Exciting New Trends for the Current Homebuyers

 The current housing market is starting to cool along with the buyer frenzy. Professionals in the industry have three trends that can benefit a buyer when they go to buy a home.

1. More Homes To Choose from

For the past several years, the housing market has hit a record low in housing inventory. This coupled with high buyer demand made it hard to even find a home to purchase. The Calculated Risk reported that homes for sale increased by 39.5% in the last week of October 2022 from the same time in 2021. It is still a seller’s market, but the good news for buyers is that there is more inventory to choose from when finding your new home.

2. Bidding Wars Have Eased

With the demand for buyers over the past several years came huge bidding wars. Luckily, for buyers today, things are different. According to the National Association of Realtors (NAR) the offers on sold homes have declined recently. This fall, September showed the average was 2.5 offers per sale, which was down from the 3.7 offers per sale from last September 2021. Since this has started to slow down, the bidding wars are as well, making it a great time to get back into the market and search for a home without the huge influx of competition.

3. More Negotiation Power

When there is less competition for buyers, then there is more negotiation power on your side. The last couple of years has seen buyers willing to skip things like appraisals and inspections in order to win a bidding war. The National Association of Realtors (NAR) shows that buyers in today’s market are not waiving all contingencies. Appraisal and inspection are two very important factors when it comes to purchasing a home. A survey from Realtor.com shows that 95% of current sellers are accepting a house inspection from a buyer. Sixty-seven percent of sellers negotiated with buyers on repairs found during an inspection.

There are still challenges buyers must face in today’s market, but they are becoming more scarce. Now is a great time to purchase a new home, first find a local realtor who can help you on your journey to getting your dream home.

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Improve a Home's Resale Value With These Projects

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A home's resale value is always important to a homeowner. Home renovations if done right and smart can make a huge impact on a home's worth. Some homeowners are ready for a big project such as a kitchen or bathroom overhaul, but others do not have the time, resources, or energy to tackle these. If you are in the market to sell your home, some small projects can boost the value and time it takes to sell your home.

“People buying may not have the greatest imagination, and they want to walk into something that’s turnkey,” says Sandy Scheinman, a real estate salesperson at Douglas Elliman Real Estate in New York City. “In a competitive market, offering a home that looks renovated and new is really what you need to do to compete.”

According to Scheinman, renovations can increase a home's price by 10% to 12%. In order for these changes to not only add monetary value but also gain a buyer's interest, you must make smart choices in your projects. Here are some great tips to follow to make your projects a success.

Design with buyers in mind

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“If you are doing the renovations for resale, choose the types of fixtures and styles that will appeal to your target audience,” says Michele Morrison, a real estate agent with the Sereno Group in Los Altos, CA. “Don’t build your dream home if it’s not for you.”

What you may love, another person may hate. The key to renovations is to opt for designs that are universally flattering.

Paint a room

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Painting a room can cost around $200 - $400 and only take about a day but the impact is huge. Updating the walls in a warm gray or white will give the room a fresh look in a neutral color.

It is always important to use a color that is neutral and not polarizing. Some buyers will walk into a home hate the eggplant walls and leave.

Add crown molding

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Crown molding gives a room a finished and improved look. This wood can be added to the top edge of walls, door frames, or cabinets. This project typically costs between $300 to $500 per room and only takes a few days to paint, prep and install. Crown molding is not only a lovely touch but can also cover problem areas on walls or around windows and doors.

“This renovation increases value by setting the home apart from other comparable homes in the area,” says Richard McMurray, owner of DFW Crown Moulding in Fort Worth, TX.

Bathroom makeover

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“We’re seeing a trend where people are expanding the size of the bathrooms and having his-and-her showers. It’s more of a room than what it was in the past,” Nematnejad says.In the past, a bathroom in a home served only basic needs and was more simple in design. Today, the bathroom is a major part of a home's grand showcase. Today's buyers want a nice large bathroom with a soaking tub and natural light.

A bathroom renovation can be costly, $35,000 to $65,000-plus, but there are simple updates you can do to please a buyer's eye. Some buyer-pleasing ideas include replacing a linoleum floor with tiles, painting the vanity, installing a new sink and faucet, and putting in new lights.

