People often ask us how the world of real estate is doing in Riverside. Especially now that we’re closing in on another year, and are looking into next year with a new Presidential administration. We can honestly say that we have had a great 2016, and we are looking forward to more sales in 2017.
The most telling fact in this infographic is that nationwide we’re still experiencing low inventory. While this is driving sales, and has made October the 56th month that we have experienced year-over-year price gains, it has not been pushing prices up as high as one might think. According to the Inland Valleys Association of Realtors Housing Data Report for October 2016 the median sales price in Riverside is $345,000 which is an increase of 5.8% from the previous year. This shows that we are experiencing steady growth in our marketplace.
A nationwide fun fact is that currently 33% of home buyers in October 2016 were first-time home buyers. This shows that the American Dream of home ownership is continuing to be important into the next generation.
The Ransom-McKenzie Team looks forward to assisting our friends and clients with their real estate needs as we look forward to the coming new year. Give us a call if you have a questions about buying or selling a home in Riverside. We Love Riverside!
A vibrant downtown is dependent on creating a good balance of retail and living spaces where people can enjoy not only unique shopping and dining experiences but also can a walkable neighborhood where places are easily accessible. We have watched Downtown as Riverside has become a vibrant economic driver for the city. However, our downtown still lacks spaces where people can live in the Downtown corridor.
The good news is Downtown Riverside will be experiencing a boom of development in the next three years adding over 500 residential, loft style units and nearly 40,000 square feet of unique commercial and office space. The developments include places such as the Mission Inn Lofts, The Stalder Building, Imperial Hardware Lofts, and the Culver Lofts. All of these loft spaces will be centered around our downtown core. Artist renditions of the Mission Inn Lofts and the Imperial Hardware Lofts are shown here:
Bringing more residential living to the heart of Downtown will contribute to the already growing enthusiasm and activity taking place there.
In addition to more residential options downtown, there are also plans to bring more Urban Food venues to Riverside. The 12.000 square foot space adjacent to the Fox Theater is being developed into an Urban Food Hall that will be called the Riverside Food Lab. This location will feature up to 15 vendors and will focus on locally owned stores, no corporate chains allowed. Hopes are to have the Riverside Food Lab up and running in time for the Festival of Lights in 2017. Another unique food venue in the works is Chow Alley. It will feature outdoor dining across from the Historic County Courthouse. The food purveyors here will serve out of cargo style containers, creating a food truck court atmosphere in the heart of the downtown business district.
Check out the City of Riverside’s video about these exciting things coming to downtown Riverside.
There is a lot happening in Riverside! We’re excited to be on the cutting edge of this much-needed development.
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. In Riverside right now homes are appreciating slightly below the State average at about 5.6% per year. 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.
Real Estate is truly a local market. What is happening across the nation, may not necessarily reflect what is happening in your local area. Even markets within a 60 – 100 mile radius can vary drastically. When you’re looking to sell your home, or purchase a new home be sure you meet with a local real estate professional who can help you determine your next steps in your marketplace. The Ransom-McKenzie Team specializes in Riverside. Give us a call today to receive a free evaluation of our local market.
As families celebrate Mother’s Day across the country, I’m preparing for an open house at one of our new listings. I know it seems like it is a bummer to have to “work” Mother’s Day, but somehow it doesn’t seem so bad. Mostly because Connie is my mother!
It is a pleasure and a privilege to be able to work with my mother every day. Not everyone is lucky enough to have such a strong relationship with their mother. It is what makes the Ransom-McKenzie Team strong.
Join us today at our Open House from 1-4pm at 1367 Ransom Road. We look forward to seeing you there. We’ll even have a surprise for the mothers who stop by!!
Happy Mother’s Day!!
The Ransom-McKenzie Team is often contacted by sellers who are interested in determining the value of their home. In many instances, they already have a number in mind, they are just looking for us to validate their price. Sometimes we come in with a price at or close to what the seller’s believe to be the value of their home….. other times we don’t. When you are listing your home for sale, choosing the right listing price is an important part of the process for a number of reasons. The most important of those reasons is to make sure that your sales price is going to match the appraiser’s valuation of the home.
