New Reality? Buyers Face Fewer Choices

New Reality? Buyers Face Fewer Choices.

Many markets are seeing so few new listings that they may not be able to meet the strong buyer demand heading into real estate’s traditionally busiest season. Listings are down more than 7 percent compared to a year ago across the country, according to the latest data by the National Association of REALTORS®.

Where Homes Are Selling the Fastest

choicesRealtor.com® inventory data shows the following metro areas had listings that stayed on the market the shortest amount of time in January:

  • San Jose-Sunnyvale-Santa Clara, Calif.: 43 days
  • San Francisco-Oakland-Hayward, Calif.: 47 days
  • San Diego-Carlsbad, Calif.: 55 days
  • Seattle-Tacoma-Bellevue, Wash.: 57 days
  • Nashville-Davidson-Murfreesboro-Franklin, Tenn.: 58 days
  • Vallejo-Fairfield, Calif.: 58 days
  • Greeley, Colo.: 58 days

“Competition is likely to heat up even more heading into the spring for house hunters looking for homes in the lower- and mid-market price range,” says Lawrence Yun, NAR’s chief economist.

Realtor.com® notes that the following markets are particularly very light on listings:

  • Chicago: -13% (active listings compared to a year ago)
  • Philadelphia: -14%
  • Washington: -15%
  • Seattle: -17%
  • Minneapolis: -18%
  • St. Louis: -12%
  • Baltimore: -16%
  • Cleveland: -18%
  • Orlando, Fla.: -19%

On the other hand, home shoppers may find more choices this year in a few select markets. Notably, Las Vegas is seeing an 18 percent increase in active listings compared to a year ago; Pittsburgh is seeing a 9 percent increase; and Houston and San Antonio are posting a 6 percent increase.
References: Realtor Magazine, CNBC, NAR

Are you considering selling your home? If you are, we would love to meet with you soon to show you what comparable properties have recently sold for, give you an estimate of your home’s current market value and review with you our marketing program.

Donald Horne, Broker / Owner
Team Success Listing LLC
teamsuccesslisting@gmail.com
810-338-0628
www.teamsuccesslisting.com
(blog / website)
www.teamsuccesslisting.net
(listings / search)

Home Prices Are Soaring To New Highs!

Home Prices Are Soaring To New Highs! 

Home price appreciation picked up speed, prompting the majority of metro areas to soar to new record highs with home prices, the National Association of REALTORS®’ latest quarterly report reveals. Of the 150 markets NAR has tracked since 2005, 52 percent – or 78 – now have a median sales price that is at or above its previous all-time high.

The fourth quarter of 2016 proved to be a strong one for home price appreciation. The median existing single-family home price rose in 89 percent of the measured markets. Thirty-one metro areas out of 178 saw double-digit gains.

“Buyer interest stayed elevated in most areas thanks to mortgage rates under 4 percent for most of the year and the creation of 1.7 million new jobs edging the job market closer to full employment,” says Lawrence Yun, NAR’s chief economist. “At the same time, the inability for supply to catch up with this demand drove prices higher and continued to put a tight affordability squeeze on those trying to reach the market.”

In the fourth quarter, the national median existing single-family home price was $235,000 – up 5.7 percent from the fourth quarter of 2015 ($222,3000).

Inventories of homes for-sale remain tight. At the end of the fourth quarter, 1.65 million existing homes were available for sale, which is 6.3 percent below year ago levels and the lowest level since NAR began tracking the supply of all housing types in 1999.

“Depressed new and existing inventory conditions led to several of the largest metro areas seeing near or above double-digit appreciation, which has pushed home values to record highs in a slight majority of markets,” Yun says. “The exception for the most part is in the Northeast, where price growth is flatter because of healthier supply conditions.”

Nationwide, a boost in home prices and mortgage rates at the end of the year slightly weakened affordability compared to a year ago. That came despite a solid uptick in the national family median income.

To buy a single-family home at the national median price, a buyer making a 5 percent down payment would need an income of $51,017; they would need an income of $48,332 for a 10 percent down payment; and they would need an income of $42,962 for a 20 percent down payment, according to NAR.

“Even a pick-up in wage growth may be insufficient to compensate the impact of higher mortgage rates and home prices,” Yun says. “Increased homebuilding will be crucial to alleviate supply shortages and stave off the affordability hit.”
References: Realtor Magazine, NAR

Are you considering selling your home? If you are, we would love to meet with you soon to show you what comparable properties have recently sold for, give you an estimate of your home’s current market value and review with you our marketing program.

Donald Horne, Broker / Owner
Team Success Listing LLC
teamsuccesslisting@gmail.com
810-338-0628
www.teamsuccesslisting.com
(blog / website)
www.teamsuccesslisting.net
(listings / search)

Here Come 59 Million Buyers!

Here Come 59 Million Buyers!

One in four U.S. adults say they are considering buying a home this year, which extrapolates to a whopping 59 million people, according to a recent survey by Bankrate.com.

Minorities are expected to be big buyers this year. More than two in five black survey respondents said they were considering buying a home. That is more than double the percentage of potential white buyers.

