Is Your City on the "Bargain Mansion" List?

Winning the lottery may no longer be your only ticket to living large. Depending on where you live, a dream mansion could be surprisingly affordable. Realtor.com® recently published a list of the top 10 cities where you can buy a mansion for a bargain price.

Check the list for that charming old Victorian in a walkable city neighborhood or that expansive, modern suburban home with room to grow. The minimum size for a house to be considered a mansion is 5,000 square feet. Most of these locations are in the Midwest, the South or the Rust Belt.

1. Indianapolis, IN
2. Canton, GA
3. Kansas City, MO
4. Lehi, UT
5. Louisville, KY
6. Katy, TX
7. Aurora, CO
8. Birmingham, AL
9. Overland Park, KS
10. Tulsa, OK

Hit "Pause" Before Renting that Jackhammer

You may feel like you're sitting on the fence even if the older home you just purchased doesn't have one to sit on. Chances are you appreciate the potential of homes crafted with quality materials and skilled trades. At the same time, you don't want to sacrifice upgraded technology and conveniences. Clever designers can often find ways to sneak in upgrades without damaging the home's natural aesthetic. So before you hire a wrecking crew, carefully consider the costs and benefits of renovating an older house. Here are three popular restoration or replacement projects to consider.

Woodwork
Artful woodwork can be one of an older home's most alluring attractions. Restoring wood banisters and crown moldings to their original glory may be well worth the time, money and effort. Likewise, restored hardwood floors and wood doors can greatly enhance your home's appeal. Sometimes they even cost less than what you'd have paid to replace them.

Windows
This can also be true for drafty, ill-fitting windows. Some older windows and rotting wood frames can be repaired. If not, you may be able to replace them with modern, energy-efficient replicas of the originals. Be sure to consult with a specialist if you have damaged stained glass windows.

Floor Plan
Similarly, think carefully before taking steps to reconfigure an older home with an open floor plan. Removing load-bearing walls can be costly and dangerous. Left in the wrong hands, such projects can jeopardize your home's structural integrity. If you're sure you want to open up interior space, hire a professional to ensure the wall removal doesn't cause future damage.

New Home Building Remains Steady

New housing starts have continued to grow over the past year despite skyrocketing material and labor costs. Single-family home permits, a gauge measuring future construction, jumped about 30% from July 2020 to July 2021. The number of permits has increased nationwide with the largest gains in the Northeast and the South, according to analysis posted on the National Association of Home Builders' Eye on Housing blog.

Construction of single-family homes is expected to increase steadily through 2021 even in the face of labor shortages and supply chain obstacles, according to Realtor^® Magazine.

The National Association of Home Builders lists the following 10 metro areas with the most activity for newly built houses.

1. Houston-The Woodlands-Sugar Land, TX
2. Dallas-Fort Worth-Arlington, TX
3. Phoenix-Mesa-Scottsdale, AZ
4. Atlanta-Sandy Springs-Roswell, GA
5. Austin-Round Rock, TX
6. Tampa-St. Petersburg-Clearwater, FL
7. Charlotte-Concord-Gastonia, NC-SC
8. Orlando-Kissimmee-Sanford, FL
9. Nashville-Davidson-Murfreesboro-Franklin, TN
10. Jacksonville, FL

2022 Housing Market Predictions

As we look to 2022, sellers may wonder whether they missed their opportunity to get top-dollar for their home. Likewise, potential home buyers may worry that prices will remain high while inventory stays low.

Price Growth
Freddie Mac predicts a 5.3% growth rate in 2022, down significantly from 2021. Even in the face of slowed growth, sellers still have a chance to cash in on their rising home equity.

Inventory
Severely limited inventory began to ease up in the second half of 2021. If this trend continues, buyers can expect less intense competition and fewer bidding wars in 2022.

Wild Card
As the federal mortgage forbearance program ends, many affected homeowners will likely list their properties. It remains to be seen how much this expected change will affect inventory.