First-Time Buyers Behind Latest Housing Gains

Posted on October 20, 2016 by Erin Johnston

Daily Real Estate News | Thursday, October 20, 2016

Existing-home sales rebounded in September as first-time home buyers flooded the market. Sales to first-time home buyers topped a 34 percent share in September, the highest in more than four years, according to the National Association of REALTORS®.

Total existing-home sales – which are completed transactions for single-family homes, townhomes, condos, and co-ops – rose 3.2 percent in September month-over-month to a seasonally adjusted annual rate of 5.47 million, NAR reported Thursday. Sales are now at the highest pace since June (5.57 million) and are 0.6 percent higher than a year ago (5.44 million). All major regions across the U.S. saw a pick up in closings last month, NAR reports.

Home Sales By Region

Here’s a closer look at how existing-home sales fared across the country in September:

  • Northeast: existing-home sales rose 5.7 percent to an annual rate of 740,000, unchanged from a year ago. Median price: $261,600, up 2.1 percent from a year ago.
  • Midwest: existing-home sales increased 3.9 percent to an annual rate of 1.32 million in September, and are now 2.3 percent above a year ago. Median price: $184,500, up 5.9 percent from a year ago.
  • South: existing-home sales inched up 0.9 percent to an annual rate of 2.16 million, but remain 0.9 percent below a year ago. Median price: $204,000, up 6.6 percent from a year ago.
  • West: existing-home sales surged 5 percent to an annual rate of 1.25 million in September, and are now 1.6 percent higher than a year ago. Median price: $345,400, up 8.1 percent from a year ago.

Source: National Association of REALTORS®

First-time home buyers were behind most of that sales momentum last month, NAR reports.

“There’s hope the leap in sales to first-time buyers can stick through the rest of the year and into next spring,” says Lawrence Yun, NAR’s chief economist. “The market fundamentals – primarily consistent job gains and affordable mortgage rates – are there for the steady rise in first-timers needed to finally reverse the decline in the home ownership rate.”

Still, the limited number of homes for sale on the market could prove a big roadblock.

“The home search over the past several months for a lot of prospective buyers, and especially for first-time buyers, took longer than usual because of the competition for the minimal amount of homes for sale,” Yun adds. “Most families and move-up buyers look to close before the new school year starts. Their diminishing presence from the market towards the end of summer created more opportunities for aspiring first-time home owners to buy last month.”

5 Key Housing Stats

Here are a few key housing indicators from NAR’s September housing report:

1. Home prices: The median existing-home price for all housing types last month was $234,200, a 5.6 percent year-over-year increase.

2. Days on the market: Forty-four percent of homes sold in September were on the market for less than a month. Properties stayed on the market an average of 39 days last month, down from 49 days a year ago. Short sales spent the longest time on the market at a median of 118 days; foreclosures sold in 67 days; and non-distressed homes sold in 38 days.

3. Distressed sales: Foreclosures and short sales dropped to a new low in September, comprising 4 percent of sales. That is down from 7 percent a year ago. In September, 3 percent of sales were foreclosures and 1 percent were short sales. On average, foreclosures sold for a discount of 15 percent below market value while short sales were discounted 11 percent.

4. Cash sales: All-cash sales comprised 21 percent of transactions last month, down from 24 percent a year ago. Individual investors make up the biggest bulk of cash sales. They purchased 14 percent of homes in September, up from 13 percent a year ago.

5. Inventories: More housing stock was added to the market by the end of September, up 1.5 percent month-over-month, but inventories are still 6.8 percent lower than a year ago. Unsold inventory dropped to a 4.5-month supply at the current sales pace.

“Inventory has been extremely tight all year and is unlikely to improve now that the seasonal decline in listings is about to kick in,” Yun says. “Unfortunately, there won’t be much relief from new home construction, which continues to be grossly inadequate in relation to demand.”

Source: National Association of REALTORS®

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How to Reinvent a Room to Attract Buyers

Posted on October 17, 2016 by Debbie Prosser

By Patti Stern, PJ & Company Staging and Interior Decorating

Thinking about remodeling but not sure it will pay off when it comes time to sell? According to Remodeling Magazine’s Cost vs. Value Report, most room remodels and additions may only recoup up to 80 percent of the cost. And since time and money is something prospective sellers are cautious about wasting, we put together the following list of practical ways to attract buyers and increase resale value without drastically changing your home’s footprint.