Also, older millennials and Generation X – which encompasses the ages of 27 to 52 – are showing more willingness to either become homeowners or trade up to a new home, the survey showed.

Young adults have mostly delayed home ownership. “They have been stymied by stagnant wages, student loans, and a lack of available starter homes,” Lewis says. “If enough affordable homes are put on the market, we might see a surge of first-time home buyers in their early to mid-30s.”

Lewis notes, however, what many people say is not always what they’ll be able to do. Rising mortgage rates and an uptick in home prices could prevent some would-be home buyers from saving enough for a down payment and limited inventories could delay their efforts in finding a suitable home to buy.

About 6 million new and existing homes were sold last year, according to the National Association of REALTORS® and U.S. Census data.
References: Realtor.com, Realtor Magazine

Are you considering selling your home? If you are, we would love to meet with you soon to show you what comparable properties have recently sold for, give you an estimate of your home’s current market value and review with you our marketing program.

Donald Horne, Broker / Owner
Team Success Listing LLC
teamsuccesslisting@gmail.com
810-338-0628
www.teamsuccesslisting.com
(blog / website)
www.teamsuccesslisting.net
(listings / search)

Are You Thinking About Selling Your Home? Let’s Talk! Tip #3 …

Tip #3, Let’s Look At The Quality Of The Condition Including Property Preparation

1. Tour your own home with the eyes of a buyer and make a list of anything that is not working correctly and repair these items.
2. Make the home “ready to show”. This includes a thorough deep cleaning of the home and appliances, including the windows inside and out.

3. De-clutter as much as possible. You want the buyers to be looking at the home, not distracted by your personal items.

This is just one of the many items of value that we offer our sellers, for most homes our marketing program is designed to get in front of all buyers and the entire market using the latest marketing and advertising tools … for more detailed information on how we can sell your home, please contact us to schedule an appointment for us to review with you, on combining our services to more effectively produce the results that you are looking for, turning your home into a sold home.
References: Tony & Suzanne Marriott

Donald Horne, Broker / Owner
Team Success Listing LLC
Phone 810-338-0628
teamsuccesslisting@gmail.com
www.teamsuccesslisting.com
www.teamsuccesslisting.net

Are You Thinking About Selling Your Home? Let’s Talk! Tip #2 …

Tip #2, Why A Listing Does Not Sell

There are a number of reasons why a listing does not sell:

* price
* presentation
* marketing
* quality of property photos (tip #1)

* negotiation
* follow up
* buyer’s loan

It is very easy to say that “price” was the problem, but the other 6 possible reasons should be examined before making a price adjustment and by what amount?

One of the services that we provide for you is to carefully review the previous entry in the MLS to see that it matches the property. For most homes our marketing program is designed to get in front of all buyers and the entire market using the latest marketing and advertising tools … for more detailed information on how we can sell your home, please contact us to schedule an appointment for us to review with you, on combining our services to more effectively produce the results that you are looking for, turning your home into a sold home.
References: Tony & Suzanne Marriott

Donald Horne, Team Success Listing
Associate Broker-Coldwell Banker Shooltz Realty
Phone 810-338-0628
teamsuccesslisting@gmail.com
www.teamsuccesslisting.com
www.teamsuccesslisting.net

More Housing Markets Move Into “Buy” Zone

The U.S. housing market is moving deeper into “buy territory,” which indicates that the majority of housing markets remain a sound investment, according to a newly released national index by Florida Atlantic University and Florida International University.

“Housing prices, in general, continue to slow and when considered in light of the recent trends in the Buy vs. Rent Index signal that ownership remains an excellent investment for the majority of Americans,” says Ken Johnson, a real estate economist and an author of the index, the Beracha, Hardin & Johnson Buy vs. Rent Index.

The index shows that owning a home trumps renting a comparable property as well as investing rent savings in a portfolio of stocks and bonds.

Fifteen of the 23 metro markets tracked in the index favored ownership over renting.

“Many of the hardest hit metropolitan areas during the real estate crash are showing signs of resilience as the cost of ownership relative to the cost of renting remains more in balance at this time,” says Eli Beracha, co-author of the index and an assistant professor of real estate at Florida International University.

Rents and home prices are rising across the country, which could impact housing affordability.

“Continuing near-record low mortgage rates, however, are providing a tailwind for ownership,” Johnson says. “There does not appear to be any interest in loosening underwriting standards or offering teaser loans as a panacea to the issue of affordability this time around. That’s another sign that we are learning how to deal with cyclical behavior in our housing markets.”
References: RealtorMag, Florida Atlantic University 

Donald Horne, Team Success Listing
Associate Broker-Coldwell Banker Shooltz Realty
Phone 810-338-0628
teamsuccesslisting@gmail.com
www.teamsuccesslisting.com
www.teamsuccesslisting.net

5 Fixes That Can Raise Your Lapeer Home’s Value

For home owners looking to spruce up their home before listing it, there’s plenty they can do to attract more buyers and potentially boost the value of their Lapeer home too.

