Although it’s impossible to predict the future current trends ad statistics create a picture of the market’s health. Home Prices are up 4.6 percent and the average home value is $264,800¹. Sales may be down, but prices will continue to rise. This is good news for

home in hand

sellers, but may keep buyers on the sidelines in high-price markets.

Home sales are down 1.5 percent from a year ago¹. Experts say that many buyers are priced out of the market or they’re waiting until more homes within their price range are available. Although it’s impossible to predict the future, current trends and statistics create a picture of the market’s health.

Homes are selling fast. Homes are on the market for an average   only 29 days, with 52 percent of homes on the market for less than a month.1

Inventory is tight¹.  People are staying in their homes longer and housing starts are at an all-time low.2  However, housing permits are up 8.4 percent over last year, which means more inventory to come.3

New tax code may have an impact. The interest deduction is capped at $750,000 (down from $1 million) and the property tax deduction is capped at $10,000. This may mean less expendable cash for those with, or needing, a big mortgage.

Competition is high. First-time buyers made up 31 percent of home purchasers.1 For those in the market to buy, get preapproved for a mortgage to stay competitive. If you need a lender, I can refer you to a great one in my network. Let’s set a time to talk about tour local market. I’d love to share my housing market insights with you and do an annual review if you currently own.

Will we see a market correction?5

Recently, you may have seen news headlines predicting the next recession.  The economy has been growing since 2009, the longest stretch in US history.5  Since the economy is cyclical, it’s onlythinking of buying or selling natural to wonder when the economy will begin to retract.

 Causes of a downturn. Recessions are often caused by unforeseen events or circumstances that shock the market. Sixty-two percent of experts say an overheating economy will lead to the Fed tightening its belt.5 Others say a financial meltdown may be caused by an asset bubble, fiscal crisis or international trade disruptions.5

Reason to be optimistic. Housing isn’t like

Take headlines with a grain of salt. Experts predicted recessions in 2011 and 2016, and  neither transpired. It is important to remember that growth doesn’t last, so a downturn would be considered natural. Over the next year, economists predict the Gross Domestic Product (GDP) will continue to grow and unemployment rates will fall further. The risk of recession in the next year is only about 15 percent, and the changes to the tax code effective this year are expected to drive business investment spending.

three things to watch for

 

 

Sources:

  1. National Association of REALTORS
  2. CNN Money
  3. National Association of Home Builders
  4. HousingWire
  5. Wall Street Journal

© 2019 Buffini & Company. All Rights Reserved. Used by Permission. RMMK JANUARY S

Here are some essential tips for sellers and aspiring home buyers. Make sure you also lean into your trusted real estate professional for additional insight and guidance.

SMART STRATEGIES FOR SELLERS

Putting a home up for sale can be stressful, and some owners have a hard time making objective decisions when it matters most.

Homeowners consistently overestimate the market value of their homes by 5 to 10 percent.1

PRICE IT RIGHT

Your listing agent will perform a current market analysis.Look closely at the sales of similar homes that have closed in the last 90 days and take the number of available listings into account when agreeing to an asking price.

Sources: 1. Smart Money Magazine, February 2, 2011

2. National Association of REALTORS, 2014 Profile of Home Buyers and Sellers

KEEP IN MIND

Homes that have failed to attract a buyer in a reasonableperiod of time may be overpriced.

Foreclosures or short sales in your neighborhoodcan impact your home’s market value.

It doesn’t pay to set the price too high; mostbuyers will need financing and the bank will generally use an appraisal based onrecent sales to justify the amount.

Your agent may recommend  that you perform repairs to  correct visible flaws—or even  suggest staging your home so it  feels more spacious and potential  buyers can picture themselves living there.

TAKE ADVANTAGE OF  YOUR MARKET DEBUT

Pricing your home competitively  from the get-go increases the odds  of a quick sale.

Nearly 43% of buyers looked online  for properties as their first step and  43% found the home they ultimately  purchased on the Internet.If your  home is priced too high when it hits  the market, you run the risk that active,  qualified buyers will scroll right past it.

