What It Means To Be in a Sellers’ Market

Article Courtesy of Keeping Current Matters/The KCM Blog

If you’ve given even a casual thought to selling your   house in the near future, this is the time to really think seriously about making a move. Here’s why this season is the ultimate sellers’ market and the optimal time to make sure your house is available for buyers who are looking for homes to purchase.

The latest Existing Home Sales Report from The National Association of Realtors (NAR) shows the inventory of houses for sale is still astonishingly low, sitting at just a 2-month supply at the current sales pace.

Historically, a 6-month supply is necessary for a ‘normal’ or ‘neutral’ market in which there are enough homes available for active buyers (See graph below):

When the supply of houses for sale is as low as it is right now, it’s much harder for buyers to find homes to purchase. As a result, competition among purchasers rises and more bidding wars take place, making it essential for buyers to submit very attractive offers.

As this happens, home prices rise and sellers are in the best position to negotiate deals that meet their ideal terms. If you put your house on the market while so few homes are available to buy, it will likely get a lot of attention from hopeful buyers.

Today, there are many buyers who are ready, willing, and able to purchase a home. Low mortgage rates and a year filled with unique changes have prompted buyers to think differently about where they live – and they’re taking action. The supply of homes for sale is not keeping up with this high demand, making now the optimal time to sell your house.

Bottom Line

Home prices are appreciating in today’s sellers’ market. Making your home available over the coming weeks will give you the most exposure to buyers who will actively compete against each other to purchase it.

 

TREETOPS TAB NOW INCLUDES MLS INFORMATION

I have just updated the TreeTops tab at the top of this page to include current MLS information in a similar format to my SCCL information.

The MLS information includes both resale and new build information.

Lennar is almost finished with sales in the community.

Once all new construction is sold, all of the information will be for resale homes.

Note that not all new construction homes are posted on MLS by Lennar.

 

Please check regularly for the most up-to-date information.

Please share this link with your friends living at TreeTops and with anyone who may be interested in moving there. I'd love to have the opportunity to talk to them!

https://pooksscclnews.blogspot.com/p/blog-page_21.html

2021 Real Estate Myth Buster [INFOGRAPHIC]

 Information Courtesy of Keeping Current Matters/The KCM Blog

Some Highlights

• There are a lot of misconceptions about buying or selling a home today, making it challenging to know exactly how to navigate the current real estate landscape.
• Here’s a little clarity when it comes to 5 common myths about the 2021 housing market.
• With these busted myths in hand, be sure to also work with a trusted real estate advisor so you can decipher local facts from fiction along the way.

TAX TIPS FOR HOMEOWNERS

 Information Courtesy of the National Association of REALTORS® (NAR) and HouseLogic.com

Tips to Make Tax Time Easy

Here are some tips to help keep things simple while making the most of homeowner deductions. When It’s Time to Get an Accountant to Do Your Taxes  8 Easy Mistakes Homeowners Make on Their Taxes  Are Closing Costs Tax Deductible?  How Long to Keep Tax Records and More: A Checklist  Can I Claim The Mortgage Interest Deduction?

What Credit Score Do You Need for a Mortgage?

 Article Courtesy of Keeping Current Matters/The KCM Blog

According to data from the most recent Origination Insight Report by Ellie Mae, the average FICO® score on closed loans reached 753 in February. As lending standards have tightened recently, many are concerned over whether or not their credit score is strong enough to qualify for a mortgage. While stricter lending standards could be a challenge for some, many buyers may be surprised by the options that are still available for borrowers with lower credit scores.

The fact that the average American has seen their credit score go up in recent years is a great sign of financial health. As someone’s score rises, they’re building toward a stronger financial future. As more Americans with strong credit enter the housing market, we see a natural increase in the FICO® score distribution of closed loans, as shown in the graph below:

If your credit score is below 750, it’s easy to see this data and fear that you may not be able to qualify for a mortgage. However, that’s not always the case. While the majority of borrowers right now do have a score above 750, there’s more to qualifying for a mortgage than just the credit score, and there are still options that allow people with lower credit scores to buy their dream home. Here’s what Experian, a global leader in consumer and business credit reporting, says:

• Federal Housing Administration (FHA) loans: “With a 3.5% down payment, homebuyers may be able to get an FHA loan with a 580 credit score or higher. If you can manage a 10% down payment, though, that minimum goes as low as 500.”
• Conventional loans: “The most popular loan type typically comes with a 620 minimum credit score.”
• S. Department of Agriculture (USDA) loans: “In general, lenders require a minimum credit score of 640 for a USDA loan, though some may go as low as 580.”
• S. Department of Veterans Affairs (VA) loans: “VA loans don’t technically have a minimum credit score, but lenders will typically require between 580 and 620.”

