CoreLogic released their most current Home Price Index last week. In the report, they revealed home appreciation in three categories: percentage appreciation over the last year, over the last month and projected over the next twelve months.
Here are state maps for each category:
The Past – home appreciation over the last 12 months
The Present – home appreciation over the last month
The Future – home appreciation projected over the next 12 months
Homes across the country are appreciating at different rates. If you plan on relocating to another state and are waiting for your home to appreciate more, you need to know that the home you will buy in another state may be appreciating even faster.
The number of new home sales is far off historic norms. The National Association of Realtors (NAR) just reported that the percentage of all house sales that were newly constructed homes has fallen to the lowest numbers in forty years. Here is a graph showing the percentages:
This should come as no surprise as the number of new housing starts has fallen dramatically over the last several years:
We need more new construction for two reasons:
It will relieve some of the pent-up buying demand that is causing price appreciation to continue to increase well above historic norms.
It will give better opportunities to many current homeowners who want to sell but can’t find an adequate home to move in to.
The price of any item is determined by the supply of that item, as well as the market demand. The National Association of REALTORS (NAR) surveys “over 50,000 real estate practitioners about their expectations for home sales, prices and market conditions” for their monthly REALTORS Confidence Index.
Their latest edition sheds some light on the relationship between Seller Traffic (supply) and Buyer Traffic (demand).
The map below was created after asking the question: “How would your rate buyer traffic in your area?”
The darker the blue, the stronger the demand for homes in that area. Only four states came in with a weak or moderate demand level.
The Index also asked: “How would your rate seller traffic in your area?”
As you can see from the map below, the majority of the country has weak Seller Traffic, meaning there are far fewer homes on the market than what is needed to satisfy the buyers who are out looking for their dream homes.
Looking at the maps above, it is not hard to see why prices are appreciating in many areas of the country. Until the supply of homes for sale starts to meet the buyer demand, prices will continue to increase. If you are debating listing your home for sale, let’s get together and discuss the demand in our area.
In today’s market, with home prices rising and a lack of inventory, some homeowners may consider trying to sell their home on their own, known in the industry as a For Sale by Owner (FSBO). There are several reasons why this might not be a good idea for the vast majority of sellers.
Here are the top five reasons:
1. Exposure to Prospective Buyers
Recent studies have shown that 88% of buyers search online for a home. That is in comparison to only 21% looking at print newspaper ads. Most real estate agents have an internet strategy to promote the sale of your home. Do you?
2. Results Come from the Internet
Where did buyers find the home they actually purchased?
The days of selling your house by just putting up a sign and putting it in the paper are long gone. Having a strong internet strategy is crucial.
3. There Are Too Many People to Negotiate With
Here is a list of some of the people with whom you must be prepared to negotiate if you decide to For Sale By Owner:
The buyer who wants the best deal possible
The buyer’s agent who solely represents the best interest of the buyer
The buyer’s attorney (in some parts of the country)
The home inspection companies, which work for the buyer and will almost always find some problems with the house
The appraiser if there is a question of value
4. FSBOing Has Become More And More Difficult
The paperwork involved in selling and buying a home has increased dramatically as industry disclosures and regulations have become mandatory. This is one of the reasons that the percentage of people FSBOing has dropped from 19% to 8% over the last 20+ years.
The 8% share represents the lowest recorded figure since NAR began collecting data in 1981.
5. You Net More Money When Using an Agent
Many homeowners believe that they will 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 the commission.
Studies have shown that the typical house sold by the homeowner sells for $210,000, while the typical house sold by an agent sells for $249,000. This doesn’t mean that an agent can get $39,000 more for your home, as studies have shown that people are more likely to FSBO in markets with lower price points. However, it does show that selling on your own might not make sense.
Before you decide to take on the challenges of selling your house on your own, sit with a real estate professional in your marketplace and see what they have to offer.
TheNational Association of Realtors, The Mortgage Bankers’ Association, Freddie Mac and Fannie Mae are all projecting that home sales will increase in 2017. Here is a chart showing what each entity is projecting in sales for this year and the next.
As we can see, each is projecting sizable increases in home sales next year. If you have considered selling your house recently, now may be the time to put it on the market.
Whether or not you’ve ever seen an episode of Modern Family, or know who Phil Dunphy’s character is, the concept of knowing that you have someone in your corner who is looking out for your best interests is something we all want.
When it comes to buying a home, whether you are a rookie homebuyer or have gone through the process many times, having a local real estate expert who is well versed in the neighborhood you are looking to move into, and the trends of the area, should be your goal.
For those who aren’t familiar, the character Phil Dunphy is a Realtor with a huge heart who always strives to do the best for his family and his clients.
In one recent episode, Phil even shared the oath that he created and holds himself to:
“On my honor, I promise to aid in man’s quest for shelter, to recognize I’m not just in the business of houses — I’m in the business of dreams in the shape of houses. To disclose all illegal additions, shoddy construction, murders, and ghosts. And to put my clients’ needs before my own.”
While this might seem silly, and it was definitely written with humor in mind, the themes of helping someone achieve the American Dream and putting a client’s needs above your own are not to be taken lightly.
When you make the decision to enter the housing market, as either a buyer or a seller, make sure you look for an agent who exemplifies these values and will help you through every step of the process.
So, you are selling your house and you have set your heart on a few home improvements that will raise the price of your property and get you a better price? Unfortunately, these works are not exactly DIY and you need to hire professionals? You have never had any experiences with them before and you are wondering how to make sure you are hiring the right people?
Well, you have come to the right place. This article is all about finding and hiring the absolute best contractors in your area.
Ask for Recommendations
Probably the best place to start your search for the best contractors are the people around you. Maybe someone in your family knows someone or one of your friends? Your colleagues can also be a great source of info on local contractors. Of course, with colleagues and acquaintances, you always need to consider the possibility they are recommending their cousins or friends who are actually very bad contractors.
If you have already hired a realtor to help you with your sale or if you have done business with one in the past, you can always ask them about local contractors. You are almost guaranteed to receive some really great recommendations from them.
Another way to go for your recommendations is the internet. These days, you will rarely find a contractor that is not registered with local directories and websites, as well as some major ones, such as Houzz, for example. You can also always find plenty of local forums where people gladly share their experiences with local contractors.
Investigating the Legal Stuff
One of the first things you will want to investigate once you identify a few contractor companies that might be the right choice are their licenses, bonds and the like. In most states, the state government requires contractors to get surety bonds. Georgia is one of them and all contractors in Georgia need to be bonded in order to do their work.
This is on top of the business license and the contractor’s license. This is where you can check whether a Georgia contractor has all the licenses needed. Furthermore, you might want to check their Better Business Bureau status and find out if any red flags appear when they are concerned.
By working with licensed and bonded contractors, you can rest assured that they will not try to scam you in any way.
Of course, just because someone is licensed and bonded does not mean they are the perfect choice for you. You will, for example, want to talk to their past clients and find out what their experiences were like. Good contracting companies will gladly share their references. You will also want to talk to them about their past experiences and whether they handled jobs that are similar to what you had in mind. Another great idea is to visit a job they are working on at the moment and find out how they do their stuff with your own two eyes.
Putting It All To Paper
Once you are quite certain that you have found the right people, it is important to ask them to give you an estimate. You will want to do this with at least two more contractors, just to get a feel for the prices. You will then make your choice and this is where you need to start talking contracts. You shouldn’t do anything without signing a clearly written contract which will cover all of the most important terms and conditions.
Instead of a Closing Word
To wrap up, we would also like to remind you that you might also want to find a contracting company whose people seem like a good fit for you. Sometimes this can play a huge role in the overall experience.