Home Sales Would Be Higher If …

13 percent more consumers looking to purchase a home but there are 5 percent fewer homes for sale…

Homes are selling at the fastest rate since 2007, but sales could be even higher if not for the ongoing lack of inventory in many markets, notes Jonathan Smoke, realtor.com®’s chief economist, in his latest column.

Forty percent of buyers surveyed by realtor.com® in June said their number one obstacle in home salespurchasing a home was finding one that met their needs. The lack of inventory was also the top obstacle for buyers last year, though not as many respondents considered it their biggest obstacle.

There’s 13 percent more consumers looking to purchase a home this summer compared to last summer, but there are 5 percent fewer homes for sale, Smoke reports.

“So it’s not surprising that this low level of inventory—along with the rapid-fire speed at which homes are selling and the high level of price appreciation—has led to the general perception that we’re in a seller’s market,” Smoke says. “But that doesn’t mean it’s all smooth sailing for sellers either.”

More sellers are reporting a struggle in finding a home to purchase as well. Some home owners say they aren’t willing to risk selling their current home without having a new one under contract.

“Sales typically peak in June or July, but this year might turn out to be an exception,” Smoke says. “With low mortgage rates, continued evidence of strong demand, and an increasing number of both buyers and sellers just starting to explore, we could have an extended peak.”
References: RealtorMag, Realtor.com 

Donald Horne, Team Success Listing
Associate Broker-Coldwell Banker Shooltz Realty
Oxford Office   248-969-8065
Lapeer Office   810-338-0628
teamsuccesslisting@gmail.com
Team Success Listing Website
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This Summer, Lake Orion Homes Are Selling Faster

“Continuing this spring’s trend, pent-up demand from buyers who weren’t able to purchase a home”…

Homes for sale in June are selling 2 percent more quickly than last year as prices soar to record highs, according to new data on inventory and user activity on realtor.com®.

The median age of inventory nationwide for June is projected to be 65 days, which is 2 percent less than a year ago. One-third of the 300 medium to large markets surveyed posted a month-over-month

drop in days that homes spent on the market. Some markets even posted a double-digit drop.

“Continuing this spring’s trend, pent-up demand from buyers who weren’t able to purchase a home last year, combined with low inventory, pushed up prices and got homes to sell quickly,” realtor.com®’s report notes.

For-sale inventory typically increases this time of season, however, total inventory still remains lower than last year at this time. An estimated 525,000 new listings are expected to come onto the market by the end of the month. Still, compared with June 2015, listing inventory dropped 5 percent.

The low inventories are pushing up home prices. The median home list price was $252,000 in June – 8 percent higher than a year ago, realtor.com® reports.

“However, much of the effect of higher prices is being offset by mortgage rates that are the lowest we’ve seen in three years,” Smoke notes.
References: RealtorMag, Realtor.com 

Donald Horne, Team Success Listing
Associate Broker-Coldwell Banker Shooltz Realty
Oxford Office   248-969-8065
Lapeer Office   810-338-0628
donaldhorne.realtor@gmail.com
Team Success Listing Website
Find Out Your Home’s Value Instantly

Now Trending: The Multi-functional Kitchen

main considerations when designing a multi-functional space are wall placement and storage” …

Nothing can kill a sale faster than a dated, closed-in kitchen area. Many of today’s buyers see the kitchen as the home’s command center, and not just a place for cooking and eating. They want the kitchen to be many things at once, hence the rise in popularity of what is known as the multi-functional open-concept kitchen.

www.donsrealty.netWhether you are renovating existing structure or building new, architects fully recognize the need for space that is designed for movement and flow,” says Stephanie Brick, senior designer at Sustainable Design Group, in Gaithersburg, Md. “There are still rules and important elemental guidelines — you do not want to just delete all of the walls on your first floor. But by being selective in the design, materials and professionals you work with, you can easily achieve a space that does not merely react to, but anticipates, your bustling lifestyle.”

