58% Of Homeowners See A Drop In Home Values Coming

According to the recently released Modern Homebuyer Survey from ValueInsured58 percent of homeownersthink there will be a “housing bubble and price correction” within the next 2 years.

After what transpired just ten years ago, we can understand the concern Americans have about the current increase in home prices. However, this market has very little in common with what happened last decade.

 

The two major causes of the housing crash were:

  1. A vast oversupply of housing inventory caused by home builders building at a pace that far exceeded historical norms.
  2. Lending standards that were so relaxed that unqualified buyers could easily obtain financing thus enabling them to purchase a home.

Today, housing inventory is at a 20-year low with new construction starts well below historic norms and financing a home is anything but simple in the current mortgage environment. The elements that precipitated the housing crash a decade ago do not exist in today’s real estate market.

The current increase in home prices is the result of a standard economic equation: when demand is high and supply is low, prices rise.

If you are one of the 58% of homeowners who are concerned about home values depreciating over the next two years and are hesitant to move up to the home of your dreams, take comfort in the latest Home Price Expectation Survey.

Once a quarter, a nationwide panel of over one hundred economists, real estate experts and investment & market strategists are surveyed and asked to project home values over the next five years. The experts predicted that houses would continue to appreciate through the balance of this year and in 2018, 2019, 2020 and 2021. They do expect lower levels of appreciation during these years than we have experienced over the last five years but do not call for a decrease in values (depreciation) in any of the years mentioned.

Bottom Line

If you currently own a home and are thinking of moving-up to the home your family dreams about, don’t let the fear of another housing bubble get in the way as this housing market in no way resembles the market of a decade ago.

 

Posted by The KCM Crew

7 Habits People with Clean Homes Have

We all seem to have that one friend whose house looks so refreshing and clean each time we visit them, yet we never see them struggling with cleaning their homes. Do they have house elves? Is the house actually magic, and it simply cleans itself? What type of sorcery is this?

Actually, it’s not sorcery at all. They are just people who hate cleaning, and who came up with solutions to keep their house clean for a longer time. Years of experience taught them a thing or two, and now we’re sharing the love with you.

1. Put the Clothes Away

At some point in life, everyone had “the chair”, also known as the place where we’d dump the clothes that we’d worn that day. Due to laziness, the clothes would no longer reach the laundry the next day – so one pair of jeans and one T-shirt would become two pairs of jeans and two T-shirts.

You’d do this until the mountain would become so big, you’d be afraid to touch it – but what’s worse is that it would ruin the way your room looks like.

To prevent this from happening, make a habit out of putting your clothes away when you are done with them – either in the wardrobe or the laundry. It’s also more convenient to look for a pair of jeans in an organized closet rather than in a huge stash on the sofa.

2. Don’t Stash Extras

Do you have three staplers, five bottle openers and hundreds of pens lying around in your house? We get it, just in case the other one breaks; however, that “just in case” will give that feeling of clutter in your home. So, your house will no longer look clean and organized. Keep just one item of each.

3. Dust and Vacuum on a Regular Basis

Image source: http://ghk.h-cdn.co/

Nothing says a clean home more than a clean carpet. No matter if you vacuum yourself or hire a carpet cleaning company, you have to make sure that the floor you step on is clean.

How often you do that, it also depends. If you have pets, you must do it daily. If not, once every two days is also alright. This way, you won’t have to go through major cleaning sessions every time at the end of the week.

4. Make Your Bed Every Morning

Have you noticed how clean your home looks after you make your bed? You may have all your things in order, but if your bed is messy, then it’s all in vain. Nothing makes a room look so nice and clean than a tidy bed.

5. Wipe the Surface After Use

No matter if you are cooking, making a sandwich, brushing your teeth or putting on makeup, wipe the surface right after you use it. A dirty sink or counter will make your house look messy. Therefore, if you just wipe it right away, you won’t have to go through thorough cleaning when you see the slime or dirt piling up on the surface.

6. Stash Away the Paper

You have no idea the damage that a paper forgotten on the desk can do to your clean home. Before long, bills will start stashing next to those papers, and it will literally seem like the room itself is breeding more paper.

To keep this from happening, place all your bills in one place the moment you read them – and do the same for coupons, menus, and other paper-made things. A solution would be some DIY file holders or paper trays.

7. Wash the Dishes Right After You Use Them

Image source: https://i1.wp.com

“I’ll wash this later; it’s only one bowl.” The problem is, it’s never only one bowl. Things keep stashing after the first one, and before you know it, you’ll have a mountain of dishes that you’re too afraid to touch (kind of like “the chair” syndrome).