There’s no doubt a higher credit score will give you more options and better terms when applying for a mortgage, especially when lending is tight like it is right now. When planning to buy a home, speaking to an expert about steps you can take to improve your credit score is essential so you’re in the best position possible. However, don’t rule yourself out if your score is less than perfect – today’s market is still full of opportunity.

Bottom Line

Don’t let assumptions about whether your credit score is strong enough put a premature end to your homeownership goals. Contact your local real estate professional today to discuss the options that are best for you.

Americans See Major Home Equity Gains [INFOGRAPHIC]

 Infographic Courtesy of Keeping Current Matters/The KCM Blog

Some Highlights

• Today’s home price appreciation is driving equity higher throughout the country.
• If your needs are changing and you’re ready for a new home, your equity may be a great asset to power your next move.
• Now is a great time to put your equity toward a down payment on the home of your dreams.

To Renovate or Not To Renovate Before You Sell

Article Courtesy of Keeping Current Matters/The KCM Blog

When thinking about selling, homeowners often feel they need to get their house ready with some remodeling to make it more appealing to buyers. However, with so many buyers competing for available homes right now, renovations may not be as vital as they would be in a more normal market. Here are two things to keep in mind if you’re thinking of selling this season.

1. There aren’t enough homes for sale right now.

A normal market has a 6-month supply of houses for sale, but today’s housing inventory sits far below that benchmark. According to the National Association of Realtors (NAR), there’s only a 1.9-month supply of homes available today. As a result, buyer competition is high and homes are only on the market for about 21 days, during which time many receive multiple offers from hopeful buyers.

In a competitive market that’s moving so quickly, it makes sense to sell your house when buyers are scooping homes up as fast as they’re being listed. Spending costly time and money on renovations before you sell might just mean you’ll miss your key window of opportunity. While certain repairs on your house may be important, your best move right now is to work with a real estate advisor to determine which improvements are truly necessary, and which ones are not likely to be deal-breakers for buyers.

Today, many buyers are more willing to take on home improvement projects themselves in order to get the home they’re after, even if it means putting in a little extra work. Home Advisor explains:

“When it comes to the number of home improvement projects completed, Gen Z homeowners are leading the pack, completing an average of 3.5 projects. Millennials closely follow Gen Z, taking on an average of 3.3 projects, followed by Gen X at 2.8 projects. Boomers completed an average of 2 projects, and the Silent Generation completed the fewest projects, on average, at 1.8 per household. Compared to 2019, millennials are spending 60% more on home improvement and doing on average 30% more projects.”

In this market, it may be wise to let future homeowners remodel the bathroom or the kitchen to make design decisions that are best for their specific taste and lifestyle. As a seller, your dollars and time might be better spent working on small cosmetic updates, like refreshing some paint and power washing the exterior. Instead of over-investing in your home with upgrades that the buyers may change anyway, work with a real estate professional to determine the key projects that will maximize your listing, without overdoing it.

2. Focus on getting a good return on your investment.

When planning any bigger projects to tackle, you and your real estate agent will want to discuss the potential return on your investment and if those projects are worth the cost. Some homes do need a kitchen or bathroom renovation, roof repairs, or other major work, but definitely not all of them. You might be surprised by how well your house could fair in today’s sellers’ market. Hanley Wood states:

“The 2020 Cost vs. Value report shows a predictable increase in costs for all 22 remodeling projects but a consistent dip in the perceived value of those projects at the time of home sale, as estimated by real-estate professionals in more than 100 metro areas across the U.S. This results in a slight downturn on the return on investment for nearly all projects relative to the trends we saw in last year’s report.”

