web stats
Home Authors Posts by Shivam Tomer

Shivam Tomer

Talks about : Real Estate News, Investment Tips, Proptech, Loan tips and Property Tips

Home Personalization With DIY Wall Hanging

In this article, we delve into the realm of DIY wall-hanging ideas that not only add a distinctive touch to your living space but also let you unleash your artistic flair without breaking the bank. Decorating your walls need not be an expensive endeavor when you can repurpose everyday items into stunning pieces of art.

In the upcoming sections, we’ve curated a collection of unique and easy-to-follow DIY wall-hanging ideas that cater to various tastes and preferences. From transforming old shoe boxes into functional shelves to crafting boho macrame masterpieces, there’s something for everyone eager to infuse their homes with a personalized touch.

DIY Wall Hanging Ideas 

Cardboard Shelf & Clocks

You can turn old shoe boxes into wall shelves and make decorative wall clocks from leftover plywood. This is a great way to spend quality time with your family and get your creative juices flowing.

Wicker Baskets Wall Hanging

If you have old, frayed wicker baskets lying around, you can paint them in interesting colors and stick them on your wall with some command strips. This is a great way to decorate your rental home as well.

Handmade Boho Macrame

Macrame wall hangings are visually appealing, but the colored ones can be expensive. You can take any white macrame wall hanging of your choice and paint it with fabric colors to create a statement piece for your home.

Easy Paper DIY Hanging For Kids’ Room

This easy DIY paper wall hanging is a great way to decorate your kids’ room. All you need is a string, glue, and some craft papers. Cut the craft papers in the shape of letters and glue them on the string to create an awesome message.

Yarn Wall Hanging

You can create a beautiful yarn wall hanging by wrapping yarn around a wooden dowel and adding some decorative elements like feathers or beads.

Seashell Wall Hanging

You can use seashells to create a beautiful wall hanging. All you need is a piece of driftwood, some twine, and a hot glue gun. Glue the seashells onto the driftwood and hang it on your wall.

Cardboard patterns message board

One idea is to create a message board using cardboard patterns that you can decorate with hand-painted designs and funky messages. Another idea is to make a paper wall hanging using a toran design that you can hang at the entrance of a room or on your balcony. 

Fan art

If you’re a fan of art, you can create a paper wall decor using fan art that covers the entire wall or any part of your house. For a romantic touch, you can make paper hearts wall hanging by cutting out heart shapes from red and pink papers and hanging them on strings attached to the walls. 

Paper cut-outs

If you love inspirational quotes and words of wisdom, you can decorate your wall with paper cut-outs that say something encouraging or remind you of how fortunate you are to have the people in your life that you do. 

Snapshot wall hanging

Another idea is to create a gorgeous and iconic wall art with family photographs by painting a string of twine or cord around your room’s walls and attaching the bright colors and photographs onto blank spaces within your created woven-wall pattern. 

Moon phases made of paper

Cut out the moon’s phases from thick paper and hang them in the right order on a string. This way, you can add an attractive tassel to make it more pretty and hang it on the wall facing the sitting area to have some extra lighting or scenery.

The world of interior decor is endless, and any small or big thing can become an art piece. We hope these decor ideas inspire you to create your own unique pieces.

Follow and Connect with us: TwitterFacebookLinkedinInstagram

Apply for a loan without CIBIL score– All you need to know

Are you considering a home renovation but constrained by your budget? If yes, then a personal loan can help you achieve your goals. However, obtaining a loan from a bank is not as easy as it seems. To secure a personal or home loan, you need to have a good CIBIL score rating. But what if your credit score is incredibly low? Can you still get a personal or home loan without undergoing CIBIL score checks? Let’s explore this together!

In recent times, banks have become more stringent when it comes to home loans or personal loans. Additionally, most banks require a CIBIL score of 700 and above for a home loan with a desirable interest rate. Unfortunately, most private banks set a minimum bar of 650, and scores below that are often not entertained. However, it is still possible to obtain a home or personal loan without undergoing CIBIL score checks if you follow the right approach. But before we dive into the approach, let’s first understand what CIBIL score rating is and why it’s essential.

Meaning & importance CIBIL score

Understanding what a CIBIL score is and how it works can be crucial in managing your finances and achieving your goals. Essentially, a CIBIL score is a three-digit numerical representation of an individual’s creditworthiness, which is determined based on their credit history. This includes factors such as credit card payments, loan repayments, and other financial transactions. The score ranges from 300 to 900, with a higher score indicating a better credit profile.

