Why Selling this Fall May Be Your Best Move

Article Courtesy of Keeping Current Matters/The KCM Blog

If you’re thinking about moving, selling your house this fall might be the way to go. Here are four highlights in the housing market that may make your decision to sell this fall an easy one.

1. Buyers Are Actively in the Market

ShowingTime, a leading real estate showing software and market stat service provider, just reported that buyer traffic jumped 60.7% compared to this time last year. That’s a huge increase.

It’s clear that buyers are ready, willing, and able to purchase – and they’re in the market right now. In many regions of the country, multiple buyers are entering bidding wars to compete for the home they want. Take advantage of the buyer activity currently in the market so you can sell your house in the most favorable terms.

2. There Are Not Enough Homes for Sale

In the latest Existing Home Sales Report, the National Association of Realtors (NAR) announced that there were only 1.49 million units available for sale. That number was down 18.6% from one year ago. This means in the majority of the country, there aren’t enough homes for sale to satisfy the number of buyers.

Due to the health crisis, many homeowners were reluctant to list their homes earlier this year. That will change as the economy continues to recover. The choices buyers have will increase going into the new year. Don’t wait until additional sellers come to market before you decide to make a move.

3. The Process Is Going Quickly

Today’s ultra-competitive environment has forced buyers to do all they can to stand out from the crowd, including getting pre-approved for their mortgage financing. This makes the entire selling process much faster and simpler, as buyers know exactly what they can afford before shopping for a home. According to the latest Origination Insights Report from Ellie Mae, the time needed to close a loan is just 49 days.

4. There May Never Be a More Important Time to Move

You’ve likely spent much of the last six months in your current home. Perhaps you now realize how small it is, and you need more space. If you’re working from home, your children are doing virtual school, or you just need more space, your current floor plan may not work for your family’s changing needs.

Homebuilders are beginning to build houses again, so you can choose the exact floor plan to match what your family needs, and you can make sure the outdoor space is what you want too.

Bottom Line

The housing market is prime for sellers right now, so reach out to a local real estate professional to get the process started this fall. If the timing is right for you and your family, the market is calling your name.

On a personal note...

Paws on Parade is a public art tourism project that places creatively designed fiberglass dogs throughout Lancaster County.  This tourism project allows the Lancaster County Council of the Arts to celebrate and promote the artistic talents in the community as well as drive visitors to special locations all over the county.

Lancaster County Council of the Arts Staff

I am so honored that the dog I painted for the Paws on Parade project of the  Lancaster County Council of the Arts has been installed at the new Lancaster County Animal Shelter. The new shelter is scheduled to open next month and my dog, named Scout, joins a cat named Journey (created by Kristina Humphries Ray) as the welcoming committee at the entrance to the shelter.  I hope the new shelter will provide wonderful new beginnings for the animals who come in fear and leave with hope and love.

Rudy and Scout

My rescue dog Rudy was the inspiration for Scout and I thought it would be appropriate for him to be there for the installation.  The day that Scout arrived at my house for painting was the same day Rudy underwent emergency surgery for the removal of a kidney with a cancerous mass.  When we left him at Long Animal Hospital, we didn't know if we'd ever see him again.  Thankfully, Rudy made it through surgery and during his recovery he was always by my side as I worked on Scout.  Three and a half months later he is here to celebrate Scout's placement at the new shelter.

Finished and ready for delivery.

Staff of the Lancaster County Animal Shelter

   

Scout and Journey waiting to be taken to the new shelter

Thanks to Debbie Plyler Jaillette, Executive Director of the LCCA, for sharing the installation photos.

 Article in the Carolina Gateway Newspaper

The Lancaster News

(Same article as the Carolina Gateway)

 

SEPTEMBER NEWSLETTER

The team at Helen Adams Realty has been very busy preparing for the change-over to our new company website platform.  After several days of training on ZOOM, we are now beginning to try out the new system in BETA format.  That means I get to play with it, but can't share it with you yet.  I am delighted with all the new things we'll be able to do within the new system, but it may take a while to master it all. We are scheduled to go live with it on September 28th.  Due to the change in systems, there will not be a HAR newsletter this month, but I am sending a mid-month update from the old system, before it goes away. 

Please note that my POOK'S SUN CITY CAROLINA LAKES NEWS website/blog will continue in its current form.  This is my personal site and not part of the Helen Adams Realty website.  Stats and blog postings will continue to be updated regularly and all the other great info that you find here, will always remain in place.  But, once my new HAR website is up and running, I know you will want to visit that site also.  

