Housing Inventory in Charlotte is low and there are buyers out there!
Many buyers are wondering where to find houses for sale in today’s market. It’s a true dilemma. We see an increase in buyer demand, but the supply available for purchase isn’t keeping up.
The number of new housing permits issued prior to the great recession increased for 15 years until 2005 (from 1.12 million in 1990 to a pre-recession peak of 2.16 million in 2005). According to Apartment List,
“From 1990 to 2005, the number of single-family permits issued more than doubled, while the number of multi-family permits grew by 49 percent.”
When the housing market crashed, the number of new homes permitted decreased to its lowest level in 2009 (see below):Since then, supply and demand have been out of balance when it comes to new construction. According to the same report,
“Construction of single-family homes has recovered much more slowly — the number of single-family housing units permitted in 2018 was barely half the number permitted in 2005.”
Why is new construction so important?
As the U.S. population increases, there is also an increase in the need for new homes. Today, new construction is not keeping up with the increase in the nation’s population. The report continues:
“The total number of residential housing units permitted in 2018 was roughly the same as the number permitted in 1994, when the country’s population was 20 percent less than it is today.”
Essentially, the dip in home building coupled with the steadily increasing U.S. population means there is now a selling opportunity for homeowners willing to list their current houses.
Bottom Line
If you’re considering selling your home to move up, now is a great time to get a positive return on your investment in a market with high demand. Let’s get together to determine the specific options available for you and your family.
When a home
is on the market, it needs to be staged properly in order to sell quickly. If
you are selling your home while dealing with a busy parent schedule, however,
keeping your home clean and presentable can be stressful. So, use these super
easy staging, organizing, and cleaning tips to make the job much more
manageable.
Declutter and Downsize First
Clutter can
make your home look smaller and less inviting to potential buyers. Some things
you would not even think of as clutter, like family photos, can be distracting
to people who are trying to imagine themselves living in your house. Before you
move onto other staging projects, spend some time picking up any random items
and donate those items if you can. If
you have tons of toys, seasonal apparel, or holiday decor, you may even want to
consider placing them in storage to make those last-minute cleanups before showings much easier on you.
Renting a storage unit is often a smart choice for home sellers, but it can get
expensive, so shop around for the best deals. Prices range considerably; for
example, in the Huntersville area, a 5’x10’ unit can be rented for as little as
$40 a month even though the average
price for these units is $65 per month.
Invest in Some More Stylish Storage
Putting some
stuff away into a storage unit can help you keep your home staged. When you
have busy kids and a busy schedule to attend to, however, you may need to keep
some necessities in your home. If you need to store a few things around your
house or do not want to rent a storage unit, you can use stylish storage options to keep
those items from distracting potential buyers. Crates, baskets, boxes, and bins
can all make tidying up quickly less challenging and even add some style to
your staged home. This is an especially neat trick for families with busy
entryways, and it can help keep closets looking tidy too. When buyers view your
home, they are bound to sneak a peek into closets, as well as other storage
spaces. So, make sure you spend some time organizing pantries, cabinets and
other seemingly hidden spots.
Deep Clean and Then Maintain Order
If you can
pick up clutter and neatly tuck smaller items away, you can make your home look
and feel more presentable. However, it’s also important that your home be as
clean as possible when it is being listed on the real estate market. This is a
task that you simply cannot skip, so plan on spending some time on a good deep cleaning. Get the kids
out of the house and then work on wiping down surfaces, removing any grime and
getting floors looking their best. If you’re short on time, you can hire a
professional cleaning service to do the job for you.
Once you have
your home sparkling, clean and shiny, it should be easier to keep it that way. Pick up items and
put them away in storage bins as soon as you are done using them, and encourage
your children to do the same. Also, spend a few hours each day cleaning one
room or area to prevent yourself from having to deep clean over and over again.
Don’t Hesitate to Buy or Hire Help
Doing all the
cleaning, decluttering, and staging mentioned above can help you save money. If
your schedule is already filled with other responsibilities and you have some
wiggle room in your budget, you may want to just invest in some helpful tools.
A good robot vacuum can make keeping
up with dirt and spills on floors much less stressful. Do you still have a
little in your budget to spare? You can really help your home sell and make
your life easier by investing in a professional home stager (home
stagers usually charge $500 – $600 per room). This will
take all of the guesswork out of staging and prepping your home so you can use
your brainpower for more pressing matters.
Stop
stressing out about staging and selling your home! With the tips above, you can
knock out all of those cleaning and decluttering tasks — even if you are the
busiest of parents.
Many of the questions currently surrounding the real estate industry focus on home prices and where they are heading. The most recent Home Price Expectation Survey (HPES) helps target these projected answers.