The two main considerations when designing a multi-functional space are wall placement and storage. While it may seem like an easy solution to knock down walls, Brick says there are other architectural solutions, like open doorways, that can give a similar effect while keeping the space architecturally interesting.

Being as honest as possible about individual organizational and storage needs is key when creating a multi-functional kitchen. For some owners who want to use the kitchen as a makeshift homework area or as a place to handle their bills, adding storage for these needs will be necessary. If your clients do a lot of cooking and entertaining for large groups, they will want to make sure the kitchen has space and storage to accommodate that process. If the family has small children, the kitchen can be designed with their safety in mind.

Brick has one final piece of advice when designing this type of kitchen space. “Honesty with your architect is key to creating a strong working relationship and delivering an equally beautiful and functional space in your home.”
References: RealtorMag, Washington Post 

Donald Horne, Team Success Listing
Associate Broker-Coldwell Banker Shooltz Realty
Oxford Office   248-969-8065
Lapeer Office   810-338-0628
donaldhorne.realtor@gmail.com
Team Success Listing Website
Find Out Your Home’s Value Instantly

Seller To Buyer After Closing: “I’m Not Leaving”

“It’s been a nightmare,” Tamara Holloway told News 2 in Nashville. “The seller has essentially pirated my house”…

A woman in Nashville ran into an unusual problem after buying her first home: The seller is now refusing to leave.

“It’s been a nightmare,” Tamara Holloway told News 2 in Nashville. “The seller has essentially pirated i'm not leavingmy house. Holloway closed on the home on June 1. There is nothing in the contract stating that the seller can stay past that date. But Justin McCrory, the home seller, says he’s lived in the property for four years and he doesn’t plan to leave.

“The transaction went through and they’re getting a good clean property,” McCrory told reporters. “What’s the problem? … I technically don’t have to go anywhere. They’d have to evict me and they’re not having that.”

Holloway filed a detainer warrant last week. That is the first step of the eviction process. Signature Title Services says the processor for the closing also has written McCrory and told him to vacate the property.

So far, McCrory hasn’t left.

The Greater Nashville Association of REALTORS® urged buyers to make sure they get their keys at closing. Holloway did not. Also, make sure to work with the seller’s REALTOR®. McCrory didn’t have one.

“Make sure your REALTOR® understands that it’s a ‘for sale by owner’ and can work with that other party to make sure things like this don’t slip through the cracks,” said GNAR President Denise Creswell.
References: RealtorMag, KRQE News 13 

Donald Horne, Team Success Listing
Associate Broker-Coldwell Banker Shooltz Realty
Oxford Office   248-969-8065
Lapeer Office   810-338-0628
donaldhorne.realtor@gmail.com
Team Success Listing Website
Find Out Your Home’s Value Instantly

5 Ways to Trim Utility Costs in Metamora This Summer

As temperatures warm up, utility bills can increase …

HomeSelfe, a company that offers energy efficiency reports of homes, offers some of the following tips to help home owners save on utility bills this summer:

1. Apply a window film. If you don’t want to install drapes or blinds to cover your windows, consider a window film. Home owners will still be able to see out their windows while also blocking some of the

heat. For installation, home owners often just need to measure the size of the window, cut the film, and then adhere it to the window.

2. Clean the air filters. Dirty air filters can cause utility bills to increase. “When filters get dirty, the heating and cooling system has to work harder and consumer more energy to do its job,” according to HomeSelfe. “With clean filters, the system can cool your home more efficiently and help you save on utility bills.”

3. Collect rainwater. Cut your water use and consider using rain barrels to start collecting rainwater. You can then use the trapped water for your garden. “Rain barrels, typically made of plastic or wood, sit at the end of your gutter downspout and collect the rainwater as it flows out,” HomeSelfe notes. “When the storm is over, you’ll have a good amount of water that you can recycle on your garden during drier times.”

4. Add mulch. Layer mulch throughout a garden to help slow evaporation. Water will stay on the ground longer and offer the plants more time to absorb it. You’ll be able to water less frequently.