Having a good CIBIL score can be immensely beneficial in various ways. Firstly, when you apply for a loan or credit card, lenders consider your CIBIL score as a key factor in their evaluation process. A higher score increases your chances of loan approval and favorable interest rates. Secondly, a good CIBIL score reflects responsible financial behavior, which can enhance your reputation in the eyes of financial institutions.

It’s important to note that a CIBIL score can impact other aspects of your financial life as well. For instance, it can influence your ability to secure rental accommodations, obtain credit cards, and even affect job prospects in certain industries. This underscores the importance of maintaining a good CIBIL score throughout your financial journey.

But what happens if you have a low CIBIL score? Can you still manage to get a home or personal loan with CIBIL score checks? The answer is yes – there are still options available.

Exploring alternatives for loan without CIBIL score

If you are someone who doesn’t have a CIBIL score, it may seem like getting a loan is impossible. However, there are several options available that can help you secure a loan without a credit score. Here are some loan options that you can consider:

Collateral-based Loans: Secured loans are backed by a valuable asset as collateral, such as a property or gold. Since the lender has a guarantee of repayment, they are more likely to approve these loans.

Joint loan application: You can improve your chances of loan approval by applying with a co-applicant who has a good credit score. This can increase your chances of loan approval as the lender will take into account the creditworthiness of the co-applicant.

Peer-to-peer lending: Peer-to-peer lending platforms enable direct connection between borrowers and lenders. They are more flexible in lending criteria and consider factors beyond just the CIBIL score.

Microfinance institutions: These organizations offer small loans to people who can’t use traditional banks. They consider factors like how much money the person makes and if they can pay back the loan.

Credit unions: Credit unions are basically financial cooperatives owned by their members. They provide a variety of financial services, including loans, and often have more relaxed lending requirements when compared to traditional banks..

It is essential to note that while these options may be available, the interest rates and terms may vary. Therefore, it is advisable to compare different lenders and carefully consider the terms and conditions before availing a loan.

How to cope with emergencies? 

To help you better understand the situation, let’s consider an example. One year ago, Prashant had to move back to his family property, which had been left unattended for decades. Due to budget constraints, he could only afford home improvements instead of buying a new property. With a CIBIL score of 500, he knew that getting a traditional home loan was not possible. That’s when a financial expert suggested he apply for an emergency loan. But what is an emergency loan?

An emergency loan is a type of personal loan that is instantly sanctioned to help you out of emergency situations. In India, many premium banks like HDFC or IDFC offer emergency loans without checking your CIBIL score. However, you’ll still need to provide proof of income and a timeline for how you’ll use the loan.

Tips to avail credit-free options

If you’re looking for a loan without a CIBIL score check, here are a few options to consider:

Explore loan options from NBFCs: Non-Banking Financial Companies (NBFCs) are more flexible in their lending criteria than traditional banks. They may consider other factors, such as your employment history and income stability, to determine your creditworthiness.

Research lenders who offer loans without a CIBIL score: There are several lenders in the market who provide personal loans to individuals without a CIBIL score. Research and identify these lenders to explore your options.

Provide alternative documents to prove creditworthiness: Since you don’t have a CIBIL score, you’ll need to provide alternative documents to prove your creditworthiness. This can include bank statements, income tax returns, salary slips, and other relevant financial documents.

Offer collateral or a guarantor: Some lenders may require you to offer collateral or have a guarantor to secure the loan. This provides them with assurance in case of default. Make sure to have the necessary collateral or a reliable guarantor.

Apply for a small loan amount: When applying for a personal loan without a CIBIL score, starting with a small loan is advisable. This increases your chances of approval and allows you to build a positive credit history.

Bottom line 

A low credit score can make it difficult to secure a home or personal loan for property improvement. However, if you don’t have a good CIBIL rating, you can try alternative means to apply for a loan without a CIBIL check. Keep in mind, though, that these loans usually come with higher interest rates and limited customization options. It’s best to consult a financial professional for guidance on this matter.

Follow and Connect with us: TwitterFacebookLinkedinInstagram

North Bengaluru commands higher rental yield than eastern IT corridor, prime areas

In terms of rental growth, Sarjapur Road and Whitefield in the east have an edge over North Bengaluru because of their proximity to the major IT parks.


North Bengaluru has surpassed the eastern IT corridor of Whitefield and prime areas in terms of rental yield, reveals data from ANAROCK. In the third quarter of this calendar year, North Bengaluru exhibited a rental yield of 4.48 percent, up from 3.38 percent four years ago. Rental yield represents the income generated by a rented property relative to its purchase value.