The Sales Price
Of course, most sellers want to maximize the value they get for the house. However, the price they set might not be reflective of the other comparable homes in the neighborhood. A recent post on “The Home Story”, a site published by Fannie Mae, explained the difference between the price a seller may get for their home and the value an appraiser might assign the property. The article starts out by stating a fact which is all too familiar to Realtors:
“People tend to view their homes emotionally, and that can become quickly apparent when they decide to sell.”
That doesn’t mean that the home won’t necessarily sell for that price. A seller can set an asking price and actually have a buyer agree to that price. However, that value may not be necessarily in agreement with what most buyers are willing to pay. For example, one person can view a property, determine it is exactly what they are looking for and well worth the asking price, whereas another person could look at the same property and feel the asking price is too high. Steven Corbin, Director of Valuation in Fannie Mae’s CPM Real Estate division gives an example of this scenario:
“Someone may have driven by the property countless times, and they really want to live in that house. So in reality they may overbid for that property. This would be a situation where the actions of a specific buyer do not represent the actions of a typical buyer.”
The Appraised Price (Market Value)
In their article Fannie Mae describes the process used to determine the value of a home to satisfy their determination of value:
“When a contract is established on a property, an appraised value is determined by a professional real estate appraiser. The appraiser works on the lender’s behalf to determine that value by taking many factors into consideration, including the neighborhood, the value of properties of similar size and construction, and even such things as the type of fixtures on the premises and layout of the floor plan.”
The bank, or lender, wants to know the value that a typical buyer would pay for the property. This price may differ from the agreed upon sales price that the seller and buyer had in the contract.
Selling Your Home Twice
The fact is, when you’re selling your home, you actually have to sell it twice. The first sale occurs when you get the right buyer and all parties agree upon a price. The second sale, which often is the more challenging of the two, is to get the bank, (aka the appraiser), to agree to the same value. If the appraiser comes in with a value that is below the agreed upon sales price, the lending institution might not authorize the mortgage for the full amount a buyer would need to complete the transaction. Quicken Loans actually releases a Home Price Perception Index (HPPI) that quantifies the difference between what sellers and appraisers believe regarding value. The HPPI represents the difference between appraisers’ and homeowners’ opinions of home values. Currently, there is approximately a 2% difference between what homeowners believe their home to be worth and what appraisers value that same home. On a $300,000 sale that would be a $6,000 difference. That could be a challenge that might prevent the home sale proceeding to the closing table.
In a housing market like the one we’re experiencing in the City of Riverside right now, where supply is very low and demand is very high, home values can increase rapidly. One major challenge in such a market is the bank appraisal. If prices are jumping, it is difficult for appraisers to find adequate comparable sales (similar houses in the neighborhood that closed recently) to defend the price when performing the appraisal for the bank. With escalating prices, the second sale might be even more difficult than the first. That is why we suggest that you use an experienced real estate professional to help set your listing price. Call the Ransom-McKenzie Team today to discuss the value of your home. We’ll be happy to assist you with every step of your real estate transaction.
- Hiring a Real Estate Professional to buy your dream home, or sell your current house is one of the most ‘educated’ decisions you can make!
- A Real Estate Professional has the experience needed to help you through the entire process.
- Make sure that you hire someone who knows current market conditions & can simply & effectively explain them to you & your family!
The Riverside Art Museum (RAM) is hosting a creative and exciting fundraiser next Saturday, August 8th at the museum. Art on Tap: Late Night Arts Bash for Arts Education is an evening of beer tasting and art sampling where you’ll be able to view and/or participate in demonstrations from numerous artists and enjoy fun brews, food, and music. More importantly though, this event helps to raise funds for RAM’s extensive mission to “engage, inspire, and build community through the arts”.
As we face more and more cuts to arts programs in our schools, supplemental programs have an even greater importance in getting art into the lives of our youth. The RAM Art Education program reaches over 10,000 youths through school and museum based programs. These include programs such as First Sundays, Art-To-Go, Museum Tours, and Art Education Classes & Workshops. The programs do not happen for free, art supplies are not falling from the sky. The museum needs funds for the programs to continue and to grow. It is important because exposure to art is important. To quote the museum’s website,
“Exposure to art can have profound influence on a young person’s life. Beyond what art teaches, like respect for diverse viewpoints, courage to experiment, and problem-solving skills, some of the greatest rewards come from the intrinsic value of art and the personal joy one experiences through the creative process.”
