Selling

Moving Up to Your Dream Home? Don’t Wait!

Mortgage interest rates have risen by more than half of a point since the beginning of the year, and many assume that if mortgage rates rise, home values will fall. History, however, has shown this not to be true. Where are home values today compared to the beginning of the year? While rates have been rising, so have home values. Here are the most recent monthly price increases reported in the Home Price Insights Report from CoreLogic: January: Prices were up 0.5% over the month before. February: Prices were up 1% over the month before. March: Prices were up 1.4% over the month before. Not only did prices continue to appreciate, the level of appreciation accelerated over the first quarter. CoreLogic believes that home prices will increase by 5.2% over the next twelve months. How can prices rise while mortgage rates increase? Freddie Mac explained in a recent Insight Report: “In the current housing market, the driving force behind the increase in prices is a low supply of both new and existing homes combined with historically low rates. As mortgage rates increase, the demand for home purchases will likely remain strong relative to the constrained supply and continue to put upward pressure on home prices.” Bottom Line If you are thinking about moving up to your dream home, waiting until later this year and hoping for prices to fall may not be a good strategy.

Posted in For Buyers, For Sellers, Move-Up Buyers, Pricing | Comments Off on Moving Up to Your Dream Home? Don’t Wait!

Access: An Important Factor in Getting Your House SOLD!

So, you’ve decided to sell your house. You’ve hired a real estate professional to help you through the entire process, and they have asked you what level of access you want to provide to your potential buyers. There are four elements to a quality listing. At the top of the list is Access, followed by Condition, Financing, and Price. There are many levels of access that you can provide to your agent so that he or she can show your home. Here are five levels of access that you can give to buyers, along with a brief description: Lockbox on the Door – this allows buyers the ability to see the home as soon as they are aware of the listing, or at their convenience. Providing a Key to the Home – although the buyer’s agent may need to stop by an office to pick up the key, there is little delay in being able to show the home. Open Access with a Phone Call – the seller allows showings with just a phone call’s notice. By Appointment Only (example: 48-Hour Notice) – Many buyers who are relocating for a new career or promotion start working in that area prior to purchasing their home. They often like to take advantage of free time during business hours (such as their lunch break) to view potential homes. Because of this, they may not be able to plan their availability far in advance or may be unable to wait 48 hours to see the house. Limited Access (example:…

Posted in For Sellers, Move-Up Buyers | Comments Off on Access: An Important Factor in Getting Your House SOLD!

5 Ways Tax Reform Has Impacted the 2018 Housing Market

Starting late last year, some predicted that the 2018 tax changes would cripple the housing market. Headlines warned of the potential for double-digit price depreciation and suggested that buyer demand could drop like a rock. There was even sentiment that homeownership could lose its coveted status as a major component of the American Dream.  Now that the first quarter numbers are in, we can begin to decipher the actual that impact tax reform has had on the real estate market. 1. Has tax reform killed off home buyer demand? The answer is “NO.” According to the Showing Time Index which “tracks the average number of buyer showings on active residential properties on a monthly basis” and is a “highly reliable leading indicator of current and future demand trends,” buyer demand has increased each month over the last three months and is HIGHER than it was for the same months last year. Buyer demand is not down. It is up. 2. Have the tax changes affected America’s belief in real estate as a long-term investment? The answer is “NO.” Two weeks ago, Gallup released its annual survey which asks Americans which asset they believed to be the best long-term investment. The survey revealed: “More Americans name real estate over several other vehicles for growing wealth as the best long-term investment for the fifth year in a row. Just over a third cite real estate for this, while roughly a quarter name stocks or mutual funds.”  The survey also showed that the percentage of…

Posted in First Time Home Buyers, For Buyers, For Sellers, Housing Market Updates, Move-Up Buyers | Comments Off on 5 Ways Tax Reform Has Impacted the 2018 Housing Market

Real Estate Tops Best Investment Poll for 5th Year Running

Every year, Gallup surveys Americans to determine their choice for the best long-term investment. Respondents are given a choice between real estate, stocks/mutual funds, gold, savings accounts/CDs, or bonds. For the fifth year in a row, real estate has come out on top as the best long-term investment! This year’s results showed that 34% of Americans chose real estate, followed by stocks at 26%. The full results are shown in the chart below. The study makes it a point to draw attention to the contrast in the sentiment over the last five years compared to that of 2011-2012, when gold took the top slot with 34% of the votes. Real estate and stocks took second and third place, respectively, while still in recovery from the Great Recession. Bottom Line As the real estate market has recovered, so has the belief of the American people in the stability of housing as a long-term investment.

Posted in First Time Home Buyers, For Buyers, For Sellers, Move-Up Buyers, Rent vs. Buy | Comments Off on Real Estate Tops Best Investment Poll for 5th Year Running

What If I Wait Until Next Year to Buy a Home?

We recently shared that national home prices have increased by 6.7% year-over-year. Over that same time period, interest rates have remained historically low which has allowed many buyers to enter the market. As a seller, you will likely be most concerned about ‘short-term price’ – where home values are headed over the next six months. As a buyer, however, you must not be concerned about price, but instead about the ‘long-term cost’ of the home. The Mortgage Bankers Association (MBA), Freddie Mac, and Fannie Mae all project that mortgage interest rates will increase by this time next year. According to CoreLogic’s most recent Home Price Index Report, home prices will appreciate by 5.2% over the next 12 months. What Does This Mean as a Buyer? If home prices appreciate by 5.2% over the next twelve months as predicted by CoreLogic, here is a simple demonstration of the impact that an increase in interest rate would have on the mortgage payment of a home selling for approximately $250,000 today: Bottom Line If buying a home is in your plan for this year, doing it sooner rather than later could save you thousands of dollars over the terms of your loan.

