original post: https://www.car.org/aboutus/mediacenter/newsreleases/2020releases/2021forecast

California housing market recovery hinges on widespread availability and usage of effective coronavirus vaccine in early 2021. 

LOS ANGELES (Oct. 13) – Low mortgage interest rates and pent-up demand from a desire for homeownership will bolster California home sales in 2021, but economic uncertainty caused by the coronavirus pandemic and continued supply shortage will limit sales growth, according to a housing and economic forecast released today by the CALIFORNIA ASSOCIATION OF REALTORS^® (C.A.R.). 

The baseline scenario of C.A.R.’s “2021 California Housing Market Forecast” sees a modest increase in existing single-family home sales of 3.3 percent next year to reach 392,510 units, up from the projected 2020 sales figure of 380,060. The 2020 figure is 4.5 percent lower compared with the pace of 397,960 homes sold in 2019.

The California median home price is forecast to edge up 1.3 percent to $648,760 in 2021, following a projected 8.1 percent increase to $640,330 in 2020 from $592,450 in 2019.

“An extremely favorable lending environment and a strong interest in homeownership will continue to motivate financially eligible buyers to enter the market,” said C.A.R. President Jeanne Radsick, a second-generation REALTOR^® from Bakersfield, Calif. “While the economy is expected to improve and interest rates will stay near historical lows, housing supply constraints will continue to be an issue next year and may put a cap on sales growth in 2021.”

C.A.R.’s forecast projects growth in the U.S. gross domestic product of 4.2 percent in 2021, after a projected loss of 5.0 percent in 2020. With California’s 2021 nonfarm job growth rate at 0.5 percent, up from a projected loss of 12.7 percent in 2020, the state’s unemployment rate will dip to 9.0 percent in 2021 from 2020’s projected rate of 10.8 percent.

The average for 30-year, fixed mortgage interest rates will dip to 3.1 percent in 2021, down negligibly from 3.2 percent in 2020 and down from 3.9 percent in 2019, remaining low by historical standards.

“While home prices rose sharply in 2020, driven by strong sales of higher-priced properties and a limited inventory of homes for sale, the pace of price growth will be more moderate in the coming year,” said C.A.R. Senior Vice President and Chief Economist Leslie Appleton-Young. “The uncertainty about the pandemic, sluggish economic growth, a rise in foreclosures, and the volatility of the stock market are all unknown factors that could keep prices in check and prevent the statewide median price from rising too fast in the upcoming year,” Appleton-Young continued.

2021 CALIFORNIA HOUSING FORECAST

	2015	2016	2017	2018	2019	2020p	2021f
SFH Resales (000s)	409.4	417.7	424.9	402.6	398.0	380.1	392.5
% Change	7.0%	2.0%	1.7%	-5.2%	-1.2%	-4.5%	3.3%
Median Price ($000s)	$476.3	$502.3	$537.9	$569.5	$592.4	$640.3	$648.8
% Change	6.6%	5.4%	7.1%	5.9%	4.0%	8.1%	1.3%
Housing Affordability Index	31%	31%	29%	28%	31%	32%	31%
30-Yr FRM	3.9%	3.6%	4.0%	4.5%	3.9%	3.2%	3.1%

p = projected
f = forecast

* = % of households who can afford median-priced home

Leading the way …^® in real estate news and information for more than 110 years, the CALIFORNIA ASSOCIATION OF REALTORS^® (www.car.org) is one of the largest state trade organizations in the United States, with more than 200,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

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original article: https://activatedagent.com/6-reasons-youll-win-by-selling-with-a-real-estate-agent-this-fall/

T

here are many benefits to working with a real estate professional when selling your house. During challenging times, like what we face today, it becomes even more important to have an expert you trust to help guide you through the process. If you’re considering selling on your own, known in the industry as a For Sale by Owner (FSBO), it’s critical to consider the following:

1. Your Safety Is a Priority

Your family’s safety should always come first, and that’s more crucial than ever given the current health situation in our country. When you FSBO, it is incredibly difficult to control entry into your home. A real estate professional will have the proper protocols in place to protect not only your belongings but your family’s health and well-being too. From regulating the number of people in your home at one time to ensuring proper sanitization during and after a showing, and even facilitating virtual tours for buyers, real estate professionals are equipped to follow the latest industry standards recommended by the National Association of Realtors (NAR) to help protect you and your family.