Kitchen renovation

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Another project that can cost anywhere from $65,000 to over $100,000 but can recoup the cost of about 65% of the project when you sell your home is renovating the kitchen. Kitchens are not just a place to cook anymore, today's homeowners use the kitchen as a living space.

“The more you put into [a kitchen renovation], the higher the resale cost recouped percentage is going to be,” says Robert LaFleur, owner of Building Professionals, Inc. in Westford, MA.

Follow these tips and you are sure to be please with the outcome of the sale of your home. If you are in the market to sell, contact a local Realtor who can help you through the process.

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Two Important Building Trends For Today’s Buyer

 The COVID pandemic is still causing uncertainty in the world today. A person’s home has become their essential safe haven. The NAHB has learned from a two-part presentation lead by the Leading Suppliers Council (LSC) there are two building trends that have become essential to buyers in the housing market. Buyers are more concerned about purchasing a smart home and a healthy home.

Homeowners are spending more time than ever at home during the pandemic. People are living,

working and playing all at home. Utility costs are on the rise. Potential homebuyers are interested in smart technologies that can make their home more convenient, secure and energy-efficient. Smart devices are becoming the norm in newly built and renovated homes.

Two-thirds of consumers say they want a connected home. According to Stephen Embry, a partner with the law firm of Frost Brown Todd, in approximately 3 years around 43% of homeowners will have some sort of connected devices in their homes. She says that a home that does not have technology will not be worth as much as a home with technology.

Builders have also seen a trend in homeowners stressing the importance of a healthy home. What does this mean? Consumers want a home with good indoor air quality, plenty of sunlight and the use of non-toxic building materials.

Eco Pulse reports that 66% of Millennials are concerned about indoor air quality. According to the report, in one year six rooms can collect around 40 pounds of dust. There is a possibility that the dust collected could have close to 45 toxic chemicals in it. This is in the air homeowners breathe in their homes on a daily basis.

When building or remodeling a home to improve the home’s health there are many things to consider. Always use clean, renewable energy to help reduce greenhouse gas emissions. Use paints that do not contain VOC that will emit harmful chemicals into the home. Use sound insulation and lighting that adapt to circadian rhythms in the bedroom for improving sleep. Install sensors that monitor air quality. Use double-glazed windows to reduce noise and create better insulation, also make sure your windows provide maximum views to allow natural light in. Most importantly use energy-efficient systems that are easy to control and monitor.

Today more than ever, homeowners want to be able to depend on their homes for their safe place away from the stresses of the pandemic. These two trends are a great way to create a better, healthier environment for families to live, work and play in.

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A Strong February for Single-Family Starts

Single-family starts grew in numbers this February according to estimates from the Housing and Urban Development and Commerce Departments. The great start stems from builder confidence and low mortgage rates.

The Federal Reserve rolled out an emergency rate cut making rates hit a historic low. Currently, the benchmark interest rate range is 1% to 1.25%. Freddi Mac reports an average 3.45% for a 30-year fixed-rate mortgage and 2.95% average for a 15-year fixed-rate mortgage. What does this mean for

the housing market? Potential buyers who are just on the verge of purchasing a new home will now have a great incentive to jump on the opportunity.

The Single-Family Housing Starts and Builder Confidence is shown in a graph depicting the 3-month moving average. According to the graph, the 3-month average for single-family construction is higher than post-recession high. The single-family starts showed an increase of 6.7% making it a 1,072,000 seasonally adjusted annual pace in February.

Builder confidence is going strong with construction at a fast pace due to warmer weather. There were 539,000 single-family homes under construction reported in the month of February 2020. The numbers look as though they do not reflect a rise, however, they are making up for the declines seen in early 2019. Other sectors are also seeing an increase. Currently, there are 683,000 apartments under construction which is 12% up from this time last year. This also marks a post-Great Recession high for apartment construction.

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Tips for Standing Out When Selling in a Crowded Market

A day ago CNBC.com reported that the Fall housing market will shift to a buyer’s market. Good news for those searching for a home to purchase but not quite what a potential seller of a home wants to hear. According to the website, fewer consumers believe now is a good time to purchase a home.