Ideally, homeowners getting ready to move should try to avoid over-investing in big renovations if they won’t make that money back when they sell their house. According to the 2020 State of Home Spending report from Home Advisor:

“The average household spending on home services rose to $13,138, an increase over last year’s survey results, where homeowners who did projects spent $9,081 on average in 2019.”

Before you renovate, contact a local real estate professional to see if it’s the best course of action. You may find out that putting your house on the market as-is will help you sell quickly, and it may result in the best return on your investment. Every home is different, but a conversation with your agent is mission-critical to make sure you make the right moves when selling this season.

Bottom Line

We’re in a strong sellers’ market, and that means you have the leverage to sell your house on your terms. Talk with a local real estate professional today to determine if renovating is really the best way to spend your time and money before you sell.

March Mid-Month Update

MARCH MID-MONTH UPDATE

There are 3,160 total residences in SCCL.

2807 Single Family Residences
275 Villas
78 Carriage Homes

 

The status of the market changes from day to day.

The information below is current as of 3/16/21. 

Days on Market (DOM) have decreased considerably.
The charts below shows DOM for properties that have gone 

UNDER CONTRACT (UC) since the first of March.
 

Single Family Residences
 4 SFRs have gone UNDER CONTRACT this month.

3 SFRs went UC in 8 days or less.
 2 of those went UC in 4 days or less.

 

Carriage Homes and Villas 

1 Villa has gone UNDER CONTACT this month.

Current information can be found using the links below and can always be found using the tabs at the top of my website/blog.

UP-TO-DATE STATS FOR SCCL

CURRENTLY ACTIVE/UNDER CONTRACT/SOLD YTD

Information about specific properties can be found using the PROPERTY SEARCH.

Contact me if you'd like to receive property updates by email.

With inventory down, we are currently in a Seller's market.
If you have been thinking about making a move, now might be the perfect time to put your home on the market.

Give me a call, if you'd like to discuss your plans.

Are We in a Housing Bubble?

Article Courtesy of Keeping Current Matters

Are we in a housing bubble?

Let’s take a look at 3 key factors that suggest we’re not.

Part 1: Housing Supply

Last year, home values appreciated a whopping 10% on average across the country. And while this year’s growth isn’t expected to match it (experts are predicting closer to 5%), buyers and sellers are still worried that home prices are too high and that depreciation is likely to follow.

However, unlike the Housing Bubble years of the mid-2000s, the major factor driving up home values is that we are also in a dire inventory shortage.

A balanced real estate market’s inventory sits around 6 months. Today’s current market is at 1.9 months, a historically low amount of homes for sale. On top of that, inventory has slowly been declining for years now: we’ve been under 5 months inventory for the last three.

In comparison, the inventory level from 2005 and 2007 increased from 5 months to 11 months, a vast over-supply of homes that did not warrant the price appreciation that went along with it.

So, throwing it back to your high school economics class, the biggest driver of price appreciation is a simple case of supply and demand, hence what we’re seeing in the market today.

 

Part 2: Housing Demand

If you remember the housing boom of the mid-2000s, you know how crazy that time was in real estate. But if Robert Schiller, a fellow at the Yale School of Management’s International Center for Finance, could sum it up in one phrase, it’s this: irrational exuberance.

In other words, the buying and selling frenzy that in-part caused the market collapse was fueled not by tactful, financial decisions but a country-wide case of FOMO (fear of missing out).

The mortgage industry fed into the frenzy, making it easy for people to obtain home loans much higher than they could afford.

Today’s real estate demand, however, is a very real thing.

Millennials, currently the largest generation in the U.S., are finally ready for homeownership and hitting the market en masse. The health crisis is also challenging homeowners to re-evaluate whether their current home meets their needs, driving more eager buyers into the market.

These two big factors, coupled with historically low mortgage rates, make purchasing a home today a good financial decision. So, not only is the demand very real, it’s also very smart.

 

Part 3: Equity

Following the housing and economic crash of 2008, economists, financiers, and real estate industry experts have combed through data to figure out why the entire system crumbled the way it did.

Most will agree that one of the biggest pieces of that catastrophic equation came down to this: equity. Or in reality, a lack of it.