2. A Powerful Online Strategy Is a Must to Attract a Buyer

Recent studies from NAR have shown that, even before COVID-19, the first step 44% of all buyers took when looking for a home was to search online. Throughout the process, that number jumps to 93%. Today, those numbers have grown exponentially. Most real estate agents have developed a strong Internet and social media strategy to promote the sale of your house. Have you?

3. There Are Too Many Negotiations

Here are just a few of the people you’ll need to negotiate with if you decide to FSBO:

• The buyer, who wants the best deal possible
• The buyer’s agent, who solely represents the best interest of the buyer
• The inspection companies, which work for the buyer and will almost always find challenges with the house
• The appraiser, if there is a question of value

As part of their training, agents are taught how to negotiate every aspect of the real estate transaction and how to mediate the emotions felt by buyers looking to make what is probably the largest purchase of their lives.

4. You Won’t Know if Your Purchaser Is Qualified for a Mortgage

Having a buyer who wants to purchase your house is the first step. Making sure they can afford to buy it is just as important. As a FSBO, it’s almost impossible to be involved in the mortgage process of your buyer. A real estate professional is trained to ask the appropriate questions and, in most cases, will be intimately aware of the progress being made toward a purchaser’s mortgage commitment.

Further complicating the situation is how the current mortgage market is rapidly evolving because of the number of families out of work and in mortgage forbearance. A loan program that was available yesterday could be gone tomorrow. You need someone who is working with lenders every day to guarantee your buyer makes it to the closing table.

5. FSBOing Has Become More Difficult from a Legal Standpoint

The documentation involved in the selling process has increased dramatically as more and more disclosures and regulations have become mandatory. In an increasingly litigious society, the agent acts as a third-party to help the seller avoid legal jeopardy. This is one of the major reasons why the percentage of people FSBOing has dropped from 19% to 8% over the last 20+ years.

6. You Net More Money When Using an Agent

Many homeowners believe they’ll save the real estate commission by selling on their own. Realize that the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save on the commission.

A study by Collateral Analytics revealed that FSBOs don’t actually save anything by forgoing the help of an agent. In some cases, the seller may even net less money from the sale. The study found the difference in price between a FSBO and an agent-listed home was an average of 6%. One of the main reasons for the price difference is effective exposure:

“Properties listed with a broker that is a member of the local MLS will be listed online with all other participating broker websites, marketing the home to a much larger buyer population. And those MLS properties generally offer compensation to agents who represent buyers, incentivizing them to show and sell the property and again potentially enlarging the buyer pool.”

The more buyers that view a home, the greater the chance a bidding war will take place.

Bottom Line

Listing on your own leaves you to manage the entire transaction by yourself. Why do that when you can hire an agent and still net the same amount of money? Before you decide to take on the challenge of selling your house alone, let’s connect to discuss your options.

original article: https://activatedagent.com/buyers-are-finding-more-space-in-the-luxury-home-market/

A year ago, additional space and extra amenities had a very different feel for homebuyers. Today, the health crisis has brought to light how valuable more square footage and carefully designed floorplans can be. Home offices, multi-purpose rooms, gyms, and theaters are becoming more popular, and some families are finding the space they need for these upgrades in the luxury market.

The Institute for Luxury Home Marketing (ILHM) explains:

“With quarantine concerns still top of mind for many luxury buyers, we see large, sprawling estates making their comeback.

For instance, the last six months have seen a resurgence in the buying of mega mansions and estate-size homes – specifically properties that offer space (both inside and outside), separate home offices, gyms, and private amenities such as swimming pools, yoga studios, and recreation rooms.”

This was not the case at this time last year, as the most recent Luxury Market Report from ILHM emphasizes:

“Exactly one year ago, we reported that demand for large properties, mega mansions, private estates, and luxury ranches had reduced significantly over the previous few years; especially from the younger generation of luxury property buyers.”

