Where is Housing Headed for the Rest of 2016?

Where is Housing Headed for the Rest of 2016?

With the overall economy just inching along, some experts are questioning whether the housing market can continue its momentum throughout the rest of the year. People are beginning to ask questions such as:

  • Will disappointing economic news adversely impact housing?
  • Is affordability a major concern in today’s real estate market?
  • Are we approaching a new housing bubble?
  • Are mortgage standards too tight? Or have they loosened too much?

Freddie Mac, in their April Economic Outlook, addresses the disappointing economic news and what impact they think it will have on housing:

“Recent data darkened the growth outlook for the first quarter of 2016. However, despite the disappointing economic reports, we still forecast housing to maintain its momentum in 2016.

We’ve revised down our forecast for economic growth to reflect the recent data for the first quarter, but our outlook for the balance of the year remains modestly optimistic for the economy.”

What about real estate?

Freddie Mac was much more optimistic about housing…

“We maintain our positive view on housing. In fact, the declines in long-term interest rates that accompanied much of the recent news should increase mortgage market activity.”

They went on to conclude:

“We expect housing to be an engine of growth. Construction activity will pick up as we enter the spring and summer months, and rising home values will bolster consumers and help support renewed confidence in the remaining months of this year.”

5 Reasons You Should Not For Sale By Owner

5 Reasons You Should Not For Sale By Owner

For Sale by Owner

In today’s market, with homes selling quickly and prices rising, some homeowners might consider trying to sell their home on their own, known in the industry as a For Sale by Owner (FSBO). There are several reasons this might not be a good idea for the vast majority of sellers.

Here are five of those reasons:

1. There Are Too Many People to Negotiate With

Here is a list of some of the people with whom you must be prepared to negotiate if you decide to For Sale By Owner:

  • The buyer who wants the best deal possible
  • The buyer’s agent who solely represents the best interests of the buyer
  • The buyer’s attorney (in some parts of the country)
  • The home inspection companies, which work for the buyer and will almost always find some problems with the house
  • The appraiser if there is a question of value

2. Exposure to Prospective Purchasers

Recent studies have shown that 89% of buyers search online for a home. That is in comparison to only 20% looking at print newspaper ads. Most real estate agents have an internet strategy to promote the sale of your home. Do you? 

3. Results Come from the Internet

Where do buyers find the home they actually purchased?

  • 44% on the internet
  • 33% from a Real Estate Agent
  • 9% from a yard sign
  • 1% from newspaper

The days of selling your house by just putting up a sign and putting it in the paper are long gone. Having a strong internet strategy is crucial.

4. FSBOing has Become More and More Difficult

The paperwork involved in selling and buying a home has increased dramatically as industry disclosures and regulations have become mandatory. This is one of the reasons that the percentage of people FSBOing has dropped from 19% to 8% over the last 20+ years.

The 8% share represents the lowest recorded figure since NAR began collecting data in 1981.

5. You Net More Money when Using an Agent

Many homeowners believe that they will save the real estate commission by selling on their own. Realize that the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save the commission.

Studies have shown that the typical house sold by the homeowner sells for $210,000 while the typical house sold by an agent sells for $249,000. This doesn’t mean that an agent can get $39,000 more for your home as studies have shown that people are more likely to FSBO in markets with lower price points. However, it does show that selling on your own might not make sense.

Bottom Line

Before you decide to take on the challenges of selling your house on your own, let’s meet up so we can discuss the difference having me as an agent can make.

3 Charts That Scream ‘List Your Home Today’

3 Charts That Scream ‘List Your Home Today’

Why Should You List Your Home?

In school we all learned the Theory of Supply and Demand. When the demand for an item is greater than the supply of that item, the price will surely rise.

SUPPLY

The National Association of Realtors (NAR) recently reported that the inventory of homes for sale stands at a 4.4-month supply. This is considerably lower than the 6-month inventory necessary for a normal market.

3 Charts That Scream ‘List Your Home Today’ | Simplifying The Market

DEMAND

Every month NAR reports on the amount of buyers that are actually out in the market looking for homes, or foot traffic. As seen in the graph below, buyer demand in February significantly outpaced the last six months.

3 Charts That Scream ‘List Your Home Today’ | Simplifying The Market

Many buyers are being confronted with a very competitive market in which they must compete with other buyers for their dream home (if they even are able to find a home they wish to purchase).

Listing your house for sale now will allow you to capitalize on the shortage of homes for sale in the market, which will translate into a better pricing situation.

