Stockberger: Graduation season brings return of popular homebuying program
May 13, 2024
This paid piece is sponsored by Amy Stockberger Real Estate.
By Amy Stockberger
Ah, the enchanting season of graduation is upon us once more, filling weekends with a whirlwind of vibrant celebrations and tasty anticipation from soon-to-be graduates eagerly stepping into their next chapter. It’s a tapestry of grad parties buzzing with infectious energy as friends and family gather to toast achievements and dreams of the adventures to come.
May traditionally is one of our busiest VIP Club equipment rental months because so many of our clients use our party equipment to host their graduation parties.
From our tables and chairs to our commercial-grade food warmers, platters, oversized coolers and even our beanbag toss boards, our clients are set up for success and save thousands of dollars using our equipment at their parties. This May, we have over 700 tables and chairs being checked out by clients.
As a reminder, our Lifetime Home Support commitment provides our clients VIP Club equipment, including:
- Party shed equipment such as bouncy houses; cotton candy, popcorn and hot dog makers; a portable commercial grill; and so much more.
- Tool equipment such as a wheelbarrow, commercial-grade carpet cleaner and paint sprayer, specialty tools and so much more.
- Moving trucks and moving supplies.
We also offer access to an online discount center saving them $5,300 a year and access to our Home Support Team partners, the best local companies that are there to cater to all their homeownership and lifestyle needs, providing them legendary care like we do, preferential treatment and in some cases preferential pricing and perks.
Our clients save over $20,000 in one year with their Lifetime Home Support perks. We do more than open doors; we open a lifetime of support and savings.
Those graduating from a secondary school have even more to be excited about this year as South Dakota Housing brought back its Grants for Grads program. This program allows individuals who have graduated from an accredited secondary school in the past 60 months to receive 5 percent of the purchase price toward their down payment and closing costs that they do NOT have to pay back. Free money. That. Is. Magical. And they receive a lower mortgage interest rate of 6.125 percent.
Building wealth through real estate is one of my favorite things besides my faith and my family, which is why our vision is to help clients, our team and community build big, juicy legacies. It is estimated that the average American has 70 percent of their net worth in their primary residence.
There is no better way to start building that net worth than with free moola. If you were to buy a $325,000 home, you would receive $16,250, which covers your down payment, meaning you could literally buy a home with as little as $500 out of pocket for your earnest money and then get that credited back to you at closing. Again, that is simply magical. But the magic won’t last forever because once the grant money runs out, it is gone with the wind, ladies and gentlemen. Also, as I will dive into more, home prices in the greater Sioux Falls area are not going down. They will continue to rise each year, which makes real estate such a solid investment — an investment that makes money and memories.
Also another fleeting opportunity will open Tuesday, May 14, with one of our lending partners that is offering a 5.125 percent interest rate based on income guidelines. This also is a grant and likely will last a hot second, so contact us ASAP for details before it is all allocated.
2020s home price growth: Surpassing expectations
The 2020s housing market continues to defy expectations. National home prices have surged over the past four years, surpassing growth experienced in entire previous decades. This rapid climb has many wondering – is this a sustainable trend, or are we due for a correction?
Today, we are diving into the historical data and exploring what this means for you.
National home price growth in the early 2020s has already outpaced the total growth seen in both the 1990s and 2010s. According to ResiClub’s analysis of the latest data, U.S. home prices have increased by 47.1 percent through the first 50 months of this decade.
Even the past year alone has seen considerable growth: U.S. home prices increased 6.4 percent from February 2023 to February 2024.
Locally in the Sioux Falls metro, we are seeing a similar trend. In April 2023, the average sales price of a home was $339,497. Fast-forward a year and the average sales price was $363,747, a 7.1 percent increase.
So what does this mean for the rest of the decade? To gain a better perspective, let’s dive into some historical data.
Historical comparisons
The 2020s increase in home prices can bring up a lot of fears — especially for those who see all the doom-and-gloom headlines! At Amy Stockberger Real Estate, we often hear questions like: Does this mean a market crash is coming? Is this a bad time to buy? Should I just wait for prices to come down?
Historically, here’s what we’ve seen: a consistent upward trend in home price growth every decade.
Take a look at the national numbers:
Source: ResiClub
- 1990s: 30.1 percent increase in home price growth.
- 2000s: 47.3 percent increase.
- 2010s: 44.7 percent increase.
- 2020s: 47.1 percent increase in just the first 50 months.
In short, the 2020s market so far is an outlier as we’re seeing higher overall price inflation in the current decade compared to similar points in previous decades. However, we also know that long term, home appreciation is expected to continue.
What does this mean for you?
The historical data suggests a few key takeaways:
- Long-term investment: The consistent upward trend across decades highlights the value of real estate as a long-term investment. Even periods of correction generally are followed by recovery and growth, reinforcing the asset’s stability.
- Housing market dynamics: Buyers and sellers must stay informed about local market conditions because national trends can mask regional variations. For example, some markets are experiencing an increase in housing inventory while others remain at record lows.
- Outlook: With the market showing no signs of a significant downturn, strategic investments still can yield substantial returns. But as with any significant purchase, careful analysis remains essential.
Interested in current data for Sioux Falls? Connect with us here.
We know the current market may seem daunting, but here’s the upside: History suggests that real estate remains a strong long-term investment.
However, with national trends masking regional variations, it’s critical to stay informed about your local market. After all, understanding local dynamics — including prime locations, market data and up-and-coming neighborhoods — is the key to leveraging the potential of real estate for long-term gains.
And graduates, call us today to start building your net worth. We have amazing solutions to walk you through.
Looking to buy or sell a home? Visit Amy Stockberger Real Estate here.
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