Veteran real estate professionals recently weighed in on some of the best home improvement projects they believe can help a home show better. Here are a few of their ideas:

1. Open up the space.

lapeer, homesCreate more space, whether that’s even removing a kitchen island or knocking out a non-structural wall. Right now buyers want a wide open floor plan, the living room right off the kitchen. They are into big spaces.

2. Light it up.

Keep the home bright: Have windows open to let the natural light flow in, consider lights that use motion detectors to turn themselves off, or install sun tubes, a reflective material that funnels natural light from a hole cut in a rooftop down through a ceiling fixture in a room. High wattage bulbs make small spaces feel larger, and soft lighting brings warmth to empty spaces.

3. Enhance the front door.

Don’t underestimate the power of a front door. People make up their minds in the first seven seconds of entering a house. Have an overhang on the front porch, such as an awning or portico above the front door.

4. Pay attention to the floors.

Spend some money on the floors. Even a $600 to $900 investment could help boost the home’s value by possibly $2,000, they say. Get a carpenter or handyman to eliminate distracting squeaks from floors, repair any broken tiles, patch damaged floor boards, and remove wall-to-wall carpeting, they suggest.

5. Tackle easy bathroom upgrades.

Bathroom upgrades can quickly get pricey but a few upgrades can still make a big difference. For example, swap frosted glass for clear glass, remove any rust stains, apply fresh caulk, update doorknobs and cabinet pulls, replace faucets, buy a new toilet seat, or install a low-flush toilet.
References: RealtorMag, This Old House

Donald Horne, Team Success Listing
Associate Broker-Coldwell Banker Shooltz Realty
Phone 810-338-0628
teamsuccesslisting@gmail.com
www.teamsuccesslisting.com
www.teamsuccesslisting.net

Buyers Will Pay More For Smart Tech Features

“smart-home technology can definitely add to market value”

Home buyers are willing to pay extra in order to have a smart home, according to several new studies. Network-connected thermostats, security devices, appliances, and lighting already installed in a home may help home owners sell their properties faster and for more money, reports The Washington Post on the studies’ findings.

techFifty-seven percent of home shoppers eyeing older homes say they would consider them updated and more appealing if they had smart-home features installed, according to a survey of 1,250 American adults conducted by Coldwell Banker Real Estate. Sixty-one percent of millennials say they would favor a home that had smart-home features; 59 percent of parents with children living in the house say they would too.

Another recent survey this year conducted by John Burns Real Estate Consulting also found Americans heavily favoring, and willing to pay extra for, smart-home features when shopping for a home. Sixty-five percent of nearly 22,000 home buyers surveyed said they’d be willing to spend more for a home with smart-home technology. More than half of those surveyed said they’d be willing to pay extra for interior and exterior security cameras, network-connected appliances, doorbells with text alerts and access to security cameras, smart air filtration vents, and more.

Some appraisers say they are making adjustments when comparing a smart home with a similar home that does not have such features.

“Smart-home technology can definitely add to market value,” Pat Turner, an appraiser in Richmond, Va., told The Washington Post. “If you have the data showing that houses with smart technology sell for more, then you’ve got to.”
References: The Washington Post, RealtorMag

Donald Horne, Team Success Listing
Associate Broker-Coldwell Banker Shooltz Realty
Phone 810-338-0628
teamsuccesslisting@gmail.com
www.teamsuccesslisting.com
www.teamsuccesslisting.net

New Home Sales In Lake Orion Near 10 Year High

positive reports show there is a need for new single-family homes…”

New-home sales jumped to the highest level in nearly a decade, with sales of new single-family homes climbing 12.4 percent month-over-month and reaching a seasonally adjusted annual rate of 654,000, the Commerce Department reported Tuesday. That marks the highest level since October 2007.

home salesLow mortgage rates, improving income growth, and steady job creation have helped propel home buying for both new and existing homes. New-home sales have posted strong gains since the beginning of this year, up 13.3 percent compared to a year ago. Sales of existing homes also reached their strongest pace in nearly a decade, though they slipped in July, according to the National Association of REALTORS®.

“Positive reports show there is a need for new single-family homes, buoyed by increased household formation, job gains, and attractive mortgage rates,” says Robert Dietz, chief economist for the National Association of Home Builders. “The uptick in demand should translate into increased housing production throughout 2016 and into next year.”

Still, while new-home sales have posted strong gains, they remain far below the peak set in July 2005 of 1.39 million. In fact, July is the first month since early 2008 that new-home sales have climbed above the 600,000 mark. The median sales price of a new home last month was $294,600, down from $296,000 a year earlier.

The Commerce Department also showed a 4.3-month supply of new homes available by the end of the month, which is the fewest number of homes for sale in three years.

By region, new-home sales rose by the highest percentage in the Northeast, up 40 percent month-over-month. They also were up 18.1 percent in the South and 1.2 percent in the Midwest. In the West, sales remained unchanged.
References: National Association of Home Builders, Wall Street Journal

Donald Horne, Team Success Listing
Associate Broker-Coldwell Banker Shooltz Realty
Phone 810-338-0628
teamsuccesslisting@gmail.com
www.teamsuccesslisting.com
www.teamsuccesslisting.net