by Colette Marcellene Ether, Managing Broker | May 14, 2021 | Home Selling, Real Estate
Homebuyers are flooding the housing market right now to take advantage of record-low mortgage rates. Many have a sense of urgency to find a home soon since experts forecast a steady rise in both rates and home prices this year and next. As a result, buyer demand greatly outweighs the current housing supply. Here’s how the shortage of houses for sale sets yours up to be the oasis in an inventory desert.
According to the National Association of Realtors (NAR), today’s housing inventory sits at an incredibly low 2.1-month supply, far below the 6-month mark for a neutral market. Inventory of single-family homes a year ago was already very low, and as you can see in the graph below, this year’s levels are even lower:
Due to these market conditions, today’s buyers frequently enter fierce bidding wars while trying to purchase a home. This in turn drives up home prices and gives sellers incredible leverage in the negotiation process, two big wins if you’re going to sell your house this year.
Bottom Line
In such a hot market, it can feel as though the supply of homes has virtually dried up, leaving buyers to wander in an inventory desert. That’s why there’s never been a better time to sell. To a parched buyer needing to secure a home as soon as possible, your house could be a true oasis. Connect with us so you’ll be positioned to win this summer.
All my best,
Colette
by Colette Marcellene Ether, Managing Broker | Apr 26, 2021 | Business, Home Buying, Home Selling, Real Estate
Today Apple announced a new campus, bringing $1 Billion and 3,000 jobs in technology like software engineering and machine learning to Wake County in North Carolina.
Apple’s expansion will be located in North Carolina’s Research Triangle area, which gets its name from nearby North Carolina State University, Duke University, and the University of North Carolina. Apple CEO Tim Cook and COO Jeff Williams have MBAs from Duke. Apple senior vice president Eddy Cue, who is in charge of the company’s online services, graduated from Duke.
The campus will be 1 million square feet on the Wake County side of RTP, on tracts of land straddling N.C. 540 near Cary and Morrisville. It will run on 100% renewable energy, the company said. The new North Carolina campus is part of the company’s plan to invest $430 billion and add 20,000 new jobs across the United States in the next five years.
Apple will also establish a $100 million fund to support schools and community initiatives in the greater Raleigh-Durham area and across the state, and will be contributing over $110 million in infrastructure spending to the 80 North Carolina counties with the greatest need — funds that will go toward broadband, roads, and bridges, and public schools. When up and running, Apple’s investments are expected to generate over $1.5 billion in economic benefits annually for North Carolina.
This is exciting news for the Triangle and just the sort of boost our region needed to help increase the pace of available homes in a tight housing market. Many locals have been hesitant to sell and upgrade due to concerns over economic stability and uncertainty as a result of the pandemic, resulting in record-low inventory. An increase in demand from approved and eager buyers, many with large sums of cash, continues to drive the market in favor of the seller.
How this Apple expansion may impact you:
Home prices will continue to rise, resulting in an increase in equity [yay for sellers and current homeowners]. Housing demand will continue to impact buyers and benefit sellers. However, the economic boost to our local economy will provide the stability potential sellers need to feel confident about listing their homes–resulting in an increase of available homes, thus leveling out the competition for both buyers and sellers. This won’t happen overnight, though.
This is good news for buyers feeling defeated in the hot North Carolina housing market. A continued interest in the Triangle from builders will help offset the limited resale pool.
The Bottom Line
Now is an even better time than ever to buy or sell a home. This is not just a thing Real Estate Agents say to get your business. The data is real and it supports this statement now more than ever. If you are thinking about selling, send us a text or give us a call. We are ready to help you list your current home, help you make some serious cash on your sale, and help you get into that dream home you’ve been saving for!
If you are a buyer eager to gain leverage over your competition in this tight market, text help me buy or give us a call.
We look forward to helping you!
All my best,
Colette
by Colette Marcellene Ether, Managing Broker | Apr 22, 2021 | Home Buying, Home Selling, Real Estate
A seller’s market happens when the number of buyers exceeds the number of homes for sale. This means that buyers have fewer homes to choose from, which in turn leads to less competition amongst sellers.
If you’ve given even a casual thought to selling your house in the near future, this is the time to really think seriously about making a move. Here’s why this season is the ultimate sellers’ market and the optimal time to make sure your house is available for buyers who are looking for homes to purchase.
The latest Existing Home Sales Report from The National Association of Realtors (NAR) shows the inventory of houses for sale is still astonishingly low, sitting at just a 2-month supply at the current sales pace.
Historically, a 6-month supply is necessary for a ‘normal’ or ‘neutral’ market in which there are enough homes available for active buyers (See graph below):
It’s not a bubble. It’s simply a lack of supply, says National Association of Realtors chief economist Lawrence Yun,When the supply of houses for sale is as low as it is right now, it’s much harder for buyers to find homes to purchase. As a result, competition among purchasers rises and more bidding wars take place, making it essential for buyers to submit very attractive offers.
As this happens, home prices rise and sellers are in the best position to negotiate deals that meet their ideal terms. If you put your house on the market while so few homes are available to buy, it will likely get a lot of attention from hopeful buyers.