Ashish Sharma, City Head, Bengaluru, ANAROCK Group, highlighted that while Whitefield currently has a rental yield of 4.41 percent, up from 3.7 percent in 2019, Thannisandra Main Road in the north commands an even higher rental. However, prime areas like Indiranagar and Koramangala, which attract mixed demand from IT and other sectors, show lower rental yields at 3.4 percent and 3.37 percent, respectively.

Sharma explained the drop in rental yield in prime areas by noting that capital values in these locations are significantly higher than in prominent IT hubs, while the difference in rentals is not as substantial. Local brokers attribute the higher rental yield in North Bengaluru to the area’s relatively new and booming real estate, coupled with infrastructural challenges such as waterlogging and traffic snarls impacting real estate prices in some parts of the eastern IT corridor.

Despite North Bengaluru leading in rental yield, rents are experiencing a faster pace of growth in the east. ANAROCK’s findings indicate a 31 percent and 27 percent growth in rentals for a standard 1,000 square foot two-bedroom apartment in Whitefield and Sarjapur Road, respectively, over the past nine months of 2023. Ashish Sharma noted that Thannisandra Main Road witnessed a 16 percent rental value growth during the same period.

Sarjapur Road and Whitefield hold an advantage over North Bengaluru in terms of rental growth due to their strategic proximity to the city’s major IT parks, including the IT-belt along the Outer Ring Road, Whitefield itself, and Electronic City further south. The high demand for living in and around these IT areas contributes to higher rental values, reflecting a demand-supply mismatch in many societies. Rent for a two-bedroom flat near Whitefield’s eastern IT corridor can range from Rs 40,000-50,000 per month in a prime location, while a three-bedroom apartment could command Rs 60,000-70,000 per month. Rental appreciation has reached 30-40 percent in most projects in the east, with some gated communities experiencing spikes of up to 50 percent.


Diwali 2023: Over 4,800 properties registered in Mumbai so far in November; why the rush?

The Mumbai real estate market has on average reported about 10,000 property registrations a month this year.


In the initial ten days of November, over 4,800 properties have been officially registered in Mumbai’s real estate market, heralding the onset of Diwali, the pinnacle of the festive season. This figure represents slightly over 40 percent of the average monthly registrations in the city, as per data from the Maharashtra Inspector General of Registrations and Stamps. Throughout this year, an average of more than 300 properties were registered daily, contributing to a monthly total ranging between 9,000 and 10,000.

Amidst the November rush, Mumbai’s real estate market recorded 4,811 property registrations, generating Rs 354 crore in stamp duty revenue by 8 pm on November 10. In comparison, October witnessed 10,607 property registrations, accumulating Rs 835 crore in revenue. The auspicious nature of Diwali traditionally prompts increased property transactions, especially with the allure of sales and promotions.

Despite robust property registration numbers, developers note a slower pace in closing deals compared to the previous festive season, particularly in Mumbai. Homebuyers, faced with a plethora of options, are taking more time to make purchase decisions. Bhavya Shah, a director at Origin Corp., mentioned, “Our sales have doubled this festive season, but the overall enthusiasm for deal closures seems tempered compared to the previous year.”

Shah highlighted the altered market dynamics with heightened competition due to multiple launches, resulting in a slightly prolonged deal closure process. However, he emphasized that successful deal closures hinge on offering the right product at the right price.

Developers such as MICL Group report a “warm” response to their offerings, with buyers expressing interest in super luxury and luxury categories. Anticipating a festive bonanza, Manan Shah, Managing Director at MICL Group, emphasized the positive market sentiment and the belief that quality offerings do not necessarily require special offers.

Keystone Developers, also known as the Rustomjee Group, is capitalizing on the festive season by offering staggered payment options for homebuyers. Rakesh Setia, President of Sales and Marketing at Rustomjee Group, mentioned, “The company is offering the option of moving in immediately by paying a certain percentage of the total apartment cost, and the balance can be paid by the homebuyers at a later stage within the decided timeline.”

The festive season also sees a surge in customers seeking to upgrade their homes, with individuals like Ankit Arora actively searching for larger apartments. Arora, a 30-year-old resident of Borivali in Mumbai, stated, “The festive season becomes an ideal time for me to close attractive deals as we are looking to sell our 1-BHK house and opt for a home loan to buy a 3-BHK apartment if we get a good deal.”

Reflecting on the preceding Navratri period, Mumbai experienced heightened property registrations, reaching 4,594 units during the nine days from October 15 to October 23, marking a 37 percent year-on-year growth. This surge surpassed the 3,343 units registered during Navratri the previous year, according to real estate consultancy firm Knight Frank India.

Will housing sales this festive season outpace last year’s numbers?

Real estate experts are optimistic about the residential housing market, foreseeing that sales will confidently exceed last year’s numbers. This positive outlook is attributed to the real estate market currently being in the midst of a productive cycle, according to industry observers.

