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MARKET UPDATE – SEPTEMBER 2021

As summer comes to a close, with school starting, and fall just around the corner, September brings a time of transition. If you’re thinking about selling your home, you may be hearing reports of inventory trickling back on the market in some locations and bidding wars appearing to be slightly less common.

Here’s some insight on why it’s still a great time to sell your home.

One Month Does Not Make a Market Trend

The operative word is trickle. Housing inventory has been declining for six years, so rather than comparing month-to-month data, we look at the industry over a 10-year span. Although inventory and days on market are trickling up in some markets and the number of multiple offers are trickling down, there are still multiple offers, low inventory, homes selling in less than 30 days, and for top dollar.

Buyers Re-entering the Market

Some buyers may have taken a summer break from looking for a home after losing five, six, seven, or more deals last spring. We believe buyers re-entering the market after Labor Day are likely to cause a buying surge in the fourth quarter of this year.

Significant Appreciation

Although median sale prices have increased by an average of more than 20% over the last year in our market, we don’t believe this level of appreciation will last forever. Affordability for buyers is still very attractive due to interest rates remaining under 3%, as they tend to buy monthly payment, rather than price.

Declutter, Stage, and Price Right

Homes receiving high and multiple offers over the past year were staged, decluttered, in good condition, and priced right – which are all still necessary in this market. Buyers used to have a vision for what they want the home to be after settlement. Now, the majority of consumers seem to want move-in ready. Many buyers don’t have the time or capital to invest in renovations and want to move in and start living.

If you’re planning to sell a home this Fall, it’s essential to have a knowledgeable real estate agent advise you on the best ways to prepare your home for sale to maximize your investment.

To find out your home’s value or for questions about this complex real estate market, please feel free to contact the Butch Cazin Team.

Why You Should Sell Your House Now

There’s no doubt that 2021 is the year of the seller when it comes to the housing market. If you’re a homeowner thinking of moving to better suit your changing needs, now is the perfect time to do so. Low mortgage rates are in your favor when you’re ready to purchase your dream home, and high buyer demand may give you the leverage you need to negotiate the best contract terms on the sale of your house. Here’s a look at what’s driving this sellers’ advantage and why there’s so much opportunity for homeowners who are ready to move this season.

1. Historically Low Inventory
The National Association of Realtors (NAR) explains:

“Total housing inventory at the end of March amounted to 1.07 million units, up 3.9% from February’s inventory . . . Unsold inventory sits at a 2.1-month supply at the current sales pace, marginally up from February’s 2.0-month supply and down from the 3.3-month supply recorded in March 2020.”

Even with a slight rise in the number of houses for sale this spring, inventory remains near an all-time low.

High buyer interest is creating a major imbalance between supply and demand, but as the small uptick in inventory shows, sellers are beginning to reenter the market. Selling your house now enables you to take advantage of buyer demand and get the most attention for your house – before more listings come to the market later this year.

2. Frequent Bidding Wars
As a result of the supply and demand imbalance, homebuyers are entering bidding wars at an accelerating rate. NAR reports the average number of bids received on the most recently closed sales is 4.8 offers. This number has doubled since the first quarter of 2020.

As buyers face increasingly tough competition while searching for homes to purchase, they’re more likely to be flexible and generous in their negotiations. This gives a seller the opportunity to choose the best buyer for their needs and be selective about things like time to close, contingencies, renovations, and more. Working with your trusted agent is the best way to determine how to navigate the negotiation process when selling your house.

3. Days on the Market
In today’s market, sellers aren’t waiting very long to find a buyer for their house, either. NAR reports:

“Properties typically remained on the market for 18 days in March, down from 20 days in February and from 29 days in March 2020. 83% of the homes sold in March 2021 were on the market for less than a month.”

NAR Chief Economist Lawrence Yun explains:

“The sales for March would have been measurably higher, had there been more inventory…Days-on-market are swift, multiple offers are prevalent, and buyer confidence is rising.”

Bottom Line
If you’re thinking about moving, these three graphs clearly show that it’s a great time to sell your house.

3 Graphs Showing Why You Should Sell Your House Now | Keeping Current Matters | https://www.keepingcurrentmatters.com/2021/05/10/3-graphs-showing-why-you-should-sell-your-house-now/

To Renovate or Not to Renovate Before You Sell

from Keeping Current Matters

When thinking about selling, homeowners often feel they need to get their house ready with some remodeling to make it more appealing to buyers. However, with so many buyers competing for available homes right now, renovations may not be as vital as they would be in a more normal market. Here are two things to keep in mind if you’re thinking of selling this season.