5. Install a programmable thermostat. Set the temperature of your home for particular times throughout the day to help curb costs. Set your thermostat to turn off while you’re at work and cool down while you’re on your way home. Programmable thermostats can help reduce energy use by your air conditioner.
References: RealtorMag, HomeSelfe 

Donald Horne, Team Success Listing
Associate Broker-Coldwell Banker Shooltz Realty
Oxford Office   248-969-8065
Lapeer Office   810-338-0628
donaldhorne.realtor@gmail.com
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Find Out Your Home’s Value

Home Owners Overly Optimistic About Home’s Price

Owners are continuing to overestimate the value of their homes. The latest Quicken Loans’ Home Price Perception Index shows that home owners overestimated the price of their home, on average, by 1.95 percent compared to appraisers valuations in April.

Home owners in the Midwest and East coast are overestimating their home’s value by the highest amounts, according to the HPPI.

The gap between home owner and appraiser expectations narrowed last month. In March, appraiser opinions of home values were 2.17 percent lower than home owner expectations.

“The HPPI is in a healthy trend, nationally,” says Quicken Loans Chief Economist Bob Walters. “While everyone wants their appraisals to come back showing more equity than anticipated, like some home owners in the West, the discrepancy we are seeing now won’t likely derail a mortgage transaction.”


References: RealtorMag, Quicken Loans

Donald Horne, Team Success Listing
Associate Broker-Coldwell Banker Shooltz Realty
Oxford Office   248-969-8065
Lapeer Office   810-338-0628
donaldhorne.realtor@gmail.com
Team Success Listing’s
Find Out Your Home’s Value

Mortgage Rates Drop To 3 Year Lows

The 30-year fixed-rate mortgage averaged 3.57 percent in the most recent week, the lowest average in three years, Freddie Mac reports in its weekly mortgage market survey.

“Disappointing April employment data once again kept a lid on Treasury yields, which have struggled to stay above 1.8 percent since late March,” says Sean Becketti, Freddie Mac’s chief economist. “As a result, the 30-year mortgage rate fell 4 basis points to 3.57 percent, a new low for 2016 and the lowest

mark in 3 years. Prospective home buyers will continue to take advantage of a falling rate environment that has seen mortgage rates drop in 14 of the previous 19 weeks.”

Freddie Mac reports the following national averages with mortgage rates for the week ending May 12:

  • 30-year fixed-rate mortgages: averaged 3.57 percent, with an average 0.5 point, dropping from last week’s 3.61 percent average. Last year at this time, 30-year rates averaged 3.85 percent.
  • 15-year fixed-rate mortgages: averaged 2.81 percent, with an average 0.5 point, falling from last week’s 2.86 percent average. A year ago, 15-year rates averaged 3.07 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 2.78 percent, with an average 0.5 point, a decrease from last week’s 2.80 percent average. Last year at this time, 5-year ARMs averaged 2.89 percent.
    References: RealtorMag, Freddie Mac

Donald Horne, Team Success Listing
Associate Broker-Coldwell Banker Shooltz Realty
Oxford Office   248-969-8065
Lapeer Office   810-338-0628
donaldhorne.realtor@gmail.com
Team Success Listing’s
Find Out Your Home’s Value

Outdoor Trends Lapeer Buyers Love

Home owners crave outdoor spaces for gathering and entertaining, which is why it’s important to highlight your outdoor spaces.

1. Natural wood and stone: Natural wood and stone features are popular today, even those made of faux materials like vinyl. “This design trend can make an outdated home look modern on the exterior, causing more buyers to stop and schedule a showing”.

2. Privacy: Home owners love outdoor space but they also like their privacy. Make the outdoor space more private. Place walls around the pergola, enclose a gazebo, or use tall shrubbery to create more backyard privacy.

outdoor trends lapeer buyers love 3. Lighting: Good outdoor lighting helps make a property appear more inviting and improves the security. Make sure there are plenty of lights on the backyard or deck. Solar lighting can be an inexpensive way to add more lights, if the wiring isn’t in place. “A well-lit deck lends itself to summer barbecues and parties”.