The housing market is anticipated to witness a surge in sales in 2023, surpassing last year’s figures, driven by stable interest rates and the festive season sentiment. The desire for homeownership, aspirations to upgrade, and the continuation of steady interest rates contribute to this positive outlook. According to the India Market Monitor Q3 2023 report by real estate consultancy CBRE, residential sales in the second half of 2023 are projected to break a three-year record, exceeding 1.5 lakh units. The report highlights a 5 percent annual growth in overall residential sales across different price categories, totaling over 2.3 lakh units from January to September.

Luxury housing, priced at Rs 4 crore and above, experienced robust sales momentum, with a notable 97 percent year-on-year increase during January-September 2023. Delhi-NCR, Mumbai, and Hyderabad emerged as the top three markets, jointly accounting for nearly 90 percent of luxury housing sales in the top seven cities.

JLL, another real estate services company, predicts robust sales in the current quarter, expected to surpass the 2.15 lakh units recorded in the previous year. The Residential Market Update – Q3 2023 by JLL India reports 1.96 lakh units sold in the top seven cities during the first nine months of 2023, representing almost 91 percent of last year’s total sales.

Despite challenges such as geopolitical events, a somewhat weak global economy, and higher domestic home loan interest rates impacting demand in the lower-end housing segment, the mid- and high-value housing segments are thriving nationwide. Vivek Rathi, National Director of Research at Knight Frank India, attributes the thriving housing market to economic strength, heightened consumer interest in homeownership, moderate property price growth, and improved mortgage accessibility.

As the festive season unfolds, developers and financial institutions are offering incentives such as discounts, flexible payment options, and reduced floor rise charges to attract buyers. Colliers’ analysis indicates that close to 40 percent of annual residential unit sales occur in the last quarter of the year, particularly during the festive season when attractive offers abound. According to Badal Yagnik, CEO of Colliers India, industry consensus suggests that 2023 housing sales are likely to reach 20 to 30 percent higher than 2022 levels.

Pankaj Kapoor of real estate data analysis firm Liases Foras expects robust housing sales during this festive season, with both sales and new launches seeing an 11 percent increase. The overall sales velocity is reported to be better than last year, driven by the aspiration for homeownership and the need for upgrades. As per Kapoor, the residential market, having achieved 9 to 11 percent growth last year, is expected to witness a growth of 11 to 15 percent this year, reaching around Rs 4 lakh crore in sales on an all-India level.

Greater Noida Authority forms nine-member committee to resolve builders-buyers issues

There are around 200 societies in Greater Noida and in many housing complexes disputes arise between residents and representatives of the builder or apartment owner association.
greater Noida
greater Noida

The Greater Noida Authority has taken a proactive step to address disputes between residents and builders or apartment owner associations in the area. With approximately 200 societies in Greater Noida, conflicts often arise over issues such as non-issuance of no objection certificates (NOCs) for transfer memorandums, formation of Apartment Owners Associations (AOAs), and the transfer of Interest-Free Maintenance Charge (IFMS) funds within societies.

To swiftly resolve these concerns, the GNIDA CEO, NG Ravi Kumar, has established a nine-member committee. This committee, chaired by ACEO Saumya Srivastava, will convene on November 21, December 12, and January 3 next year to address these builders-buyers issues. The committee comprises members from various departments, including OSD Builders, planning, project management, finance, legal, and two nominees from CREDAI, a builders’ association.

Complaints from flat buyers and residents will be presented to this committee for resolution. Regular updates and details of the committee’s meetings will be communicated to the concerned homebuyers by the Greater Noida Authority. This proactive measure aims to foster a harmonious living environment and ensure swift solutions to disputes in housing complexes.

What is Return on Investment (ROI) and how to calculate it?

Understanding Return on Investment (ROI)

Return on investment (ROI) is a measure used to estimate the efficiency or profitability of an investment or compare the efficiency of a number of different investments. ROI approaches directly measure the amount of return on a particular investment relative to the investment’s cost. 

The benefit (or return) of an investment is divided by the cost of the investment to calculate ROI. The result is expressed as a percentage or a ratio. 

To calculate ROI, divide the difference between the current value of the investment and the cost of the investment by the cost of the investment. 

“Current value of investment” refers to the profits obtained from the sale of the investment of interest. ROI is easily comparable to other investment returns because it is measured as a percentage, allowing a variety of investment types to be compared. 

ROI is popularly used because of its versatility and simplicity. Essentially, it is used as a rudimentary gauge of an investment’s profitability. This could be the ROI a company expects on expanding a factory, the ROI on a stock investment, or the ROI generated in a real estate transaction.