1. There aren’t enough homes for sale right now.
A normal market has a 6-month supply of houses for sale, but today’s housing inventory sits far below that benchmark. According to the National Association of Realtors (NAR), there’s only a 1.9-month supply of homes available today. As a result, buyer competition is high and homes are only on the market for about 21 days, during which time many receive multiple offers from hopeful buyers.

In a competitive market that’s moving so quickly, it makes sense to sell your house when buyers are scooping homes up as fast as they’re being listed. Spending costly time and money on renovations before you sell might just mean you’ll miss your key window of opportunity. While certain repairs on your house may be important, your best move right now is to work with a real estate advisor to determine which improvements are truly necessary, and which ones are not likely to be deal-breakers for buyers.

Today, many buyers are more willing to take on home improvement projects themselves in order to get the home they’re after, even if it means putting in a little extra work. Home Advisor explains:

“When it comes to the number of home improvement projects completed, Gen Z homeowners are leading the pack, completing an average of 3.5 projects. Millennials closely follow Gen Z, taking on an average of 3.3 projects, followed by Gen X at 2.8 projects. Boomers completed an average of 2 projects, and the Silent Generation completed the fewest projects, on average, at 1.8 per household. Compared to 2019, millennials are spending 60% more on home improvement and doing on average 30% more projects.”

In this market, it may be wise to let future homeowners remodel the bathroom or the kitchen to make design decisions that are best for their specific taste and lifestyle. As a seller, your dollars and time might be better spent working on small cosmetic updates, like refreshing some paint and power washing the exterior. Instead of over-investing in your home with upgrades that the buyers may change anyway, work with a real estate professional to determine the key projects that will maximize your listing, without overdoing it.

2. Focus on getting a good return on your investment.
When planning any bigger projects to tackle, you and your real estate agent will want to discuss the potential return on your investment and if those projects are worth the cost. Some homes do need a kitchen or bathroom renovation, roof repairs, or other major work, but definitely not all of them. You might be surprised by how well your house could fair in today’s sellers’ market. Hanley Wood states:

“The 2020 Cost vs. Value report shows a predictable increase in costs for all 22 remodeling projects but a consistent dip in the perceived value of those projects at the time of home sale, as estimated by real-estate professionals in more than 100 metro areas across the U.S. This results in a slight downturn on the return on investment for nearly all projects relative to the trends we saw in last year’s report.”

Ideally, homeowners getting ready to move should try to avoid over-investing in big renovations if they won’t make that money back when they sell their house. According to the 2020 State of Home Spending report from Home Advisor:

“The average household spending on home services rose to $13,138, an increase over last year’s survey results, where homeowners who did projects spent $9,081 on average in 2019.”

Before you renovate, contact The Butch Cazin Team to see if it’s the best course of action. You may find out that putting your house on the market as-is will help you sell quickly, and it may result in the best return on your investment. Every home is different, but a conversation with your agent is mission-critical to make sure you make the right moves when selling this season.

Bottom Line
We’re in a strong sellers’ market, and that means you have the leverage to sell your house on your terms. Give us a call today to determine if renovating is really the best way to spend your time and money before you sell.

Spring Market Update March 2, 2021

It’s hard to believe it’s been a year since the Covid-19 pandemic entered our world. Or, to some, this past year may seem like it was several years long. Either way, March is here and with the rising temperatures and longer days, we’ll soon start to see the first signs of spring.

Before the arrival of April showers, it’s a good time to get started on some spring maintenance tasks to shed the winter layers and give your home a fresh new start.

Groom your lawn. Get ready to mow by picking up debris that accumulated on your lawn over the winter. Fill bare spots with grass seed and fertilizer.

Clear gutters and downspouts. Prevent damage from spring rains by clearing out debris. Make sure water is diverted away from the home to protect its foundation.

Reseal exterior woodwork. Stain or reseal outdoor structures such as wood decks, fences, railings, and pergolas, to keep them in good condition.

Schedule air-conditioning service. Make sure your HVAC unit is working before summer arrives. Schedule service, if needed, and don’t forget to regularly change filters.