The average annual appreciation will be 3.2% over the next 5 years
The cumulative appreciation will be 16.8% by 2023
Even experts representing the most “bearish” quartile of the survey project a cumulative appreciation of over 6.7% by 2023
What does this mean for you?
A substantial portion of family wealth comes from home equity. As the value of a family’s home (an asset) increases, so does their equity.
Using the projections from the HPES, here is a look at the potential equity a family could earn over the next five years if they purchased a $250,000 home in January of 2019:Based on gains in home equity, their family wealth could increase by $42,000 over that five-year period.
Bottom Line
If you don’t yet own a home, now may be the time to purchase. Owning or moving up to your dream home could allow you to ride the increase in equity of a growing asset.
Home Price Expectation survey – Every quarter, Pulsenomics surveys a distinguished panel of over 100 economists, investment strategists, and housing market analysts regarding their 5-year expectations for future home prices in the United States.
Fixer-upper homes have become a trend with first-time homebuyers. Whether it’s the romance of reworking an older home or the prospect of making a profit, fixer-uppers can be an exciting challenge to take on. If you’re looking to find your first fixer-upper, but aren’t sure where to start, then the following tips can help out.
Figure Out Your Finances First
Buying a new
home, or flipping your first one, is filled with excitement. But don’t let your
feelings get in the way of making smart financial decisions. Before
you start searching for properties to procure, make sure you know how much house you can afford. Look
at your annual income and monthly spending. Factor in major funding concerns,
such as down payments and repairs, and pull a copy of your credit report. It’s wise to figure
out what kind of loans you’re eligible
for and what APR you can expect before you visit your first potential home.
Stick to Your Budget
Once you
have your finances figured out, be sure to keep your budget at the center of any
real estate decisions. It’s easy to feel
an emotional attachment to a beautiful home or be lured in by a hip
neighborhood. But you shouldn’t have to struggle to afford a home that works
for you, especially if you know you’ll have to foot the bill for repairs, too.
Be willing to make some compromises when looking for properties and keep your
entire budget in mind including funds set aside for the fixes needed later on
down the road.
Find a Good Real Estate Fit
From price
to neighborhood and resell value, there’s a lot to think about when it comes to
buying your first fixer-upper. If you’re new to the real estate game, it’s
smart to consult a professional to help you out. Look for a real estate
professional that has some experience working with handyman specials or fixer-uppers
and who knows the areas that interest you the most.
Ask friends for recommendations and don’t settle until you find an agent who
will truly work to find the right home at the right price.
Tackle These Top Tasks First
If you’re
going to live in your new home, you need to work on projects that make living
safe and comfortable first. Most people spend a good deal of time in their
bathrooms and kitchens, so begin by focusing your efforts on repairs needed in
those areas. Pay special attention to any signs of plumbing or electrical issues, which can raise
utility costs or even cause an accident. Kitchen and bathroom remodels tend
to add the most to your resale value, so getting these projects done can help
you get a better price for your home if you flip it in the future.
Prepare for DIY Repairs
Part of the
fun of buying a fixer-upper is taking on some home improvement projects
yourself. Before you break out the hammer, make sure you have a good grasp of
the project you are getting ready to complete. Make supply lists for each
project and know whether you’ll need specialty or power tools to get the job
done. Certain must-have tools including a good drill can be a good investment for
homeowners. And no matter what project your managing, you should always keep
safety a top priority.
Lay Out Long-Term Goals
Chances are,
you have good reasons for buying a fixer-upper. Maybe you love the idea of
making a historical home your own, or perhaps you’d like more of an investment.
If you haven’t set some long-term goals yet, start thinking about them now.
Decide whether you’d like to live in your new home or flip it for a profit as soon as
repairs are complete. Both options have quite a few perks and cons to consider.
Fixer-uppers
can be a fun way to get into real estate. Transforming an old home into the
perfect home for you, or someone else, can be a positive experience, but you
need to know where to start. So use the tips above to make your real estate
wishes a reality.
So you made an offer and it was accepted. Now, your next task is to have the home inspected prior to closing. While we no longer have contingencies due to our due diligence period, we at Carolina Living Real Estate work hard to negotiate all facets of dealing with inspections with the original offer and after inspection is done. Please ask us so we can explain.
We will negotiate numerous facets of the transaction including asking the sellers to cover repairs, or in some cases, to walk away. We will represent you and advise you the best that we can so you can take your best course of action once the report is filed.
