Why Homeowners Have Great Selling Power Today

Why Homeowners Have Great Selling Power Today | MyKCM

We’re sitting in an optimal moment in time for homeowners who are ready to sell their houses and make a move this year. Today’s homeowners are, on average, staying in their homes longer than they used to, and this is one factor driving increased homeowner equity. When equity grows, selling a house becomes increasingly desirable. Here’s a breakdown of why it’s a great time to capitalize on equity gain in today’s market.

As average homeowner tenure lengthens and home prices rise, equity, a form of forced savings, can be applied forward to the purchase of a new home. CoreLogic explains:

“Over the past 10 years, the equity position of homeowners has positively changed as a result of more than eight years of rising home prices. As the economy climbed out of the recession in the first quarter of 2010, 25.9% or 12.1 million homes were still underwater, compared to the first quarter of 2020 when the negative equity share was at 3.4%, or 1.8 million properties. Borrowers have seen an aggregate increase of $6.2 trillion in home equity since the first quarter of 2010 and the average homeowner has gained about $106,100 in equity.”

Increasing equity is enabling many homeowners who are ready to sell their current houses today to sell for an increased profit, and then reinvest their earnings in a new home. According to the Q2 2020 U.S. Home Sales Report from ATTOM Data Solutions, in the second quarter of 2020:

Home sellers nationwide realized a gain of $75,971 on the typical sale, up from the $66,500 in the first quarter of 2020 and from $65,250 in the second quarter of last year. The latest figure, based on median purchase and resale prices, marked yet another peak level of raw profits in the United States since the housing market began recovering from the Great Recession in 2012.”

If you’ve been taking a closer look at your house recently and are thinking it might be time for you to make a move, determining your equity position is a great place to start. Understanding how much equity you’ve earned over time can be a key factor in helping you realize the potential profits in your real estate investment and move toward your next homeownership goal.

Bottom Line

With average home sale profits growing, it’s a great time to leverage your equity and make a move, especially while the inventory of houses for sale and mortgage rates are historically low. If you’re considering selling your house, let’s connect today so you can better understand your home equity position and take one step closer to the home of your dreams.

Posted on August 5, 2020 at 2:34 pm
Annie Hyatt | Category: Uncategorized | Tagged , , , ,

What Are Experts Saying about Home Prices?

home price projections,

Last week, a very well-respected real estate analytics firm surprised many with their home price projection for the next twelve months. CoreLogic, in their latest Home Price Index said:

“The economic downturn that started in March 2020 is predicted to cause a 6.6% drop in the HPI by May 2021, which would be the first decrease in annual home prices in over 9 years.”

The forecast was surprising as it was strikingly different than any other projection by major analysts. Six of the other eight forecasts call for appreciation, and the two who project depreciation indicate it will be one percent or less.

Here is a graph showing all of the projections:What Are Experts Saying about Home Prices? | MyKCMThere’s a simple formula to determine the future price of any item: calculate the supply of that item in ratio to the demand for that item. In housing right now, demand far exceeds supply. Last week mortgage applications to buy a home were 33% higher than they were at the same time last year. The available inventory of homes for sale is 31% lower than it was last year. Normally, these numbers should call for homes to continue to appreciate.

Bottom Line

Because of the uncertainty with the pandemic, any economic prediction is extremely difficult. However, looking at the limited supply of homes for sale and the tremendous demand for housing, it is difficult to disagree with the majority of analysts who are calling for price appreciation.

Posted on July 14, 2020 at 3:01 pm
Annie Hyatt | Category: Buying a house, Buying Houses | Tagged , , , , , ,

Best Time to Sell? When Competition Is at an All-Time Low

Best Time to Sell? When Competition Is at an All-Time Low | MyKCM

In a recent survey of home sellers by Qualtrics, 87% of respondents said they were concerned their home won’t sell because of the pandemic and resulting economic recession. Of the respondents, 51% said they are “seriously worried.” That concern seems reasonable considering the current condition of the economy. The data, however, is showing that home purchasers are still very active despite the disruptions American families have experienced this year.

The latest Existing Home Sales Report published by the National Association of Realtors (NAR) revealed that 340,000 single-family homes sold in this country last month. NAR’s most recent Pending Sales Report (homes going into contract) surpassed last month’s number by over 44%, which far exceeded analysts’ projections of 15%. ShowingTime reported that appointments to see homes (both virtually and in-person) have increased in every region of the country and are up 21.4% nationwide over the same time last year.

While buyer activity is surging, the number of listings has fallen to an all-time low. Zelman Associates, in their latest residential real estate report, revealed that housing inventory as a percentage of households has fallen to 1.2%, which is half of the long-term average and lower than any other time in our history.

Bidding Wars Heating Up Again

With buyer demand growing and the supply of available homes shrinking, purchasers are again finding themselves needing to outbid other buyers. NAR, in a recent blog post, revealed:

“On average, there were about three offers on a home that closed in May, up from just about two in April 2020 and in May 2019 (2.3 offers).”

Bidding wars guarantee houses sell quickly at a price near or even slightly over the listing price.

Bottom Line

If you’re thinking of selling, don’t be concerned about putting your house on the market right now. There’s no better time to sell an item than when demand for it is high and supply is low. It is exactly at that time when you will negotiate your best possible deal.

