Sep 26, 2018 | Real Estate
Homeowners looking to maximize their return on investment often want to know what season best achieves that goal. Getting near or full asking price can be influenced by a wide range of factors, including market trends, inventory and interest rates to name a few.
It will come as good news to know there are strong indicators that this fall has unique listing advantages. That means listing a home this fall could help sellers get the price they want.
1: Inventory Remains Very Tight
The rules of supply and demand apply equally to the housing market and there are not enough homes to go around.
The single-family housing shortage has been driven by multiple factors. A large population of Millennials have entered the real estate market at a time when new home construction had been stifled for years. Simply put, the supply of new homes has significantly fallen behind the demand.
Although builders are starting to ramp up construction, the economic boom continues to position first-time buyers more quickly than the lagging supply. The real estate wild card may be how quickly construction outfits put more homes in play.
Should the building sector pivot to take advantage of higher prices, inventory could loosen in 2019. That makes this fall a prime time to maximize profitability and avoid the risk of improving supply.
2: Fall Looks Like A Seller’s Market
Although summer was once again a popular time to sell, it appears home sales did not satisfy the high demand. With fewer listings available and plenty of active buyers jumping on properties, listing this fall could put sellers in the driver’s seat.
One interesting caveat is a recent study that says buying a home is currently less expensive than renting in 35 percent of American counties. Talk about motivated buyers. By listing a property now, the odds are on the seller’s side that the home will close at a desirable price.
3: Homes Move Quickly
Market data shows that homes are selling at a fast clip across the country. According to a report by realtor.com, the median days on the market rate continues to decline.
From 2012 to 2017, the number of days a home spent on the market declined by nearly one-third in some comparable months. This year, homes are selling at a staggering rate in traditionally high-priced metropolitan markets. According to research, homes in San Jose, California, were only on the market an average of 28.6 days. In Seattle, Washington, homes sold at an average rate of 34.1 days and Nashville, Tennessee, saw a short 40.6 window. While these areas may be considered hot, they show that homes are moving quickly even in high-end areas.
Sellers may find the elixir they are looking for by listing this fall. Economic and market indicators point to a vibrant seller’s market flush with motivated buyers.
Whether you are ready to sell your current home or look for a new property, be sure to contact your trusted real estate professional.
Sep 14, 2018 | Real Estate
Though the real estate business never stops, most people associate its busy periods of the year with the spring and summer seasons. And while this is true to a large extent, those who think that selling a home in the fall is a bad decision are sorely mistaken.
Just as families want to get into new homes before the school year starts, which makes spring and summer busy seasons, there’s also an urgency to get into new homes prior to the holiday season. It’s one of the reasons why you shouldn’t hesitate to list your home in the fall season.
Here’s a look at five more reasons why it’s smart to list your home in the fall:
1. Demand Is Still There
It’s a seller’s market out there, which means that there’s still high demand for quality homes. So don’t think that buyers have put their searches on hold until next spring, because they’re still out there. You’ll take advantage of this continuous demand by listing in the fall.
2. You Can Enjoy The Summer
You can enjoy next summer, that is. Yes, while sellers that list in the spring and summer are constantly cleaning, tidying up and exiting the home for showings, you can get out ahead of the game this fall so you can spend next summer enjoying your next home.
3. Buyers Are Serious
In the spring and summer months, it’s not unusual to get a lot of traffic from people who are thinking about buying. While any kind of activity is usually a positive, these types of would-be buyers aren’t exactly the strongest prospects to make an offer. With how busy the fall season is for many families, you’re likely to get showings with buyers who are serious, and thereby more likely to make an offer if they like what they see.
4. You Can Enhance Your Curb Appeal
Fall is characterized by cooler temperatures and changing colors. The former can really help green up your lawn, while the latter can make your house stand out if there are trees on the property. Aside from your home, the fall foliage can also enhance the appeal of your entire neighborhood.
5. There’s Fewer Home Sellers
A final reason to list in the fall is that you’ll have less competition on the market. That is, there are fewer available homes. If your home is attractive and sought after, you can potentially create a bidding war among interested buyers, which can help you net more off the sale.
Your trusted real estate professional can give you all the tips and tricks to prepare for a successful fall listing.
Aug 23, 2018 | Real Estate
Football season has kicked off, temperatures are cooling and pumpkin spice everything is for sale in the stores. Yes, fall is here. While most people associate the spring and summer months as the ideal times of year to buy or sell, fall is still a great time to put your home on the market.
Families tend to want to get into their new homes prior to the holiday season, so buyers are typically still very active during the fall months. That said, there are plenty of ways that you can ready your home for a fast fall sale.
Here’s a look at several tried and true tips to increase your curb appeal and move your property this autumn:
Keep The Yard Free Of Debris
Chances are your yard is full of leaves in the fall. But because temperatures are cooler and the days are shorter, fall is also a time of the year when your lawn looks its greenest and most lush. Make sure your leaves are cleaned up to show off the true potential of your yard (not to mention create the impression that your home is well maintained and cared for). Rake daily if you have to. If you don’t like raking, set the lawn mower to a low setting and bag the mulched leaves.
Autumn Curb Appeal
Buy some mums, a haystack and perhaps even some pumpkins or gourds to decorate your home with. These are perfect fall decor and can really help make your home stand out to potential buyers.
Hit The Lights
The days are shorter in the fall, which means that the natural light inside of your home may be waning during show times. That said, make sure all of the lights in the home are turned on prior to showings to create a well-lit, welcoming environment.
