TreeTops Update

As Lennar nears the completion of TreeTops, there are still some inventory homes available.  TreeTops Sales Representative Eleanor Cornett has shared that the "new construction industry is adjusting to a nation wide lumber shortage.  Coupled with rising demand, our prices have been steadily increasing." 

I have a great working knowledge of TreeTops and am happy to answer any questions you have about the community. 

Remember that it is always in your best interest to have your own representation when buying from a builder. The sales staff works for the builder, not you. When visiting new construction for the first time, you should always have your agent with you or, if this is not possible, be sure to have your agent's card with you. As an Accredited Buyers Representative, I am committed to taking care of your best interests. Please call me before visiting new construction homes.

Sellers Are Returning to the Housing Market

 Article Courtesy of Keeping Current Matters/The KCM Blog

In today’s housing market, it can be a big challenge for buyers to find homes to purchase, as the number of houses for sale is far below the current demand. Now, however, we’re seeing sellers slowly starting to come back into the market, a bright spark for potential buyers. Javier Vivas, Director of Economic Research at realtor.com, explains:

“Seller confidence has been improving gradually after reaching its bottom in mid-April, and now it appears to have reached an important recovery milestone…After five long months, sellers are back in the housing market; while encouraging, the improvement to new listings is only the first step in the long road to solving low inventory issues keeping many buyers at bay.”

Even with the number of homes coming into the market, the available inventory is well below where it needs to be to satisfy buyer interest. The National Association of Realtors (NAR) reports:

“Total housing inventory at the end of June totaled 1.57 million units, up 1.3% from May, but still down 18.2% from one year ago (1.92 million). Unsold inventory sits at a 4.0-month supply at the current sales pace, down from both 4.8 months in May and from the 4.3-month figure recorded in June 2019.”

Houses today are selling faster than they’re coming to market. That’s why we only have inventory for 4 months at the current sales pace when in reality we need inventory for 6 months to keep up. But, as mentioned above, sellers are starting to return to the game. Realtor.com explains:

“The ‘housing supply’ component – which tracks growth of new listings – reached 101.7, up 4.9 points over the prior week, finally reaching the January growth baseline. The big milestone in new listings growth comes as seller sentiment continues to build momentum…After constant gradual improvements since mid-April, seller confidence appears to be reaching an important milestone. The temporary boost in new listings comes as the summer season replaces the typical spring homebuying season. More homes are entering the market than typical for this time of the year.”

Why is this good for sellers?

A good time to enter the housing market is when the competition in your area is low, meaning there are fewer sellers than interested buyers. You don’t want to wait for all of the other homeowners to list their houses before you do, providing more options for buyers to choose from. With sellers starting to get back into the market after five months of waiting, if you want to sell your house for the best possible price, now is a great time to do so.

Why is this good for buyers?

It can be challenging to find a home in today’s low-inventory environment. If more sellers are starting to put their houses up for sale, there will be more homes for you to choose from, providing a better opportunity to find the home of your dreams while taking advantage of the affordability that comes with historically low mortgage rates.

Bottom Line

While we still have a long way to go to catch up with the current demand, inventory is slowly starting to return to the market. If you’re thinking of moving this year, connect with a local real estate professional today to better understand what’s happening in your local market. You’ll want to be ready to make your move when the home of your dreams comes up for sale.

JUST LISTED IN SCCL

This beautiful Copper Ridge is centrally located in the Grey Hawk neighborhood of Sun City Carolina Lakes. Original owner has put lots of extras into this home! Lovely great room boasts recessed lighting and fireplace that was converted to provide heat, as well as ambiance, on a chilly day. Master bedroom has tray ceiling, custom ceiling lighting, and bath with double sinks, garden tub, separate shower, and a large walk-in closet. Plantation shutters throughout. Hardwood floors in Great Room, MBR, and Office/Den. Kitchen has SS appliances, granite counters, solar tube, recessed lighting, pull-out shelves, under cabinet lighting, and is wired for above cabinet lighting. MBR, BR 2 and Great Room are all wired for wall-mount TVs. Enjoy the lovely rear yard from the patio with covered lanai and charming screened porch with solar shades. Come and live the amazing SCCL lifestyle – enjoy all the beautiful amenities and diverse activities this premier active adult - hiking trails, indoor pool, 2 outdoor pools, state-of-the-art fitness center, pottery studio, community gardens, tennis, pickleball, bocce, softball, canoe & kayak center, woodworkers shop, dog park, golf course, and much more!

 

VIRTUAL TOUR

 

MLS LINK

HELEN ADAMS REALTY PROPERTY PAGE

 

August Mid-Month Update

Activity in Sun City Carolina Lakes remains robust.  As of today there are only 21 ACTIVE listings (including 2 that are "Coming Soon.") 

Home Inventory Determines What Kind of Market We Are In
Months of supply is the measure of how many months it would take for the current inventory of homes on the market to sell, given the current pace of home sales. For example, if there are 50 homes on the market and 10 homes selling each month, there is a 5 month supply of homes for sale. 

• Less than 6 months of inventory = Seller's Market with upward pressure on prices
• More than 6 months of inventory = Buyer's Market with downward pressure on prices

With the low number of ACTIVE listings and the increasing number of homes going UNDER CONTRACT, we are currently in a Seller's Market.

Days on Market (DOM)

The average DOM for Single Family Homes that have gone under contract this month is 28, with several going UNDER CONTRACT within the first week of becoming ACTIVE. 