Clean carpets and soft furnishings. Have carpets cleaned and send out area rugs for professional cleaning. Launder furniture slipcovers, pillow covers and shower curtains.

Test smoke and carbon monoxide detectors. Change batteries at least once a year and replace each unit every 7 to 10 years.

Despite the pandemic of the past year, the real estate market has remained strong, with home values growing at a fast pace. After this year of hefty appreciation, if you’d like to find out what your home is worth, contact me for a complimentary comparative market analysis.

Likewise, if you’re in the market to buy a new property, just let me know how I can help.

SELLING YOUR HOUSE IS THE RIGHT MOVE, RIGHT NOW

by Keeping Current Matters

Some Highlights

Demand from homebuyers has skyrocketed this year, which means today’s sellers are poised to win big. This ideal moment in time to sell your house won’t last forever, though.

With more sellers coming to the market in the spring, waiting until next year means buyers will have more choices, so your home may not stand out from the crowd.

Reach out to The Butch Cazin Team today to discuss why now may be the right time to make a move on your terms.

3 Must Do’s when Selling Your House This Year

For Sellers, Pricing, Selling Myths
3 Must-Do’s When Selling Your House This Year

It’s exciting to put a house on the market and to think about making new memories in new spaces. However, despite the anticipation of what’s to come, we can still have deep sentimental attachments to the home we’re leaving behind. Growing emotions can help or hinder a sale depending on how we manage them.

When it comes to the bottom line, homeowners need to know what it takes to avoid costly mistakes when it’s time to move. Being mindful and prepared for the process can help you stay on the right track when selling your house this year.

1. Price Your Home Right
When inventory is low, like it is in the current market, it’s common to think buyers will pay whatever we ask when setting a listing price. Believe it or not, that’s not always true. Don’t forget that the buyer’s bank will send an appraiser to determine the fair value for your house. The bank will not lend more than what the house is worth, so be aware that you might need to renegotiate the price after the appraisal. A real estate professional will help you set the true value of your home.

2. Keep Your Emotions in Check
Today, homeowners are living in their houses for a longer period of time. Since 1985, the average tenure, or the time a homeowner has owned their home, has increased from 5 to 10 years (as shown in the graph below):
3 Must-Do’s When Selling Your House This Year | Keeping Current Matters
This is several years longer than what used to be the historical norm. The side effect, however, is when you stay in one place for so long, you may get even more emotionally attached to your space. If it’s the first home you bought or the house where your children grew up, it very likely means something extra special to you. Every room has memories, and it’s hard to detach from the sentimental value.

For some homeowners, that makes it even harder to negotiate and separate the emotional value of the house from the fair market price. That’s why you need a real estate professional to help you with the negotiations along the way.

3. Stage Your Home Properly
We’re generally quite proud of our décor and how we’ve customized our houses to make them our own unique homes, but not all buyers will feel the same way about your design. That’s why it’s so important to make sure you stage your house with the buyer in mind.

Buyers want to envision themselves in the space so it truly feels like it could be their own. They need to see themselves inside with their furniture and keepsakes – not your pictures and decorations. Stage and declutter so they can visualize their own dreams as they walk down the hall. A real estate professional can help you with tips to get your home ready to stage and sell.

Bottom Line
Today’s sellers’ market might be your best chance to make a move. If you’re considering selling your house, reach out to a local real estate professional to help you navigate through the process while prioritizing these must-do’s.

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MARKET UPDATE – DECEMBER 2020

While 2020 has been an incredibly challenging year, housing turned out as a bright spot. Despite the impact of the coronavirus pandemic, homeownership rates rose to 67.4% in the third quarter, up from 64.8% the same period in 2019.
The fundamentals are in place for a continued strong housing market in 2021, particularly with expectations that mortgage rates will remain around 3%. Here are a few more of our predictions for the year ahead.
Home prices will rise. The law of supply and demand will drive prices higher, with 5% to 6% increases predicted on average.
Affordability will remain mostly positive. Low mortgage rates will offset rising prices, increasing the number of households who can afford to buy a home.
Inventory challenges will continue. While builders are expected to construct homes at a faster pace in 2021, there’s still a gap between demand and supply for new and existing homes.
Increased teleworking will influence housing. People will continue to work from home, affecting where they’re shopping for homes and what they’re looking for in those properties.
Vacation home markets will stay hot. In 2020, homeowners with rising equity and investors with high stock market profits drove a spike in demand for homes in coastal markets, which will continue next year.
Technology remains critical. Virtual tours, remote closings and video conferencing kept real estate moving in 2020, and virtual buying and selling will continue to lead the way in 2021.
Whether you’re looking to buy, sell or invest in real estate in 2021, we can help. With our partners in mortgage, title, insurance and moving, our Long & Foster family has you covered for all your real estate needs. Happy Holidays!