Posted on July 8, 2020 at 5:39 pm
Annie Hyatt | Category: Uncategorized | Tagged , , , ,

Why This Summer Is the 2020 Real Estate Season

home buyers, home sellers, summer real estate, annie hyatt real estate, windermere, redmond wa real estate

With stay-at-home orders starting to gradually lift throughout parts of the country, data indicates homebuyers are jumping back into the market. After many families put their plans on hold due to the COVID-19 pandemic, what we once called the busy spring real estate season is shifting into the summer. In 2020, summer is the new spring for real estate.

Joel Kan, Economist at The Mortgage Bankers Association (MBA) notes:

“Applications for home purchases continue to recover from April’s sizable drop and have now increased for five consecutive weeks…Government purchase applications, which include FHA, VA, and USDA loans, are now 5 percent higher than a year ago, which is an encouraging turnaround after the weakness seen over the past two months.”

Additionally, according to Google Trends, which scores search terms online, searches for real estate increased from 68 points the week of March 15th to 92 points last week. As we can see, more potential homebuyers are looking for homes virtually.

What’s the Opportunity for Buyers?

Another reason buyers are coming back to the market, even with forced unemployment and stay-at-home orders, is historically low mortgage rates. Sam Khater, Chief Economist at Freddie Mac indicates:

“For the fourth consecutive week, the 30-year fixed-rate mortgage has been below 3.30 percent, giving potential buyers a good reason to continue shopping even amid the pandemic…As states reopen, we’re seeing purchase demand improve remarkably fast, now essentially flat relative to a year ago.”

With mortgage rates at such low levels and states gradually beginning to reopen, there’s more incentive than ever to buy a home this summer.

What’s the Opportunity for Sellers?

Finding a home to buy, however, is still a challenge, as this spring sellers removed many listings from the market. Though more people are now putting their houses up for sale this month as compared to last month, current inventory is still well below last year’s level.

According to last week’s Weekly Economic and Housing Market Update from realtor.com:

“Weekly Housing Inventory showed continued tightening. New Listings declined 28% compared with a year ago, as sellers grappled with uncertainty and hesitated bringing homes to market. Total Listings dropped 20% YoY, a faster rate than in prior weeks, leaving very few homes available for sale. As Time on Market was 15 days slower YoY, asking prices moved up 1.5% YoY.”

If you’re thinking of selling your house this summer, now may be your best opportunity. With so few homes on the market for buyers to purchase, this season may be the time for your house to stand out from the crowd. Trusted real estate professionals can help you list safely and effectively, keeping your family’s needs top of mind. Buyers are looking, and your house may be at the top of their list.

Bottom Line

If you’re thinking of selling, many buyers may be eager to find a home just like yours. Let’s connect today to make sure you can get your house in on the action this summer.

Posted on May 27, 2020 at 2:56 pm
Annie Hyatt | Category: Buyers in Seattle, Buying a house, Buying Houses, Seattle, Seattle Area Homes, Seattle Eastside, Selling Houses, Selling in Seattle | Tagged , , , ,

See Past the Wallpaper

“If they don’t like my style, then they don’t have to buy the house!” my 85-year old mother says to me when we talk about what she needs to do to get her house market ready.  Truthfully, this a fake scenario since I would never let my parents sell my childhood home; they know I would buy it from them first.  But every time I go visit, my mom asks me what I would do if she did sell it, and every time she belligerently quotes the above.

My mom has style and a great sense of interior design, but it isn’t what would sell a house quickly.  When I was an infant, pictures show a checkerboard linoleum floor, dark paneling,  and an orange leather couch, so VERY 1969. The 1965 Mad Men-like kitchen cabinets are solid wood and have served well for the 53 years she has inhabited the home. I don’t even notice the pastel pink cabinets in my childhood bathroom with flower wallpaper, but my husband did the first time he went in wide-eyed. The formal dining room and living rooms, which we were never allowed in except for special occasions, used to be covered in chintz, but now it and much of the main areas display a Southwest style, which I actually like.

And wallpaper.  Wallpaper everywhere, even on ceilings. My mom has jokingly said that if she and my dad were ever going to divorce, it would be over wallpaper installations.

Today I went into a beautiful home in a gorgeous Eastside Seattle suburb (click to see here), but it was hard to see past the wallpaper (and the hundred rooster representations) throughout the house.  Laura Ashley would have been proud of these interior decorating decisions.  A lot of knick knacks, wall paper, and fabric designs in every room. I can see the love and careful choices the owner made years ago to make her house a showcase, but now the style is a bit much for today’s buyer.

So I have some suggestions for both Sellers and Buyers.

Buyers: See past the wallpaper and thingamajigs. Wallpaper, curtains, and brass fixtures can be removed easily. You will make the house your own and it will be so cool for you and your collection of bobble heads can be displayed prominently until you move on to a new life adventure years down the road.

Sellers: Declutter, declutter, declutter. I know you raised your three, beautiful children there and have amazing memories when your daughter wore the biggest bow in her hair for pictures in front of the Christmas tree. It is time to let your home bring joy to other people who see the home through a different lens and can’t see themselves in the home with all of your many possessions filling the space.

These out-of-style homes are well-loved, and that’s the kind of energy you should want in a new home. It is ready to be updated and welcomed into a new era by your family now.  Except my parents’ house…no one is buying that house but me!

 

Posted on August 19, 2018 at 1:04 am
Annie Hyatt | Category: Uncategorized | Tagged , , , ,