To prevent this from happening, you may want to clean your dishes and glassware right after you use them. An empty sink with no dishes will make your house look clean for a longer time. Plus, it’s easier to wash just one dish instead of twenty.

These are some simple little things that will only take you a few minutes at a time; but if you master these habits, then you won’t have to clean your home as often – because it will already be clean.

Author Bio: Nathan Raymond is the CEO of West Coast Restoration & Cleaning. “Ray” and his staff are experts in water and fire restoration, and mold removal, carpet cleaning, and much more.

Posted by HomeZada

FSBO Risks: 4 Scary Scenarios ‘For Sale by Owner’ Home Sellers Face

jhorrocks/iStock

Going the “For Sale by Owner” route is a tempting alternative to hiring a real estate agent to sell your home. After all, listing agents charge a commission for their work that can eat into your own profits. So why not try to save money by selling your home yourself?

Here’s why: There are some major risks with going FSBO, from a lower sales price to landing in legal hot water. So before you pursue this DIY route, here’s a warning of some of the bad things you might encounter when you attempt a FSBO arrangement.

1. Your listing won’t be seen by many buyers

One key thing a real estate agent will do for you is create an eye-catching ad for your home, with attractive photos and a winning description that will reel in buyers (by, say, playing up those hardwood floors and granite countertops). Sure, you can probably cobble together your own ad, but there’s one thing you absolutely can’t do if you go FSBO: Post that ad on the multiple listing service.

Real estate agents pay to put their listings on the MLS, which is then distributed far and wide, including to sites such as realtor.com®. Which is great, since that way you know your home can be seen by thousands of potential buyers and their agents. With FSBO, however, your home won’t go on the MLS; instead, it’ll go on sites that cater to FSBO listings, which get far less traffic.

“There are thousands of agents trying to sell your house when it’s on the MLS, but when you do it alone, only one person is trying to sell your house—you,” notes Realtor® Denise Briez with Pro100 in Neosho, MO.

2. Your home could sell for a much lower price

Pricing a home can be far more challenging than most newbies assume. The majority of sellers price their home based on emotions, or what they hope it should sell for in some dreamy best-case scenario.

“Often the seller is too personally invested in the situation and too close to be objective,” says John Powell, chief development officer at Help-U-Sell Real Estate in Tucson, AZ.

But buyers want a bargain, and they know when a place is overpriced. As such, listings with bloated prices tend to sit—and sit—on the market. Even if you eventually lower the price, buyers are likely to wonder at that point if there’s something wrong with your house since it’s languished on the market so long.

A real estate agent, by contrast, will provide an accurate home value based on a solid market analysis, plus serve as a buffer between you and buyers to facilitate successful negotiations and a resolution both parties can live with. This, in turn, means you can earn top dollar for your home—which means your agent will likely earn every penny he’s paid.

3. You could run into legal trouble

Selling a home is fraught with legal pitfalls that only a real estate agent will know. As such, when you choose the FSBO route, you could do something that skirts the law but not even know it.

“There are a lot of potential legal problems that can arise during home selling,” says David Welch, a Realtor with Re/Max 200 Realty in Winter Park, FL. “I would say disclosure requirements may be your most likely issue. Most states, maybe all of them, have requirements involving seller’s disclosure of defects in the property.”

Disclosure requirements vary by state, but might include information on lead-based paint, nearby environmental hazards or sex offenders, and even whether someone died in the house. If you know of such info but keep mum, you could be committing a prosecutable offense and have one highly irate buyer on your hands to boot.

4. You might end up with a buyer who doesn’t pan out

Even if your FSBO listing gets an offer that you accept, you’re not out of the woods quite yet. For one, buyers fall through or back out for all sorts of reasons. For instance, you might inadvertently choose a buyer who can’t get a loan, which means you’ll have to start back at square one.

A real estate agent will be your ally in confirming a buyer is pre-approved for the correct loan amount, and then will ensure there is an airtight contract in place so the entire process will proceed smoothly.

Due to the risks of FSBO homes, many sellers eventually realize they can’t afford to not hire a real estate agent. So make sure to weigh the FSBO trade-offs against your money, time, and peace of mind.

 

Posted by Cathie Ericson on realtor.com

5 Retro Decorating Trends That Deserve a Comeback

If you’ve been yearning for the return of the conversation pit, you’re not alone.

Some home decor looks are just too good to let go. The boldly colored kitchen cabinets of the ’50s are taking on a sophisticated modern look. The late ’80s country kitchen look is enjoying new life — minus the gingham frills and bonneted goose motif — in today’s farmhouse chic trend, and mid-century design has taken over the home furnishing offerings of retailers at every price point. Rattan furniture and velvet upholstery, both popular in the ’70s, are showing up in designer collections again.