The average DOM in July was 54, but it's important to note that showings came to a screeching halt around mid-March and continued to be slow through April, with showings picking up again in May.

Follow market activity daily by clicking on "UP-TO-DATE STATS FOR SCCL" tab above. 

Also, using the same tab, be sure to scroll down and check out the interactive charts which have the most current stats available through CMLS (through the end of the previous month).  Included in those charts are ones that shows "Months Supply of Homes for Sale." There are separate charts for Single Family Homes and Carriage Homes & Villas.  

Homes Are More Affordable Right Now Than They Have Been in Years

 Article Courtesy of Keeping Current Matters / TheKCM Blog

Today, home prices are appreciating. When we hear prices are going up, it’s normal to think a home will cost more as the trend continues. The way the housing market is positioned today, however, low mortgage rates are actually making homes more affordable, even as prices rise. Here’s why.

According to the Mortgage Monitor Report from Black Knight:

“While home prices have risen for 97 consecutive months, July’s record-low mortgage rates have made purchasing the average-priced home the most affordable it’s been since 2016.”

How is that possible?

Black Knight continues to explain:

“As of mid-July, it required 19.8% of the median monthly income to make the mortgage payment on the average-priced home purchase, assuming a 20% down payment and a 30-year mortgage. That was more than 5% below the average of 25% from 1995-2003.

This means it currently requires a $1,071 monthly payment to purchase the average-priced home, which is down 6% from the same time last year, despite the average home increasing in value by more than $12,000 during that same time period.

In fact, buying power is now up 10% year-over-year, meaning the average home buyer can afford nearly $32,000 more home than they could at the same time last year, while keeping their monthly payment the same.”

This is great news for the many buyers who were unable to purchase last year, or earlier in the spring due to the slowdown from the pandemic. By waiting a little longer, they can now afford 10% more home than they could have a year ago while keeping their monthly mortgage payment unchanged.

With mortgage rates hitting all-time lows eight times this year, it’s now less expensive to borrow money, making homes significantly more affordable over the lifetime of your loan. Mark Fleming, Chief Economist at First American, shares what low mortgage rates mean for affordability:

“In July, house-buying power got a big boost as the 30-year, fixed mortgage rate made history by moving below three percent. That drop in the mortgage rate from 3.23 percent in May to 2.98 percent in July increased house-buying power by nearly $15,000.”

The map below shows the last time homes were this affordable by state:

In six states – Arkansas, Iowa, Kentucky, Louisiana, Maryland, and West Virginia – homes have not been this affordable in more than 25 years.

Bottom Line

If you’re thinking of making a move, now is a great time to take advantage of the affordability that comes with such low mortgage rates. Whether you’re thinking of purchasing your first home or moving into a new one and securing a significantly lower mortgage rate than you may have on your current house, reach out to a real estate professional today to determine your next steps in the process.

Current Buyer & Seller Perks in the Housing Market

 Article Courtesy of Keeping Current Matters/The KCM Blog

Today’s housing market is making a truly impressive turnaround, and it’s also setting up some outstanding opportunities for buyers and sellers. Whether you’re thinking of buying or selling a home this year, there are perks today that are rarely available, and definitely worth looking into. Here are the top two.

The Biggest Perk for Buyers: Low Mortgage Rates

The most impressive buyer incentive today is the average mortgage interest rate. Just last week, mortgage rates hit an all-time low for the eighth time this year. The 30-year fixed-rate is now averaging 2.88%, the lowest rate in the survey’s history, which dates back to 1971 (See graph below):

 

This is a huge advantage for buyers. To put it in perspective, it means that today you can get a lower rate than any of the past two generations of homebuyers in your family if you decide to purchase at this time.

In addition, the National Mortgage News notes how today’s buyers have increasing purchasing power due to these low mortgage rates:

“Purchasing power rose 10% year-over-year…With interest rates hitting record lows, buyers were able to afford $32,000 “more house” as of July 23 than they could the year before with the same monthly payment.”

This is a great perk for buyers who are hoping to potentially get more for their money in a home, something many are considering today as they re-evaluate the amount of space they ideally need for their families. It is an opportunity not seen in 50 years, and one not to be missed if the time is right for you to buy a home.

The Biggest Perk for Sellers: Low Inventory

Today, there are simply not enough houses on the market for the number of buyers looking to purchase them. According to the National Association of Realtors (NAR):

“Total housing inventory at the end of June totaled 1.57 million units, up 1.3% from May, but still down 18.2% from one year ago (1.92 million).”

The red bars in the graph below indicate that the inventory of homes coming into the market continues to decline. It was low as we entered the pandemic and has reduced even further this year. Houses today are selling faster than they’re being listed, and that’s creating an even greater supply shortage (See graph below): 

 

The lack of inventory has been a challenging situation for a while now, and with low mortgage rates fueling buyer demand, inventory is even harder for buyers to find today. Buyers are eager to purchase, and because of the shortage of homes available, they’re encountering more bidding wars. This is one of the factors keeping home prices strong, an advantage for sellers. Lawrence Yun, Chief Economist for NAR notes that this trend may continue, too:

“Home prices rose during the lockdown and could rise even further due to heavy buyer competition and a significant shortage of supply.”

With low inventory and high buyer demand, homeowners can potentially earn an increasing profit on their houses and sell them quickly in this sizzling summer market.

Bottom Line

Whether you’re thinking about buying or selling at home, there are some key perks available right now. Contact a local real estate professional today to discuss how they may play to your advantage in the local market.