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Market Update – June 2021

Selling a home in 2021 can be easy, but buying one is a whole different story. Low interest rates continue to be the driver in this robust housing market, creating increased buying power. On the other hand, the limited number of homes for sale and the high level of buyer demand has created a market tilted heavily in favor of sellers.

In this highly competitive market, what do you do if you want a smooth transition when selling and buying a home concurrently? It’s one of the least risky times to buy your next home before selling your current home. If you’re able to handle the payments on two homes for six months or so, then buy first and sell later.

For those that may not have the funds available to purchase a home while owning one, here are some options to consider.

Home of Choice Contingency. Written into the contract, this agreement protects the seller from having to sell their current home before finding their next home.

Rent Back Agreement. This post-closing occupancy agreement allows the seller to continue to live in the home for a fee or for free, typically up to 60 days, temporarily making the buyer the landlord.

Bridge Loan. A bridge loan enables you to borrow money to pay for the down payment on your next home based on the equity in your current home.

Home Equity Line of Credit. Tap into the equity of your current home by taking out a home equity loan before you put your home on the market to provide the funds needed to make your purchase first.

In this market, whether you’re buying or selling a home, I can help evaluate your options to decide which to do first and how to optimize both transactions.

My best to you and your family.

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/

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 – 2021 TRENDS

Happy New Year! This past year was unlike any other, as the Covid-19 pandemic upended our lives immeasurably, and the time that so many of us spent at home inspired change in just as many ways, especially in how we live in our houses. Remodeling spending spiked in 2020 among people who were able to work from home, and many homeowners made smaller tweaks to their homes to increase their comfort and beautify their surroundings.
While features like open floor plans and indoor-outdoor living are likely to remain popular for years to come, 2021 is expected to bring new interior design trends to the forefront. Not every trend fits every home but consider these options for inspiration when updating your current home (or shopping for a new home) this year.
Warm colors. Paint colors are trending away from cool gray and white to a warmer palette of earthier tones that encourage rest and relaxation.
Indoor & outdoor plants. Whether bringing in plants to add life to a drab home office or designing an elaborate garden, taking care of plants provides physical and mental benefits.
Curated office space. Artwork and collections, as well as interesting colors and textures, will add intrigue to spaces that are visible on camera—your Zoom room as some call it.
Multipurpose furniture. Durability and flexibility are key, and designers expect to see increased use of fabrics that stand up to daily use and are comfortable.
Shiplap, shifted. Create a more distinctive and fresh style with vertically installed shiplap. Instead of a barn door, try frosted glass doors or pocket doors to add interest.
Colorful tiles. Whether you want to go big or just add a splash of color to your flooring, colorful patterned tiles are growing in popularity.
Bold wallpaper. Now available in peel-and-stick format, wallpaper can transform previously bland rooms and define small spaces.

As always, I’m here for you should you have any questions on the real estate market. If you’re interested in buying or selling, now’s a great time.

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!

Current Market Conditions

As we move in to the fall market, we remain busy with an active real estate market. Inventory is still low and interest rates are still low, so if you are thinking about selling or buying, contact one of our Team Members to discuss your real estate goals.

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.