According to a new survey from Move.com, the wave of first-time homebuyers hitting the market this summer has resulted in an interesting statistic. Nearly 60% of buyers searching for a home this spring are willing to consider buying a fixer-upper, with 95% believing that the projects needed will increase their new home’s value!
With Inventory Low: Will Your Dream Home Need Some TLC?
Realtor.com’s Chief Economist, Danielle Hale, pointed to low-inventory at the entry-level price range for the increase in willingness to renovate.
“The combination of
rising home prices and limited entry-level homes for sale is prompting
many home shoppers to consider homes that need renovating.
Replete with inspiration at their fingertips – like Pinterest,
Instagram, and various home renovation TV shows – some home shoppers
are comfortable tackling home renovation jobs to find a home that
balances their needs with their budget.”
Just over half of all respondents who said they would be willing to
buy a home in need of some TLC, would also spend more $20,000 to make
the home fit their needs.
The most common ‘expected’ renovation is a kitchen remodel which can run anywhere from $22,000 for a minor remodel to $66,000 for a major remodel.
This isn’t a new trend by any means. According to the Joint Center for Housing Studies at Harvard University, home improvement project spending reached a new high in 2018.
“Americans spent $336.9 billion on remodeling projects, up 7.4% from the $313.6 billion a year earlier.”
Home renovation television shows have given many buyers hope that
they could renovate a home they can afford into their dream home!
Bottom Line
If you are one of the many Americans considering buying a home this
spring, let’s get together to help you find a house with the potential
to be your dream home!
Every year, homeowners decide to wait to list their homes. Here are 5 powerful reasons why selling your house this spring makes sense. Let’s get together today to discuss how we can market your home this season!
Last fall, some predicted that the 2019 residential real estate
market would be a disaster. There was even belief we might experience a
housing crash like the one that occurred during the last decade.
However, according to two separate reports*, buyer demand
dramatically increased over the last three months, leading into this
spring buyers’ market (the March data is not yet available).
Why the increase in demand? Increased buying power.
According to the National Association of Realtors’Economists’ Outlook Blog, purchasing a home has become more affordable, which has led to increased demand.
“Due to the
combination of falling home prices and mortgage rates, the income needed
to make an affordable mortgage payment (mortgage no more than 25% of
income) on a median-priced home with 10% down payment and 30-year fixed
rate mortgage decreased from $60,425 in June 2018 to $53,783 as of
February 2019, and the difference of $6,642 represents a gain in buying
power because one can afford a home purchase at a lower level of
income.”
Bottom Line
It appears the spring buyers’ market is going to be much stronger
than many had projected. Whether you are selling or buying, this is
important news.
*The methodology behind the indices:
The ShowingTime Showing Index
“The ShowingTime Showing Index® tracks the average number of
buyer showings on active residential properties on a monthly basis, a
highly reliable leading indicator of current and future demand trends.”
The National Association of REALTORS® Buyer Traffic Index
“In a monthly
survey of REALTORS®, NAR asks respondents ‘Compared to the same month
last year, how would you rate the past month’s traffic in
neighborhood(s) or area(s) where you make most of your sales?’ NAR
compiles the responses into an index, where an index above 50 indicates
that more respondents reported “stronger” traffic than “weaker”
traffic.”
Every month, the National Association of Realtors (NAR) releases their Seller Traffic Index as a part of their Realtors Confidence Index.
In the latest release, NAR reported that homeowners have been reluctant
to sell their houses. This is reflected when broken down by state. Only
11 states have a stable level of seller traffic compared to the
remainder of the country, which came in with a weak rating.
As we can see in the following table, the number of people who moved last year is half of what the rate was in the 1980s.
This does not come as a surprise, as tenure length (the number of years someone owns a home before moving again)
among existing homeowners has increased. It has risen from an average
of 6 years from 1985 to 2008, up to 9.5 years over the last few years. This is shown in the graph below:
As we can see, there is a pent-up seller demand!
What led to this change in behavior?
Falling prices during the housing crisis led to many homeowners having
negative equity in their home, meaning they owed more on their mortgage
than the home was worth. Others were able to secure a low interest rate
on their mortgage and have not been quick to obtain a new mortgage with a
higher rate.