New listings are called “hot” for a  reason—buyers get excited about  them. Showings are likely to cool  off noticeably after the first 30  days on the market.

When weighing an offer, make sure to consider the potential costs of holding on to your property longer than you want or need to (including the mortgage, property taxes, insurance, maintenance, etc.).

Get the home you want

Get Ready

Talk to your mortgage professionalabout your financial situation and credit history to determine your loan options. It’s important to know how much house you can afford based on your down payment and income. A strong letter of pre-approval can really add to your bargaining power.

Have a meeting with your real estate agent. Discuss your needs and preferences and establish the best method for your agent to send listings and communicate with you about available properties. Tap into his or her knowledge of the local market.  When it comes time to act, your agent will represent your interests in negotiations and work to ensure a smooth transaction.

Shop Smart

Expect to pay more for a showplace: if you consider a fixer-upper, judge structural deficiencies more harshly than cosmetic flaws. It can be costly to replace major components or to change the layout, but redecorating with flooring, fixtures or paint is relatively easy and sometimes offers instant equity potential.

Location is key. Even if the site seems perfect for you at the present time, think about whether it will appeal to a large pool of buyers if you should decide to sell in the future.

Go for It!

To write a winning offer without overpaying, look at the prices for comparable sales. Consider whether the property is in a high-demand area or if there is plenty of competition. Ask your agent to find out why it is for sale and if the seller seems motivated. If you accommodate the seller’s preferred closing dates or other terms, he or she maybe more flexible with the price.

Do Your Due Diligence

Schedule a home inspection after coming to terms. Many sellers expect to address issues related to safety or building codes, and additional repairs (or a credit) may be negotiated. Make sure all of your questions or concerns regarding the home’s condition are answered through the inspection process.

Books and decor on shelves in cupboard

Kitchen

The kitchen is the hub of the home, and it tends to collect the most clutter from other parts of the house. Start clearing one area of the kitchen at a time, beginning with storage spaces, including the pantry, cupboards and drawers.

  • In the pantry: Throw away stale or expired items and donate canned goods that you know will go uneaten but are still edible.
  • In the cupboards: Remove chipped dishware, as well as utensils, pots, pans and bakeware that are damaged beyond repair.
  • Keep the kitchen clutter-free: Put items where they belong and leave a small bin to collect items that don’t belong there.

Living room

Too much clutter makes it difficult to relax. The mantra for this room is, “A place for everything; everything in its place.”

  • Create easily-accessible, permanent storage space for items you use most often, such as the remote control.
  • Fold throws and place in a decorative basket within reach of the sofa.
  • Sort through your electronics to determine what works and if you still use it. Store your frequently used electronics where you tend to use them.
  • Recycle back issues of magazines and newspapers you’ve already Donate books you don’t want to keep and categorize the others in your library.

Bedrooms

In the bedroom, clutter seems to center around storage areas, such as closets, drawers and nightstands.

  • Clear out dressers, wardrobes and closets by removing non-seasonal clothing you haven’t worn in more than six months and items that no longer fit. Sell or donate pieces that are still in good condition.
    • Organize your drawers by function: undergarments, activewear, t-shirts, etc.
    • Depending on your bedroom, purchase a hanging storage unit or floor shelf for shoes.
    • Separate anything that should go to the cleaner or a tailor
    • Remove everything from the nightstand and place items that belong elsewhere in Bin #1

Bathroom

  • Create more space in your cabinets, linen closet and on the counter.
  • Clean out the medicine cabinet and discard outdated medications, skincare and makeup.
  • Organize the drawers and shelves so the items you use the most are readily available.

Mudroom/Foyer

This is where we tend to drop things when we get home.

  • Clear items off of entry tables and decide what to put away, recycle or toss.
  • Place keys in a pretty bowl or on hooks so you don’t have to waste time searching for them.
  • Remove coats, shoes and boots that are out of season, don’t fit or need to be repaired.

© 2018 Buffini & Company. All Rights Reserved. Used by Permission. RMMK JULY MF S