Clean The Fireplace
With the nights getting cooler, fall is the perfect time of the year to start up the fireplace. If you have a gas fireplace, make sure that this is mentioned in the listing. Also make sure that the fireplace is clean and looks inviting in case the buyer wants to turn it on. If you have a natural fireplace, don’t fret. Even if you don’t use it, make sure that it’s cleaned out and looks ready to use.
Clean Your Gutters
In addition to making sure your yard is leaf-free, make sure that your gutters are also clean. You don’t want to give buyers the impression that your home isn’t well cared for. Plus, gutters overflowing with leaves can make the buyer think that the home requires excessive maintenance, which can be a turn off.
Your trusted real estate agent is ready to help you with these tips and more to make sure your home is a must-see listing this fall.
Aug 10, 2018 | Real Estate
Positive economic growth numbers are always cause for celebration and the second quarter GDP just went vertical. After nearly four years of sub-par growth, the real GDP hit 4.1 percent in the second quarter.
While that economic news has everyday Americans excited that we may be entering a new age of prosperity, drawing a concrete link to the real estate market may be difficult. But by looking long and hard at this uptick and its potential impact on housing, you may get a better idea about buying, selling or standing pat on residential and commercial property.
GDP Report Points To Demand
Among the positive measures from the recent economic report, consumption enjoyed a positive increase. The first quarter numbers were disappointingly sluggish in this area at a modest 0.5 percent. The second quarter took off like a rocket, by comparison, at 2.25 percent.
Although that figure shows an upwardly mobile economy, some experts are calling it discouraging given the extraordinary consumer confidence that has risen to record highs of more than 101.0 since November 2017. This opinion begs the question: why are economy gurus disappointed?
The first part of that answer has to do with the implementation of the Tax Cuts and Jobs Act that is putting more money in American paychecks and rolled back income tax liability. Many economists forecast that this personal wealth growth would turn into solid consumption. While working families have enjoyed a breather in terms of scratching from paycheck to paycheck, home purchases have not gone through the roof.
Home availability remains relatively low. With Millennials scooping up many of the starter-home listings and Baby Boomers downsizing, a significant housing shortfall exists. If you have ever heard the term “seller’s market,” this is it.
Inventory Shortage Means Buy Quickly
There are always naysayers that point to lower than expected consumption and claim the economy is weak. The facts in the GDP report clearly dispute any such ideas.
Business investment spiked to a powerful 11.5 percent and then 7.3 percent in the first two quarters. Fixed business investment is on fire based on deregulation, soaring profits and confidence.
That’s why real estate resources are saying that the only thing holding the market back is inventory. Home sale data is not keeping pace with other sectors of the economy because there simply is not enough inventory to keep up with demand. For first-time buyers, this means get prequalified and act swiftly if you find a dream home. It won’t stay on the market long.
Prospective homebuyers may be relieved to know that positive construction indicators are trending. New homes are expected to improve the inventory shortage heading into 2019. Still, demand is likely to stay ahead of inventory.
Whether you are buying or selling, your trusted real estate professional can be one of your very best assets in this fast-paced market.
Jul 13, 2018 | Real Estate
Historians like to say that those who do not learn the lessons of the past are doomed to repeat them. In the real estate industry, the chances of that happening are slim because agents and other professionals follow market trends closely.
That being said, a careful examination of 2017 market trends and other factors can help highlight where the housing market is headed. Consider these top trends when deciding about whether to buy or sell a property.
Millennials Scooping Up Homes
According to resources such as Zillow, the low inventory and emergence of Millennials in the home-buying market helped break records last year. Millennials comprised upwards of 34 percent of the market and about two-thirds of them were reportedly first-time home buyers.
Given the shortage of entry-level homes for this demographic, 2018 and 2019 should have them in the driver’s seat in terms of buying trends. Although home prices are expected to rise in the single digits during the foreseeable future, the second wave of Millennial home buyers are likely to take a big bite of listed properties. As this group moves into their mid-30s, expectations are that last year’s 34 percent turns into about 43 percent of homes purchased. Millennials appear to be setting the pace.
Gen Z Home Buyers Expect Smarter Homes
Consider those born between 1995 and 2001 are adults or on the cusp of becoming adults. The front end of Generation Z is graduating college and looking for starter homes. This group is bound and determined to be different and they were basically weaned on technology.
Tech-friendly kitchens, lights and home-integrated devices have been trending and this demographic is likely to make them a priority when buying a home. Homeowners who are considering updating to a so-called “Smart Home” could be rewarded with resale value once Gen Z enters their collective mid-30s. Smart homes are trending and could go vertical with Gen Z buyers.
Generation X Returns From Great Recession
The housing crisis of 2007-09 put upwards of 10 million Americans out of their homes. Forced into foreclosure and bankruptcy, the financial aftermath of that catastrophe is coming to an end.
Those that filed for bankruptcy during the crash are in position to put their rebuilt credit to work. According to reports, approximately 1.5 million people could become eligible to re-enter the housing market in 2019.
A large portion of these potential returning homebuyers fall into the Gen X age group. They are likely to be savvier than the first time out. Many of these 50-somethings are expected to be frugal and cautious value buyers that could target properties that are traditionally considered starter homes. Regardless of how the trend plays out, Gen X is coming to a housing market near you.
If these emerging trends indicate anything, it’s that the shortage of homes on the market will only get tighter. Several large emerging demographics and returning buyers are going to speed an already fast-selling market. The trending idea may be to buy a home in today’s market and save money.
Your trusted real estate agent is sure to keep up to date on all the trends. Be sure to contact them as soon as you are ready to list your current home or find the new home of your dreams.
