http://townandcountryrealty.org/blog/categoryname_useful-information/sort_entrydatetime-desc/ Homeowners ready to make a move are definitely in a great position to sell today. Housing inventory is incredibly low, driving up buyer competition. This gives homeowners leverage to sell for the best possible terms, and it’s fueling a steady rise in home prices.In such a hot market, houses are selling quickly. According to the National Association of Realtors (NAR), homes are typically on the market for just 18 short days. Despite the speed and opportunity for sellers, there are still steps you can take to prep your house to shine so you get the greatest possible return.1. Make Buyers Feel at HomeOne of the ways to make this happen is to take time to declutter. Pack away any personal items like pictures, awards, and sentimental belongings. The more neutral and tidy the space, the easier it is for a buyer to picture themselves living there. According to the 2021 Profile of Home Staging by NAR:“82% of buyers’ agents said staging a home made it easier for a buyer to visualize the property as a future home.”Not only will your house potentially attract the attention of more buyers and likely sell quickly, but the same report also notes:“Eighteen percent of sellers’ agents said home staging increased the dollar value of a residence between 6% and 10%.”As Jessica Lautz, Vice President of Demographics and Behavior Insights for NAR, says:“Staging a home helps consumers see the full potential of a given space or property…It features the home in its best light and helps would-be buyers envision its various possibilities.”2. Keep It CleanOn top of making an effort to declutter, it’s important to keep your house neat and clean. Before a buyer stops by, be sure to pick up toys, make the beds, and wash the dishes. This is one more way to reduce the number of things that can distract a buyer from the appeal of the home.Ensure your home smells fresh and clean as well. Buyers will remember the smell of your house, and according to the same report from NAR, the kitchen is one of the most important rooms of the house to focus on if you want to attract more buyers.3. Give Buyers AccessBuyers are less likely to make an offer on your house if they aren’t able to easily schedule a time to check it out. If your home is available anytime, that opens up more opportunities for multiple buyers to go from curious to eager. It also allows buyers on tight schedules to still get in to see your house.While health continues to be a great concern throughout the country, it’s important to work with your agent to find the best safety measures and digital practices for your listing. This will drive visibility and create access options that also keep everyone in the process safe. 4. Price It RightEven in a sellers’ market, it’s crucial to set your house at the right price to maximize selling potential. Pricing your house too high is actually a detriment to the sale. The goal is to drive high attention from competing buyers and let bidding wars push the final sales price up.Work with your trusted real estate professional to determine the best list price for your house. Having an expert on your side in this process is truly essential.Bottom LineIf you want to sell on your terms, in the least amount of time, and for the best price, today’s market sets the stage to make that happen. Contact a local real estate professional today to determine the best ways to maximize the sale of your house this year. http://townandcountryrealty.org/blog/194/4-tips-to-maximize-the-sale-of-your-house/ Tue, 27 Apr 2021 04:11:07 -0500 Talk of a housing bubble is beginning to crop up as home prices have appreciated at a rapid pace this year. This is understandable since the appreciation of residential real estate is well above historic annual averages. According to the Federal Housing Finance Agency (FHFA), annual appreciation since 1991 has averaged 3.8%. Here are the latest 2020 appreciation numbers from three reliable sources:·        FHFA: 7.8%·        CoreLogic: 7.3%·        Case-Shiller: 7%It’s easy to jump to the conclusion that house appreciation is out of control in today’s market. However, we need to put these numbers into context first.Inflation and the Comeback from the Housing CrashFollowing the housing crash, home values depreciated dramatically from 2007-2011. Values are still recovering from that unusually long period of falling prices. We must also realize that normal inflation has had an impact.Bill McBride, the founder of the well-respected Calculated Risk blog, recently summed it up this way: “It has been over fourteen years since the bubble peak. In the Case-Shiller release today, the seasonally adjusted National Index, was reported as being 22.2% above the previous bubble peak. However, in real terms (adjusted for inflation), the National index is still about 2% below the bubble peak…As an example, if a house price was $200,000 in January 2000, the price would be close to $291,000 today adjusted for inflation.” The COVID Impact on Home PricesThe pandemic caused many households to reconsider whether their