Author: John Hurlbut

  • Want to Sell Your House Faster? Don’t Forget to Stage! [INFOGRAPHIC]

    Want to Sell Your House Faster? Don’t Forget to Stage! [INFOGRAPHIC]

    Some Highlights:

    • The National Association of Realtors surveyed their members & released the findings of their Profile of Home Staging.
    • 62% of seller’s agents say that staging a home decreases the amount of time a home spends on the market.
    • 50% of staged homes saw a 1-10% increase in dollar-value offers from buyers.
    • 77% of buyer’s agents said staging made it easier for buyers to visualize the home as their own.
    • The top rooms to stage in order to attract more buyers are the living room, master bedroom, kitchen, and dining room.

  • House-Buying Power at Near-Historic Levels

    House-Buying Power at Near-Historic Levels

    We keep hearing that home affordability is approaching crisis levels. While this may be true in a few metros across the country, housing affordability is not a challenge in the clear majority of the country. In their most recent Real House Price Index, First American reported that consumer “house-buying power” is at “near-historic levels.”

    Their index is based on three components:

    1. Median Household Income
    2. Mortgage Interest Rates
    3. Home Prices

    The report explains:

    “Changing incomes and interest rates either increase or decrease consumer house-buying power or affordability. When incomes rise and/or mortgage rates fall, consumer house-buying power increases.”

    Combining these three crucial pieces of the home purchasing process, First American created an index delineating the actual home-buying power that consumers have had dating back to 1991.

    Here is a graph comparing First American’s consumer house-buying power (blue area) to the actual median home price that year from the National Association of Realtors (yellow line).

     

    Consumer house-buyer power has been greater than the actual price of a home since 1991. And, the spread is larger over the last decade.

     

     

    Bottom Line

    Even though home prices are increasing rapidly and are now close to the values last seen a decade ago, the actual affordability of a home is much better now. As Chief Economist Mark Fleming explains in the report:

    “Though unadjusted house prices have risen to record highs, consumer house-buying power stands at near-historic levels, as well, signaling that real house prices are not even close to their historical peak.”

  • Selling in the Winter Attracts Serious Buyers

    Selling in the Winter Attracts 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.”

    Bottom Line

    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).

  • A Lack of Listings Remains ‘Huge’ Challenge in the Market

    A Lack of Listings Remains ‘Huge’ Challenge in the Market

    The housing crisis is finally in the rearview mirror as the real estate market moves down the road to a complete recovery. Home values are up, home sales are up, and distressed sales (foreclosures & short sales) are at their lowest mark in over 8 years. This has been, and will continue to be, a great year for real estate.

    However, there is one thing that may cause the industry to tap the brakes: a lack of housing inventory. According to the National Association of Realtors (NAR), buyer traffic and demand continues to be the strongest it has been in years. The supply of homes for sale has not kept up with this demand and has driven prices up in many areas as buyers compete for their dream home.

    Traditionally, the winter months create a natural slowdown in the market. Jonathan Smoke, Chief Economist at realtor.com, points to low interest rates as one of the many reasons why buyers are still out in force looking for a home of their own.

    “Overall, the fundamental trends we have been seeing all year remain solidly in place as we enter the traditionally slower sales season, and pent-up demand remains substantial as buyers seek to get a home under contract while rates remain so low.”

    NAR’s Chief Economist, Lawrence Yun, points out that the inventory shortage we are currently experiencing isn’t a new challenge by any means:

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

    Bottom Line

    Healthy labor markets and job growth have created more and more buyers who are not just ready and willing to buy but are also able to. If you are debating whether or not to put your home on the market this year, now is the time to take advantage of the demand in the market.

  • Why Waiting Until After the Holidays to Sell Isn’t a Smart Decision

    Why Waiting Until After the Holidays to Sell Isn’t a Smart Decision

    Every year at this time, many homeowners decide to wait until after the holidays to put their homes on the market for the first time, while others who already have their homes on the market decide to take them off until after the holidays. Here are six great reasons not to wait:

    1. Relocation buyers are out there. Companies are not concerned with holiday time and if the buyers have kids, they want them to get into school after the holidays.
    1. Purchasers that are looking for a home during the holidays are serious buyers and are ready to buy.
    1. You can restrict the showings on your home to the times you want it shown. You will remain in control.
    1. Homes show better when decorated for the holidays.
    1. There is less competition for you as a seller right now. Let’s take a look at listing inventory as compared to the same time last year:

    20161114-eng-stm

    1. The supply of listings increases substantially after the holidays. Also, in many parts of the country, new construction will continue to surge reaching new heights in 2017, which will lessen the demand for your house.

    Bottom Line

    Waiting until after the holidays to sell your home probably doesn’t make sense.

  • Happy Veterans Day!

    Happy Veterans Day!

    All of us at the Altitude Homes Team would Like to Thank all our current and former military members for all that you do and have done to protect our freedoms!! We Love you!  Press Play for a Special Message From Us To YOU!