Will this trend continue?
Recently NAR reported that “69% of people believe now is a good time to sell a home.”
With a strong economy, low interest rates, and wages continuing to
rise, some homeowners will be ready to put their house on the market and
move up to the home of their dreams!
Bottom Line
There is a great opportunity for sellers to take advantage of the
current real estate market before new inventory comes to market. If you
are considering selling your house or would like to know your options,
let’s get together today to help you understand the possibilities
available to you!
Charred garden tomatoes, homemade vegetable bolognese, and wavy pasta combine to make a delightfully hearty and healthy family meal—perfect for summer
Instructions:
For the Bolognese: Heat oil in a large skillet over medium-high
heat. Sauté the garlic, mushrooms, celery, carrots, onions, zucchini,
and yellow squash for 5–6 minutes.
Pour in red wine, and bring to a simmer. Cook for 3 minutes or until
wine has partially evaporated. Stir in the crushed tomatoes, and season
with salt and pepper. Cover, and cook for 15 minutes or until
vegetables are tender.
While Bolognese is cooking, preheat the broiler to high. Drizzle
cherry tomatoes with olive oil, and broil for 5 minutes or until
charred.
Spoon Bolognese over cooked pappardelle, and top with scorched tomatoes, Parmesan cheese, and basil before serving.
If you are debating purchasing a home right now, you are probably
getting a lot of advice. Though your friends and family have your best
interests at heart, they may not be fully aware of your needs and what
is currently happening in the real estate market.
3 Questions You Need To Ask Before Buying A Home to help determine if now is a good time for you to buy in today’s market.
1. Why am I buying a home in the first place?
This is truly the most important question to answer. Forget the
finances for a minute. Why did you even begin to consider purchasing a
home? For most, the reason has nothing to do with money.
For example, a study by realtor.com found that “73% said buying in a good school district was “important” in their search.”
This report supports a study by the Joint Center for Housing Studies at Harvard University which revealed that the top four reasons Americans buy a home have nothing to do with money. The actual reasons are:
A good place to raise children and provide them with a good education
A place where you and your family feel safe
More space for you and your family
Control of that space
What does owning a home mean to you? What non-financial benefits will
you and your family gain from owning a home? The answer to that
question should be the biggest reason you decide to purchase or not.
2. Where are home values headed?
According to the latest Existing Home Sales Report from the National Association of Realtors (NAR),
the median price of homes sold in February (the latest data available)
was $249,500. This is up 3.6% from last year. The increase also marks
the 84th consecutive month with year-over-year gains.
Looking at home prices year over year, CoreLogic is forecasting
an increase of 4.6%. In other words, a home that costs you $250,000
today will cost you an additional $11,500 if you wait until next year to
buy it.
What does that mean to you?
Simply put, with prices increasing, it may cost you more if you wait
until next year to buy. Your down payment will also need to be higher in
order to account for the higher price of the home you wish to buy.
3. Where are mortgage interest rates headed?
A buyer must be concerned about more than just prices. The ‘long-term cost’ of a home can be dramatically impacted by even a small increase in mortgage rates.
Only you and your family will know for certain if now is the right
time to purchase a home. Answering these questions will help you make
that decision.
It’s officially spring again, everybody and their great aunt Mary are abuzz with cleaning and organizing advice.
Whether you’re going to sort of just jump in the middle of your goals and attack them from all angles or you want a more organized approach, you need a plan of action that works for you. Don’t even start without one. If you have something working well for you, go with it, but if not, we’ve got a short attack plan for each goal above down below.
Keep in mind that some of these lists can be done simultaneously if
you really want to be efficient. If not, that’s ok, too. This is your
spring cleaning. Own it.
Goal: Increasing the Feeling of Openness In Your Home
Increasing the feeling of openness in your home comes down to one
thing: light. The more light in your home, the bigger and more open it
feels. Achieving this seemingly impossible goal is actually really easy
and you can do it without replacing a single window or tearing down
walls. See, it’s all about that glass. It’s about the paint on your
walls, too, but for the amended spring cleaning, focus on the glass.
That includes:
Windows. Scrub these things like they’ve never been
washed. They probably haven’t. Wash the insides and then go outside and
wash the outside. Just washing the windows will brighten up your space
enough that you may end up stopping at this point.
