|That headline might be a little aggressive. However, as the data on the 2017 housing market begins to roll in, we can definitely say one thing: If you are considering selling,
IT IS TIME TO LIST YOUR HOME!
The February numbers are not in yet, but the January numbers were sensational. Lawrence Yun, Chief Economist for the National Association of Realtors, said:
And CNBC says consumer confidence in the economy is fueling the market:
The only challenge to the market is a severe lack of inventory. A balanced market would have a full six-month supply of homes for sale. Currently, there is less than a four-month supply of inventory. This represents a decrease in supply of 7.1% from the same time last year.
With demand increasing and supply dropping, this may be the time to get the best price for your home. The much anticipated interest rate hike in the coming weeks has made buyers ready to buy NOW! Give the Ransom-McKenzie Team a call to discuss what your home might sell for. We look forward to helping you with your real estate needs in Riverside.
|Have you ever been flipping through the channels, only to find yourself glued to the couch in an HGTV binge session? We’ve all been there… watching entire seasons of “Love it or List it,” “Fixer Upper,” “House Hunters,” “Property Brothers,”and so many more, just in one sitting. When you’re in the middle of your real estate themed show marathon, you might start to think that everything you see on TV must be how it works in real life, but you may need a reality check.
We’re finding more and more that buyers and sellers expect their real estate experience to be just like they see on the popular reality TV shows. Buyers want the homes to be perfect, updated and priced perfectly. Sellers want to sell the home at the first open house and believe that their home should be priced above market so they can get an offer close to where they want it to be sold. This is not always the case.
Reality TV Show Myths vs. Real Life:
Myth #1: Buyers look at 3 homes and make a decision to purchase one of them.
Truth: There may be buyers who fall in love and buy the first home they see, but according to the National Association of Realtors the average home buyer tours 10 homes as a part of their search.
Myth #2: The houses the buyers are touring are still for sale.
Truth: The reality is being staged for TV. Many of the homes being shown are already sold and are off the market.
Myth #3: The buyers haven’t made a purchase decision yet.
Truth: Since there is no way to show the entire buying process in a 30-minute show, TV producers often choose buyers who are further along in the process and have already chosen a home to buy.
Myth #4: If you list your home for sale, it will ALWAYS sell at the Open House.
Truth: Of course this would be great! Open houses are important to guarantee the most exposure to buyers in your area, but are only a PIECE of the overall marketing of your home. Just realize that many homes are sold during regular listing appointments as well.
Myth #5: Homeowners make a decision about selling their home after a 5-minute conversation.
Truth: Similar to the buyers portrayed on the shows, many of the sellers have already spent hours deliberating the decision to list their homes and move on with their lives/goals.
Having an experienced professional on your side while navigating the real estate market is the best way to guarantee that you can make the home of your dreams a reality! Give the Ransom-McKenzie Team a call today to discuss your real estate needs.
Are you involved in your community? As Realtors, Charlotte and Connie believe in the value of participating in events and organizations in your home town. The Ransom-McKenzie Team would like to take a moment to share with you this current data which relates to home ownership and civic involvement.
The National Association of Realtors recently released a study titled ‘Social Benefits of Homeownership and Stable Housing.’ The study confirmed a long-standing belief of most Americans:
Today, we want to cover the section of the report that quoted several studies concentrating on the impact homeownership has on the civic participation of family members. Here are some of the major findings on this issue revealed in the report:
People often talk about the financial benefits of homeownership. As we can see, there are also social benefits of owning your own home. The City of Riverside is a great place to get out and get involved. Charlotte & Connie are involved in a number of organizations and would be happy to help you find the right group to help you get involved. Give us a call today to discuss your civic involvement at 951-237-2044.
In Riverside County the real estate world is experiencing a rather severe housing shortage. A healthy real estate market should have about a 5-6 month inventory. Currently in Riverside we have less than a 2.5 month inventory. This means that if you are considering selling your home, now is the time to do it.
