It’s Still a Sellers’ Market [INFOGRAPHIC]

Infographic Courtesy of Keeping Current Matters/The KCM Blog

 

Note that the information is not specific to our market, but indicates what's going on nationally.  That being said, while the specific numbers may not be the same, we remain in a sellers' market.

 

Some Highlights

• Due to low supply and high demand, today is one of the strongest sellers’ markets we’ve seen.
• Sellers can benefit from more offers to pick from, higher home values, and a faster sales process. That might be why 73% of people believe it’s a good time to sell.
• Sellers, don’t miss out on this unique opportunity. Work with an agent to take advantage of this hot sellers’ market.

Remote Work Is Here To Stay. Can Your Home Deliver the Space You Need?

Article Courtesy of Keeping Current Matters/The KCM Blog

A lot has changed over the past year. For many people, the rise in remote work influenced what they’re looking for in a home and created a greater appetite for a dedicated home office. Some professionals took advantage of the situation and purchased a bigger home. Other people thought working from home would be temporary, so they chose to get creative and make the space they already had work for them. But recent headlines indicate working from home isn’t a passing fad.

If you’re still longing for a dedicated home office, now may be the time to find the home that addresses your evolving needs. More and more companies are delaying their plans to return to the office – others are deciding to remain fully remote permanently. According to economists from Goldman Sachs in a recent article from CNN:

“Job ads increasingly offer remote work and surveys indicate that both workers and employers expect work from home to remain much more common than before the pandemic.”

Other experts agree. A survey conducted by Upwork of 1,000 hiring managers found that due to the pandemic, companies were planning more remote work now and in the years to come. Upwork elaborates:

“The number of remote workers in the next five years is expected to be nearly double what it was before COVID-19: By 2025, 36.2 million Americans will be remote, an increase of 16.8 million people from pre-pandemic rates.”

The charts below break down their findings and compare pre- and post-pandemic percentage.

 

How Does This Impact Homeowners?

If you own your home, it’s important to realize that continued remote work may give you opportunities you didn’t realize you had. Since you don’t need to be tied to a specific area for your job, you have more flexibility when it comes to where you can live.

If you’re one of the nearly 23% of workers who will remain 100% remote: 

You have the option to move to a lower cost-of-living area or to the location of your dreams. If you search for a home in a more affordable area, you’ll be able to get more home for your money, freeing up more options for your dedicated office space and additional breathing room.

You could also move to a location where you’ve always wanted to live – somewhere near the beach, the mountains, or simply a market that features the kind of weather and community amenities you’re looking for. Without your job tying you to a specific location, you’re bound to find your ideal spot.

If you’re one of the almost 15% of individuals who will have a partially remote or hybrid schedule:

Relocating within your local area to a home that’s further away from your office could be a great choice. Since you won’t be going in to work every day, a slightly longer commute from a more suburban or rural neighborhood may be a worthy trade-off for a home with more features, space, or comforts.

Bottom Line

If ongoing remote work is changing what you need in a home, work with a local real estate professional to find one that delivers on your new wish list.

NEW INDY UPDATE FROM STATE SENATOR MICHAEL JOHNSON

Not specific to Lancaster or York Counties, there are several class action lawsuits against New Indy Containerboard LLC related to air pollution issues in NC & SC. 

Info: Elrod Pope Law Firm - Indy Paper Mill Air Pollution

Amended Class Action Complaint filed 8/11/21

 

The following information comes from the 9/17/21 Newsletter of SC State Senator (District 16) Michael Johnson

SC State Senate Website Page for Senator Johnson

Senator Johnson's FaceBook Page

 

The Odor and New Indy:

While I may not be in Columbia every week I continue to hold regular conversations with DHEC officials about New Indy and the odor we have had since January. As you may know I sent a letter to New Indy demanding that they fix this issue on July 28th. This past week, an attorney with New Indy reached out to me to discuss their ongoing efforts to remedy this problem.

Last Friday I also had the chance to do a Zoom conference with the 4th District Director of the EPA, Senator Wes Climer, and Congressman Ralph Norman. The call lasted for about an hour and I had the opportunity to ask several questions. Here are a few things I learned from the call:

As of last week there have been over 33,000 complaints made to DHEC regarding New Indy. The EPA and DHEC have been focusing on the hydrogen sulfide levels, but both are monitoring other emissions as well. The EPA has an ongoing investigation and are in the midst of a Clean Air Act Inspection. That inspection has not been completed and the EPA made it clear that they do not discuss ongoing inspections and investigations. When I asked for a timeline to complete this inspection I was told that they were working on it but could not give a definitive date.