The mid-2000s saw a massive wave of homeowners cashing out the equity in their homes. In short, they were using their homes like ATMs to afford some of the finer things in life.

This led to a lot of negative equity situations: where the amount someone owed on their home was far more than what their house was worth. Many foreclosures and short-sales followed, depreciating home values nationwide.

Today is a much different equity picture. Cash-out refinance volume over the last three years is less than a third of what it was compared to the three years before the crash. More than 38% of homeowners have paid off their mortgage “free and clear,” and another 18.7% have paid off over 50% of their mortgage.

This positive equity perspective puts the current housing market in a much stronger place, minimizing risk of foreclosure and stabilizing home values across the U.S.

 

SCCL Amenities Update from Board of Directors

Great news!  Today SCCL residents received the following email from the Board of Directors...

Good Afternoon SCCL Residents,

With the number of COVID cases continuing to decline in the area and the number of vaccinated individuals increasing, we are excited to continue the opening up of our community! 

Outdoor Amenities (Effective Immediately)

• Open to Residents & Family Members
• No restrictions on Number of People

Indoor Amenities (In the Coming Weeks)

• Number of Users will increase in Coming Weeks
• Increased Hours of Operation
• Residents Only for Usage

With this phase and all future phases, we remind each Resident is responsible for their own well-being. Please maintain social distancing, wear an appropriate face mask, and adhere to CDC and state guidelines.

Continue to look for details of amenity access, hours, and reservation information in the Message from Management communications.

Sincerely,

The SCCLCA Board of Directors

Will the Housing Market Bloom This Spring?

 Article Courtesy of Keeping Current Matters/The KCM Blog

Spring is almost here, and many are wondering what it will bring for the housing market. Even though the pandemic continues on, it’s certain to be very different from the spring we experienced at this time last year. Here’s what a few industry experts have to say about the housing market and how it will bloom this season.

Danielle Hale, Chief Economist, realtor.com:

“Despite early weakness, we expect to see new listings grow in March and April as they traditionally do heading into spring, and last year’s extraordinarily low new listings comparison point will mean year over year gains. One other potential bright spot for would-be homebuyers, new construction, which has risen at a year over year pace of 20% or more for the last few months, will provide additional for-sale inventory relief.”

Ali Wolf, Chief Economist, Zonda:

“Some people will feel comfortable listing their home during the first half of 2021. Others will want to wait until the vaccines are widely distributed. This suggests more inventory will be for sale in late 2021 and into the spring selling season in 2022.”

Freddie Mac:

“Since reaching a low point in January, mortgage rates have risen by more than 30 basis points… However, the rise in mortgage rates over the next couple of months is likely to be more muted in comparison to the last few weeks, and we expect a strong spring sales season.”

Mark Fleming, Chief Economist, First American:

“As the housing market heads into the spring home buying season, the ongoing supply and demand imbalance all but assures more house price growth…Many find it hard to believe, but housing is actually undervalued in most markets and the gap between house-buying power and sale prices indicates there’s room for further house price growth in the months to come.”

Bottom Line

The experts are very optimistic about the housing market right now. If you pressed pause on your real estate plans over the winter, reach out to a local real estate professional to determine how you can re-engage in the homebuying process this spring.

What the heck happened to mortage rates???

Article Courtesy of Movement Mortgage

Melissa Messick, Senior Loan Officer

Mortgage rates made a notable jump this week, hitting their highest point since last July (Forbes, metered paywall).

According to the Mortgage Bankers Association, the average rate on 30-year mortgage loans is now 3.23%—up from 3.08% the week prior and the biggest week-over-week jump in nearly a full year.

For a full picture, check out yesterday’s Black Knight Daily Market Briefing.

Yesterday’s Rise & Shred featured a picture that read: “I don’t really understand how bond markets affect mortgage rates… but at this point, I’m too afraid to ask.” LOL!

We asked Pat Stone the CEO of Williston Financial Group for an explanation, and for sure, he had one!

“The jump in rates is a direct reaction to the sudden rise in the 10yr T-bill, as mortgage rates historically run 1.5 to 2% above the 10yr treasury,” Stone said.  “The 10yr treasury has gone up as more money has moved to the 2 yr treasury as a result of investor concern over potential inflation and the size of the pending stimulus bill.”