  • The Truth About Housing Affordability

    The Truth About Housing Affordability

    From a purely economic perspective, this is one of the best times in American history to buy a home. Black Night Financial Services discusses this in their most recent Monthly Mortgage Monitor.

    Here are two of the report’s revelations:

    1. The average U.S. home value increased by $13,500 from last year, but low interest rates have kept the monthly principal & interest payment needed to purchase a median-priced home almost equal to one year ago.
    2. Home affordability still remains favorable compared to long-term historic norms.

    The report explains:

    “Even though the value of the average home in the U.S. increased by about $13,500 over the last year, thanks to declining interest rates it actually costs almost exactly the same in principal and interest each month to purchase as it did this time last year.

    Even taking into account the fact that affordability can vary – sometimes significantly – across the country based upon the different rates of home price appreciation we’re seeing, that’s a pretty incredible balancing act between interest rates and home prices at the national level…

    Right now, it takes 20 percent of the median monthly income to cover monthly payments on the median-priced home, which is well below historical norms.”

    However, the report warns that affordability will be dramatically impacted by an increase in mortgage rates.

    “A half-point increase in interest rates would be equivalent to a $17,000 jump in the average home price, and bring that ratio to 21.5 percent. This increase is still below historical norms, but puts more pressure on homebuyers.”

    Bottom Line

    If you are ready and willing to purchase a home of your own, let’s get together to find out if you are able to. Now is a great time to jump in.

  • It’s Not Always Marriage Before Mortgage

    It’s Not Always Marriage Before Mortgage

    There are many people sitting on the sidelines trying to decide if they should purchase a home or sign a rental lease. Some might wonder if it makes sense to purchase a house before they are married and have a family. Others may think they are too young. And still, others might think their current income would never enable them to qualify for a mortgage.

    We want to share what the typical first-time homebuyer actually looks like based on the National Association of REALTORS most recent Profile of Home Buyers & Sellers. Here are some interesting statistics on the first-time buyer:

    20161108-stm-eng

    Unmarried couples jumped up to the third spot, right after their married counterparts and single women. Many couples are buying a home before spending what would be a down payment on a wedding.

    Bottom Line

    You may not be much different than many people who have already purchased their first home. Let’s get together to determine if your dream home is within your grasp.

  • NAR Reports Show Now Is a Great Time to Sell!

    NAR Reports Show Now Is a Great Time to Sell!

    We all realize that the best time to sell anything is when demand is high and the supply of that item is limited. The last two major reports issued by the National Association of Realtors (NAR) revealed information that suggests that now continues to be a great time to sell your house.

    Let’s look at the data covered by the latest Pending Home Sales Report and Existing Home Sales Report.

    THE PENDING HOME SALES REPORT

    The report announced that pending home sales (homes going into contract) are up 2.4% over last year, and have increased year-over-year now for 22 of the last 25 consecutive months.

    Lawrence Yun, NAR’s Chief Economist, had this to say:

    “The one major predicament in the housing market is without a doubt the painfully low levels of housing inventory in much of the country. It’s leading to home prices outpacing wages, properties selling a lot quicker than a year ago and the home search for many prospective buyers being highly competitive and drawn out because of a shortage of listings at affordable prices.”

    Takeaway: Demand for housing will continue throughout the end of 2016 and into 2017. The seasonal slowdown often felt in the winter months did not occur last winter and shows no signs of returning this year.

    THE EXISTING HOME SALES REPORT

    The most important data point revealed in the report was not sales, but was instead the inventory of homes for sale (supply). The report explained:

    • Total housing inventory rose 1.5% to 2.04 million homes available for sale
    • That represents a 4.5-month supply at the current sales pace
    • Unsold inventory is 6.8% lower than a year ago, marking the 16th consecutive month with year-over-year declines

    There were two more interesting comments made by Yun in the report:

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

    In real estate, there is a guideline that often applies; when there is less than a 6-month supply of inventory available, we are in a seller’s market and we will see appreciation. Between 6-7 months is a neutral market, where prices will increase at the rate of inflation. More than a 7-month supply means we are in a buyer’s market and should expect depreciation in home values. As Yun notes, we are, and will remain, in a seller’s market with prices still increasing unless more listings come to the market. 

    “There’s hope the leap in sales to first-time buyers can stick through the rest of the year and into next spring. 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 homeownership rate.”

    Takeaway: Inventory of homes for sale is still well below the 6-month supply needed for a normal market. Prices will continue to rise if a ‘sizable’ supply does not enter the market.

    Bottom Line

    If you are going to sell, now may be the time to take advantage of the ready, willing, and able buyers that are still out looking for your house.

  • Think All Millenials Live in Their Parent’s Basement? Think Again!

    Think All Millenials Live in Their Parent’s Basement? Think Again!

    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 wantto move out.

    The great news is that not only do millennials want to move out… they aremoving 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 homebuyers 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:

    20161103-stm-eng

    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 homebuyer 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!

    Bottom Line

    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?