For today’s buyers looking for larger homes, steady increases in equity might be what makes a move possible. Leveraging home equity makes it easier to afford the down payment on a luxury home, and current low interest rates are making mortgage payments more affordable than they have been in years. The report from ILHM also notes:

“Luxury real estate prices may continue to strengthen further into the third quarter, as the affluent continue to see large investment returns from the currently strong stock market.

Coupled with the low interest rates, the policies granting (and insisting) on working from home implemented by many employers, and the concerns of the pandemic, all translate to the affluent increasingly trading in their city lifestyle for a home that has it all.”

Clearly, today’s strong gains in home equity paired with record-low interest rates make fall a great time to move up into the luxury market to meet those changing needs.

Bottom Line

If you’re ready to gain some breathing room in a larger home, let’s connect so you have the guidance you need to find more space in the luxury home market.

original article: https://activatedagent.com/the-cost-of-a-home-is-far-more-important-than-the-price/

Housing inventory is at an all-time low. There are 39% fewer homes for sale today than at this time last year, and buyer demand continues to set records. Zillow recently reported:

“Newly pending sales are up 25.5% compared to the same week last year, the highest year-over-year increase in the weekly Zillow database.”

Whenever there is a shortage in supply of an item that’s in high demand, the price of that item increases. That’s exactly what’s happening in the real estate market right now. CoreLogic’s latest Home Price Index reports that values have increased by 5.5% over the last year.

This is great news if you’re planning to sell your house; on the other hand, as either a first-time or repeat buyer, this may instead seem like troubling news. However, purchasers should realize that the price of a house is not as important as the cost. Let’s break it down.

There are several factors that influence the cost of a home. The two major ones are the price of the home and the interest rate at which a buyer can borrow the funds necessary to purchase the home.

Last week, Freddie Mac announced that the average interest rate for a 30-year fixed-rate mortgage was 2.87%. At this time last year, the rate was 3.73%. Let’s use an example to see how that difference impacts the true cost of a home.

Assume you purchased a home last year and took out a $250,000 mortgage. As mentioned above, home values have increased by 5.5% over the last year. To buy that same home this year, you would need to take out a mortgage of $263,750.

How will your monthly mortgage payment change based on today’s lower mortgage rate?

This table calculates the difference in your monthly payment:That’s a savings of $61 monthly, which adds up to $732 annually and $21,960 over the life of the loan.

Bottom Line

Even though home values have appreciated, it’s a great time to buy a home because mortgage rates are at historic lows.

by Khalil Alexander El-Ghoul

original article: https://www.washingtonblade.com/2020/09/19/is-fall-the-new-spring-for-real-estate-in-2020/

As the summer market ends and the start of the fall real estate season begins it looks as though the historically fast-paced summer and spring seasons will carry over to the colder seasons. So, does that mean fall is the new spring real estate season? It sure seems to look that way. With record-low mortgage rates, accelerated activity, high demand for homes with less inventory, and a change of buyer needs, get ready for a strong fall housing market in the D.C. metro area.

Record-Low Mortgage Rates Hovering Around 3%

In the last month, D.C. sale prices grew by 13.8% and the current median price of U.S. homes climbed to $323,807 which is a 5.6% increase from this time last year. In four short months, the U.S. housing market has fully recovered and is even looking better than in 2019. However, mortgage rates have stayed at record lows. The Federal Reserve has kept interest rates low throughout the pandemic in an attempt to keep the economy moving. Their attempt has been successful as 2020’s housing market has outperformed 2019 with a prediction from the National Association of Realtors Chief Economist Lawrence Yung that this year’s home sales will surge past the 5.34 million homes sold in 2019.

Accelerated Activity: High Demand With Less Inventory

The fall real estate season should drastically surpass previous seasons particularly due to increased activity. Along with low mortgage rates comes less inventory. Realtors across the country are seeing a surplus in clients and a decrease in available homes. Simply put, there just aren’t enough homes to keep up with the current demand. Because of the incredibly high demand, current projections forecast the aggressive competition among prospective buyers seen this summer to continue into the fall season. Average homes for sale are expected to continue the trend of multiple offers, causing the average home price to jump considerably. Along with the current trends, we are also seeing first-time homebuyers fearlessly make the jump to homeowner status.