I am really looking forward to all the options for communicating that will be available in the new platform.  If you are not currently on my mailing list, please contact me.  Please note that if you are on my mailing list and "unsubscribe" to any individual mailing, it will unsubscribe you from all my other mailings.  So, please do not "unsubscribe" unless you want to sever all my HAR communications - Real Estate Updates, Newsletters, Seasonal messages, and other valuable information.  Instead, please let me know what information is valuable to you and I will adjust the info that I send you.

September Mid-Month Update

Activity in Sun City Carolina Lakes continues to be very robust.  As of today (9/15/2020) there are only 24 ACTIVE single family home listings.  Yesterday, there were 27.  The numbers change daily and one of the main reasons I don't use flyers to share this information is that flyers are accurate at the time they are printed and are typically outdated by the time they reach mail tubes.  I hope you'll visit my website regularly for the most current listing activity and the most current stats for SCCL.  If you want to receive daily updates in your "inbox," just let me know and I'll make that happen for you.

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. 

Single Family Homes

Carriage Homes and Villas

Days on Market (DOM)

 

Not including the two outliers on the high end, the average DOM for single family homes that have gone UNDER CONTRACT this month is just under 20.  In August, it was 28 days.  Unfortunately, for a variety of reasons, sometimes a home may linger on the market.  But as I always tell my clients, the right person just hasn't walked through the door yet.  As noted in my August Mid-Month Update, showings (and sales) came to a screeching halt around mid-March and continued to be slow through April, picking up again in May and  continuing to be strong throughout the summer.

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.  

Homebuyer Traffic Is on the Rise

 Article Courtesy of Keeping Current Matters/the KCM Blog

One of the biggest surprises of 2020 is the resilience of the residential real estate market. Lawrence Yun, Chief Economist of the National Association of Realtors (NAR), is now forecasting that more homes will sell this year than last year. He’s also predicting home sales to increase by 8-12% next year. There’s strong evidence that he will be right.

ShowingTime, a leading showing software and market stat service provider for the residential real estate industry, just reported on their latest the ShowingTime Showing Index:

“Home buyer traffic jumped again in July, recording a 60.7 percent year-over-year increase in nationwide showing activity.”

That means there are 60% more buyers setting appointments to see homes than there were at this same time last year. The number of potential purchasers was also up dramatically in every region of the country:

• The Northeast was up 76.6%
• The West was up 56.7%
• The Midwest was up 52.1%
• The South was up 46.7%

The Housing Market Is Showing a ‘V’ Type Recovery

ShowingTime also indicates the real estate market has already come back from the downturn earlier this year that was caused by shelter-in-place orders. Here are the year-over-year numbers for each region on a monthly basis (See graph below):

We’re way ahead of where we were at this time last year. This data validates the thoughts of Frank Martell, President and CEO of CoreLogic, who recently noted:

“On an aggregated level, the housing economy remains rock solid despite the shock and awe of the pandemic.”

Bottom Line

If you’re thinking about selling your house, this may be a great time to get the best price and the most favorable terms.

Homebuyer Demand Is Far Above Last Year’s Pace

Article Courtesy of Keeping Current Matters/The KCM Blog

 Homebuying has been on the rise over the past few months, with record-breaking sales powering through the market in June and July. Buyers are actively purchasing homes, and the momentum is continuing into the fall. It is, however, becoming harder for buyers to find homes to purchase. If you’ve been thinking about selling your house, the coming weeks might just be the timing you’ve been waiting for.

According to the Pending Home Sales Report from the National Association of Realtors (NAR):

“Pending home sales in July achieved another month of positive contract activity, marking three consecutive months of growth.

The Pending Home Sales Index (PHSI), a forward-looking indicator of home sales based on contract signings, rose 5.9% to 122.1 in July. Year-over-year, contract signings rose 15.5%. An index of 100 is equal to the level of contract activity in 2001.”

This means that for the past several months, buyers have signed an increasing number of contracts to purchase homes – well above where the market was at this time last year. Lawrence Yun, Chief Economist at NAR notes:

“We are witnessing a true V-shaped sales recovery as homebuyers continue their strong return to the housing market…Home sellers are seeing their homes go under contract in record time, with nine new contracts for every 10 new listings.”

Below is a graph that shows the impressive recovery of homes sales compared to previous years. The deep blue v marks the slowdown from this spring that turned into an exponential jump in sales that followed through the summer, skyrocketing above years past:

What Does This Mean for Sellers?

If you were thinking about putting your house on the market in the spring, but decided to wait due to the health crisis, it may be time to make your move. Buyers are in the market right now. With so few homes available to purchase, homeowners today are experiencing more bidding wars, creating an optimal time to sell.