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Kitchen staged by PJ & Company Staging and Interior Decorating

Transform The Kitchen With Simple Upgrades

The most economical way to breathe new life into the kitchen is by first repainting walls with a fresh coat of neutral paint. Next, consider refreshing outdated cabinet fronts (as shown in photo above) with bright white paint along with brushed nickel or chrome hardware in modern styling. Upgrading flooring and countertops is also worth considering since there are many options available with a range of price points that are both stylish and functional.

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Master bath staged by PJ & Company Staging and Interior Decorating

Give The Bathroom A Facelift

It still goes without saying that outdated bathrooms are simply a turn-off to millenials. Even the smallest bathrooms can look more attractive with the right finishing touches. The key features that will sell a bathroom are updated or refinished cabinets and countertops, wall color, tile, faucets, toilet, and lighting in modern styles. For the bathroom featured above, we covered the light wood vanities that were in decent condition with dark espresso paint to add instant elegant style when paired with updated faucets and lighting.

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Bedroom staged by PJ & Company Staging and Interior Decorating

Convert the Extra Room Back To Bedroom

It’s common for many empty nesters to repurpose a spare bedroom into a more practical space such as an office, study or game room once the kids go off to college. But when it comes time to sell, showcase a room with its original purpose to appeal to young, prospective buyers since they are always on the look out for more bedrooms for the kids. In the room above, our team turned the hobby room back into an inviting bedroom setting by removing clutter and replacing with twin beds with colorful comforters and pillows, new fixtures, and simple wall art.

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Basement/family room and office nook staged by PJ & Company Staging and Interior Decorating

Create Usable Space In The Basement

Convert an empty or junk-filled basement into a room with a purpose. A game room, family room, in-law suite, office nook, or exercise room are all great examples that will appeal to buyers looking for extra living space. Once clutter is removed, carpet cleaned and walls repainted, add simple furniture such as a desk, chair, sofas and accessories that create a lifestyle that buyers can envision for themselves. Consider adding extra closet space or using a hidden area under the stairs for more storage.

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Mudroom remodel and decorating by PJ & Company Staging and Interior Decorating

Add Style and Function To The Back Entry

Create a mudroom that will be useful for families with young kids and pets year round. In the photo above, we transformed our client’s back entry with built-in storage and seating surrounded by bead board for a stylish finishing touch.

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Do Your Buyers Think About Quality of Life?

Posted on October 12, 2016 by Debbie Prosser

October 2016 | By Melissa Dittmann Tracey

They may judge homes based on superficial elements when they should be going deeper than that. One real estate agent encourages buyers to look at factors of a property that impact their mental, physical, and emotional well-being.

Not to add more pressure to your buyers, but the home they choose can have a huge impact on their health and relationships, from higher rates of obesity and physical ailments to the direction of their marriage, a growing number of studies show. Where your home is located “presents a buffet of simple fitness and lifestyle choices, and most of them are made subconsciously,” says Matt Parker, a sales associate with Keller Williams Realty in Seattle who documents the extent of the home-health connection in his book Real Estate Smart: The New Home Buying Guide. “There are direct and indirect effects from the homes we live in. People tend to view their home as a material item that they purchase and decorate, but it actually becomes the hub of all other aspects of your life.”

Buyers tend to worry more about having the nicest finishes and upgrades in a home, but Parker makes the argument that there are other factors that should guide their home search. And you, as their real estate agent, are like their personal trainer, helping them to choose a home where they’ll thrive physically, mentally, and socially.

Parker urges agents to encourage buyers to slow down their decision-making process so they don’t purchase a home they’ll later regret. “They are making decisions so quickly on a home they’ll probably own for the next 10 years, yet too often, they really only take about two hours to make that decision in touring a property and talking with their agent.” Consider some of the latest research and how you can apply it to help guide your home buyers to their ideal healthy home.

Promote Green Views

People who live in homes that have tree-lined landscapes or commanding views of natural surroundings tend to have lower levels of stress, according to the study “Urban Street Trees: 22 Benefits” by researcher Dan Burden. Other studies have also linked green views to an improvement in concentration, air quality, and even life expectancy. Older people who live in green neighborhoods tend to live longer, and adults who live in the greenest urban areas are three times more likely to live a healthier lifestyle, according to research cited in Parker’s book.