Changing Needs

While our current norm of daily living has evolved so have the needs of our home. The need for multifunctional, spacious homes has increased. Before  the pandemic, a three-bedroom, two-bath, kitchen with upgraded appliances, and a comfy living room was enough for homebuyers to sign their name on the dotted line. However, as the world-wide pandemic carries on life as we once knew homeowners’ needs have altered. With an unprecedented number of Americans working from home and the strong indication that this will continue after the eradication of the COVID-19 pandemic, homebuyers are looking for a home, workplace, and school all in one. With the increase of Americans working from home, location becomes less of a deal-breaker as it once was allowing prospective buyers to expand their search parameters.

“Zoom rooms” is an increasingly popular phrase being thrown around when searching for a new home. Zoom rooms are considered aesthetically pleasing rooms that are ideal for virtual meetings, not just rooms with 70-inch displays, camera, and noise-canceling microphone arrays, which is what a Zoom room technically is defined as. With students at home while virtually learning, having space for children’s various needs such as a safe space outside has homebuyers altering their needs.

With the fast pace at which homes are being sold, mortgage rates likely to remain at record lows, and a pandemic that has altered how Americans live it is safe to assume that fall may be the new spring for real estate in 2020. 

read more…

original article: https://activatedagent.com/virtual-school-is-changing-homebuyer-needs-infographic/

Some Highlights

• With remote learning sweeping the nation this academic year, organized spaces with enough room for kids to learn effectively are high on buyer wish lists.
• If you’re trying to make room for your family’s growing needs, multi-purpose rooms and dedicated workspaces may be features to consider in your next home.
• Let’s connect today so you can find a home where your kids feel confident and comfortable too.

by: Dalvin Brown

original article: https://www.usatoday.com/story/money/2020/09/08/americans-turn-backyard-sheds-into-home-offices-pandemic-rages/3454144001/

Robin Salcido and her husband have been sharing a small home office since March as America eased into the era of remote work.

She’s an artist. He’s an engineer. But as the months ticked on, the couple in Louisville, Colorado, longed to separate their work environments.

“Let’s face it, no matter how great a relationship is – and ours is pretty fantastic – no one wants to be on top of each other 24/7, especially when you’re working,” Salcido said. “Now that we can’t go to coffee shops, and we’re really limited in other opportunities for leaving the house to get some work done, we realized we need more space.”

So they ordered a prefabricated backyard shed that’s getting installed on Friday. Salcido will use it at her office. 

As the COVID-19 crisis enters its sixth month, an increasing number of Americans are buying and building backyard sheds use as home offices. For some, it represents a chance to get work done away from the kids as schools practice remote learning in the fall. For others, it’s a necessity because there’s no room for an office setup inside their home.

These detached, mostly self-contained spaces are more affordable and more practical than taking on a full-scale construction project, shed buyers say. 

Google queries for office sheds began to tick higher in April, a few weeks after the pandemic was declared, according to search data. Searches began trending higher again in mid-August as the nation entered the back-to-school season. Companies that sell backyard shed products are noticing the trend.

Tim Vack, general manager at Modern-Shed, said there has been a 400% rise in interest this summer. A 50% rise in the summer is typical as people take on more outdoor projects. The company gauges interest by downloads of its online catalog.

“A lot of companies are allowing their employees from home from now on if they choose. So everybody is scrambling to find space to put their computer,” Vack said. “People are growing tired of putting their laptop on their dining room table or their kitchen countertop.”

These detached office spaces are more premium than the standard metal sheds at Home Depot. You decide on what style of wood you’d like to use, where you’d like the windows to be placed and various other customization options. The more you want, the more you pay. 

Modern-Shed tailors each outdoor building to the buyer’s specifications. The firm then uses independent installation companies to do all the on-the-ground work.

Most people are choosing to buy spaces that offer an additional 120 square feet, said Mike Koenig, president and co-founder of Studio Shed.

The 12-year-old Colorado-based company said it saw a “huge spike” in inquiries for backyard home space since March. Most of the buyers are using them for home offices, followed by school rooms for their kids, and a few are being converted into home gyms, Koenig said.

