Cash Sales Are A Sign Of A Competitive Market

Most people don’t buy their house with cash. In fact, historically cash sales account for just 10 percent of all home sales. But, according to Freddie Mac’s most recent monthly outlook, the fact that the number of homes for sale remains lower than normal has caused a higher than normal number of cash sales.

“Usually, not many people like to invest a lot of cash into real estate, which is illiquid and has high transaction costs,” Freddie Mac’s chief economist, Sean Becketti, says. “However, in the current, highly competitive housing market, a cash offer is an effective way to gain an advantage over other bidders.” Still, cash sales are well below their peak of 35 percent, with a share closer to 18 percent according to the most recent data.

Overall, Freddie Mac expects mortgage rates to remain low through the end of the year and home sales to surpass last year’s numbers. However, low inventory remains an issue. The outlook says home sales would have been much higher if not for the fact that many markets have fewer homes for sale than is typical. Locally here in Fremont, we are still experiencing a lower than average number of homes for sale. If you are considering a change, it’s still a great time to sell!

 

This advertisement was 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 your real estate needs.

Number Of Showings Up 10% Over Last Year

If you had any doubt that home buyers are active this fall and looking to buy, some new numbers should help put that notion to rest. New research shows that the number of showings – which refers to a professionally arranged tour of a home for sale – are up 10.3 percent nationally over the same time last year.

Regionally speaking, the Northeast saw the largest jump, with a 15.2 percent increase as of June. However, the Midwest and South also saw double-digit improvements. In fact, only the West saw a slight year-over-year decline. The numbers are a good indication of how much interest there is this fall from potential home buyers.

That’s good news for homeowners who are looking to sell their house, as it adds to the growing evidence that, in many markets, there are more buyers than homes for sale. Of course, that also means home buyers that are looking to buy this season should be prepared to move quickly, as good homes aren’t going to stay on the market very long.

 

This advertisement was 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 your real estate needs.

Don Peterson & Associates – Ask The Experts – KFMT 105.5FM – September 21, 2017

Connie Hladik and Angie Kuester discuss acreages, the housing inventory, upcoming open houses, current listings.  Listen below!

 

Why New Home Sales Should Matter To You

There are many parts to a healthy housing market. Whether you’re talking about home prices, mortgage rates, new home construction, or another housing metric, each one of them have an effect on home buyers and sellers – even if some of those effects aren’t as obvious as others.

Take new home sales. If you’re not looking to buy a new house, how does it affect you? Well, for one, when new homes are in demand, more new homes get built. And, when more new homes get built, the boosted inventory of homes for sale can help reduce price increases. For example, the current housing market’s main challenge is too few homes for sale. Because inventory has been low in many markets, buyers have seen prices go up and choices decline.

So, news that new home sales increased nationally for the second straight month is encouraging because increasing sales could help spur more new homes to be built, which would help balance the market and keep prices from becoming unaffordable for the average buyer.

Locally here in Fremont, the city has permitted 21 new residential homes thru July with 6 more in review. Compared to previous years, this is quite an increase! So, even if you aren’t in the market for a new home, you could indirectly benefit from more new homes being bought and sold in your neighborhood.

 

 

 

This advertisement was 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 your real estate needs.

Don Peterson & Associates – Ask The Experts – KFMT 105.5FM – August 24, 2017

Kevin Prinz and Dan Frink discuss the West Point office, selling farms and much more.  Listen below!

Don Peterson & Associates – Ask The Experts – KFMT 105.5FM – July 13, 2017

 

Janice Pruss and Libby Headid discuss John C. Fremont Days parade as well as some real estate tips for getting your home sale ready.  Listen on to hear  5 simple tips!

 

 

Three Reasons Homeowners May be Waiting to Sell

When shopping for a house, you have to choose from the homes that are for sale at the time you’re looking. In other words, unless you’re having a house custom built to your specifications, you’re going to have to make do with what’s on the market now. These days, that’s become more challenging in some areas due to the fact that there aren’t as many homes for sale as is historically normal. So why is that?

Well, there are a couple of different factors behind current inventory levels. One is homes that have yet to recover their value. If a homeowner purchased their home just before the housing crash, they may be waiting for prices to reach pre-crash levels before selling.

Another is mortgage rates. Many homeowners were able to refinance their loans while rates were low and – though they remain lower than historical norms – these potential sellers fear they won’t be able to get as good a deal, if they move now.

Finally, and perhaps most significantly, current homeowners are less likely to put their homes on the market if they feel they won’t be able to find a house they like in their price range. However, despite the factors keeping more homeowners from putting their homes up for sale, there are also some reasons to believe that homeowners who have been waiting may end up selling sooner than later. Among them, surging buyer demand, higher prices, and mortgage rates still hovering near historic lows top the list.

 

 

 

This advertisement is provided by Jennifer Bixby, member of the Bixby and Sorensen Team and 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.

 

 

Repairs and the Cost of Selling

It isn’t just the home’s buyer who has to settle up at the end of the closing process, sellers have costs too.

According to one recent estimate, the average seller spends $15,000 before they hand over the keys to their home’s new owner. A big part of that is closing costs, agent commission, and any repairs required following the home’s inspection.

Another chunk of that is renovations done before the sale. In fact, a large majority of homeowners fix up their homes before putting them on the market. Things like having the home painted, cleaned, and staged can add up for the 80 percent of homeowners who decide to spruce things up before showing their house.

Nationally, the average cost of home improvements done before selling was $2,650, though that can vary greatly from region to region and is also dependent on the type of work that is done to get the house in shape. Of course, unlike buyers, home sellers have the sale of their home to help cover their costs but – assuming they’re going to buy another home – these expenses will obviously have an effect on how much money they have left over to put toward their next house.

 

 

This advertisement is provided by Jennifer Bixby, member of the Bixby & Sorensen Team and 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.

Prices Move Higher as Homeowners Stay Put

Widely seen as the leading measure of U.S. home prices, the S&P Dow Jones Indices is a monthly look at home values that has been conducted for more than 27 years. According to the most recent release, national home prices are up 5.8 percent over last year, with the largest gains seen in the West and South.

David M. Blitzer managing director and chairman of the index committee at S&P Dow Jones Indices, says there’s some regional variation in how quickly prices are rising, but generally the issue is the number of homes available for sale. “Over the last year, analysts suggested that one factor pushing prices higher was the unusually low inventory of homes for sale,” Blitzer said in a press release. “People are staying in their homes longer rather than selling and trading up.” Because of this, there are fewer homes for buyers to choose from but home sellers, on the other hand, enjoy increasingly favorable conditions. And yet, many current homeowners are staying put.

If more homeowners put their homes up for sale, and new home construction continues to improve, the market will balance in the coming months and home price increases will begin to moderate.

 

This advertisement is provided by Jennifer Bixby, part of the Bixby & Sorensen Team and 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.

 

Don Peterson & Associates – Ask The Experts – KFMT 105.5FM – June 29, 2017

Brian Villwok and Kevin Prinz, two of our auctioneers, sit down to discuss the ins and outs of selling your property via auction and tag sale.  Listen on to find out more!