What you can do: Have your clients carefully assess the views from the home’s windows, particularly in the kitchen, where people tend to spend most of their time. If there aren’t any green views there, make recommendations for how they can easily add some. For example, add outdoor bamboo or hanging plants or cover a visible fence with flowing vines. Also, encourage your clients to map the home’s location on Google Earth so they can view satellite images of its proximity to green space. Promote fitness or leisure activities nearby. Parker says when he lists a property, he includes photos of nearby parks, tennis courts, dog runs, or skate parks in the MLS.

Stress Walkability

Walkable neighborhoods have been linked to longer lifespans as well, according to a 2002 study in the Journal of Epidemiology and Community Health. The presence of a park within walking distance of your home can encourage physical activity, which leads to decreased health risks and a better night’s sleep. A 2007 smart-growth study in Atlanta found that 37 percent of residents in highly walkable neighborhoods met the U.S. Surgeon General’s recommendations of 30 minutes of daily moderate physical activity, compared with just 18 percent in the least walkable neighborhoods.

What you can do: Look at the walkability score of the property on websites such as WalkScore.com, which also includes average commute times by bike and car. Houses within walking distance to jobs, schools, shopping, parks, and other amenities may not just do a body good but help at resale, too. A high walkability score can help boost a price of a home by an average of $3,250, according to a 2016 Redfin study. If your listing has a high walkability score, promote it.

Talk Up Social Aspects of a Home

Open layouts, which have been popular in recent years, can have a mix of good and bad health effects. Studies have noted a greater connectedness among family members who live with fewer walls separating them, as well as greater control over the information their children are consuming, Parker says. But researchers at the University of Notre Dame and Cornell University also recently found that removing barriers between the kitchen and living room can encourage people to eat an average of 170 more calories per day than those with a closed floor plan.

Neighborhood trends can also influence social connections, Parker says. Studies suggest that people who live in neighborhoods where obesity is common increases their likelihood of gaining weight. And people who are happily married can help their neighbors model such a relationship, according to a 2013 study in Social Forces, a peer-reviewed academic journal.

What you can do: Encourage your home buyers to take a stroll around the neighborhood to gauge how comfortable they feel, Parker says. They’ll get a sense for who lives there and be able to answer the question: Do I want to be like them?

Go For a Test Drive

As commuting times increase, people often experience higher cholesterol, more chronic pain, and an increased likelihood of obesity. About one-third of commuters with a daily commute of at least 90 minutes experience chronic neck and back problems, and the number of miles logged may be the single biggest factor related to obesity, according to a 2006 study, “The Link Between Obesity and the Built Environment.”

What you can do: Have your clients outline a day in their prospective house. What time do they need to wake up to get to work? How will they feel after the commute? Where will they be running errands, and where will their kids go to school? Where will they take the dogs for a walk? “You can predict how you feel at different points of the day,” Parker says. “For example, if you now have a 90-minute commute, will you be in a bad mood the rest of the morning or when you get home, and how will that affect your relationships?”

“When you consider these things collectively, it can be like ‘wow,’” Parker says. “When you look at it this way, the countertops or the refrigerator brand really mean nothing. It’s the location and the views from your windows that could really have the biggest impact on your health and could be the most important for improving your relationships, too.”

Source: Realtormag.org

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Which Architecture Style Is Worth the Most?

Posted on October 10, 2016 by Debbie Prosser

Daily Real Estate News | Monday, October 10, 2016

Luxury builders have favored the Mediterranean and Tuscan style of homes in recent years, and it’s no wonder: The median list price of that style of home is $749,900.

However, the public’s love with this style of home may be waning. For the past four years, the list price of Mediterranean homes has stalled. On the other hand, more modern home styles are seeing quicker appreciation, surging 37 percent since 2012, according to an analysis by realtor.com®.

“Modern homes are built to be more energy-efficient, and modern-looking,” says Tim Cannan, president of PreservationDirectory.com. “It’s easier to heat and cool them, and they’re cheaper to repair as opposed to Mediterranean or Spanish style – those red clay roofs could wind up costing much more. So it’s really the size and scope that determines what people can afford.”

So you know the prices, but which home style is the most popular in the U.S.?