“Maybe the kids are doing their schoolwork in the shed” away from parents who can then work peacefully inside the house, Koenig said.

Studio Shed, which ships to all 50 states, sends buyers a flat-packaged kit to be installed in their yard.

Sheds help add more space for less  

Prices are typically around $120 to $180 a square foot, depending on size and other options, the company says. Prices for its entry-level series start at $10,500.

That’s substantially lower than costs associated with hiring a contractor and buying materials to build onto your existing home. The average cost to build onto your home ranges from just over $21,000 up to $70,000, according to Home Advisor.

Salcido said she’s saving more than $150,000 by choosing a backyard shed office rather than building on top of her existing house.

“We would’ve had to tear down the garage to add more concrete to support another level,” Salcido said. “It would’ve been way too much work to go through just for another studio room.” The Studio Shed room she chose comes with electrical outlets and mini splits for AC and heating.

The typical turnaround time for sheds is four to six weeks from the order date, according to Studio Shed. 

People who go for larger backyard home offices often have a lengthier build process, experts say, in part because states require varying permits for constructing rooms over a certain size. 

Going the DIY route

While many are turning to companies for help with their shed, some people are going the do-it-yourself route, which is an even cheaper way to add a yard shed. 

In April, Julie Masson’shusband and a neighbor teamed up on her “She shed” project. It took three months to build. Now she uses the 120-square-foot room as an office escape from the kids’ distance learning in the main house.

“My husband sketched out a blueprint on a piece of paper. I decided where I wanted the door and windows to be. And our neighbor told us the supplies we needed,” said Masson, who lives in Kansas City, Missouri. They bought the home improvement materials from Lowe’s, Home Depot and Menards.

The entire project cost $5,000 – including office furniture from IKEA. The hardest part was digging an 18-inch-deep trench from the house to the shed for the electrical wires, Masson said. Starting around 10 a.m. Monday to Friday, she works as a marketing director from the outdoor shed. She clocks out around 6 p.m.  

“I have this routine at the end of my day where I lower my standing desk, I shut the shades, I turn off my air conditioner I turn off the lights, I lock my door and I commute home, just a few steps away,” Masson said. 

Have you converted an ordinary shed into your office? Shows us! Send photos to Dalvin Brown on Twitter: @Dalvin_Brown. 

by Maurie Backman

original article: https://www.fool.com/millionacres/real-estate-market/home-renovations/8-ways-to-transform-your-home-on-a-budget/

Most people who own homes will agree that there’s always room for some sort of improvement. The problem, however, is that sprucing up a home costs money — something most of us don’t have in an unlimited supply.

The good news is, you don’t need to spend a fortune to refresh your home and boost its appeal. Here are a few options for renovating your space that won’t completely break the bank.

IMAGE SOURCE: GETTY IMAGES.

1. Slap on a fresh coat of paint

There’s nothing like a new coat of paint to turn an outdated room into a bright, inviting space. And you don’t need to be an artist to tackle this sort of task yourself. All you need are some basic supplies, including brushes, rollers and trays, some drop cloths, and painter’s tape. Here’s some more good news — assuming you go the DIY route, painting a room will cost as little as $200, and that includes the paint. Of course, your costs might climb if you’re working with a larger space or opt for truly high-end paint, but otherwise, it’s a project you can do on the cheap.

2. Update your window treatments

Dented, dirty blinds can make your windows look old and dated — so it pays to replace them with new window treatments, which, incidentally, don’t have to cost a ton. You can invest in some curtains and rods, hang your new treatments yourself, and update prime areas in your home, such as your living room or dining room, for less than $100 per window.

3. Plant flowers and shrubs for curb appeal

Your home’s exterior sets the tone for those who visit your space. So if you’re willing to sink a little time into your front lawn, it’ll pay off in a very big way. Visit your local nursery, choose some plantings that are easy to maintain, and replace old, dying bushes with fresh shrubs and flowers. Since this type of work by no means requires a professional landscaper, the only costs you’ll incur are the items you purchase.