Is This Trend Going to Continue?

As CNBC notes, there are no signs of slowing buyer demand this fall:

“The usual summer slowdown in the housing market is not happening this year. Buyers continue to show strong demand, spurred by the new stay-at-home world of the coronavirus and by record low mortgage rates.”

Danielle Hale, Chief Economist at realtor.com, concurred:

“In a typical year in the housing market, buyer interest begins to wane before seller interest causing the usual seasonal slowdown as we move into the fall. Due to a delayed spring season and low mortgage rates, we could see buyer interest extend longer than usual into the typically quieter fall. Whether this means more home sales will depend on whether sellers participate or decide to stay on the sidelines.”

As Hale mentioned, homeowners who are willing to sell their houses right now will play a big role in whether the trend continues. The market needs more homes to satisfy ongoing buyer demand. Maybe it’s time to leverage your equity and move up while eager home shoppers are ready to purchase a house just like yours.

Bottom Line

If your current home doesn’t meet your family’s changing needs, contact a local real estate professional to help you sell your house and make the move you’ve been waiting for all year.

Have You Ever Seen a Housing Market Like This?

Article Courtesy of Keeping Current Matters/The KCM Blog

The year 2020 will certainly be one to remember, with new realities and norms that changed the way we live. This year’s real estate market is certainly no exception to that shift, with historic highlights continuing to break records and challenge what many thought possible in the housing market. Here’s a look at four key areas that are fundamentally defining the market this year.

Housing Market Recovery

The economy was intentionally put on pause this spring in response to the COVID-19 health crisis. Many aspects of the common real estate transaction were placed on hold at the same time. Thankfully, technology and innovation helped the industry power forward, and business gradually ramped back up as shelter-in-place orders were lifted.

The result? Total transformation of the market from rock-bottom lows to exceptional highs. Today, the housing recovery is being called truly remarkable by many experts and is far exceeding expectations. From pending home sales to purchase applications, buyers are back in business and homes are selling – fast.

According to the Housing Market Recovery Index by realtor.com, the market has surpassed pre-pandemic levels, and has regained the strength we remember from February of this year (See graph below):

 

Record-Breaking Mortgage Rates

Historically low mortgage rates are another 2020 game-changer. Today’s low rate is one of the big motivating factors bringing buyers back into the market. The average rate reached an all-time low on multiple occasions this year, and it continues to hover in record-low territory.

When rates are this low, buyers have a huge opportunity to get more for their money when purchasing a home, something many are eager to find while continuing to spend more time than expected at home this year, and likely beyond.

Continued Home Price Appreciation

One of the key drivers of home price appreciation this year is historically low inventory. Inventory was low going into the pandemic, and it is still sitting well below the level needed for a normal market. Although sellers are slowly making their way back into the game, buyers are scooping up homes faster than they’re coming up for sale.

This is a classic supply and demand scenario, forcing home prices to rise. Selling something when there is a higher demand for what is available naturally bumps up the price. If you’re ready to sell your house today, this may be the optimal time to make your move. As Bill Banfield, EVP of Capital Markets at Quicken Loans, notes:

“The pandemic has not stopped the consistent home price growth we have witnessed in recent years.” 

Increasing Affordability

Even as home prices continue to rise, affordability is working in favor of today’s homebuyers. According to many experts, rates this low are off-setting rising home prices, which increases buyer purchasing power – an opportunity not to be missed, especially if your family’s needs have changed. If you now need space for a home office, gym, virtual classroom, and more, it may be time to reconsider your current house.

According to Mortgage News Daily:

“Those shopping for a home can afford 10 percent more home than they could have one year ago while keeping their monthly payment unchanged. This translates into nearly $32,000 more buying power.”

Bottom Line

With mortgage rates hitting historic lows, home prices appreciating, affordability rising, and the market recovering like no other, 2020 has been quite a year for real estate – perhaps one we’ve never seen before and may never see again. Reach out to a local real estate professional today if you’re ready to take advantage of this year’s record-breaking opportunities.

 

Could Mortgage Rates Be Headed Up?

Market Update Courtesy of Movement Mortgage / Melissa Messick, Sr. Loan Officer 

Mortgage rates remain historically low as we enter September. The latest numbers from Freddie Mac show that the average for a 30-year fixed-rate mortgage is standing at 2.93%, relatively unchanged from last week. Freddie Mac economists noted this week that as the yield on the benchmark 10-year Treasury note increases, mortgage spreads are still declining which helps keep rates low. However, if Treasury yields continue to increase, it might be difficult for rates to stay this low much longer.