The site reports that appraisals have gotten more stringent and potential buyers are more cautious and are willing to take their time when it comes to purchasing a home.

These factors are contributing to  an increasingly crowded housing market. There is more competition sellers have to face. If you are planning to sell your home in the near future, here are seven tips to follow to help stand out in the crowded market.

Just like the game show title, “The Price Is Right”, price your home out of the market and it will be bypassed by potential buyers. Pricing becomes crucial in a crowded market. It is a fine line for those selling their home who want to get top dollar but want to sell fast. Pricing your home slightly lower (approximately 2% lower) than comps in your area will make your home stand out above similar listed homes in your neighborhood. The slightly lower price will be inciting to buyers when there is an abundance competition.

Always have your home’s “game face” on. If someone comes knocking at your door unexpectedly and wants to see your home, they should be welcomed into a show-ready home. It is always good to deep clean and de-clutter before you list your home. Remember, to always maintain a tidy house throughout your listing. Sellers need to be able to showcase their home at a drop of a hat.

Remember the saying “try to see it through someone else’s eyes”? This also holds true when it comes

to selling your home. Homeowners get used to the clutter or how their home looks after they have lived there for a long time. The cramped closet or clutter in the corner becomes a part of your home that you really do not notice anymore. Walk into your home looking at it from a buyer’s point of view. What should be fixed or de-cluttered? You want to put extra emphasis on features that buyers would like to have in their home.

Now days many buyers look through photos via their Realtor or the internet. The same floorplan can look very different when presented in a photo. It is crucially important to have professional photographs done of your home. A professional photographer knows how to stage and photograph a home to give it an edge over the other homes listed for sale in your neighborhood.

Again the age old saying “keep your friends close and your enemies closer” can come in handy when you and a good many of your neighbors are selling your home at the same time. Do not look at your neighbors as competition, rather look at them as teammates. Get together and work on selling you neighborhood as a great place to live. A great way to do this would be to hold a joint open house.
Highlight your homes best assets. If you renovated or made any upgrades, show them off. Make sure your home’s listing features a list of upgrades or renovations that sets your home apart from the other listings.

Last and most importantly work with a Realtor. Choose a Realtor who has a lot of inside knowledge on your neighborhood. A Realtor is trained to look at real estate trends to determine how best to sell your home and give it a leg up on the competition.

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NAHB Works with Congress to Help Low-Income Housing Laws

Without the help of the country’s federal government, many Americans could not see homeownership in their future.  The National Association of Home Builders worked with the House of Representatives and the Senate to pass a bill in Congress that would facilitate the chance for low-income Americans to become homeowners.  On July 29, 2016, the President signed The Housing Opportunity Through Modernization Act which consists of several reforms which will increase access to affordable rental housing, provide assistance to low-income renters and facilitate homeownership.

There are many facets to the bill which is now a new law.  In the past voucher holders had no chance in competing with market-rate renters.  Because of red tape in the inspection process, voucher holders were not able to move into a multi-family unit such as an apartment or condominium immediately.  Now with the new law inspection requirements in the Housing Choice Voucher Program are more efficient and allow a quicker approval.

The contract terms of HUD’s Section 8 Project Based Housing Choice Voucher program is now 20 years instead of 15 which enables project-based vouchers to be used with the Low Income Housing Tax Credit residences.  Voucher holders will now be protected from economic influences that are out of their control, which means that when the market rental rate goes up, voucher holders will not have to be displaced because their payments are not high enough.  This also allows property owners to preserve respectable renters.

The Rural Housing Service Single-Family Guaranteed Loan Program will also be updated to compete with other government loan programs.  This will allow more low-income renters to actually be able to get a home loan.

FHA regulations that are enforced on existing condominium projects have been reduced.  This means that the purchase of a condo will be less stringent in terms of required owner occupancy for the buyer.  Buyers will now find it easier to purchase multi-family units for rental purposes, creating more rentals in the market.  Also, condo owners who are able to sell will then be able to move up to a single family detached home, if they would like.

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