Our pick for the decor trend  most deserving of a second chance? The brightly colored bathroom fixtures (and sometimes even matching tile) that became popular beginning in the 1930s, and evolved from cool pastels to the much-maligned avocado and harvest gold hues of the 1970s. We’re not seeing these offered new yet, but salvage stores are a great resource if you simply must have a mint green or bubble-gum pink sink for your bathroom renovation.

Photo from Zillow listing.

Here are some of the blast-from-the-past home decor looks designers are happy to have deja vu over.

’50s-style dens

We are loving the reemergence of the den or the basement as a gathering space. Instead of having family and friends centered around a 50-inch television in the living room, we’re seeing people move toward intimate areas like listening rooms for their favorite vinyls, or casual seating in the den with headphones and their iPads. This setup is more conducive for connecting and catching up, or simply taking time for one’s self — think wood paneling, updated and re-imagined bean bags in designer fabrics, and high-quality retro audio sound.

– Kerrie Kelly, Kerrie Kelly Design Lab

Photo by Brian Kellogg.

Macrame textile art

Macrame from the ’60s and ’70s, but with a whole new twist. I love the beautiful heavy knotted textile hangings as art, or the thin delicate hangings for room screens. [They can hold] hanging flower vases and even light fixtures. This time it’s all about texture with a Scandinavian vibe.

– Susan M. Jamieson, ASID, Bridget Beari Designs, Inc.

Big macrame on a white brick wall in bedroom; Shutterstock ID 671446057; PO: Cat Overman; Job: blog post

Conversation pits

We want big living rooms with circular, sunken conversation pits. They need custom built-in sofas, space-age floating fireplaces hanging in the middle, and plush shag carpeting deep enough to swallow your foot. Give us this dedicated zone for hanging out with friends and family, a space that isn’t centered around a TV screen. Give us bold colors and wild graphic patterns on pillows. And, most importantly, give us a live-in housekeeper, because those shag carpets are a nightmare to keep clean.

– Chris Stout-Hazard, ROGER+CHRIS

Photo from Zillow listing.

The home design trend from the past I’d love to see make a comeback is the conversation pit. Our technology age has created a digital life and physical separation. The classic conversation pit promotes togetherness and community. The conversational pit arrangement organically encourages people to face each other with comfortable deep seating. It also can be an advantage in design strategy, with a flexibility to promote a stylish streamlined modern feel or a casual bohemian aesthetic. Inspiring our clients to ditch the television and engage with family and friends is part of our design practice, creating space as experience.

– Elena Frampton, Frampton Co.

Timelessly practical kitchen features

Two of our favorite features making a comeback lately are banquette seating and library ladders, especially in the kitchen. A lot of our projects are in the city, where space is at a premium. Banquette seating works great in a tight space, plus it creates additional storage opportunities under the bench. Same goes for the ladder: It’s all about space. If you don’t have to haul out a clunky ladder to access everything out of reach, you can double your kitchen’s storage capacity with cabinets or shelves that go all the way up to the ceiling.

– Jeff Pelletier,  Board & Vellum

Photo from Zillow listing.

Brass hardware and fixtures

Used in smaller doses like pull handles and faucets with a more sleek and modern shape, [brass hardware and fixtures] can really up your design game in a cool classy way. My favorite bathroom look right now is dark navy cabinets with Carrera marble quartz counters, oversized white sinks, and printed cement floor tile incorporated with brass pull handles and faucets.

– Christina El Moussa, HGTV’s “Flip or Flop” and SuccessPath

Photo from Zillow listing.

 

Posted by Cat Overman on Zillow

3 Steps to Creating an Organized Entryway (Even If You Don’t Have the Space)

With a little inspiration and organization, you can create an entryway that makes coming and going a breeze.

Drop zones, mudrooms, utility rooms, entryways, “places to leave your stuff.” Whatever you choose to call them, these spaces are invaluable as a spot to kick off your shoes, drop your keys, and keep everything you’ll need for the next day right where you left it.

Sometimes these spaces can be hard to come by, especially if you live in an apartment or studio. Without organization, shoes usually end up piled in front of the door waiting to trip an unsuspecting victim, and an array of backpacks, mail, dog leashes and knickknacks can clutter your home to the point of embarrassment.

Photo from Zillow listing.

But having a dedicated, organized and stylish drop zone for all of your daily needs — and to welcome your guests — is absolutely achievable, no matter the size or design of your living space.

Try these tips to establish a functional entryway in a home of any size.

Make a little room

Since it’s generally not possible to remodel or add on to a rental apartment, you must work with what you have.

Try a narrow console table for tight hallways as a place to drop your keys or leave your outgoing mail.

