The Time is Now! Really!

 The Time is Now! Really!

I feel like a broken record… and Yet, Month after Month the statistics are saying the same thing….

Inventory is DOWN and Demand is UP!

Here are some important facts from the National Association of Realtors:

• Homes are selling in just 39 Days! This is faster than any month since June 2013!
• Current Inventory is at a 5.3 Months’ Supply; this is down from 5.7 Months’ Supply in April 2014. 6.0 Months is the level necessary for a normal market!
• Median Price of Homes sold is up 8.9% from April 2014. This is the 38^th Consecutive month of year-over-year gains! This is the largest increase since January 2014.
• Distressed sales are down 5%, from 15% in April 2014 to 10% in April 2015.

The continuing lack of inventory did cause a slight slowdown in sales, when you compare April 2015 to March 2015, however, as you can see, current sales are still comfortably above the same time last year.

What does this mean? It means that Buyers are in the market, willing to buy and are having trouble finding their dream home, either because it has not yet been listed, or because the demand is so high that the seller has many buyers to choose from. This is a great position to be in when selling your home, as we’ve discussed in previous blogs.

Additionally home prices are predicted to continue to rise steadily over the next 5 years.  This is even better news if you’re looking to sell your current home and upgrade to a new one. Knowing that the market outlook is high can give you confidence that the investment you are making in a new property will see returns in the near future as well as over the life of your ownership.

The bottom line is that selling now is a good idea and so is stepping up the property ladder to purchase a new home. Call me today for a Complimentary Market Analysis of your home.  

Housing Update: Demand Up, Supply Down, Prices Increasing

Re posted from Keeping Current Matters:  http://www.keepingcurrentmatters.com/2015/05/14/housing-update-demand-up-supply-down-prices-increasing/

Earlier this week, the National Association of Realtors (NAR) released their latest quarterly report. The report covered three important aspects of the housing market:

1. Buyer Demand
2. Supply of Housing Inventory
3. Single Family Residential Prices

Today, we want to break down the highlights of the report along with several quotes from Lawrence Yun, the Chief Economist at NAR.

Buyer Demand

Total existing-home sales (which include single family and condo) were at an annual rate of 4.97 million in the first quarter of 2015. This represents a number which is 6.2 percent higher than the pace during the first quarter of 2014.

Yun: "Sales activity to start the year was notably higher than a year ago, as steady hiring and low interest rates encouraged more buyers to enter the market."

Supply of Housing Inventory

There were 2 million existing homes available for sale at the end of the first quarter of 2015 which represents a 4.6 months’ supply of inventory which is down from 4.9 months a year ago. A healthy balance of supply between buyers and sellers is 6 to 7 months.

Yun: "With supply remaining tight—especially at the entry-level price range—buyers will need the expertise and local market insight of a Realtor® to help them through each intricate step of the buying process."

Single Family Residential Prices

Home prices accelerated in 148 out of 174 metro areas (85%) during the first quarter of 2015 and the number of areas experiencing double-digit price appreciation doubled compared to last quarter. Compared to last quarter, the number of regions experiencing double-digit price appreciation doubled.
The national median existing single-family home price in the first quarter was $205,200, compared to $191,100 in first quarter of 2014. This represents a 7.4% increase year-over-year.

Yun: “…stronger demand without increasing supply led to faster price growth in many markets…Homeowners throughout the country have enjoyed accumulating household wealth through the steady rise in home values in the past few years."

Bottom Line

Whether you are thinking about buying your first home or selling your current residence to buy the home of your dreams, meet with a professional in your market to discuss how the numbers above have affected your neighborhood's prices.

Should You Rent or Should You Buy Now…

Should You Rent or Should You Buy Now…

With Home prices on the rise due to low interest rates and not enough inventory to meet demand, does it make sense to continue renting and wait out the Seller’s Market? Or is now really the best time to buy?

Sometimes, with real estate, it feels like by the time you hear the rumblings that “NOW” is the time to buy, you’ve missed the window of opportunity. I mean, isn’t everyone already running in and snatching up the hot deals and driving prices up on the remaining homes? And if prices are being driven up wouldn’t it make sense to stay in your rental until things slow down again? Assuming they will slow down? How can you tell if the time to buy really is NOW?

Well, first let’s look at the numbers. According to Pulsenomics, as published by Keeping Current Matters, historically you needed to spend 25% of your income to afford the Median rent. However, in the current market Median rent is now 30.1% of your income while the percent of your income to afford to purchase the Median home has dropped from 22% to 15.3%. As you can see both historically and in today’s market the cost to own a home is lower than that to rent.

Here are some of the financial reasons why:

1. Mortgage Rates are Low. Historically rates are at the lowest they’ve been in some time and are only predicted to increase by about 1% by this time next year. This stability in lending rates will help keep the real estate market strong.
2.  Equity. When you own your home a percent of what you pay towards your mortgage actually goes into your pocket in the form of equity. When you rent, that money goes into your landlord's pockets. And if the market continues to improve causing your home’s value to increase you’ll build equity at an even faster rate. The general rule is that if you stay in your home for 5-7 years the costs of purchasing your home are more likely to be offset by accrued equity and increased housing value.
3.  Tax Deductions. All that interest you are paying, guess what, its deductible! This lowers your taxable income and puts more money into your pocket. Oh and property taxes, too. Yep, all deductible!

And here are some non-financial reasons to buy a home:

1. Creative Control: Want more say in the aesthetics of your home? Tired of having to answer to someone else when it comes to how many pictures you hang, or new window treatments? As a homeowner you won’t have to answer to anyone else when you want to make small or large changes to your home.
2.  Maintenance Choices: Do it yourself, or hire a contractor of your own choosing. There’s an autonomy to home ownership that you don’t have as a tenant.
3. Your Life, Your way. Speaking of autonomy…. Have you always wanted a dog? Or two? How about a summer vegetable garden? Or kitchen remodel? The choices are yours alone.
4. And lastly, Credit. Yes your credit should already be decent when you begin the home buying process, but as lenders report to credit agencies (and landlords usually don’t) another benefit of home ownership is your credit worthiness continues to increase. And this will be important when you’re ready to cash in that equity and buy your next dream home.

So yes, the market is hot and home values are increasing and houses are selling quickly, but you have not missed the boat. There are still many great opportunities in the market and I’d love to help you find the perfect one for you.

The Impact of Home Staging

The Impact of Home Staging

Are you ready to sell your home? As a final step prior to listing, take a look at the impact that staging your home could have on how much your home may sell for. This might be a step worth considering if you want to sell your home quickly and for the highest price. And who wouldn't want that, right?

Staging can be as simple as de-cluttering or as involved as bringing in new furnishings. As a part of my free market analysis of your home I will make recommendations for staging that would maximize your home's assets. Call me today to schedule an appointment, I would love to help you!