divider

Archive



Home Prices are Increasing- Are Homes Less Affordable?

/ 0 Comments

Real Estate professionals and publications have recently began to educate home owners and potential home buyers with current market trends.  The common message is that there is an increase in home buyers but the supply of homes for sale is declining.  The natural consequence of this low supply and high demand situation is for home prices to increase.   The projected home values are continuing to increase, in fact experts have even adjusted their projections based on current market reports.  According to an article published in The Patch, “CoreLogic increased their 12-month projection for home values from 4.5% to 5.6% over the last few months.”

Naturally, buyers become concerned that home prices are causing them to be priced out of a home or a neighborhood.  However, the increase in home prices can’t be analyzed in a bubble.  Other factors must be taken into account to determine whether or not increasing home prices are really making homes unaffordable. 

In the article, written by Keith Kreis, other factors that should also be taken into consideration are discussed.  For example, mortgage interest rates have dropped since the beginning of 2019 which has increased home affordability by almost 10 percent.  Additionally, American workers are seeing wage growth by as much as 1.5% since last fall.  By taking these additional economic factors into consideration, one might argue that, at this point in time, buying a home is more affordable than its been.

Read the entire article.

Learn More
separator


Real Estate Experts Weigh In on Cause of Low Housing Inventory

/ 0 Comments

Real Estate professionals and analysts have continued to look into why there continues to be a decrease in housing inventory along with rising home prices.  Redfin has determined that more Americans are deciding to stay exactly where they are instead of moving on to another home.  In fact, they have found that, “the typical American homeowner is now staying in their home for five years longer than they did just nine years ago.”

In an article published by Housing Wire, reporter Julia Falcon states that the average homeowner in the U.S. is staying in their home for about 13 years instead of only 8 years as they did in 2010.  There are U.S. cities that blow those statistics out of the water with homeowners deciding to stay in their homes for 20 years or more.  Cities such as Salt Lake City, Houston, San Antonio, and Dallas are in Texas see home owners that have stayed in their homes since the 1950s. 

According to the article, “Redfin agent Christopher Dillard states ‘Because prices have been going up, and folks are gaining more and more equity, it’s hard to justify selling when there aren’t many if any affordable options.’”

Read the entire article.

Learn More
separator


How Do Homeowners Really Feel About Trying To Sell?

/ 0 Comments

The idea of moving to a new house can be exciting.  Perhaps its to a new town full of possibilities, maybe it’s a bigger house in the suburbs allowing kids to play in a big back yard and have their own bedrooms, it may even be a smaller, easier to maintain house allowing more free time to do the things people love instead of home repairs and yard work.  However, for many Americans, they must first sell their current home before moving on to their next dream home. This phase of the real estate process is the source of angst for many homeowners.

The 2019 Zillow Group Consumer Housing Trend Report revealed many aspects of the home selling process cause stress for the homeowner trying to sell their home.  In an article published by MBA Newslink, it was summarized that, “not knowing if a home will sell within the desired time frame is the largest source of stress for sellers, with 56% calling it a stressful experience. Meanwhile, 53% of sellers worry about not being able to sell their home for the price they want; and 52% were stressed about an offer falling through.”

Sellers worry that they won’t sell their current home in time to comfortably purchase their next home, while others worry that they won’t be able to keep the house in the desired condition to sell the home, and still other homeowners find the idea of leaving their home for showings and open houses a stressful situation.  Home buyers can be so overwhelmed, their stress matches or exceeds the prospect of planning a wedding or getting fired from a job. 

Read the entire article

Learn More
separator


Real Estate Expert’s Grim Outlook on the Housing Market

/ 0 Comments

Some real estate experts are concerned about the future of the real estate market and their conclusions about the real estate market may make some homeowners take pause.

In an article published by DSNews.com, titled “Residential Real Estate on ‘Shaky Ground’”, an interview with real estate analyst Keith Jurow is summarized.  The article states he doesn’t believe there was really any real estate recovery, In fact, according to Jurow, “the “illusion” stems from lenders and mortgage services not putting foreclosed properties on the market.” 