4. Upgrade your kitchen and bathroom hardware

Those old, rusted knobs on your bathroom and kitchen cabinets aren’t doing those rooms any favors. Since new hardware is easy to come by and doesn’t cost a lot, replacing your current set could work wonders for your interior. Now you should know that removing and installing cabinet hardware can be tedious work, but if you’re willing to dedicate part of a weekend, you can replace your hardware for less than $5 per piece. Along these lines, you might consider upgrading your kitchen and bathroom faucets. If you’re reasonably handy, you can do this yourself without hiring a plumber, thus keeping the cost down.

5. Replace worn, stained carpet

Let’s face it: Even if you’re obsessive about vacuuming, if your carpets are stained and dingy, they’ll detract from your otherwise noble efforts. Rather than sink money into a series of professional cleanings, it often pays to replace carpet completely when it’s in really bad shape. You can have new carpet installed in a 12-by-112 room for just $300, and since many of today’s brands include some sort of stain protection, you’ll have an easier time with maintenance going forward.

6. Refinish your kitchen cabinets

For many households, the kitchen is the focal point of the home. So if yours is filled with old, chipped cabinets, you may be tempted to rip them out and put new ones in. The problem, of course, is that new cabinetry can run you many thousands of dollars, depending on the size of your kitchen and materials you choose. A better bet, therefore, is to have your existing cabinets refinished. For a standard kitchen, you might spend $2,000 or less to give your cabinets a face lift, which, in turn, will revitalize the entire room.

7. Re-caulk your bathrooms

Nothing screams “ugly” like brown or chipped caulk lining your tiles. If you’re willing to invest a few dollars and a couple of hours, recaulking your bathrooms will instantly deliver a breath of fresh air. At roughly $2 to $5 a tube, it’s quite possibly the cheapest home improvement you’ll ever make.

8. Wash and stain your deck

Because your deck is constantly exposed to the elements, its condition can deteriorate over time — especially if you’re talking about natural wood. On the other hand, a little hands-on care can turn a neglected-looking deck into a welcoming outdoor retreat. To start, rent or borrow a pressure washer to remove dirt and grime. Next, apply a coat or two of stain to give a wooden deck a fresh, new look. You might also consider renting a sander if your deck is splintering.

Whether you’re looking to sell your home or simply make it a more attractive place to live, these improvements will transform your space without busting your budget. And remember, you don’t have to tackle them all at once. Home improvements are often a work in progress, but eventually, you’ll get there.

original article: https://activatedagent.com/the-top-reasons-people-are-moving-this-year/

Today, Americans are moving for a variety of different reasons. The current health crisis has truly re-shaped our lifestyles and our needs. Spending extra time where we currently live is enabling many families to re-evaluate what homeownership means and what they find most important in a home.

According to Zillow:

“In 2020, homes went from the place people returned to after work, school, hitting the gym or vacationing, to the place where families do all of the above. For those who now spend the majority of their hours at home, there’s a growing wish list of what they’d change about their homes, if possible.” 

With a new perspective on homeownership, here are some of the top reasons people are reconsidering where they live and making moves this year.

1. Working from Home

Remote work is becoming the new norm in 2020, and it’s continuing on longer than most initially expected. Many in the workforce today are discovering they don’t need to live close to the office anymore, and they can get more for their money if they move a little further outside the city limits. Lawrence Yun, Chief Economist for the National Association of Realtors (NAR) notes:

“With the sizable shift in remote work, current homeowners are looking for larger homes and this will lead to a secondary level of demand even into 2021.”

If you’ve tried to convert your guest room or your dining room into a home office with minimal success, it may be time to find a larger home. The reality is, your current house may not be optimally designed for this kind of space, making remote work and continued productivity very challenging.

2. Virtual Schooling

With school about to restart this fall, many districts are beginning the new academic year online. Education Week is tracking the reopening plans of schools across the country, and as of August 21, 21 of the 25 largest school districts are choosing remote learning as their back-to-school instructional model, affecting over 4.5 million students.

With a need for a dedicated learning space, it may be time to find a larger home to provide your children with the same kind of quiet room to focus on their schoolwork, just like you likely need for your office work.