And how about future behavior?

“Rates will probably level off, maybe decline a little, then gradually rise over the next two years,” Stone explained. “These rates are historically very attractive, even with the recent increases.  Buyers should let their desire for home ownership, and affordability, be the governing factors. Timing the bond market is always difficult.”

Melissa Messick| SENIOR LOAN OFFICER

NMLS 97916

Office (980) 777-1042 
Mobile (704) 905-4009

Total Number of Residences in SCCL

A correction is in order...  I received 2 emails from FSR confirming the total number of residences here in SCCL at 3161, but learned from BOD Secretary Cynthia Rudolph that the actual number is 3160.  Since I will spend an hour looking for a penny error in my checkbook, I needed to follow up immediately to see why the numbers didn't correspond.  After contacting FSR again today, I learned that it was their error - COS (Common Open Space) was inadvertently included in the 3161 number.  So here are the correct numbers:

3160 TOTAL RESIDENCES

2807 SINGLE FAMILY HOMES

275 VILLAS

78 CARRIAGE HOMES

What Are the Benefits of a 20% Down Payment?

 Article Courtesy of Keeping Current Matters/The KCM Blog

If you’re thinking of buying a home this year, you may be wondering how much money you need to come up with for your down payment. Many people may think it’s 20% of the loan to secure a mortgage. While there are plenty of lower down payment options available for qualified buyers who don’t want to put 20% down, it’s important to understand how a larger down payment can have great benefits too.

The truth is, there are many programs available that allow you to put down as little as 3.5%, which can be a huge benefit to those who want to purchase a home sooner rather than later. Those who have served our country may also qualify for a Veterans Affairs Home Loan (VA) and may not need a down payment. These programs have really cut down the savings time for many potential buyers, enabling them to start building family wealth sooner.

Here are four reasons why putting 20% down is a good plan if you can afford it.

1. Your interest rate may be lower.

A 20% down payment vs. a 3-5% down payment shows your lender you’re more financially stable and not a large credit risk. The more confident your lender is in your credit score and your ability to pay your loan, the lower the mortgage interest rate they’ll likely be willing to give you.

2. You’ll end up paying less for your home.

The larger your down payment, the smaller your loan amount will be for your mortgage. If you’re able to pay 20% of the cost of your new home at the start of the transaction, you’ll only pay interest on the remaining 80%. If you put down 5%, the additional 15% will be added to your loan and will accrue interest over time. This will end up costing you more over the lifetime of your home loan.

3. Your offer will stand out in a competitive market.

In a market where many buyers are competing for the same home, sellers like to see offers come in with 20% or larger down payments. The seller gains the same confidence as the lender in this scenario. You are seen as a stronger buyer with financing that’s more likely to be approved. Therefore, the deal will be more likely to go through.

4. You won’t have to pay Private Mortgage Insurance (PMI)

What is PMI? According to Freddie Mac:

“PMI is an insurance policy that protects the lender if you are unable to pay your mortgage. It’s a monthly fee, rolled into your mortgage payment, that is required for all conforming, conventional loans that have down payments less than 20%. Once you’ve built equity of 20% in your home, you can cancel your PMI and remove that expense from your mortgage payment.”

As mentioned earlier, when you put down less than 20% when buying a home, your lender will see your loan as having more risk. PMI helps them recover their investment in you if you’re unable to pay your loan. This insurance isn’t required if you’re able to put down 20% or more.

Many times, home sellers looking to move up to a larger or more expensive home are able to take the equity they earn from the sale of their house to put down 20% on their next home. With the equity homeowners have today, it creates a great opportunity to put those savings toward a 20% or greater down payment on a new home.

If you’re looking to buy your first home, you’ll want to consider the benefits of 20% down versus a smaller down payment option.

Bottom Line

If you’re thinking of buying a home and are already saving for your down payment, reach out to a trusted professional who can help you decide what fits best with your long-term plans.

MARCH 1 - The numbers changed again

 

Another property went UNDER CONTRACT, so we're back down to 2 ACTIVE SFR listings in SCCL today.