The calculation itself is not overly complicated, and it is relatively simple to interpret given its wide range of applications. If the ROI on investment is net positive, it is probably worthwhile. However, if other opportunities with higher ROIs are available, these signals can assist investors in eliminating or selecting the best options. Besides, investors should avoid negative ROIs, which imply a net loss.

For instance, suppose invested Rs 1,000 in Slice Pizza Corp. in 2017 and sold the shares one year later for a total of Rs 1200. Now, divide the net profits (Rs 1200 minus Rs 1000) by the investment cost (Rs 1,000) to calculate an ROI of 20%. 

Now, this information will give you an idea to compare the investment in Slice Pizza with any other projects. Suppose also invested Rs 2000 in Big Sale Stores Inc. in 2015 and sold the share for a total of Rs 2,800 in 2018. The ROI on A’s holdings in the big sale would be 40%. 

Limitations of ROI

The above example reveals the limitations of using ROI, particularly when comparing investments. While A’s ROI was double that of the first investment, the time between purchase and sale in the first and second investments was one year and three years, respectively. 

A could adjust the ROI of the multi-year investment accordingly. One could divide the entire 40% by three to obtain the average annual ROI, which is 13.33% annualized. These adjustments show that the second investment earned more profit, while the first investment was actually a wise decision. 

ROI can be used in conjunction with the rate of return (RoR), which takes into account a project’s time frame. You can also use net present value (NPV), which accounts for differences in the value of money over time due to inflation. The application of NPV when calculating the RoR is often called the real rate of return.

ROI developments

SROI was created in the late 1990s to account for the broader impacts of projects using extra-financial value (i.e., social and environmental metrics not currently reflected in conventional financial accounts). Lately, investors and businesses have shown their interest in the development of new forms of ROI, called SROI, or “social return on investment.”

SROI helps to understand the value proposition of certain environmental, social, and governance (ESG) criteria used in socially responsible investing (SRI) practices.

For example, a company may want to recycle water in its factories and replace all of its lightings with LED bulbs. These tasks have an immediate cost that may have a negative impact on the traditional ROI. However, the net benefit to society and the environment could lead to a positive SROI. 

There are some other new variations of ROIs that have been developed for specific purposes. The efficiency of social media campaigns is determined by the social media ROI, which shows the number of clicks or likes achieved per unit of effort. Similarly, the return attributable to advertising or marketing campaigns is determined by the marketing statistic ROI. 

Understanding ROI in simple terms

ROI (return on investment) tells you how much money you’ve made (or lost) on an investment or project after accounting for its cost.

How to Calculate Return on Investment (ROI)?

Return on Investment (ROI) is obtained by dividing the gained profit on an investment by the cost of that investment. For instance, an investment with a profit of Rs 100 and a cost of Rs 100 would have an ROI of 1 or 100% when expressed as a percentage. However, ROI is a quick and easy way to estimate the success of an investment, but it has some significant limitations. For instance, ROI is unable to reflect the time value of money, and it can be hard to meaningfully compare ROIs as some investments will take longer to generate a profit than others. Due to this reason, other metrics are being used by professional investors, such as net present value (NPV) or the internal rate of return (IRR). 

What Is a Good Return on Investment?

The “good” ROI depends on a number of variables, including the investor’s risk tolerance and the length of time it takes for an investment to start paying off. If everything is equal, investors who are more risk-averse will probably accept lower ROIs in exchange for taking less risk. Moreover, investments that take longer to pay off will generally require a higher ROI in order to be attractive to investors. 

What Industries Have the Highest ROI?

Altogether the average ROI for the index S&P 500 has been about 10% per year. However, depending on the industry, there can be significant variation within that. For instance, many technology companies produce annual returns above this 10% threshold. Meanwhile, companies in other industries, such as energy companies and utilities, made much lower ROIs and in several cases faced losses year over year. Gradually, it is normal for the average ROI of an industry to shift due to factors such as increased competition, technological changes, and shifts in consumer preferences.

5 reasons why Mumbai’s real estate market is glittering this festive season

In the second quarter of the fiscal year 2023-24, the Mumbai real estate market witnessed a supply of 9,489 residential units. Notably, the first ten months of 2023 saw a total of 1.04 lakh property registrations. October, marking the commencement of the festive season with Navratri, recorded a remarkable 20 percent increase in property registrations compared to October 2022.

In Q2FY23-24, the Mumbai real estate market reported a supply of 9,489 residential units.

Several factors have contributed to the vibrant real estate market during this festive season

Here are five reasons why the real estate market is sparkling this festive season.