During the call we also discussed that the EPA issued an Imminent and Substantial Endangerment Order (ISE) against New Indy. Since the mid-1990's the EPA has only issued 12-13 of these, so they are taken very seriously. The ISE Order only last 90 days and at that time they requested a judge that it be extended until New Indy is in compliance with all aspects of the Clean Air Act.

As many of you know, on September 2nd New Indy exceeded the fence line monitoring limits. The EPA and DHEC are working with New Indy to determine the exact cause and the processes that failed leading to the issue.

The EPA Director stated that he believes they will fix the issue at New Indy, however it was going to take time. He stated that New Indy needs to install equipment and possibly change processes to permanently correct the problem. I specifically asked about monitoring beyond the fence line, especially as it relates to emissions from the stacks. The EPA is looking at the stacks, testing what is being emitted and using modeling to determine where it settles. That is still an ongoing investigation.

As I said earlier, in addition to talking with the EPA I have begun to have discussions with an attorney for New Indy. I, and Congressman Norman, will be touring the plant today, Friday, September 17th. We will both push New Indy to make the needed changes and correct the issues cited by DHEC and the EPA. I am encouraged by New Indy's engagement, and believe they are beginning to move in the right direction. That being said, there is much work to be done.

I will update everyone following my visit to New Indy and my next conference with DHEC officials. Please continue to file complaints with DHEC when you notice the smell or have symptoms that you believe are related to your exposure. You can file a complaint by clicking HERE. DHEC also issues weekly reports which can be found HERE.

Why It’s Still Safe To Sell Your Home

Article Courtesy of Keeping Current Matters/The KCM Blog

If you’re on the fence about whether or not you want to sell your house this year, there’s good news. Real estate professionals are highly experienced in how to sell houses safely during the pandemic. Over the last year, agents have adopted new technologies and safety measures designed to keep you safe. And experts say these practices are here to stay. As Bob Goldberg, CEO of the National Association of Realtors (NAR), puts it:

“The pandemic has confirmed to all of us in the industry that technology will continue to transform real estate.”

Below is a closer look at some of the new tools real estate professionals are using to better serve sellers.

New and Existing Technology Are Impacting the Process

In the 2021 Realtor Technology Survey, NAR asks real estate professionals their opinions on the most valuable pieces of technology for their business over the past 12 months. The graph below highlights the top five tools those agents said are true game-changers:

Tools that allow agents to serve clients at a distance and limit exposure to others, including eSignature, lockboxes, and video conferencing, became increasingly important during the last year. Those same tools are just as essential today. Restricting the number of people a seller must interact with during the process is the best way to keep all parties involved in a sale safe.

Trusted Advisors Stay Up to Date on Guidelines for In-Person Showings

As things change in our day-to-day lives, the guidance on how to stay safe changes as well. NAR regularly updates the resources available to real estate professionals to ensure the latest recommendations and best practices are readily available. This includes suggestions on how to continue to conduct safe in-person showings.

Agents also follow guidance from the Centers for Disease Control (CDC) to make sure homes are safe. The CDC’s advice includes information on how to clean high-touch surfaces like doorknobs, tables, and countertops so they’re disinfected for all.

This past year changed the way agents do things for the better. Real estate professionals use new technology, tools, cleaning procedures, and the latest guidance to meet your changing needs. The goal is to keep you safe and build your confidence throughout the sales process.

Bottom Line

It’s important to know that your safety is still a top priority when it comes to selling this year. Connect with your trusted real estate advisor today to see what tools are available that can help you take advantage of today’s sellers’ market.

REMEMBERING 9-11

We remember today and always.

 

https://www.youtube.com/watch?v=E7ANxk0aErs

The Best Use of Time (and Money) When It Comes to Renovations

 Article Courtesy of Keeping Current Matters/The KCM Blog

In the current sellers’ market, many homeowners wonder what, if anything, needs to be remodeled before they list their house. That’s where a trusted real estate professional comes in. They can help you think through today’s market conditions and how they impact what you should – and shouldn’t – renovate before selling.