The market is at risk of due to factors such as subprime mortgages, poor home sales and mortgage defaults, despite many mortgages being modified.  Shockingly, the article notes, “There are currently $800 billion of subprime mortgages still outstanding, many of which have not been paid at all in the last five years.”

Jurow’s alarming conclusion is homeowners considering selling before the market gets much worse.  Read the entire article.

Learn More
separator


Why Would a Real Estate Broker Publish Agent Commissions?

/ 0 Comments

At the start of September 2019, real estate firm Redfin made a change to the way they communicate with their customers and potential customers.   They have made the decision to provide more information on the homes they have listed for sale, specifically detailing how much the buyer’s agent will make upon the sale of the listed home.

According to an article published by Forbes, “…nearly 40% of recent home buyers don’t understand how their real estate agent was paid,”  while 13% indicated they had “no idea” how much or how the agent was paid upon closing.  With the recent announcement of the Northwest Multiple Listing Service, allowing brokers to share details of the commission deals, Redfin decided to get out in front of the trend sure to spread to other regional areas.

Perhaps buyers have become more interested in the ways commissions are negotiated after a few law suits alleging “….collusion, inflated commissions, and price-fixing, among other things.” To head off any concerns and to satisfy buyer’s desire for transparency, some agents feel that this up-front approach helps ease the minds of their customers.  As one Redfin broker, Paul Reid of Boise, ID,  stated, “Showing consumers the commission a seller is offering a buyer’s agent is a great win for making real estate more transparent. When a buyer has a better understanding of how his agent is being paid and the costs the seller is incurring, he can make a more informed decision on what to offer.”

Read the entire article.

Learn More
separator


How Do Kids Affect Home Buying Decisions?

/ 0 Comments

Home buyers take many factors into consideration during their home search.  Price, size, location are a few that top the list for many.  When home buyers have children living at home, the search can get more complicated and additional criteria can narrow the field of prospective homes.

In a recent article published in HousingWire, Alcynna Lloyd details how home buyers with children versus home buyers without children vary in their home buying process.  With a nod to the season of “back to school”, Lloyd references a report from the National Association of Realtors where NAR chief economist Lawrence Yun said. “Of course, affordability is a part of the decision, but we have seen buyers with kids willing to spend a little more in order to land a home in a better school zone or district.” 

Confirming what many assumed to be true, the report details that more than half of home buyers that have children living at home base their search criteria on the neighborhood’s school district.  In comparison, only 10% of home buyers without children take the school district into consideration when making their home purchase. 

Additionally, childless homeowners do not feel as much pressure to sell a home quickly.  Only 14% indicated that when selling a home, speed of sale was an issue.  In contrast, 23% of homeowners with children reported selling their home with a sense of urgency.  Perhaps the timing of a school year approaching, feeling that they have outgrown a home or other financial factors influenced these households.  Nevertheless, they may be more likely to accept an offer that is not ideal.

Read the entire article.

Photo Credit: Marco Verch

Learn More
separator


Is Housing Market Ready to Rebound?

/ 0 Comments

Homeowners trying to or thinking about putting their home on the market may have been a little hesitant based on the trends in the real estate market over the past year.  As real estate professionals know, and homeowners may have noticed, the real estate market took a turn last summer.  An increased number of homes hit the market, but higher prices and decreased sales, the outlook for homeowners was less than ideal.

However, homeowners may be able to breathe a sigh of relief as this slump could be coming to an end.  With mortgage rates dipping below 4 percent and a slowed housing inventory, it appears prices and home sales should begin to climb again.

According to an article published on Realtor.com, written by Clare Trapasso, “…much of the fate of the housing market relies on mortgage interest rates. If they stay low, buyers have more money to spend on homes. So prices have more room to rise.”  However, homeowners should be aware, despite a high demand for homes as younger buyers begin their families and look to settle down, current buyers, Chief Economist Danielle Hale of realtor.com®  warns “seem a little more patient. They’re more willing to wait for a good property.”