How to Choose an Inspector
Your agent will most likely have a short list of inspectors that they have worked with in the past that they can recommend to you. HGTVrecommends that you consider the following five areas when choosing the right home inspector for you:
1. Qualifications – find out what’s included in your inspection and if the age or location of your home may warrant specific certifications or specialties.
2. Sample Reports – ask for a sample inspection report so you can review how thoroughly they will be inspecting your dream home. In most cases, the more detailed the report, the better.
3. References – do your homework – ask for phone numbers and names of past clients who you can call to ask about their experiences.
4. Memberships – Not all inspectors belong to a national or state association of home inspectors, and membership in one of these groups should not be the only way to evaluate your choice. Membership in one of these organizations often means that continued training and education are provided.
5. Errors & Omission Insurance – Find out what the liability of the inspector or inspection company is once the inspection is over. The inspector is only human, after all, and it is possible that they might have missed something they should have seen.
Ask your inspector if it’s okay for you to tag along during the inspection. That way they can point out anything that should be addressed or fixed.
Don’t be surprised to see your inspector climbing on the roof or crawling around in the attic and on the floors. The job of the inspector is to protect your investment and find any issues with the home, including but not limited to: the roof, plumbing, electrical components, appliances, heating & air conditioning systems, ventilation, windows, the fireplace and chimney, the foundation, and so much more!
Bottom Line
They say, ‘ignorance is bliss,’ but not when investing your hard-earned money into a home of your own. Work with a professional who you can trust to give you the most information possible about your new home so that you can make the most educated decision about your purchase.
Whether it is your first time or your fifth, it is always important to know all the facts when it comes to buying a home. With the large number of mortgage programs available that allow buyers to purchase homes with down payments below 20%, you can never have too much information about Private Mortgage Insurance (PMI).
“An insurance policy that protects the lender if you are unable to pay your mortgage. It’s a monthly fee, rolled into your mortgage payment, that is required for all conforming, conventional loans that have down payments less than 20%.
Once you’ve built equity of 20% in your home, you can cancel your PMI and remove that expense from your mortgage payment.”
As the borrower, you pay the monthly premiums for the insurance policy, and the lender is the beneficiary. Freddie Mac goes on to explain that:
“The cost of PMI varies based on your loan-to-value ratio – the amount you owe on your mortgage compared to its value – and credit score, but you can expect to pay between $30 and $70 per month for every $100,000 borrowed.”
According to the National Association of Realtors, the average down payment for all buyers last year was 13%. For first-time buyers, that number dropped to 7%, while repeat buyers put down 16% (no doubt aided by the sale of their homes). This just goes to show that for a large number of buyers last year, PMI did not stop them from buying their dream homes.
Here’s an example of the cost of a mortgage on a $200,000 home with a 5% down payment & PMI, compared to a 20% down payment without PMI:The larger the down payment you can make, the lower your monthly housing cost will be, but Freddie Mac urges you to remember:
“It’s no doubt an added cost, but it’s enabling you to buy now and begin building equity versus waiting 5 to 10 years to build enough savings for a 20% down payment.”
Bottom Line
If you have questions about whether you should buy now or wait until you’ve saved a larger down payment, let’s get together to discuss our market’s conditions and help you make the best decision for you and your family.
Selling your home involves a lot of work and can quickly become a complicated process. Real estate agents are the experts that can help guide you through! Before you decide to FSBO, let’s get together!
If you are a “baby boomer” (born between 1946 and 1964), you may be thinking about selling your current home. Your children may have finally moved out. Your large, four-bedroom house with three bathrooms no longer fits the bill. Taxes are too high. Utilities are too expensive. Cleaning and repair are too difficult. You may be ready to move into a home that better fits your current lifestyle. Many fellow boomers have already made the move you may be considering.
The National Association of Realtors recently released their 2019 Home Buyer and Seller Generational Report. The report revealed many interesting tidbits about both categories of baby boomers: younger boomers (ages 54 to 63) and older boomers (64 to72). Here are a few of the more interesting topics.
Percentage of Buyers who Looked Online First
All Buyers: 44%
Younger Boomers: 46%
Older Boomers: 44%
Where Boomers Found the Home They Purchased
The two major ways buyers found the home they purchased:
All buyers: 50% on the internet, 28% through a real estate agent
Younger Boomers: 46% on the internet, 33% through a real estate agent
Older Boomers: 36% on the internet, 35% through a real estate agent
Distance Seller Moved
The distance between the home they purchased and the home they recently sold was much greater for boomers than the average seller.
All sellers: 20 miles
Younger Boomers: 27 miles
Older Boomers: 50 miles
Tenure in Previous Home of Seller
The percentage of older boomers who lived in their previous home for more than 20 years was almost twice the amount of the average seller.