Join the Ransom-McKenzie Team, (the Artists Disguised as Realtors), as we support arts education and enjoy some late night art fun too! The event is on Saturday, August 8th from 9pm – 1am… (We know it’s late, but it will be fun!) All three floors of RAM will be filled with interactive and collaborative art stations, music, food, and beer from breweries like Hangar 24 and Wicks Brewing Co.
Paint with Greg Adamson, doodle or color with Rina Gonzales, try art journaling or printmaking with Laura Ryan, get creative with some fun Weathered Feather projects with Jill Rowden, relax with some creative doodling/coloring for adults with Rina Gonzales, get a henna tattoo by Jenny Montenegro, learn about nuno felting with Charlotte Ransom McKenzie, and more! Yes, you read that correctly, Charlotte will be one of the artists demonstrating the art at this event. We hope you’ll come see what we’re up to and support arts education at RAM. Tickets are only $20, and that includes a free brew! Click here to get your tickets today! Then come visit Charlotte as she felts the night away.
Getting traffic through your home when it is for sale is always a key component to getting the home sold. Foot Traffic is also an indicator used to predict the strength of the real estate market. Guess what? This summer is proving to be a hot real estate season.
The National Association of Realtors (NAR) publishes a monthly “Foot Traffic Report“, (yes, there is such a thing), which tracks traffic through homes on the market. This tracking is done through the electronic locks that Realtors use to access keys to show homes. It represents the number of homes that have been shown by a realtor. Looking at the graph below it is apparent that there is a strong uptick in the number of showings just in the last 2-3 months.
People always talk about the “spring buying season” when they talk real estate. However, this year it appears as though the summer real estate market will be just as hot. NAR’s most recent “Foot Traffic Report” revealed that there are more buyers out looking at homes right now than at any other time in the last two years including the past two springs (in orange below). Remember, this is just Relator showings, it does not include other traffic such as open houses, which have also been very busy as well recently.
The Foot Traffic Report is compiled from data on the number of properties shown by Realtors. NAR further explains:
“Foot traffic has a strong correlation with future contracts and home sales, so it can be viewed as a peek ahead at sales trends two to three months into the future.”
We can see that the number of prospective purchasers out looking at homes has been greater each month this year compared to the same month in 2014. And, though foot traffic fell off last June as compared to May, this year it has increased nicely.
The bottom line is that the housing market will remain strong throughout the summer and into the fall, making for one of the best years in real estate over the last decade. If you’re on the fence as to whether or not you want to list your home, give the Ransom-McKenzie Team a call. We would be happy to meet with you to discuss the market in Riverside and assist you with your Real Estate needs.
If you are one of the many homeowners out there who are debating putting their house on the market this year, don’t miss out on the great opportunity you have right now!
The latest Existing Home Sales Report from The National Association of Realtors (NAR), reveals that the inventory of homes for sale has dropped to a 5.1-month supply. Historically, a 6-month supply is necessary for a ‘normal’ market, as explained below:
There are more buyers that are ready, willing and able to buy now, than there has been in years! The supply of homes for sale is not keeping up with the demand of these buyers. We are experiencing this shortage of inventory in Riverside as well. According to Lawrence Yun, Chief Economist for NAR, the most recent numbers available show that solid sales gains are being seen for May 2015 figures. However, he also noted that:
“Overall supply still remains tight, homes are selling fast and price growth in many markets continues to teeter at or near double-digit appreciation. Without solid gains in new home construction, prices will likely stay elevated — even with higher mortgage rates above 4 percent.”
With the average number of days on the market at less than a month, right now is an excellent time to list your home. Our inventory in Riverside is below the 5 month mark so we are most definitely in a seller’s market. Listing your home now will give you the most exposure to buyers who will be competing against each other to buy your home.
Call the Ransom-McKenzie Team today to help you navigate through the process of selling or buying your home. We have the experience you’ll need to make the process as stress free as possible.