Read the entire article.

Learn More
separator


Is the Real Estate Market Starting to Turn?

/ 0 Comments

The 2019 spring real estate market is in full swing and many home owners and prospective home buyers may be wondering what this year’s market has in store for them.  Will home buyers be able to list their home and quickly receive a full-priced offer, maybe even multiple offers?  Will prospective home buyers be competing against many other buyers and have to make quick and above list price offers? 

Despite the fact that there are reports indicating we are on the horizon of another hot real estate market season, data from Trulia predicts something quite different. Trulia has collected data that reflects home prices have been in a steady decline since the beginning of 2018.  This trend is the first indicator that the housing market may be entering into a “cyclical downturn”.  In an article published by Housing Wire, Alcynna Lloyd quotes Trulia, “’Cyclical housing market downturns occur roughly every 10 years, and they typically don’t happen overnight. Instead, they play out steadily over a few years, first showing up in sales volumes and later—usually a year or two later—in prices,’ Trulia writes.”

Fear not, however, that we are in store for a declining market similar to the one that occurred a decade ago.  The article goes on to detail the findings of the Trulia analysis, indicating home prices should only slightly decline and are more likely to just see “flat-to-modest housing price growth”.  Yet, home owners should expect their home to sell not quite as quickly and should certainly be prepared to enter in more vigorous negotiations with buyers in order to finalize a sale.

Since these changes are not expected to be extreme or immediate, more likely gradual and result in slow steady declines or even flat growth, only time will tell how this potential change plays out.

Read the entire article.

Learn More
separator


Studies reveal positive news for home buyers in 2019

/ 0 Comments

The spring real estate market is in full swing.  Sellers have begun the process of listing their homes with the hopes of a quick sale.  Buyers search listings, schedule showings and begin to decide on a home to purchase.  So far, in 2019, it appears home buyers are making the decision on which home to purchase faster than they were last year at this time.

In fact, a study completed by Redfin, revealed that in 2019 buyers’ time to close is three days less than in 2018.  According to an article published by the MReport, “Some of the factors responsible for home buyers being able to close on their homes faster in 2019 compared to previous years included, a rise in housing supply, a slower growth rate of home prices, and a less competitive market, according to Redfin.”

The fact that the supply of homes for sale has increased and there are more buyers than sellers often means that sellers will accept the first offer they receive.  Unfortunately, some sellers just have to wait longer to receive that offer while competing against a larger number of other sellers.  The article reports that homes are spending about two days more on the market compared to 2018.

Read the entire article.

Learn More
separator


Zillow Expanding Zillow Offers Program

/ 0 Comments

Zillow has been expanding the services it offers to both home buyer and sellers.  In select markets, the company began a program called Zillow Offers.  In the Phoenix, Las Vegas, Atlanta, Charlotte and Denver areas, homeowners are able to “request a no-obligation cash offer from Zillow to buy their home. If they accept it, Zillow directly buys a seller’s house, prepares it for showings and quickly lists it for sale”, according to an article published on HousingWire.com.

The program was only launched nine months ago and according to the president of Zillow, Jeremy Wacksman, there has been a demand from homeowners to launch Zillow Offers in additional geographic markets.  Wacksman states, “It’s clear people want a convenient, stress-free way to sell their home, and real estate professionals are eager to work with us to leverage Zillow Offers as a way to build their local businesses.”  As a result, Zillow Offers will be expanding in 2019 to Miami, Minneapois, Nashville, Orlando and Portland.  Additionally, the service is going to be launching in even more cities by the fall of 2019. 

With this expansion, Zillow expects to not only work with local real estate agents and brokers, paying commission to local agents, but also promote Premier Agent, which helps connect sellers and listing agents when a seller has decided not to move forward with a Zillow Offer transaction.

Read the entire article.

Learn More
separator