If space is really tight and all you have is the wall behind your door, hang hooks for coats and bags so they stay off the floor.

Another small-space trick: Temporarily remove your coat closet’s door, and add a stool or small bench inside as a place to sit and take off your shoes — and still have room for coats.

If your apartment is inside a secure building, you may be able to leave out a basket or tray for shoes in the shared hallway.

Add functionality

A mirror can also go a long way in opening up and brightening tight areas by reflecting light and giving the illusion of more space.

Retailers like IKEA sell modern pieces that can be modified to fit narrow spaces or hung on the wall. Measure your desired entryway space, and find furniture that will make the most of the room you have.

Having dedicated spaces for accessories also will make your drop zone a functional center. A devoted bowl or hook to hang your keys, a folder to sort your mail, and a basket to keep your shoes in really makes a difference in the flow of your day.

Leave a message

Bump practicality up a notch by having a message center in your drop zone where you can pin important reminders or leave messages for family members. It’s a great way to keep everyone connected as they go in and out.

A docking station to charge all your electronics can also be useful here. Look for compact and small accessories that will fit your space, yet serve the purpose you need.

By customizing your drop zone with features you need that will fit your home, you’ll keep everything streamlined and easy to find when you need it.

Posted by Erica Sooter on Zillow

Housing Inventory Hits 30-Year Low

Spring is traditionally the busiest season for real estate. Buyers, experiencing cabin fever all winter, emerge like flowers through the snow in search of their dream home. Homeowners, in preparation for the increased demand, are enticed to list their house for sale and move on to the home that will better fit their needs.

New data from CoreLogic shows that even though buyers came out in force, as predicted, homeowners did not make the jump to list their home in the second quarter of this year. Frank Nothaft, Chief Economist for CoreLogic had this to say,

“The growth in sales is slowing down, and this is not due to lack of affordability, but rather a lack of inventory. As of Q2 2017, the unsold inventory as a share of all households is 1.9 percent, which is the lowest Q2 reading in over 30 years.”

CoreLogic’s President & CEO, Frank Martell added,

“Home prices are marching ever higher, up almost 50 percent since the trough in March 2011.

While low mortgage rates are keeping the market affordable from a monthly payment perspective, affordability will likely become a much bigger challenge in the years ahead until the industry resolves the housing supply challenge.”

Overall inventory across the United States is down for the 25th consecutive month according to the latest report from the National Association of Realtors and now stands at a 4.3-month supply.

Real estate is local.

Market conditions in the starter and trade-up home markets are in line with the median US figures, but conditions in the luxury and premium markets are following an opposite path. Premium homes are staying on the market longer with ample inventory to suggest a buyer’s market.

Bottom Line

Buyers are out in force, and there has never been a better time to move-up to a premium or luxury home. If you are considering selling your starter or trade-up home and moving up this year, let’s get together to discuss the exact conditions in our area.

 

Posted by The KCM Crew

How Long Do Most Families Stay in Their Home?

The National Association of Realtors (NAR) keeps historical data on many aspects of homeownership. One of the data points that has changed dramatically is the median tenure of a family in a home, meaning how long a family stays in a home prior to moving. As the graph below shows, for over twenty years (1985-2008), the median tenure averaged exactly six years. However, since 2008, that average is almost nine years – an increase of almost 50%.

Why the dramatic increase?

The reasons for this change are plentiful!

The fall in home prices during the housing crisis left many homeowners in a negative equity situation (where their home was worth less than the mortgage on the property). Also, the uncertainty of the economy made some homeowners much more fiscally conservative about making a move.

With home prices rising dramatically over the last several years, 93.9% of homes with a mortgage are now in a positive equity situation with 78.8% of them having at least 20% equity, according to CoreLogic.

With the economy coming back and wages starting to increase, many homeowners are in a much better financial situation than they were just a few short years ago.

One other reason for the increase was brought to light by NAR in their 2017 Home Buyer and Seller Generational Trends Report. According to the report,

Sellers 36 years and younger stayed in their home for six years…”

These homeowners who are either looking for more space to accommodate their growing families or for better school districts are more likely to move more often (compared to 10 years for typical sellers in 2016). The homeownership rate among young families, however, has still not caught up to previous generations, resulting in the jump we have seen in median tenure!

What does this mean for housing?

Many believe that a large portion of homeowners are not in a house that is best for their current family circumstance; They could be baby boomers living in an empty, four-bedroom colonial, or a millennial couple living in a one-bedroom condo planning to start a family.

These homeowners are ready to make a move, and since a lack of housing inventory is still a major challenge in the current housing market, this could be great news.

Posted by The KCM Crew