The Ransom McKenzie Team is here to help. Before your home hits the market, you’ll want to make sure that it is ready to make a good impression. Remember, you only have one chance to impress a buyer. Here is a helpful infographic with a checklist of ideas for preparing your home for sale:
If you follow some or all of these tips, when you list your home, you’ll be more likely to reach your goal of selling for the best price possible. Most of these items are small projects that don’t take a lot of time or money, but give you a good boost when your home is shown.
The Ransom-McKenzie team is also available to help you as you prepare your home for sale. Call us today at 951-237-2044 for a free evaluation and consultation regarding selling your home.
|There are some who are calling for a decrease in home prices should mortgage interest rates begin to rise rapidly. Intuitively, this makes sense as the cost of a home is determined by the price of the home, plus the cost of financing that home. If mortgage interest rates increase, fewer people will be able to buy, and logic says prices will fall if demand decreases. However, history shows us that this has not been the case the last four times mortgage interest rates dramatically increased. Here is a graph showing what actually happened:
Recently, in an article titled “Higher Rates Don’t Mean Lower House Prices After All,“ the Wall Street Journal revealed that a recent study by John Burns Real Estate Consulting Inc. found that:
The most recent jobs report was strong and the Conference Board just reported that the Consumer Confidence Index was back to pre-recession levels.
We will have to wait and see what happens as we move forward, but a decrease in home prices should rates go up is anything but guaranteed.
The Ransom-McKenzie Team has been busy already this winter. We’ve been experiencing a high volume of buyers who are ready to buy, now. While winter is often perceived as a down time for real estate, we’re currently seeing trends that indicate this might be a mis-guided perception. Winter buyers are Serious buyers.
A recent study of more than 7 million home sales over the past four years revealed that the season in which a home is listed may be able to shed some light on the likelihood that the home will sell for more than asking price, as well as how quickly the sale will close. It’s no surprise that listing a home for sale during the spring saw the largest return, as the spring is traditionally the busiest month for real estate. What is surprising, though, is that listing during the winter came in second!
“Among spring listings, 18.7 percent of homes fetched above asking, with winter listings not far behind at 17.5 percent. While 48.0 percent of homes listed in spring sold within 30 days, 46.2 percent of homes in winter did the same.”
The study goes on to say that:
“Buyers [in the winter] often need to move, so they’re much less likely to make a lowball offer and they’ll often want to close quickly — two things that can make the sale much smoother.”
If you are debating listing your home for sale within the next 6 months, keep in mind that the spring is when most other homeowners will decide to list their homes as well. Listing your home this winter will ensure that you have the best exposure to the serious buyers who are out looking now! The study used the astronomical seasons to determine which season the listing date fell into (Winter: Dec. 21 – Mar. 20; Spring: Mar. 21 – June 20; Summer: June 21 – Sept 21; Autumn: Sept 21 – Dec. 20).
The remarkable story of two trees, a pioneer town, and the University of California, Riverside
Riverside’s relationship with the citrus industry runs deep. When the navel orange tree was introduced to our region in 1873, Riverside entered a new era. At one point at the turn of the century, Riverside was the wealthiest city per capita in the United States. Orange Roots, an expansive exhibit now running on the ground floor level of the Rivera Library on the UCR campus, tells the story of how the citrus boom changed our region forever.
This exhibit leads you through the history of the citrus industry in Riverside and how it relates to UC Regents decision to bring a UC campus to Riverside. In 1918 city leaders convinced the UC Regents to build a new Citrus Experimentation Station on the location that is now one of the original campus buildings. It currently houses the Anderson Graduate School of Management.
The pictures and artifacts in this exhibit are beautifully displayed in a custom exhibition set up created to mimic the look of the orange crates of yore. The exhibit includes pictures, orange labels, artifacts and news clippings that document the entire history of the citrus industry and the creation of UCR.