  1. Upgrades to Larger Apartments: Post the Covid-19 pandemic, there has been a nationwide trend of homebuyers upgrading to more spacious apartments. In Mumbai, the launch ratio of 1 BHK units decreased to 29 percent in 2023 from 34 percent in 2019. Meanwhile, 2 BHK units maintained a consistent ratio of 38 percent, and 3 BHK apartments saw an increase to 15 percent in 2023 from 11 percent in 2019. This shift indicates that residents of 1 BHKs are upgrading to 2 BHKs, and 2 BHK owners are moving to 3 BHKs, as per registration data from the Maharashtra Real Estate Regulatory Authority (MahaRERA).

  2. Redevelopment Initiatives: Post the Covid-19 period, there was a surge in redevelopment projects in Mumbai. The Maharashtra government’s approval of a 50 percent discount on premiums paid by real estate developers for various permissions incentivized redevelopment efforts. Approximately 20 percent of the total monthly property registrations involve Permanent Alternate Accommodation Agreements (PAAAs) related to redevelopment projects in Mumbai.

  3. Stable Home Loan Interest Rates: The Mumbai real estate market observed a stability in home loan interest rates throughout FY2023. This stability has instilled optimism among homebuyers, particularly in the affordable segment, where the majority of residential deals are priced at Rs 2.50 crore and below. The assurance of stable interest rates has further strengthened the housing market sentiment.

  4. Rise in High-Value Transactions: There has been a notable increase in the registration of properties valued at Rs 1 crore or more. This segment accounted for approximately 56 percent of registrations between January and October 2023, up from 50 percent during the same period in 2020. High-value transactions, exemplified by developments like the Hiranandani Group’s sales of luxury apartments in Powai, have contributed significantly to this trend.

  5. Festive Season Surge: The festive season, starting with Navratri in October, witnessed a surge in property registrations. Mumbai reported 4,594 units registered during the nine days of Navratri in 2023, marking a 37.4 percent YoY growth from the previous year. This festive season rush further bolstered the real estate market, reflecting the buoyant spirit among homebuyers.

Haryana Becomes First State in India to Implement Property ID: Minister

Property Documents
Property Documents

Urban Local Bodies Minister, Dr. Kamal Gupta, announced that Haryana has become the first state in the country to implement Property ID. Prime Minister Narendra Modi praised Chief Minister Manohar Lal Khattar for introducing the ‘Creation of New Property-ID under Normal and Tatkaal Scheme’ and encouraged other states to adopt it.

Addressing journalists in Chandigarh, Dr. Gupta revealed that 34 lakh properties within Lal Dora have been integrated into the new Property ID system. This integration allows automatic data entry from property registries into the Property ID database. Out of 2,274 unauthorized colonies, 494 have already been regularized, and efforts are underway to regularize the remaining colonies. Dr. Gupta stated that around 850 colonies are set to be regularized by January 31, 2024.

He also highlighted the ‘Svamitva Yojana,’ which grants ownership rights to shopkeepers who have operated in their establishments for 20 years or more by December 31, 2020. Additionally, property-related information can now be sent to citizens via SMS through urban local bodies.

Dr. Gupta further mentioned a limited-time tax relief for full property tax payments in the fiscal year 2023-24, with the relief period extending until November 15, 2023. Property owners are encouraged to verify their property data on the departmental portal to rectify any errors.

The announcement was attended by senior officials, including Director of the Urban Local Bodies Department, Yash Pal, and Additional Director, Y. S. Gupta.

Housing Market 2023: When Will Home Prices Be Affordable Again?

As the anticipation of winter looms in the distance, the housing market, already showing signs of cooling due to staggering home prices and escalating interest rates, appears to be on the brink of a significant slowdown.

The national average 30-year mortgage rate climbed for the seventh consecutive week, hitting a daunting 7.79% by the week ending October 26, as reported by Freddie Mac. Unsurprisingly, given these current rate conditions, year-over-year existing home sales faced a decline for the third consecutive month, dropping by 0.7%. This decline was consistent across all four major U.S. regions, according to the National Association of Realtors (NAR).

Nevertheless, the housing market continues to present a competitive landscape for potential buyers. The dilemma persists as many homeowners are “locked in” at historically low interest rates and are hesitant to sell, resulting in demand consistently outpacing available inventory.

Housing Market Forecast for October 2023

The housing market’s outlook for October 2023 remains bleak, overshadowed by the challenges of soaring mortgage rates, escalating home prices, and a limited supply of available homes. This trifecta of issues continues to fuel the ongoing housing affordability crisis, making it increasingly difficult for prospective buyers to enter the market.