Mirrors. Those mirrors are bouncing light around
the room. Just because your windows are letting more light in doesn’t
mean that it’s going to survive long once it hits that dirty mirror.
Clean, clean away.
Light fixtures. By light fixtures, we mean those
light kits on your ceiling fan, the bulb enclosures on chandeliers and
the shades on ceiling huggers. Anything glass, take it down and clean
it. Most of these items can go into the dishwasher, but put anything thin or fragile in the top rack.
Light bulbs. Oh, the lowly lightbulb. How we forget
you all the time when doing almost anything. You’re just a magic tube
that gives us light… unfortunately, bulbs also get dirty, so grab your
Swiffer duster and give all your bulbs a good once-over.
As more and more baby boomers enter retirement age, the question of whether they should sell their homes and move has become a hot topic. In today’s housing market climate, with low available inventory in the starter and trade-up home categories, it makes sense to evaluate your home’s ability to adapt to your needs in retirement. Consider What’s important when choosing the right home to retire in.
According to the National Association of Exclusive Buyers Agents (NAEBA), there are 7 factors that you should consider when choosing your retirement home.
1. Affordability
“It may be easy
enough to purchase your home today but think long-term about your
monthly costs. Account for property taxes, insurance, HOA fees,
utilities – all the things that will be due whether or not you have a
mortgage on the property.”
Would moving to a complex with homeowner association fees actually be
cheaper than having to hire all the contractors you would need to
maintain your home, lawn, etc.? Would your taxes go down significantly
if you relocated? What is your monthly income going to be like in
retirement?
2. Equity
“If you have equity
in your current home, you may be able to apply it to the purchase of
your next home. Maintaining a healthy amount of home equity gives you a
source of emergency funds to tap, via a home equity loan or reverse
mortgage.”
The equity you have in your current home may be enough to purchase
your retirement home with little to no mortgage. Homeowners in the US
gained an average of over $9,700 in equity last year.
3. Maintenance
“As we age, our
tolerance for cleaning gutters, raking leaves and shoveling snow can go
right out the window. A condominium with low-maintenance needs can be a
literal lifesaver, if your health or physical abilities decline.”
As we mentioned earlier, would a condo with an HOA fee be worth the
added peace of mind of not having to do the maintenance work yourself?
4. Security
“Elderly homeowners
can be targets for scams or break-ins. Living in a home with security
features, such as a manned gate house, resident-only access and a
security system can bring peace of mind.”
As scary as that thought may be, any additional security is helpful.
An extra set of eyes looking out for you always adds to peace of mind.
5. Pets
“Renting won’t do if the dog can’t come too! The companionship of pets can provide emotional and physical benefits.”
Consider all of your options when it comes to bringing your ‘furever’
friend with you to a new home. Will there be necessary additional
deposits if you are renting or in a condo? Is the backyard fenced in?
How far are you from your favorite veterinarian?
6. Mobility
“No one wants to
picture themselves in a wheelchair or a walker, but the home layout must
be able to accommodate limited mobility.”
Sixty is the new 40, right? People are living longer and are more
active in retirement, but that doesn’t mean that down the road you won’t
need your home to be more accessible. Installing handrails and making
sure your hallways and doorways are wide enough may be a good reason to
look for a home that was built to accommodate these needs.
7. Convenience
“Is the new home
close to the golf course, or to shopping and dining? Do you have
amenities within easy walking distance? This can add to home value!”
How close are you to your children and grandchildren? Would
relocating to a new area make visits with family easier or more
frequent? Beyond being close to your favorite stores and restaurants,
there are a lot of factors to consider.
Bottom Line
When it comes to your forever home, evaluating your current house for
its ability to adapt with you as you age can be the first step to
guaranteeing your comfort in retirement. If after considering all these
factors you find yourself curious about your options, let’s get together
to evaluate your ability to sell your house in today’s market and get
you into your dream retirement home!
Every spring, your home needs some extra TLC! Whether you plan on selling your home this spring or not, conducting your home’s spring maintenance checklist will help ensure your home functions well for the rest of the year. If you are planning on selling I have a list of specific suggestions to help get your home ready for market and local contractors who can help as well.
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