Posted in First Time Home Buyers, For Buyers, For Sellers, Interest Rates, Move-Up Buyers, Pricing | Comments Off on What If I Wait Until Next Year to Buy a Home?

50% of Homes Sold in 30 Days in March [INFOGRAPHIC]

Some Highlights: The National Association of REALTORS® recently surveyed their members for their Confidence Index. The REALTORS® Confidence Index is a key indicator of housing market strength based on a monthly survey sent to over 50,000 real estate practitioners. Practitioners are asked about their expectations for home sales, prices and market conditions. Homes sold in less than 60 days in 35 out of 50 states and Washington D.C. Homes typically went under contract in 30 days in March!

Posted in First Time Home Buyers, For Buyers, For Sellers, Infographics, Move-Up Buyers | Comments Off on 50% of Homes Sold in 30 Days in March [INFOGRAPHIC]

4 Reasons Why Today’s Housing Market is NOT 2006 All Over Again

With home prices rising again this year, some are concerned that we may be repeating the 2006 housing bubble that caused families so much pain when it collapsed. Today’s market is quite different than the bubble market of twelve years ago. There are four key metrics that explain why: Home Prices Mortgage Standards Mortgage Debt Housing Affordability 1. HOME PRICES There is no doubt that home prices have reached 2006 levels in many markets across the country. However, after more than a decade, home prices should be much higher based on inflation alone. Frank Nothaft is the Chief Economist for CoreLogic (which compiles some of the best data on past, current, and future home prices). Nothaft recently explained: “Even though CoreLogic’s national home price index got to the same level it was at the prior peak in April of 2006, once you account for inflation over the ensuing 11.5 years, values are still about 18% below where they were.” (emphasis added) 2. MORTGAGE STANDARDS Some are concerned that banks are once again easing lending standards to a level similar to the one that helped create the last housing bubble. However, there is proof that today’s standards are nowhere near as lenient as they were leading up to the crash. The Urban Institute’s Housing Finance Policy Center issues a Housing Credit Availability Index (HCAI). According to the Urban Institute: “The HCAI measures the percentage of home purchase loans that are likely to default—that is, go unpaid for more than 90 days…

Posted in First Time Home Buyers, For Buyers, For Sellers, Housing Market Updates, Interest Rates, Move-Up Buyers, Pricing | Comments Off on 4 Reasons Why Today’s Housing Market is NOT 2006 All Over Again

This Just In: Data Says May is the Best Month to Sell Your Home

According to a newly released study by ATTOM Data Solutions, selling your home in the month of May will net you an average of 5.9% above estimated market value for your home. For the study, ATTOM performed an “analysis of 14.7 million home sales from 2011 to 2017” and found the average seller premium achieved for each month of the year. Below is a breakdown by month: ATTOM even went a step further and broke their results down by day. Top 5 Days to Sell: June 28th – 9.1% above market February 15th – 9.0% above market May 31st – 8.3% above market May 29th – 8.2% above market June 21st – 8.1% above market It should come as no surprise that May and June dominate as the top months to sell and that 4 of the top 5 days to sell fall in those two months. The second quarter of the year (April, May, June) is referred to as the Spring Buyers Season, when competition is fierce to find a dream home, which often leads to bidding wars. One caveat to mention though, is that when broken down by metro, ATTOM noticed that while warmer climates share in the overall trend, it turns out that they have different top months for sales. The best month to get the highest price in Miami, FL, for instance, was January, and Phoenix, AZ came in with November leading the charge. If you’re thinking of selling your home this year, the time to…

Posted in For Sellers, Move-Up Buyers, Pricing | Comments Off on This Just In: Data Says May is the Best Month to Sell Your Home

How Much Has Your Home Increased in Value Over the Last Year?

Home values have risen dramatically over the last twelve months. In CoreLogic’s most recent Home Price Index Report, they revealed that national home prices have increased by 6.7% year-over-year. CoreLogic broke down appreciation even further into four price ranges, giving us a more detailed view than if we had simply looked at the year-over-year increases in national median home price. The chart below shows the four price ranges from the report, as well as each one’s year-over-year growth from February 2017 to February 2018 (the latest data available). It is important to pay attention to how prices are changing in your local market. The location of your home is not the only factor that determines how much your home has appreciated over the course of the last year. Lower-priced homes have appreciated at greater rates than homes at the upper ends of the spectrum due to demand from first-time home buyers and baby boomers looking to downsize. Bottom Line If you are planning to list your home for sale in today’s market, let’s get together to go over exactly what’s going on in your area and your price range.

Posted in First Time Home Buyers, For Buyers, For Sellers, Housing Market Updates, Move-Up Buyers | Comments Off on How Much Has Your Home Increased in Value Over the Last Year?

Existing Home Sales Grow Despite Low Inventory [INFOGRAPHIC]

Some Highlights: According to the latest Existing Home Sales Report from the National Association of Realtors, sales grew 1.1% in March to an annual pace of 5.60 million. This is the strongest pace since November of 2017. Inventory levels dropped year-over-year for the 34th consecutive month and are now 7.2% lower than March 2017 levels, representing a 3.6-month supply.

Posted in First Time Home Buyers, For Buyers, For Sellers, Housing Market Updates, Infographics, Move-Up Buyers | Comments Off on Existing Home Sales Grow Despite Low Inventory [INFOGRAPHIC]