current home still fulfills their lifestyle. Many homeowners now want larger yards that are both separate and private.Their needs on the inside of the home have changed too. People now want home offices, gyms, and living rooms well-suited for video conferencing. Barbara Ballinger, a freelance writer and the author of several books on real estate, recently wrote: “While homeowners continue to want their outdoor spaces that offer a safe retreat, that appeal has shifted into other parts of the home, coupling comfort with function. In other words, homeowners want amenities for work and leisure, and they plan to enjoy them long after the pandemic.” At the same time, concerns about the pandemic have caused many homeowners to put their plans to sell on hold. Realtor.com just released their November Monthly Housing Market Trends Report. It explains: “Nationally, the inventory of homes for sale decreased 39.2% over the past year in November…This amounted to 490,000 fewer homes for sale compared to November of last year.”More people buying and fewer people selling has caused home prices to escalate. However, with a vaccine on the horizon, more homeowners will be putting their houses on the market. This will better balance supply with demand and slow down the rapid appreciation.That’s why major organizations in the housing industry are calling for much more moderate home appreciation next year. Here are the most recent forecasts for 2021:·        National Association of Realtors: 4.5%·        Freddie Mac: 2.6%·        Fannie Mae: 2.1%·        Mortgage Bankers Association: 2% This Is Nothing Like 2006 Finally, let’s put to rest some of the concerns that today’s scenario is anything like what led up to the last housing crash. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains why this is nothing like 2006: “Such a frenzy of activity, reminiscent of 2006, raises questions about a bubble and the potential for a painful crash. The answer: There’s no comparison. Back in 2006, dubious adjustable-rate mortgages taxed many buyers’ budgets. Some loans didn’t even require income documentation. Today, buyers are taking out 30-year fixed-rate mortgages. Fourteen years ago, there were 3.8 million homes listed for sale, and home builders were putting up about 2 million new units. Now, inventory is only about 1.5 million homes, and home builders are underproducing relative to historical averages.” Bottom Line Most aspects of life have been anything but normal in 2020. That includes buying and selling real estate. High demand coupled with restricted supply has caused home prices to appreciate above historic levels. With the end of the health crisis in sight, we will see price appreciation return to more normal levels next year.          From:  Keeping Current Matters Blog  http://townandcountryrealty.org/blog/152/are-home-prices-headed-toward-bubble-territory?/ Thu, 17 Dec 2020 01:05:32 -0500 https://www.commercialappeal.com/story/opinion/2020/12/04/tennessean-must-take-appropriate-steps-when-buying-home/3826521001/ http://townandcountryrealty.org/blog/151/buying-a-home-is-a-special-moment-that-tennesseans-must-take-with-precaution-|-opinion/ Tue, 15 Dec 2020 12:51:59 -0500 Homeownership is on the goal list for many young adults, but sometimes it’s hard to know exactly how to get there. From understanding the home buying process to pre-approval and down payment assistance options, uncertainty along the way can ultimately hold some buyers back.Today, there are over 75 million Millennials and 67 million Gen Z’ers in the U.S., making up a significant number of both current and soon-to-be homebuyers. According to a recent Fannie Mae survey of more than 2,000 of these individuals:“88% said they are confident they will achieve homeownership someday.”In addition, the survey also reveals that for younger generations, the motivation to own a home may be more emotional than financial compared to previous generations:·        <50% say they want to use their home as an asset·        78% believe it’s the best way to live the way they want, without restrictions·        80% believe homeownership is the best way to make it on their ownWhether homeownership goals come from the heart or are driven by financial aspirations (or maybe both), the obstacles standing in the way don’t have to bring these dreams to a screeching halt. The same survey also reveals two key roadblocks for potential buyers. Thankfully, they’re both easily overcome with the power of knowledge and trusted advisors leading the way. Here’s a look at these two challenges potential homebuyers face today:1. 73% of future homebuyers are unaware of low-down-payment mortgage optionsFor those who want to purchase a home, low-down-payment options are instrumental to affording one sooner rather than later, especially given the amount of debt many younger adults have accumulated. Fannie Mae also notes:“Among the challenges they face is an unprecedented amount of debt, along with a lack of understanding of the mortgage process and their own purchasing power. Debt, in particular, creates many obstacles such as a limited ability to save and the fear of taking on more debt.”Today, there are more than 2,340 down payment assistance programs available nationwide to help relieve this pressure. Understanding what’s out there and the options available may help many buyers become homeowners faster than they thought possible. In a year like this, with record-low mortgage rates making their mark in the history books, being able to take advantage of the opportunity buyers have right now is essential to long-term affordability.2. 