The ranch home is the most popular real estate style in 29 of the 50 states, according to realtor.com®’s analysis. Ranch homes tend to be able to be built quickly and inexpensively compared to some other styles. Its popularity soared in suburbia with the rise of the automobile culture in the 1960s, realtor.com® reports.

Realtor.com® describes the second most popular architecture style in the U.S. as more “traditional,” which encompasses several classic designs defined by simple rooflines and symmetrical windows.

A closer look reveals quite a few regional architecture differences. For example, in the Northeast, colonial homes – known for their rectangular or box-shaped styles – remain popular. Victorians, on the other hand, are popular in the East Coast and into the Midwest. These homes have intricate moldings and ornate shapes carved into beams, along with pitched roofs, textured shingles, and long front porches.

You’ll find plenty of Cape Cod homes in New England, and rustic cabins nestled in the Appalachian, Rocky, and Sierra Nevada mountain ranges.

Differences arise by a state level too. For example, realtor.com® notes that in Illinois, Georgian home styles are popular while in California the Spanish style rules.

Source: “A Nation United – and Divided – by Our Homes’ Architectural Styles,” realtor.com® (Oct. 10, 2016)

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4 Reasons to Buy a Home Now

Posted on October 3, 2016 by Erin Johnston

Daily Real Estate News | Monday, October 03, 2016

The fall may be notorious for a slowdown in the housing market. But for home buyers that shouldn’t mean they should go to an early hibernation. For home shoppers, the fall likely will be the best time to buy.

Realtor.com® recently highlighted several reasons why the best time for your clients to buy is right now:

1. Lower home prices.

October can offer the best month for home deals, according to research by RealtyTrac of more than 32 million home sales over the last 15 years. In October, home buyers paid 2.6 percent below the estimated market value at the time for their homes, the study shows. In other words, on a $300,000 home, they could save $7,800 by purchasing it in October.

2. Less competition.

The home buyer rush from the summer days is over. Home shoppers this summer who were rushing to find a home before school started have already found one. Fall home buyers will have less competition. “Many folks will drop out of the market until after the new year,” says Bill Golden of RE/MAX Metro Atlanta Cityside.

3. More leverage.

Home sellers in the fall may be more pressed to sell. They are “generally people who need to sell, which can make for better negotiations for the buyer,” Golden says. The longer a home lingers, the more negotiating power the buyer likely will have. Plus, some sellers may want to get settled in their new home before the holidays and have more incentive to make a deal sooner rather than later.

4. Year-end tax credits.

Home buyers who close on a home by the end of the fiscal year may find a nice tax deduction awaiting them on April 15. They may be able to deduct closing costs, property tax, and mortgage interest to offset their taxable earnings.

Wait, there are more reasons to buy this fall! Check out the full list at realtor.com®.

Source: “7 Reasons Fall Might Just Be the Best Time to Buy a Home,” realtor.com® (Sept. 30, 2016)

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Study: Outdoor Projects Pay Back at Resale

Posted on September 27, 2016 by Erin Johnston

Daily Real Estate News | Tuesday, September 27, 2016

Home owners may want to focus more of their remodeling dollars on boosting curb appeal. Outdoor remodeling projects not only offer some of the highest returns at resale, they can also increase the happiness of home owners who are staying put in their homes, according to the 2016 Remodeling Impact Report: Outdoor Features, which was released Tuesday by the National Association of REALTORS® and National Association of Landscape Professionals.

Taking care of the home’s lawn can bring some of the biggest bang for your buck. The Remodeling Impact Report found reveals that REALTORS® find projects like seeding the lawn, implementing a standard lawn care program, and updating a landscape with sod lawn can have some of the highest returns at resale.

“REALTORS® understand the importance of curb appeal-from flower beds to fire pits- because when it is time to sell, a home’s exterior is its first impression to potential buyers,” says NAR President Tom Salomone. “REALTORS® also know that these projects can bring home owners who have no plans to sell even more enjoyment and satisfaction in their home.”

REALTORS® ranked the following outdoor remodeling projects as the most likely to add value to a home at resale (listed from highest to lowest):

  • Landscape upgrade
  • New patio
  • New wood deck
  • Standard lawn care
  • Sod lawn
  • Softscape
  • Seed lawn
  • Outdoor fireplace
  • Outdoor firepit
  • New pool

For home owners in search of more happiness, they may want to consider a pool. The study found that a new pool comes in number one in the enjoyment home owners gain from an outdoor remodeling project. Ninety-five percent of home owners who completed a pool project said they have a greater desire to be home; 90 percent feel a major sense of accomplishment; and 80 percent say they have an increased sense of enjoyment when they are at home, the study finds.