Why are Treasury note yields going up? The Federal Reserve’s recent announcement about inflation. Investors predicted that the Fed would change its stance on inflation at the group’s August meeting. The Fed did and will now adopt a policy where it allows inflation to run moderately past the target inflation rate for “a period of time” to try and spur inflation. Once the announcement was made, yields on long-term debt started to increase as investors moved away from long-term debt. Last week we saw the yield on the benchmark 10-year Treasury increase to 0.74%. Early Friday morning, the 10-year note was trading at 0.645%. 

Mortgage rates may also be affected by another proposal by the Federal Housing Finance Authority. After the 2008 crash, Fannie Mae and Freddie Mac were put under government conservatorship. Basically, the government took them over to keep them from financially crashing. In return, Fannie and Freddie have to pay the federal government back through their profit.

Recently, there has been a push by the government to release the government-sponsored enterprises (GSEs) from conservatorship. The only problem is, Fannie and Freddie don’t have enough capital to run independently from government support. So this week, the FHFA proposed a way to raise capital that would force the GSEs to raise their guaranty fees (g-fees). These fees are what Fannie and Freddie charge to guarantee payout. This potential rise in g-fees will likely be passed on to lenders and eventually consumers in the form of higher interest rates. 

Some very positive news this week came in the form of a better-than-expected jobs report from the Bureau of Labor Statistics. For the first time since March, the unemployment rate is below 10%. The report shows the unemployment rate in August at 8.4% with 1.4 million non-farm payroll jobs added. 

Early Friday morning trading saw Dow futures jump by more than 100 points. However, the S&P 500 stayed relatively flat with the Nasdaq being dragged down, surprisingly, by tech stocks. Apple was down 2.5% with Facebook, Amazon and Netflix also all showing declines. 

After hitting record closes Wednesday, markets were hit hard on Thursday with the release of private payroll data. Private payrolls increased by 428,000 jobs in July, but severely underperformed against the expectation of 1.17 million jobs added. The report from ADP showed that big business had the biggest gains. Companies with 500 or more employees added nearly 300,000 jobs in July. 

 

Should You Buy an Existing Home or New Construction?

 Article Courtesy of Keeping Current Matters/The KCM Blog

Finding the right home to purchase today is one of the biggest challenges for potential buyers. With so few homes for sale and construction of newly built homes ramping up, you may be wondering if you should consider new construction in your search process. It’s a great question to ask, and one to look at from the pros and cons of what it means to buy a new home versus an existing one. Here are a few things to consider when making the best decision for your family.

New Construction  

When buying a new home, you can often choose more energy-efficient options. New appliances, new windows, a new roof, etc. These can all help lower your energy costs, which can add up to significant savings over time. With programs like ENERGY STAR, your home also helps protect the environment and reduces your carbon footprint.

Lower maintenance that comes with a newer home is another great benefit. When you have a new home, you likely won’t have as many little repairs to tackle, like leaky faucets, shutters to paint, and other odd jobs around the house. With new construction, you’ll also have warranty options that may cover portions of your investment for the first few years.

Another solid benefit to new construction is customization. Do you want a mudroom, stainless steel appliances, granite countertops, hardwood floors, an office, or a multipurpose room to homeschool your children? These items can be customized to your specific needs during the design phase. With an existing home, you’re buying something that’s already completed, so if you want to make changes, you may need to hire a contractor to help get your home ready for your family.

Existing Home

When buying an existing home, you can negotiate with the current homeowner on price, which is something you generally don’t get to do with a builder. Builders know their material and construction costs, and they have a price set for the model you’re buying. So, if you want to negotiate, then maybe an existing home will be best.

For many families, having an established neighborhood is also important. Some buyers like to know the neighbors, if it’s family-friendly, and traffic patterns before making a commitment. When you buy new construction, you won’t have a full view of some of those details until the lots around you are sold.

Finally, timing comes into play. With an existing home, you can move in based on the timeline you agree to with the sellers. With new construction, you need to wait for the house to be built. Depending on the time of the year you’re buying and the region you’re in, the weather can also be a factor in the timeframe. This is something really important to keep in mind, especially if you need to move sooner rather than later. Over the past few months with COVID-19 and social distancing regulations, some areas for new construction have been delayed.

Bottom Line

Whether you want to buy a newly built home or one that’s already established, both are great options. They each have their pros and cons, and every family will have different circumstances driving their decision. If you have questions and want to know more about the options in your area, contact a local real estate professional today so you can feel confident making a decision about your next home.

TreeTops Inventory Update - 8/31/2020