Here are some considerations a professional will guide you through:

1. With current supply challenges, buyers may be willing to take on projects of their own.

A more balanced market typically sees a 6-month supply of homes for sale. Above that, and we’re in a buyers’ market. Below that, and we’re in a sellers’ market. According to a recent report by the National Association of Realtors (NAR), our current supply of homes for sale, while rising, still remains solidly in sellers’ market territory:

“Unsold inventory sits at a 2.6-month supply at the current sales pace, modestly up from May’s 2.5-month supply but down from 3.9 months in June 2020.”

So, what’s that mean for you? If you’re a seller trying to decide whether or not to renovate, this is especially important because it’s indicative of buyer behavior. When there aren’t enough homes for sale, buyers may be more willing to purchase a home that doesn’t meet all their needs and renovate it themselves later.

2. Not all renovation projects are equal.

You don’t want to spend time and money on a project that isn’t worth the cost or is too niche design-wise for some homebuyers. According to an article by Renofi.com, basing home updates on what’s trendy right now can be a costly mistake:

“The last thing you as a homeowner want to do is center your home design around a passing fad – even worse, one thats design quality won’t last a good while.”

Before making any decisions, talk to your real estate advisor. They have insight into what other sellers are doing before listing their homes and how buyers are reacting to those upgrades. Don’t spend the time and money to be trendy – if your buyer wants to upgrade to the newest fad later, they can.

3. If you’ve already made upgrades this past year, your agent can help spotlight them.

If you have already completed some renovations on your house, you’re not alone. The pandemic kept people at home last year, and during that time, many homeowners completed some home improvement projects. HomeAdvisor’s 2021 State of Home Spending Report found:

“35% of households that completed an improvement project undertook some type of interior painting, while 31% completed a bathroom remodel and 26% installed new flooring.”

Let your real estate professional know if you fall in this category. They can highlight any recent upgrades you’ve made in your house’s listing.

Bottom Line

When it comes to renovations, your return-on-investment should be top of mind. Talk with your local real estate professional to find out what projects you should prioritize before you sell and how to highlight your upgrades to maximize your house’s potential.

What Do Experts Say About Today’s Mortgage Rates?

 Article Courtesy of Keeping Current Matters

Mortgage rates are hovering near record lows, and that’s good news for today’s homebuyers. The graph below shows mortgage rates dating back to 2016 and where today falls by comparison.

 Generally speaking, when rates are low, you can afford more home for your money. That’s why experts across the industry agree – today’s low rates present buyers with an incredible opportunity. Here’s what they have to say:

Sam Khater, Chief Economist at Freddie Mac, points out the historic nature of today’s rates:

“As the economy works to get back to its pre-pandemic self, and the fight against COVID-19 variants unfolds, owners and buyers continue to benefit from some of the lowest mortgage rates of all-time.”

Mark Fleming, Chief Economist at First American, talks about how rates impact a buyer’s bottom line:

“Mortgage rates are generally the same across the country, so a decline in mortgage rates boosts affordability equally in each market.”

Danielle Hale, Chief Economist at realtor.com, also notes the significance of today’s low rates and urges buyers to carefully consider their timing:

“Those who haven’t yet taken advantage of low rates to buy a home or refinance still have the opportunity to do so this summer.”

Hale goes on to say that buyers who don’t act soon could see higher rates in the coming months, negatively impacting their purchasing power:

“We expect mortgage rates to fluctuate near historic lows through the summer before beginning to climb this fall.”

And while mortgage rates are still low today, the data from Freddie Mac indicates rates are fluctuating ever so slightly right now, as they moved up one week before inching slightly back down in their latest release. It’s important to keep in mind the influence rates have on your monthly mortgage payment.

Even small increases can have a big impact on what you pay each month. Trust the experts. Today’s rates give you opportunity and flexibility in what you can afford. Don’t wait on the sidelines and hope for a better rate to come along; the rates we’re seeing today are worth capitalizing on.

Bottom Line

Mortgage rates hover near record lows today, but experts forecast they’ll rise in the coming months. Waiting could prove costly when that happens. Talk to your trusted real estate advisor to discuss today’s rates and determine if now’s the time for you to buy.

AUGUST MID-MONTH UPDATE

Information Current as of 8/15/2021

 Use tabs above for regular updates.

 

 Charts below are not interactive.

Contact me if you would like to receive interactive MLS updates. 

 

The red boxes in the charts below show DOM (Days on Market)
and the ratio of Closed Price to List Price for the current month.
To date this month, every property that CLOSED, closed at or above list price.

 

Click on charts to enlarge.