64% of buyers expect lenders and other real estate professionals to educate them about the mortgage processWhile many people love to do a quick search online to find instant answers to their questions, it isn’t the only way younger generations want to consume information or build their knowledge base. As the survey mentions, having trusted professionals help them learn what it takes to achieve their dreams is definitely on their wish list too.Bottom LineIf you’re aiming for homeownership someday, it may be in closer reach than you think. Contact a local real estate professional and your lender to learn about the process and get the guidance you need to make it happen.From Keeping Current Matters   http://townandcountryrealty.org/blog/150/knowledge-is-power-on-the-path-to-homeownership/ Thu, 10 Dec 2020 12:25:45 -0500 Housing inventory is at an all-time low. Realtor.com just reported that there are 39% fewer homes for sale today than there was last year. At the same time, buyer demand remains strong. In a recent newsletter, research analyst Ivy Zelman explained:“Although the headwind of severe supply constraints in most markets has contributed to slight moderation in seasonally-adjusted and year-over-year new pending contract growth for two consecutive months (albeit still growing strongly), the underlying strength of buyer demand, particularly for this time of year remains apparent.”Whenever there’s a shortage in the 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. As a result, home values are surging.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. Purchasers, however, should realize that the price of a house is not as important as the monthly cost.  Here’s how it breaks down.There are several factors that influence the cost of a home. Two of the major ones are:1.  The price of the home2.  The mortgage rate at which a buyer can borrow the funds necessary to purchase the home How do these factors impact affordability?The National Association of Realtors (NAR) produces a Housing Affordability Index which takes these factors into account and determines an overall affordability score for housing. According to NAR, the index:“…measures whether or not a typical family earns enough income to qualify for a mortgage loan on a typical home at the national and regional levels based on the most recent price and income data.”Their methodology states:“To interpret the indices, a value of 100 means that a family with the median income has exactly enough income to qualify for a mortgage on a median-priced home. An index above 100 signifies that a family earning the median income has more than enough income to qualify for a mortgage loan on a median-priced home, assuming a 20 percent down payment.”So, the higher the index, the more affordable it is to purchase a home. Here’s a graph of the index going back to 1990:The blue bar represents today’s affordability. We can see that homes are more affordable now than they were from:·        1990 to 2008·        2017 to 2018Buying a home today is just a little less affordable than it was last year, but still very affordable compared to historical housing market trends.Note: During the housing crash from 2009 to 2015, distressed properties (foreclosures and short sales) dominated the market. Those properties were sold at large discounts not seen before in the housing market.Why are homes still affordable today?The number one factor impacting today’s homebuying affordability is record-low mortgage rates. There’s no doubt that prices are on the rise. However, mortgage rates have fallen dramatically. Last week, Freddie Mac announced that the average interest rate for a 30-year fixed-rate mortgage was 2.72%. Last year at this time, the average rate was 3.68%.If you’re considering purchasing your first home or moving up to the one you’ve always hoped for, it’s important to understand how affordability plays into the overall cost of your home. With that in mind, buying while mortgage rates are as low as they are now may save you quite a bit of money over the life of your home loan.Bottom LineAt this point, home purchase affordability is still in a historically good place. However, we need to watch price increases going forward. As Mark Fleming, Chief Economist at First American, noted in a recent post:“Faster nominal house price appreciation can erode, or even eliminate, the boost in affordability from lower mortgage rates, especially if household income growth doesn’t keep up.” From Keeping Current Matters http://townandcountryrealty.org/blog/149/with-home-values-surging-is-it-still-affordable-to-buy-right-now?/ Tue, 08 Dec 2020 12:16:28 -0500