But home owners shouldn’t bank on recouping the full cost of the pool at resale. REALTORS® estimate that home owners likely will only recoup 50 percent of the cost of the pool at resale.

Other outdoor remodeling projects that scored high on bringing “joy” to home owners was an overall landscape upgrade, followed by a new wood deck.

“Home owners looking to take on large, expensive outdoor projects should do so for themselves, for the enjoyment they and their family will gain from the finished results, and not only to improve the value of their home for when they sell,” Salomone says. “Smaller projects will bring potential sellers the most value back upon resale – and have the benefit of costing less up front.

By Melissa Dittmann Tracey, REALTOR® Magazine Daily News

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5 Ways to Add Curb Appeal to Your Listing

Posted on September 22, 2016 by Erin Johnston

Daily Real Estate News | Thursday, September 22, 2016

Pay attention to the curb appeal of the home you’re showing. From the driveway to the front yard and home exterior, the outside of the home is a big key to buyers’ first impression of a home.

A recent realtor.com® article highlights some ways to boost the curb appeal of your listing, including:

Landscape: It can pay off. Well-landscaped homes get anywhere from a 5.5 percent to 12.7 percent sales boost, according to Alex X. Niemiera, a horticulturist at Virginia Tech. Adding some plants and sprucing up the landscape may be worth it for potentially an extra $16,500 to $38,100 in value on a $300,000 home, according to his research. Make sure the grass is trimmed, clear away any dead limbs or unwanted foliage hanging around the house, and remove any tree branches or bushes that are overcrowding the yard.

Pay attention to the mailbox: “Paint it, polish it, or replace it,” according to the realtor.com® article.

Check the lights: A front porch light can add some appeal. “Attractive light fixtures can really add to the appeal of a home, even if the lights aren’t on,” realtor.com® notes.

Clean: Wash the windows. Consider power washing the house to remove any dirt and grime.

Do some touch-ups: The entire house may not require repainting but just certain areas, like the trim and front door. “While you’re at it, consider brightening the façade with a touch of contrasting color,” the article notes. “You’ll be surprised by how a little pop of color can really freshen up the space.”

Source: “What Is Curb Appeal? How to Supercharge the Impression Buyers Have of Your Home,” realtor.com® (Sept. 21, 2016)

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4 Ways to Make a Home Show-Ready

Posted on September 20, 2016 by Erin Johnston
Daily Real Estate News | Tuesday, September 20, 2016

When a home hits the market, it needs to be show-ready. That doesn’t usually require spending a fortune on a remodel, however. Just targeting a few key areas in the home can go a long way.

The New York Times recently highlighted a few tips from real estate pros on preparing a home for sale, including:

Add three points of light. “Every room should have at least three points of light,” Alison Draper, a real estate professional with Halstead Property, told The New York Times. The three points could include a table lamp, floor lamp, and a task light. Or, it may include an overhead fixture and two table lamps.

Shine the floors. You likely can still salvage a worn floor with some polish or professional cleaning. “Unless your floors are severely damaged, it doesn’t make sense to have them refinished,” Pat Christodoulou, a home stager in Connecticut and New York, told The New York Times. She suggests hiring a handyman with a floor buffer, which might cost about $300 to wax and polish the floor of a small living room.

Tidy up the bathroom. The key: Make it sparkle. Re-caulk necessary areas. Investigate small upgrades that can have a big impact on brightening the space, such as swapping out an old faucet or even adding a new shower curtain, bath mat, and fresh towels. For a bathtub in need of some TLC, a professional refinisher can reglaze it, repairing any dents, rub out rust spots, and recoat it for about $500 for a standard-size bathtub, according to Homeadvisor.com.

Deep clean. The key: Make the home sparkle. Wash the windows, inside and out. Vacuum the dust in exhaust fans. “Deep cleaning is so important because while an apartment can show very neatly, it’s the details that people pick up on,” says Heather McMaster, an associate broker at the Corcoran Group.

Source: “Preparing a Home for Sale,” The New York Times (Sept. 16, 2016)

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