HOME EQUITY

Many homeowners underestimate the amount of equity they currently have in their home. According to a recent Fannie Mae study, 37% of homeowners believe that they have more than 20% equity in their home. In reality, CoreLogic’s latest Equity Report tells us that 72.6% actually do!

3 Charts That Scream ‘List Your Home Today’ | Simplifying The Market

Many homeowners who are undervaluing their home equity may feel trapped in their current home, which may be contributing to the lack of inventory in the market.

Bottom Line

If you are debating selling your home this year, let’s meet up to evaluate the equity you have in your home, as well as the opportunities available in our market.

The Main Reasons to Use a Real Estate Agent When Selling Your Home

The Main Reasons to Use a Real Estate Agent When Selling Your Home

Reasons to Use a Real Estate Agent

Every homeowner hopes to accomplish five goals when selling their home:

  1. Sell it for the best price
  2. Sell it within a predetermined time
  3. Sell it with the least amount of hassles
  4. Close on the sale the same day they move into their new home

The fifth reason is the most obvious and the most important:

  1. They want to make sure it sells.

In order to dramatically increase the chances that the house sells, a homeowner should list with a real estate professional in their market. Why? Because agents have access to the vast majority of the available buyers!!

According to the National Association of Realtors(NAR) recently released 2016 Home Buyer and Seller Generational Trends Report, 87% of all buyers purchased their home through a real estate agent or broker. And more that 8 out of 10 buyers in every age group used an agent (see chart below).

The Main Reason to Use a Real Estate Professional when Selling your House |Simplifying The Market

Bottom Line

If you want your home sold, the best way is to go where the buyers are. The NAR study revealed that the vast majority of purchasers will use an agent when they buy. Let’s get together to discuss the best plan for getting your house sold!

A New REO Lake Tahoe Home Available

A New REO Lake Tahoe Home Available

An awesome new REO Lake Tahoe home just became available. What’s even better is that it is in Montgomery Estates, one of the most highly desirable neighborhoods in the area! I just went in and previewed this a short time ago and fell in love.

It obviously needs work and looks like it was abandoned some time ago. With some sweat there could be major equity gained. It is a 3 bedroom 3 bath home listed at $439,000 right now. Want to flip it? Fixed up nicely and based on recent comparable properties I think it could sell for $580,000 to $600,000. Here’s info on it directly from the MLS:

“Situated in the well desirable Montgomery Estates neighborhood. This 3 bedroom 2 1/2 bathroom home is across the street from forest land and has partial mountain and forest views. With high vaulted ceilings, living room, kitchen, dining area and a master bedroom located upstairs. The additional two bedrooms and full bathroom along with the laundry room with access to backyard is located downstairs. The home house great potential with value.”

This place is going to go SO fast. When I was there two other groups of Realtors were in there and two more were rolling up as I was leaving!

10 Reasons This Tahoe Cabin is Perfect For You

10 Reasons This Tahoe Cabin is Perfect For You

Tahoe Cabin List

  1. Priced just under $400,000!
  2. Brand new 50-year roof.
  3. Fantastic knotty alder laminate flooring throughout.
  4. Beautifully remodeled kitchen with custom cabinets, granite counter tops, and new appliances.
  5. Huge Trex deck that is also rated for a hot tub to be placed on it!
  6. Freshly installed high-end Hunter Douglas windows and coverings.
  7. Large upstairs loft area.
  8. It comes furnished!
  9. There are 600 square feet of additional coverage to use or sell.
  10. A two car garage AND a partially completed basement!

Details

Price: $395,000

Address: 1555 Oflyng Dr., South Lake Tahoe, CA 96150

Square Feet: 1304

Beds:  3

Baths: 2

Year Built: 1976

Lot Size: 20517 square feet

 

1555 Oflyng

Tahoe Chalet Information

Beautiful, updated, and cozy Tahoe mountain chalet. A large circular driveway, and massive wrap-around deck greet you as you walk up to this home which also has a brand new 50-year roof. Inside you’ll immediately be wowed by the stunning alder laminate floors, large new Hunter Douglas vinyl windows looking out on the forest, and a remote controlled gas fireplace. You can walk out to the hot-tub rated Trex deck from the remodeled kitchen which has granite counter tops and stainless steel GE appliances. On the first floor are two bedrooms, a hallway closet with your laundry, and a modernized bathroom. Up the stairs is another updated bathroom with a wonderful loft/office to the front of the home, and the master bedroom to the rear of it. The home features central heating AND air conditioning, a partially completed basement, a two car garage, it even comes furnished, and 600 sf of additional coverage to use! Take a look at this perfect Tahoe cabin, and you’ll feel like you’re coming home.