 

SCCL - Single Family Residences

SCCL - Carriage Homes and Villas

TreeTops 

DDP = Due Diligence Period
UCS = Under Contract Show / UCNS = Under Contract No Show
DOM = Days on Market
BR = Bedrooms
BA = Bathrooms
HLA = Heated Living Area (Square Footage)
Price/SF = Price Per Square Foot
UC Date = Under Contract Date

Are Houses Less Affordable Than They Were in Past Decades?

 Article Courtesy of Keeping Current Matters/The KCM Blog

There are many headlines about how housing affordability is declining. The headlines are correct: it’s less affordable to purchase a home today than it was a year ago. However, it’s important to give this trend context. Is it less expensive to buy a house today than it was in 2005? What about 1995? What happens if we go all the way back to 1985? Or even 1975?

Obviously, the price of a home has appreciated dramatically over the last 45 years. So have the prices of milk, bread, and just about every other consumable. Prices rise over time – we know it as inflation.

However, when we look at housing, price is just one component that makes up the monthly cost of the home. Another key factor is the mortgage rate at the time of purchase.

Let’s look back at the cost of a home over the last five decades and adjust it for inflation by converting that cost to 2021 dollars. Here’s the methodology for each data point of the table below:

• Mortgage Amount: Take the median sales price at the end of the second quarter of each year as reported by the Fed and assume that the buyer made a 10% down payment.
• Mortgage Rate: Look at the monthly 30-year fixed rate for June of that year as reported by Freddie Mac.
• P&I: Use a mortgage calculator to determine the monthly principal and interest on the loan.
• In 2021 Dollars: Use an inflation calculator to determine what each payment would be when adjusted for inflation. Green means the homes were less expensive than today. Red means they were more expensive.

 

As the chart shows, when adjusted for inflation, there were only two times in the last 45 years that it was less expensive to own a home than it is today.

1. Last year: Prices saw strong appreciation over the last year and mortgage rates have remained relatively flat. Therefore, affordability weakened.
2. 2010: Home values plummeted after the housing crash 15 years ago. One-third of all sales were distressed properties (foreclosures or short sales). They sold at major discounts and negatively impacted the value of surrounding homes – of course homes were more affordable then.

At every other point, even in 1975, it was more expensive to buy a home than it is today.

Bottom Line

If you want to buy a home, don’t let the headlines about affordability discourage you. You can’t get the deal your friend got last year, but you will get a better deal than your parents did 20 years ago and your grandparents did 40 years ago.

With Rents on the Rise – Is Now the Time To Buy?

 Article Courtesy of Keeping Current Matters/The KCM Blog

According to recent data from realtor.com, median rental prices have reached their highest point ever recorded in many areas across the country. The report found rents rose by 8.1% from the same time last year. As it notes:

“Beyond simply recovering to pre-pandemic levels, rents across the country are surging. Typically, rents fluctuate less than 1% from month to month. In May and June, rents increased by 3.0% and 3.2% from each month to the next.”

If you’re a renter concerned about rising prices, now may be the time to consider purchasing a home.

Monthly Rents Are Higher Than Monthly Mortgage Payments

When you weigh your options of whether to buy a home or continue renting, how much you’ll pay each month is likely top of mind. According to the National Association of Realtors (NAR), monthly mortgage payments are rising, but they’re still significantly lower than the typical rental payment. NAR indicates the latest data on homes closed shows the median monthly mortgage payment is $1,204.

By contrast, the median national rent is $1,575 according to the most current data provided by realtor.com. In other words, buyers who recently purchased a home locked in a monthly payment that is, on average, $371 lower than what renters pay today (see graph below):

Rents Are Rising Sharply, and They Continue To Increase

The difference in monthly housing costs when comparing renting and homebuying today is significant, but many would-be homebuyers wonder about the future of rental prices. If we look to historical Census data as a reference, the median asking rent has risen consistently since 1988 (see graph below):

The rise in rent over time clearly shows one of the major advantages homeownership has over renting: stable housing costs. Renters face increasing costs every year. When you purchase your home, your mortgage rate is locked in for 30 years, meaning your monthly payment stays the same over time. That gives you welcome peace of mind and predictability for many years ahead.

Bottom Line

With rents continuing to rise across the country, renters should consider if now is the right time to buy. There are multiple benefits to buying sooner rather than later. Talk with your trusted real estate advisor so you can make your most powerful decision.