All sellers: 16%
Younger Boomers: 20%
Older Boomers: 31%
Primary Reason to Sell their Previous Home
Want to move closer to friends or family
Home too large
Retirement
View of Homeownership as a Financial Investment
83% of Younger Boomers see homeownership as a good investment
82% of Older Boomers see homeownership as a good investment
Bottom Line
If you are a boomer and thinking about selling, now might be the time to contact an agent to help determine your options.
In today’s housing market, home prices are increasing at a slower pace (3.7%) than they have over the last eight years (6-7%). However, they are still are above historical norms. Low supply of listed homes and high demand from buyers has pushed prices to rise rapidly.
In the mind of the homeowner, annual home price appreciation over 6% has become the new normal. This becomes a challenge when a homeowner looks to refinance or sell their home, as the expectation of what the homeowner believes the home should be worth does not always line up with the bank’s appraisal.
Every month, the Home Price Perception Index (HPPI) measures the disparity between what a homeowner seeking to refinance their home believes their house is worth and what an appraiser’s evaluation of that same home is.
Over the last five months, the gap between the homeowner’s opinion and the bank’s appraisal has widened to -0.78%. This is important for homeowners to note, as even a 0.78% difference in appraisal can mean thousands of dollars that a buyer or seller would have to come up with at closing (depending on the price of the home).
The chart below illustrates the changes in home price estimates over the last 12 months.
While the appraisal gap widens, another trend is also becoming more common.
According to realtor.com, “the share of homes which had their prices cut increased by 2% compared to last year”. Thirty-seven out of the 50 largest US housing markets saw an increase in overall price reductions.
In today’s market, you need an expert agent who can help price your house right from the start. Homeowners who make the mistake of overpricing their homes will eventually have to drop the price. This leaves buyers wondering if the price drop was caused by something wrong with the house. In reality, nothing is wrong- the price was just too high!
Bottom Line
If you are planning on selling your house in today’s market, let’s get together to set your listing price properly from the start!
Home repairs can be very costly, even when they are DIY projects. Paying for all the materials or covering a professional’s services can quickly turn into thousands of dollars in unplanned costs , which will just as quickly lead to stress or anxiety. Whether you need to make repairs to the roof after a big storm or are planning to install a new air conditioning system, it’s crucial to have a good plan in place. In some cases, your homeowners insurance may help cover the cost of repairs, but not always, so you’ll need to read up on your policy.
When you need to hire a professional, keep in mind that many services will allow you to set up a payment plan if the bill is over a certain amount. This is a great way to pay off what you owe without having to lay out thousands of dollars up front, but it will most likely come with interest charges, so make sure you understand the terms before agreeing to them.
Paying for home repairs and maintenance can be stressful, but it doesn’t have to be. Read ahead to find out more about how you can prepare.
Do Your Research on AC Units
Central air units are some of the most expensive things to replace or add to a home, so it’s important to do some research before you buy. There are many different sizes and types of units , and having some knowledge of the way they work will help you make the right decision. You’ll also need to consider whether the home needs to have a breaker panel installed and how big the space is that you want to cool. Having a professional do the installation is essential; keep in mind that the cost for this service can go as high as $15,000 .
Build Up a Home Repair Fund
Saving money isn’t always easy, but if you can find a way to put aside some money now and then for a repair fund, you’ll be able to reduce a lot of the stress that comes with owning a home. Things tend to go wrong at the worst possible time, and having the extra money set aside when the hot water heater quits or when the electrical wiring needs some work will help to ensure that you can get it taken care of without having to worry about gathering the funds. Set a budget for your daily spending to get a handle on how much you could potentially be saving, then start small ; take your lunch to work instead of eating out, carpool once or twice a week to save on gas, or get the family involved in a routine that will help everyone remember to turn off lights and appliances when they aren’t being used in order to save on your utility bills. You can also make a plan to pay off your credit card, especially if you’ve had to use them to cover repairs.
Know the Signs of Damage
It can sometimes be difficult to recognize signs of damage , especially in an area that’s hard to see every day, but it’s important to make sure you know what to look for so that repairs don’t take too long. When it comes to your roof, the cost of fixing any damage can be high if you wait (a roof replacement in Huntersville can cost up to $9,000 ). Keep an eye out for missing or broken shingles or damp spots on your ceilings or walls, and hire a pro for the job only after researching local contractors .
Paying for home repairs and renovation projects can be a big hardship if you aren’t prepared, so plan well before you begin. Do a little research to make sure you’re comfortable with the task at hand, and always call in a pro for the big jobs; otherwise, you run the risk of creating damage or making a small problem bigger.