The exhibit is running through January 17th, if you have time during the holidays to go on campus, while the students are on break, it would be well worth the effort.
According to the Census Bureau, millennials have overtaken baby boomers as the largest generation in U.S. History. Millennials, or America’s youth born between 1982-2000, now represent more than one quarter of the nation’s population, totaling 83.1 million. There has been a lot of talk about how, as a generation, millennials have ‘failed to launch’ into adulthood and have delayed moving out of their family’s home. Some experts have even questioned whether or not millennials want to move out. The great news is that not only do millennials want to move out… they are moving out! The National Association of Realtors (NAR) recently released their 2016 Profile of Home Buyers and Sellers in which they revealed that 61% of all first-time home buyers were millennials in 2015! The median age of all first-time buyers in 2015 was 31 years old. Here is chart showing the breakdown by age:
If you recall from one of our posts last week, first time home buyers comprised 33% of all buyers in October 2016. The above chart gives you an idea as to how many of those buyers are from the younger generation. Many social factors have contributed to millennials waiting to buy their first home. The latest Census results show that the median age of Americans at the time of their first marriage has increased significantly over the last 60 years, from 23 for men & 20 for women in 1955, to 29 & 27, respectively, in 2015. Those who went to college and took out student loans are finally paying them off, as the terms on traditional student loans are 10 years. This means that a large portion of the generation is making its last loan payments and is working toward saving for a first home. As a whole, the first-time home buyer share increased to 35% of all buyers, up from 32% in 2014. Not all millennials are first-time buyers, they also made up 12% of all repeat buyers!
Millennials will continue to drive the housing market next year, as well as in the years to come. As more and more realize that owning a home is within their grasp, they will flock to own their piece of the American Dream. Are you ready to buy your first or even second home? Give the Ransom-McKenzie Team a call and we’ll help you through the process.
According to Freddie Mac’s latest Primary Mortgage Market Survey, the 30-year fixed rate mortgage interest rate jumped up to 3.94% shortly after the election last month. Interest rates had been hovering around 3.5% since June, and many are wondering why there has been such a significant increase so quickly.
Why did rates go up?
Whenever there is a presidential election, there is uncertainty in the markets as to who will win. One way that this is noticeable is through the actions of investors. As we get closer to the first Tuesday of November, many investors pull their funds from the more volatile and less predictive stock market and instead, choose to invest in Treasury Bonds. When this happens, the interest rate on Treasury Bonds does not have to be as high to entice investors to buy them, so interest rates go down. Once the elections are over and a President has been elected, investors return to the stock market and other investments, leaving the Treasury to raise rates to make bonds more attractive again. Simply put, the better the economy, the higher interest rates will go. For a more detailed explanation of the many factors that contribute to whether interest rates go up or down, you can follow this link to Investopedia.
The Good News
Even though rates are closer to 4% than they have been in nearly 6 months, they are still slightly below where we started 2016, at 3.97%. The great news is that even at 4%, rates are still significantly lower than they have been over the last 4 decades, as you can see in the chart below.
Any increase in interest rate will impact your monthly housing costs when you secure a mortgage to buy your home. A recent Wall Street Journal article points out that, “While still only roughly half the average over the past 45 years, according to Freddie Mac, the quick rise has lenders worried that home loans could become more expensive far sooner than anticipated.” Tom Simons, a Senior Economist at Jefferies LLC, touched on another possible outcome for higher rates:
“First-time buyers look at the monthly total, at what they can afford, so if the mortgage is eaten up by a higher interest expense then there’s less left over for price, for the principal. Buyers will be shopping in a lower price bracket; thus demand could shift a bit.”
Interest rates are impacted by many factors, and even though they have increased recently, rates would have to reach 9.1% for renting to be cheaper than buying. Rates haven’t been that high since January of 1995, according to Freddie Mac.
The Ransom-McKenzie Team is here to help you through all of the details involved in buying or selling a home. Give us a call today and let us help you!
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!