To compound the situation, the Federal Reserve is contemplating yet another increase in the federal funds rate by the end of this year to combat inflation. The federal funds rate, which stood near 0% in March 2022, has seen 11 consecutive hikes, bringing it to the current range of 5.25% to 5.5%, marking the highest levels seen in 22 years.

Fed projections indicate that the terminal federal funds rate could reach 5.6% by the close of 2023, implying the possibility of at least one more 25 basis-point rate increase this year. Although changes to the federal funds rate indirectly impact mortgage rates, experts are now more concerned about the Fed’s long-term plans for interest rates rather than a minor increase this year.

Keith Gumbinger, vice president at mortgage website HSH.com, emphasizes the significance of the Fed’s intentions and how long policymakers plan to maintain elevated rates, as well as when they might initiate rate cuts. During their September meeting, Fed policymakers hinted at the likelihood of interest rates staying “higher for longer,” with policy rates potentially remaining half a point higher until the end of 2024 and 2025, according to their latest projections.

Given these indications, many experts in the housing market anticipate that mortgage rates will continue to remain elevated not only for the remainder of this year but potentially extending into 2024, further adding to the challenges faced by homebuyers.

When Will the Housing Market Recover?

The path to housing market recovery, according to experts like Gumbinger, hinges on specific conditions. One crucial factor is a substantial increase in home inventories available for sale. This surge in supply would alleviate the upward pressure on home prices, potentially leveling them off or even causing a slight decrease from their peak levels.

Additionally, a necessary shift involves moderation in interest rates. However, Gumbinger emphasizes the importance of a gradual decline in rates, cautioning against rapid falls. A sudden plunge in rates could trigger a surge in demand, negating any progress made in inventory gains and causing home prices to rise once again.

According to Gumbinger, it’s preferable for rate reductions to occur steadily, improving buyer opportunities incrementally over time, rather than all at once. Returning mortgage rates to a more “normal” range, specifically in the upper 4% to lower 5% bracket, could contribute to the housing market’s recovery, eventually bringing it back to the levels observed between 2014 and 2019. However, Gumbinger anticipates that it might take a considerable amount of time before reaching these favorable rate conditions.

Where Do Mortgage Originations Currently Stand?

The current mortgage landscape presents a challenging scenario for potential homebuyers. With the average 30-year fixed mortgage rate hovering above 7%, the prospect of a 5% mortgage rate seems distant. Despite these high rates, mortgage originations saw an uptick in the second quarter of 2023, totaling $463 billion, compared to $333 billion in the preceding quarter, according to data from the Mortgage Bankers Association (MBA).

However, the MBA anticipates a decline in originations, expecting subdued activity throughout the remainder of 2023 and into early 2024. The current mortgage spread, representing the difference between the 10-year Treasury bond yield and the 30-year fixed-rate mortgage, stands at around 300 basis points. Historically, this spread should be between 150 and 200 basis points. A return to a more normalized spread could encourage hesitant homebuyers to re-enter the market.

The timeline for this spread to narrow remains uncertain. Odeta Kushi, deputy chief economist for First American, suggests that the spread might decrease as the Federal Reserve completes its monetary tightening, possibly in the coming months. If this occurs, mortgage rates could decrease, even if the benchmark 10-Year Treasury rate remains unchanged.

Housing Inventory Outlook for October 2023

he housing inventory situation in October 2023 continues to present significant challenges, especially in the realm of entry-level housing. The supply of homes remains at historically low levels, exacerbating demand and sustaining the excessively high prices of homes.

Adding to the problem, new home construction, which had been helping alleviate some of the shortages, has declined in recent weeks. According to Jack Macdowell, chief investment officer, and co-founder at Palisades Group, the inventory shortage is strikingly pronounced, with current levels approximately 46% below the historical average dating back to 1999. Unfortunately, there is a strong consensus that this inventory problem is unlikely to be resolved in 2023.

Existing Homes

In August, the inventory of existing homes showed a slight improvement, but the positive momentum was short-lived. According to the National Association of Realtors (NAR), existing-home stock declined by 0.9% in August. The available unsold inventory remained unchanged month-over-month, maintaining a meager 3.3-month supply at the current sales pace. Housing experts typically consider a balanced market to have four to six months’ worth of inventory.

Existing-home sales also continued to struggle, dropping by 0.7% in August and a staggering 15.3% compared to the previous year. Apart from a minor increase in April, year-over-year home sales have consistently declined since February. The outlook for the near future appears bleak, as pending home sales, a key indicator, plummeted by 7.1% in August, marking an 18.7% decline from the previous year.