3. A Home Gym

Staying healthy and active is a top priority for many Americans. With various levels of concern around the safety of returning to health clubs across the country, dreams of space for a home gym are growing stronger. The Home Builders Association of Greater New Orleans explains:

“For many in quarantine, a significant decrease in activity is more than a vanity issue – it’s a mental health issue.”

Having room to maintain a healthy lifestyle at home – mentally and physically – may prompt you to consider a new place to live that includes space for at-home workouts.

4. Outdoor Space

Especially for those living in an apartment or a small townhouse, this is a new priority for many as well. Zillow also notes the benefits of being able to use yard space throughout the year:

“People want more space in their next home, and one way to get it is by turning part of the backyard into a functional room, ‘an outdoor space for play as well as entertaining or cooking.’”

You may, however, not have the extra square footage today to have these designated areas – indoor or out.

Moving May Be Your Best Option

If you’re clamoring for extra space to accommodate your family’s changing needs, making a move may be your best bet, especially while you can take advantage of today’s low mortgage rates. Low rates are making homes more affordable than they have been in years. According to Black Knight:

“Buying power for those shopping for a home is up 10% year over year, with home buyers able to afford nearly $32,000 more home than they could have 1 year ago while keeping their monthly payment the same.”

It’s a great time to get more home for your money, just when you need the extra space.

Bottom Line

People are moving for a variety of different reasons today, and many families’ needs have changed throughout the year. If you’ve been trying to decide if now is the time to buy a new home, let’s connect to discuss your needs.

original article: https://activatedagent.com/current-buyer-seller-perks-in-the-housing-market/

Today’s housing market is making a truly impressive turnaround, and it’s also setting up some outstanding opportunities for buyers and sellers. Whether you’re thinking of buying or selling a home this year, there are perks today that are rarely available, and definitely worth looking into. Here are the top two.

The Biggest Perk for Buyers: Low Mortgage Rates

The most impressive buyer incentive today is the average mortgage interest rate. Just last week, mortgage rates hit an all-time low for the eighth time this year. The 30-year fixed-rate is now averaging 2.88%, the lowest rate in the survey’s history, which dates back to 1971 (See graph below):This is a huge advantage for buyers. To put it in perspective, it means that today you can get a lower rate than any of the past two generations of homebuyers in your family if you decide to purchase at this time.

In addition, the National Mortgage News notes how today’s buyers have increasing purchasing power due to these low mortgage rates:

“Purchasing power rose 10% year-over-year…With interest rates hitting record lows, buyers were able to afford $32,000 “more house” as of July 23 than they could the year before with the same monthly payment.”

This is a great perk for buyers who are hoping to potentially get more for their money in a home, something many are considering today as they re-evaluate the amount of space they ideally need for their families. It is an opportunity not seen in 50 years, and one not to be missed if the time is right for you to buy a home.

The Biggest Perk for Sellers: Low Inventory

Today, there are simply not enough houses on the market for the number of buyers looking to purchase them. According to the National Association of Realtors (NAR):

“Total housing inventory at the end of June totaled 1.57 million units, up 1.3% from May, but still down 18.2% from one year ago (1.92 million).”

The red bars in the graph below indicate that the inventory of homes coming into the market continues to decline. It was low as we entered the pandemic and has reduced even further this year. Houses today are selling faster than they’re being listed, and that’s creating an even greater supply shortage (See graph below):The lack of inventory has been a challenging situation for a while now, and with low mortgage rates fueling buyer demand, inventory is even harder for buyers to find today. Buyers are eager to purchase, and because of the shortage of homes available, they’re encountering more bidding wars. This is one of the factors keeping home prices strong, an advantage for sellers. Lawrence Yun, Chief Economist for NAR notes that this trend may continue, too:

“Home prices rose during the lockdown and could rise even further due to heavy buyer competition and a significant shortage of supply.”

With low inventory and high buyer demand, homeowners can potentially earn an increasing profit on their houses and sell them quickly in this sizzling summer market.

Bottom Line

Whether you’re thinking about buying or selling at home, there are some key perks available right now. Let’s connect today to discuss how they may play to your advantage in our local market.