Spring Has Homeowners Seeing Opportunity

This year’s housing market depends a lot on whether or not current homeowners decide now’s the time to put their home up for sale. With inventory low, home prices have been climbing and causing affordability concerns for buyers.

There are two ways to relieve upward pressure on prices. One is more new home construction. The other is more homeowners putting their homes on the market. Doug Duncan, Fannie Mae’s senior vice president and chief economist, says the market may get a boost, if current homeowners become more active. “The housing market could get some tailwinds from a seasonal rise in for-sale inventory, particularly as some sellers seek to lock in profits from recent rapid home price gains,” Duncan said. “The market could also get a boost from homebuyers who decide to jump into the market before rates rise further.”

The good news is there are an increasing number of Americans who believe this is the time to sell. In fact, Fannie Mae’s most recent Home Purchase Sentiment Index saw a 9 percent jump in the number of survey participants who said they feel it’s a good time to sell a house. If more homeowners begin to list their homes this spring, it’ll offer buyers better choices. It’ll also help moderate future price increases.

 

This article is provided by Jennifer Bixby, the broker for Don Peterson and Associates Real Estate, 100 E. 6th St.  Jennifer can be reached at 402-721-9700 for answers to questions regarding real estate.

Why Aren’t More Homeowners Looking To Sell?

Recent real estate data shows home buyer demand is high. There are a lot of buyers looking to take advantage of current conditions out of concern that mortgage rates may go up this year or prices will rise further. That, along with pent-up demand from younger buyers and previously underwater homeowners looking to finally move, means it should be a great time to sell a house.

So, if buyer demand is up and conditions are right, why aren’t more homeowners putting their homes up for sale? Well one reason, according to a recent survey, is that they’re afraid they won’t be able to find a suitable replacement for their current home. With inventory tight in many markets, some homeowners – who may otherwise be ready to sell – say they’re hesitant.

However, as more homeowners get in the market and off the sidelines, that will begin to change. In the meantime, buyers looking to purchase a home this spring should expect to see available homes for sale selling more quickly than they did last year.

In other words, there will likely be some competition for hot properties. Interested buyers will have to move fast. One way to beat the competition is to be prepared. If you’re a buyer, have your financing lined up in advance and have a professional Realtor working for you. Experienced representation will be key to winning negotiations in this hot market.

 

This article is provided by Jennifer Bixby, the broker for Don Peterson and Associates Real Estate, 100 E. 6th St.  Jennifer can be reached at 402-721-9700 for answers to questions regarding real estate.

Will This Year Be Better For Buyers Or Sellers?

If you want to know whether this year is going to be good for buyers or sellers or both, you need to watch for a couple of factors. First, take a look at the housing market. A recent uptick in mortgage rates, combined with higher prices and lower inventory, have made buying a home slightly less affordable than it was a couple of years ago.

However, mortgage rates are still historically low and, though prices continue to rise, they have slowed down. That means, though affordability isn’t what it was a few years ago, buying a home remains an affordable choice. This is especially true when taken together with recent economic data. That’s because, whether or not higher rates will deter potential buyers really depends more on whether or not those buyers feel financially secure and optimistic about their prospects. In other words, if Americans continue to see better job opportunities and higher wages, they’ll be less likely to hesitate when thinking about buying a house regardless of where rates and prices go.

According to the most recent outlook from Fannie Mae’s Economic & Strategic Research Group, how things play out will depend largely on young Americans. “Tight inventory remains a boon to home prices and Americans’ net worth, but it also continues to price out many would-be first-time homebuyers.” However, our research suggests that aging millennials, now boasting higher real wages, are beginning to narrow the homeownership attainment gap.

 

This advertisement is provided by Jennifer Bixby, the broker for Don Peterson and Associates Real Estate, 100 E. 6th St. Jennifer can be reached at 402-721-9700 for answers to questions regarding real estate.

The Absolute Best Time to List Your Home

Though it’s commonly said that spring is the most popular time for home buyers to begin looking at houses, a new analysis has narrowed it down even further. In fact, the Zillow Group Report on Consumer Housing Trends pinpointed the best two weeks of the year to list a house. The study found that homes listed between May 1st and 15th sold nine days faster than the average listing. Additionally, homes that were listed during that time frame sold for 1 percent above average.
However, you may not be able to expect the same success if you’re selling a house in an area with a warmer climate. That’s because, regions where the weather doesn’t change as drastically from season to season will see less variation in sale price. According to Zillow’s chief economist, Dr. Svenja Gudell, there’s one possible reason homes listed near the end of April or beginning of May do so well. “Many home buyers who started looking for homes in the early spring will still be searching for their dream home months later,” Gudell said. “By May, some buyers may be anxious to get settled into a new home – and will be more willing to pay a premium to close a deal.”

 

This article is provided by Jennifer Bixby, the broker for Don Peterson and Associates Real Estate, 100 E. 6th St. Jennifer can be reached at 402-721-9700 for answers to questions regarding real estate.

Will Low Inventory Affect Your Home Search?

If you’ve followed the housing market at all this year, you’ve likely heard something about inventory. Inventory refers to the number of homes available for sale. This year, it’s been lower than usual. And, when for-sale inventory is low and buyer demand is high – as it’s been this year – prices rise and sellers hold most of the negotiating power.

In many markets, that has been the story this year. However, according to a new analysis from Trulia, whether or not low inventory will affect a buyer’s home search depends on where that buyer is looking and what kind of home they’re looking to buy. For example, starter homes had the largest drop in inventory last year, falling 10.7 percent.

On the opposite end of the spectrum, the number of high-end homes for sale only fell 3.7 percent. Naturally, that means a first-time buyer looking for an affordable home may have fewer homes to choose from than a luxury home buyer. However, it also depends on where you live.

Here in Fremont, we have averaged 27 sales a month over the past 6 months. With only 57 active listings today, that is an inventory supply for 2 months. A balanced market is closer to 4-6 months of inventory. If you are thinking of selling now is the time!

 

This advertisement is provided by Jennifer Bixby, the broker for Don Peterson and Associates Real Estate, 100 E. 6th St.  Jennifer can be reached at 402-721-9700 for answers to questions regarding real estate.

Home Buyers Say, “The Bigger, The Better”

Owning a home is a big draw for buyers. In fact, recent data from the National Association of Realtors shows 31 percent of all buyers said they were purchasing a house because they wanted to own. Among first-time buyers, that number shoots up to 67 percent.

Obviously, the dream of ownership is alive and well. But the second most common reason buyers cited when asked why they were purchasing a home was because they wanted something bigger. And the number of buyers who say they need a larger home is rising. According to economist, Amanda Riggs, there are a couple of reasons for this. One is the number of homeowners who have been waiting to sell as home prices rebounded from the housing crash. These homeowners may have built up enough equity over the past few years to now afford something bigger. The other part of it is the fact that the largest share of home sellers last year were between the ages of 35 and 44. “We can speculate that the sellers probably had a child in the last few years and wanted a bigger home to expand their family,” Riggs writes in a post for the NAR’s Economists’ Outlook Blog.

Whatever the reason – whether it’s boosted equity or a growing family – Americans have consistently shown that, when it comes to their homes, bigger is better.

 

This information is provided by Jennifer Bixby, the broker for Don Peterson and Associates Real Estate, 100 E. 6th St.  Jennifer can be reached at 402-721-9700 for answers to questions regarding real estate.