Weekly Update: July 13, 2020

We’re halfway through the year and many are curious to know how the real estate market is measuring up to past years – especially with this year’s added challenges from the COVID-19 pandemic. While we expect some bumps in the road in the coming months, as of today, the market looks good.

Mortgage rates continue to decline. Last week mortgage rates dropped to an average of 3.03% for the 30-year-fixed rate. This new low has helped spur both home sales and refinances.

Consumer sentiment is moving in the right direction. Consumer sentiment is one of the most important metrics in determining the health of the real estate market. For June, consumer sentiment came in at 78.1, up from May’s low of 72.3.

Inventory remains low and people are still looking to buy. Active inventory was down 10% in the first week of July compared to the same week in 2019, while new listing volume was up by 22%. Showing activity of homes on the market was up 27.6%.

Median sale prices rose while homes sold faster. In most areas, median sale prices of homes were up slightly in June. The average number of days homes spent on the market fell by about 2 days.

The stock market is up. Rising numbers in the stock market can likely be attributed to good employment numbers from June as well as hopes for a vaccine for COVID-19. Last month brought another 4.8 million jobs, which was higher than predicted, and unemployment fell to 11.1%.

The bottom line is if you’re planning to sell, I recommend putting your house on the market before fall. There are many buyers out there who are ready and waiting for more inventory to come on the market, and presidential election years typically come with a slowdown in home sales in the weeks surrounding the election. Similarly, if you’re looking to buy, let me know. We can start your virtual house hunt today.

Let me know if you have additional questions. I’m happy to assist you with your real estate needs.

Weekly Update: June 26, 2020

As we approach the end of June, most states are gradually reopening businesses and pent-up demand for housing is driving a busier than usual summer. Buyers and sellers are cautiously re-entering the real estate market, and with their return, here are some trends we tracked this past week.

Mortgage rates. Compared to the previous week, mortgage rates were flat but remain at all-time lows, allowing buyers to purchase more home for their money.

Stock market. The Dow remained volatile, but it was down by week’s end, due to the rise in the number of reported coronavirus cases.

Unemployment claims. Although 1.48 million people applied for unemployment, there’s been a steady decline of claims for 12 consecutive weeks.

On the real estate side, year-over-year listings were flat, but new contracts increased by double-digits. Home showings were over 30% greater compared to the same week in 2019, demonstrating high consumer demand for housing.

Window of opportunity. Historically, national elections bring uncertainty that can lead to a slight lull in real estate the fall before that election. If you’re thinking about buying or selling a home, the time to do so is now.

As usual, the health and safety of our clients is our priority. Our virtual buying and selling programs continue to lead our customers on their journeys home. If you’d like to know more about how I can help you, virtually or in person, with your home-buying or selling needs, I’m ready to assist you.

Weekly Update: June 12, 2020

It’s been an interesting and historic week for our economy and the real estate industry. As states and businesses open, a few trends have emerged.

Mortgage rates. This week, rates dipped below 3% for the first time ever, allowing buyers to get more home for their money.

Unemployment claims. About 1.5 million people applied for unemployment, which was the lowest number we’ve seen since the coronavirus (COVID-19) pandemic began.

Stock market. The Dow was volatile this week, and we are expecting continued market fluctuations as we move through the health crisis.

“Spring” market. In real estate, the busy spring market traditionally occurs in April and May, and it has shifted to June and July. Upward positive trends continue, fueled by pent-up demand and the dip in mortgage rates. Although inventory dropped this week, 80% of the homes that were previously taken off the market have now been actively listed for sale. Property showings were up by double-digits compared to the same time last year and at the highest levels we’ve seen since February.

To stay updated on what’s happening in your market, or for professional guidance through the process of buying or selling a home, don’t hesitate to contact me via phone or email.

Wishing good health to you, your friends and family.