Today’s Selling Power Is Strong For Homeowners

 If you are a homeowner and are thinking about selling your home, now is the time. Homeowner equity is increasing because the average time a

homeowner stays in their home is longer than in the past. According to the 2019 Profile of Home Buyers and Sellers, the median tenure for sellers was 10 years in 2019. After the recession in 2008, the median tenure in a home started to increase yearly. Now is the time to change the trend and sell with buyer demand high and inventory low.

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,” explains CoreLogic.

To sum it up, the longer a homeowner stays in their home, the home price rises and more equity is gained. This is a form of forced savings that can go towards the purchase of a new home. This increased equity will increase the homeowner’s profit on the sale of their home.

According to the Q2 2020 U.S. Home Sales Report from ATTOM Data Solutions, the second quarter of 2020 saw a gain of $75,971 on a typical sale of a home. This was a huge difference from just the year before in the second quarter which saw $65,250 in a typical sale.

If you are considering selling your home, now is the time to make that move. It is important to determine how much equity you have in your home if you decide to sell. A local Realtor can help you determine your equity, selling your home and purchasing a new home.

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July Sees Expanded Housing Starts

 The housing industry and the residential construction industry is still the catalyst for a rebounding economy. Single-family permits and starts gained ground in July. Low-interest rates and the importance of homes due to COVID-19 have fueled the buyer’s market.

According to the NAHB/Wells Fargo Housing Market Index (HMI), single-family permits rose 17% in July. So far in 2020, the total permits for single-family homes on year-to-date bases are up around 6% higher than the first seven months of 2019.

The HMI is based on data collected from the NAHB’s monthly survey which the National Association of Home Builders has been conducting for 30 years. It measures builder’s perceptions of the current single-family home sales and expectations of sales for the next six months. Builders will rate their perception as good, fair or poor.

There are signs that more gains for single-family starts are on the horizon. This can be determined by the fast pace of permits and the renewal of builder confidence. The graph shows that single-family construction has been on the rise since it hit a low in April from the pandemic. April had a 679,000 annual pace while July saw a 940,000 seasonally adjusted annual rate.

Per region single-family starts are up and down depending on the region. In the Northeast single-family starts are down on a year-to-date basis 1%, in the South, they are up 0.7%, in the Midwest they are up 3.4% and in the West, they are also in the positive at 0.5%.

So far the housing market has remained strong during these unprecedented times. The count of single-family homes in various stages of construction is still on the rise. Now is a good time to sell or purchase a home.

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June Home Sales Hit A Record-Setting Rebound

Even though the housing market was severely impacted by the COVID-19 pandemic, it is rebounding at record speeds. According to the latest National Association of Realtors (NAR) Existing Home Sales Report, June marked a record-setting rebound in home sales. NAR reported a 20.7% jump in home sales from May to a seasonally-adjusted annual rate of 4.72 million in June.

“Existing-home sales rebounded at a record pace in June, showing strong signs of a market turnaround after three straight months of sales declines caused by the ongoing pandemic…Each of the four major regions achieved month-over-month growth,” reports the National Association of Realtors.

Lawrence Yun, Chief Economist for NAR says this is a major boost for the housing market and the U.S. economy as a whole. He goes on to explain the sales recovery is strong because buyers are back in the market purchasing the properties they have been eyeing during the country’s shut-down.

The low mortgage rates and increase job gains will keep this revitalization going for many months ahead. Mortgage rates are at an all-time low at under 3% for the first time. Everyone wants to take advantage of the rates while they are so low. Low inventory and a massive amount of buyers have increased home prices because of bidding wars. In June the median existing-home price for all types of housing was $295,300 which was up 3.5% from this time last year. This marks the 100 straight months of year-over-year gains.

The housing industry is leading the economy to recovery. This is the right time to purchase a home and a Realtor can take you step by step through the home buying process.

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Tips to Follow When Doing a Final New Home Walkthrough

There are many steps to follow when purchasing a new home. One you should never skip is your final walkthrough. If you do skip this step, you might unwittingly take on large financial burdens that you had not planned for.

“It allows the buyer and their agent to check the property for any new signs of damage, inspect appliances and systems, and ensure that the home is reasonably clean and in good condition,” says Baruch Silvermann, CEO and founder of The Smart Investor, a free online academy for investors, and a real estate investor himself.

It is a good idea to always take your Realtor to the walkthrough. If there is a problem your agent can make a huge impact when addressing the problem. Take your phone to take pictures, videos and notes. Here are some additional tips you should follow during your final walkthrough.

Check the electrical system. If one switch or outlet does not work, that could be a sign of a bigger problem with the wiring. Go through your home and check the security system, doorbell and garage door as well as the outlets and light switches.

Run the AC/Heating. This should be one of the first things to check in the home. The HVAC is a very important unit and one of the most vital systems in the home.

“The big problem with heating systems is that part of the unit could be outside – the compressor, coil, electrical components, and fan – making it difficult to find the fault,” says Silvermann. “Other common problems can be related to lack of gas, corrosion, or a faulty compressor.”

Look for wet spots. Leaks can cause things such as mold and rotten wood. The repercussions can be termites and even worse foundation issues which can be expensive repairs.

“Visually look around for wet areas on the ceiling or discoloration from leaks by windows,” says Jeff Lichtenstein, owner of Echo Fine Properties in Florida.

Run anything mechanical. Go through and flush all the toilets, run the dishwasher, washing machine, dryer and all the fans (including ceiling fans and exhaust fans). It would be a disappointment to move into your home and then find out that the dishwasher is not working after you have closed.

Inspect the bathrooms. According to Remodeling Magazine, bathroom remodels retain their value at resale. It is important to check the toilets to make sure they are not running, and turn on all the faucets to make sure they work correctly.

“Check that bathrooms are free of water damage, standing water, and mold by the shower, sink, and base of the toilet,” says Silvermann, who says mold can develop within days, so it’s worth taking a close look after the inspection.

Take a look around outside. Make sure all the exterior doors and windows are properly sealed.

“Any small leak can cause the heating and air conditioning system to operate at higher power and raise the electricity bill,” says Silvermann. “And check wood and concrete around the exterior of the home for cracks and water damage.”

Following these six tips can help with the walkthrough process. Make sure to take give a copy of your inspection to the seller so the items will be corrected before closing.

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