How did we get here? Well, like many things over the past year, we can blame the pandemic. Concerns over exposure to COVID-19 left many homeowners uncomfortable about selling. From showings to repairs, moving, and economic uncertainty, many would-be sellers decided it was safer for them to settle in and ride it out. Others spent the last year organizing, renovating, and improving their homes to the extent that it eliminated the need to upgrade to a larger home.
Today, there are many buyers who are ready, willing, and able to purchase a home. As millions of Americans get vaccinated and communities “reopen”, many folks are ready to make a move. Low mortgage rates and a year filled with unique changes have prompted buyers to think differently about where they live – and they’re taking action. The supply of homes for sale is not keeping up with this high demand, making now the optimal time to sell your house.
Bottom Line
Home prices are appreciating in today’s sellers’ market. Making your home available over the coming weeks will give you the most exposure to buyers who will actively compete against each other to purchase it. If you are a buyer feeling discouraged by all the attention-grabbing Real Estate Market headlines and lack of inventory, send us a text. Our team of experts can help you navigate this unprecedented market, and help you find your next dream home!
All my best,
Colette
Data Source Keeping Current Matters
by Colette Marcellene Ether, Managing Broker | Apr 10, 2021 | Home Buying, Home Selling, Real Estate
For generations, the homebuying process never really changed. The seller would try to estimate the market value of the home and tack on a little extra to give themselves some negotiating room. That figure would become the listing price of the house. Buyers would then try to determine how much less than the full price they could offer and still get the home. The asking price was generally the ceiling of the negotiation. The actual sales price would almost always be somewhat lower than the list price. It was unthinkable to pay more than what the seller was asking.
Today is different.
The record-low supply of homes for sale coupled with very strong buyer demand is leading to a rise in bidding wars on many homes. Because of this, homes today often sell for more than the list price. In some cases, they sell for a lot more.
According to the Home Buyers and Sellers Generational Trends report just released by the National Association of Realtors (NAR), 45% of buyers paid full price or more.
You may need to change the way you look at the asking price of a home.
In this market, you likely can’t shop for a home with the old-school mentality of refusing to pay full price or more for a house.
Because of the shortage of inventory of houses for sale, many homes are actually being offered in an auction-like atmosphere in which the highest bidder wins the home. In an actual auction, the seller of an item agrees to take the highest bid, and many sellers set a reserve price on the item they’re selling. A reserve price is a minimum amount a seller will accept as the winning bid.
When navigating a competitive housing market, think of the list price of the house as the reserve price at an auction. It’s the minimum the seller will accept in many cases. Today, the asking price is often becoming the floor of the negotiation rather than the ceiling.
Therefore, if you really love a home, know that it may ultimately sell for more than the sellers are asking. So, as you’re navigating the homebuying process, make sure you know your budget, know what you can afford, get pre-approved, or even better, get fully underwritten, and work with a trusted advisor (like me!) who can help you make all the right moves as you buy a home.
Bottom Line
Someone who’s more familiar with the housing market of the past than that of today may think offering more for a home than the listing price is foolish. However, frequent and competitive bidding wars are creating an auction-like atmosphere in many real estate transactions.
For the best advice on how to make a competitive offer on a home, check out an earlier post on How to Make a Winning Offer on a Home, and reach out to our team today. We’re experts in our local market and we’re ready to help win the bid on your next dream home!
All my best,
Colette
Content and Data Source: Keeping Current Matters and National Association of Realtors®
by Colette Marcellene Ether, Managing Broker | Apr 5, 2021 | Home Selling, Real Estate
https://www.instagram.com/tv/CNTEPxEnctF/
by Colette Marcellene Ether, Managing Broker | Mar 25, 2021 | Home Buying, Home Selling, Real Estate
Spring is here, and many are wondering what it will bring for the housing market. Even though the pandemic continues, it’s certain to be very different from the spring we experienced at this time last year. Here’s what a few industry experts have to say about the housing market and how it will bloom this season.
“Despite early weakness, we expect to see new listings grow in March and April as they traditionally do heading into spring, and last year’s extraordinarily low new listings comparison point will mean year over year gains. One other potential bright spot for would-be homebuyers, new construction, which has risen at a year over year pace of 20% or more for the last few months, will provide additional for-sale inventory relief.”
“Some people will feel comfortable listing their home during the first half of 2021. Others will want to wait until the vaccines are widely distributed. This suggests more inventory will be for sale in late 2021 and into the spring selling season in 2022.”
“Since reaching a low point in January, mortgage rates have risen by more than 30 basis points… However, the rise in mortgage rates over the next couple of months is likely to be more muted in comparison to the last few weeks, and we expect a strong spring sales season.”
“As the housing market heads into the spring home buying season, the ongoing supply and demand imbalance all but assures more house price growth…Many find it hard to believe, but housing is actually undervalued in most markets and the gap between house-buying power and sale prices indicates there’s room for further house price growth in the months to come.”
Source: Keeping Current Matters
Bottom Line
The experts are very optimistic about the housing market right now. If you pressed pause on your real estate plans over the winter, connect with us to determine how you can re-engage in the homebuying process this spring.
We are excited to kick-off the new season and help you achieve your Real Estate goals!
All the Best,
Colette
REALTOR®, eXp Realty
Due to these market conditions, today’s buyers frequently enter fierce bidding wars while trying to purchase a home. This in turn drives up home prices and gives sellers incredible leverage in the negotiation process, two big wins if you’re going to sell your house this year.