Lawrence Yun, the chief economist at NAR, emphasized the need for increased housing inventory and improved interest rates to breathe life back into the housing market.

New Homes

In August, the inventory of new homes continued its decline, with a seasonally adjusted estimate indicating only 436,000 houses available for sale at the month’s end. This translates to a 7.8-month supply at the existing sales pace, down from 8.7 months recorded a year earlier, as per the latest data from the U.S. Census Bureau and U.S. Department of Housing and Urban Development (HUD).

During the same period, new home sales experienced a sharp decline, dropping by 8.7% to a seasonally adjusted annual rate of 675,000. The fall in sales cannot be solely attributed to high mortgage rates and soaring home prices, according to experts. Rather, the primary cause appears to be the insufficient supply of new homes in the market.

Robert Frick, a corporate economist with Navy Federal Credit Union, pointed out that while elevated mortgage rates and home prices contribute to the challenge, the substantial dip in new home sales during August can be largely attributed to the scarcity of available properties. Builders are finding it difficult to meet the growing demand due to various constraints, exacerbating the situation.

Will the Housing Market Crash in 2023?

Amidst the upward march of mortgage rates, home prices have surged, reaching record highs in July 2023, marking the sixth consecutive month of gains. According to the latest S&P CoreLogic Case-Shiller Home Price Index, national home prices rose at an annual rate of 1%, with a 0.6% increase observed between June and July after seasonal adjustment.

Craig J. Lazzara, managing director at S&P DJI, noted the robust rally in U.S. home prices, with the National Composite rising by 5.3% on a year-to-date basis, surpassing the median full calendar year increase recorded in over 35 years of data. Despite these gains, there were stark regional disparities. Leading the pack were Chicago (+4.4%), Cleveland (+4.0%), and New York (+3.8%) in July, while pandemic boomtowns like Las Vegas (-7.2%) and Phoenix (-6.6%) witnessed plunging home values. The West (-5.9%) and Southwest (-3.6%) regions also experienced notable declines.

Despite these fluctuations, the likelihood of a housing market crash—characterized by a rapid drop in unsustainably high home prices due to waning demand—remains low. Experts point out that current homeowners are in a more secure position compared to those post-2008 financial crisis, with many borrowers having positive equity in their homes. However, Dan Hnatkovskyy, co-founder, and CEO of New Homes Mate, a marketplace for new construction homes, sees a potential price collapse on the horizon, particularly in markets where real estate investors have acquired numerous properties. emphasized that if external factors push the market over the edge, the consequences could be severe.

When Should I Buy a Home in 2023?

Deciding when to buy a home is a deeply personal choice, regardless of the market conditions. Given that homes represent one of the most significant lifetime investments, being financially stable is essential before making such a decision.

Orphe Divounguy, senior macroeconomist at Zillow Home Loans, emphasizes that attempting to predict the ideal time to buy in the ever-changing housing market is nearly impossible. Instead, he suggests that prospective buyers should focus on finding a home that suits their current and future family needs and falls within their budget.

Keith Gumbinger, vice president at mortgage website HSH.com, agrees, stating that waiting for better market conditions can be futile. Home prices tend to rise over time, making it challenging to amass a down payment if one keeps postponing the decision. Divounguy adds that taking the step onto the property ladder is a valuable endeavor, allowing individuals to start building equity and net worth. Ultimately, the right time to buy is when the home aligns with your needs and financial capabilities.

Pro Tips for Buying in Today’s Housing Market

  • Explore Lower-Priced Markets: If your job allows remote work or offers flexibility, consider moving to a more affordable housing market.

  • Prepare in Advance: Organize your finances, gather necessary documents, consult multiple lenders, and work on improving your credit score. Being prepared enables quick decision-making.

  • Stay Informed: Regularly monitor property prices and listings to stay ahead of the competition. Being proactive can give you an advantage in a competitive market.

  • Understand Your Budget: Calculate your monthly payments, including taxes, and ensure they align with your budget. Understanding the financial implications is crucial.

Expert Tips for Sellers in Today’s Housing Market:

  • Consult a Real Estate Agent: Collaborate with a real estate agent to set the right price, foster buyer competition, and increase the chances of a faster sale.

  • Enhance Your Home’s Appeal: Prepare your home for sale promptly. Invest in necessary repairs and improvements to make it more attractive to potential buyers.

  • Leverage Online Presence: Boost your home’s online curb appeal. High-quality photos and detailed descriptions can significantly enhance your property’s online visibility and attractiveness.

  • Use Interactive Tools: Include interactive elements like 3D home virtual tours or interactive floor plans in your listings. These features can increase page views and save your listing for potential buyers.


Latest News