4. Low-maintenance landscaping: Buyers tend to be drawn to low maintenance. Try using perennials, which can add a splash of color, but don’t need to be replanted every year. Also, mulch and rock can help keep weeds away while also enhancing the space’s look. Stone walkways and decorative items can further spruce up a lawn, without adding in extra maintenance.

5. Fire pits and fireplaces: A fire pit can provide an outdoor spot for easy entertaining. Stage it with chairs all around and ready for making s’mores.

6. Outdoor structures: To enhance a backyard, a gazebo or pergola can go a long way to help making the space more inviting. “These outdoor structures boost the function, and therefore increase your home’s value”.
References: RealtorMag, RISMedia 

Donald Horne, Team Success Listing
Associate Broker-Coldwell Banker Shooltz Realty
Oxford Office   248-969-8065
Lapeer Office   810-338-0628
donaldhorne.realtor@gmail.com
Team Success Listing’s
Find Out Your Home’s Value

Homes For Sale and Sold Report For May 2016

Homes for Sale & Sold Report for May 2016

 

June, 2016

Hello, we hope you had a great May!

Residential Home Sales and Average Sale Prices Reach 10 Year Record High!
May average sales price increases for the 5th consecutive year.

Average residential and condo sales are up 10.9% * Average residential and condo sale prices are up 3.1% * Total number of listings on market are down 19.0% from last year * Average days on market until sold is at 53 days.

This has affected your home’s value!

We invite you to find out the new value of your home for free now at:

http://Instant.FreeHomeValues.net

You can also see new homes for sale near you and get much more information here:

http://DonaldHorne.KnowsRealEstate.net

We hope you find this helpful and, as always, we appreciate your referrals and do not hesitate to let us know if you have any questions about anything related to real estate, mortgages or your home!

Best Wishes,

Donald Horne
Associate Broker
Coldwell Banker Shooltz Realty / Team Success Listing
810-338-0628
donaldhorne.realtor@gmail.com

Sellers Happy But Home Buyers Frustrated

Sellers happy but home buyers are frustrated

The number of home buyers who say now is a good time to buy dipped to an all-time survey low in Fannie Mae’s latest Home Purchase Sentiment Index. Meanwhile, home owners who say now is a good time to sell soared to an all-time survey high.

The disconnect in the market is likely partially due to the limited number of homes for sale in many markets, allowing sellers to face less competition and ask for higher home prices. On the other hand,

home buyers are having fewer choices and stuck paying higher prices, sometimes in multiple-bid situations.

Indeed, “we can partially attribute the sizable gain in April in home selling optimism both to a correction for last month’s unexpected dip and to typical seasonal strength in housing activity in the spring and summer,” says Doug Duncan, senior vice president and chief economist at Fannie Mae. “Even after accounting for these factors, continued tight housing supply has led to renewed strength in home price appreciation, making selling a home a more attractive prospect this year in particular. This improved sentiment could provide an extra boost of much-needed supply for the spring selling season.”

Some highlights from Fannie Mae’s latest Home Purchase Sentiment Index:

  • 30% of Americans say now is a good time to purchase a home, a drop of 3 percentage points from the previous month and now at an all-time survey low.
  • 15% of Americans say now is a good time to sell a home, now at an all-time survey high.
  • More consumers think home prices will rise over the next 12 months compared to March, and slightly fewer consumers also expect mortgage rates to go up over the next year.
  • The percentage of respondents who say they are not concerned with losing their job increased 6 percentage points to 74%, nearly a 7 percentage point decrease in March.
  • The percentage of respondents who say their household income is significantly higher than it was 12 months ago held at 11%.
    References: RealtorMag, Fannie Mae

Donald Horne, Team Success Listing
Associate Broker-Coldwell Banker Shooltz Realty
Oxford Office   248-969-8065
Lapeer Office   810-338-0628
donaldhorne.realtor@gmail.com
Team Success Listing’s
Find Out Your Home’s Value Instantly