and we love nothing more than providing valuable insights, having strategic conversations, and helping people align their homes with their lives. Home is where the heart is and also where your nest egg has the most reliable long-term growth. Please reach out if you’d like to dig into the details and apply them to your housing and investment goals.