The #1 Reason to List Your House for Sale NOW!

If you are debating whether or not to list your house for sale this year, here is the #1 reason not to wait!

Buyer Demand Continues to Outpace the Supply of Homes for Sale

The National Association of Realtors’ (NAR) Chief Economist Lawrence Yun recently commented on the current lack of inventory:

“Inventory coming onto the market during this year’s spring buying season– as evidenced again by last month’s weak reading – was not even close to being enough to satisfy demand. 

That is why home prices keep outpacing incomes and listings are going under contract in less than a month – and much faster – in many parts of the country.”

The latest Existing Home Sales Report shows that there is currently a 4.1-month supply of homes for sale. This remains lower than the 6-month supply necessary for a normal market, and 6.1% lower than last year’s inventory level.

The chart below details the year-over-year inventory shortages experienced over the last 12 months:

Anything less than a six-month supply is considered a “seller’s market.”

Bottom Line

Let’s get together to discuss the supply conditions in our neighborhood so that I can assist you in gaining access to the buyers who are ready, willing, and able to buy right now!

 

Posted by The KCM Crew

Ready to sell? Visit our website HERE to get started!

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Buying or Selling in 2018? 5 Reasons to Resolve to Hire a Pro [INFOGRAPHIC]

Some Highlights:

  • As we usher in the new year, one thing is for certain… if you plan to buy or sell a house this year, you need a real estate professional on your team!
  • There are many benefits to using a local professional!
  • Pick a professional who knows your local market and can help you achieve your dreams!

 

Posted by The KCM Crew

5 Home Design Trends for 2018 (and 3 Fads That Need to Go )

Thought that all-white kitchen was timeless? Think again.

Home design trends come and go — and in 2018, one look that’s on its way out could actually cause your home to sell for less.

Here’s a look at five design trends you’ll be seeing more of in 2018, and three it’s time to kiss goodbye (especially if one of your New Year’s resolutions is to sell your home).

Trending in 2018

Floral prints

Interior design experts predict floral prints in bold, contrasting colors will make a big comeback in 2018, particularly on large billowing fabrics, like drapery, as well as chairs and throw pillows.

Photo courtesy of DwellStudio via Instagram.

Statement floors

Forget statement walls — 2018 will be about statement floors. From bold colored geometric tiles to soft herringbone-style hardwoods, expect to see fab floors everywhere next year, especially in bathrooms and laundry rooms. They’re a great way to make a small room pop, without adding clutter.

Photo from Zillow listing.

Light wood cabinets

Homeowners are gravitating toward medium and light wood cabinets, particularly with flat fronts and clean lines. The warmth, texture and natural element wood cabinets add help make the space feel more inviting.

Photo from Zillow listing.

Warm neutrals

From warm reds to caramel browns to soft beige, moodier color palettes, both on walls and in artwork, will be popular in 2018.

Photo courtesy of Adam Ford (The Happy Tudor) via Instagram.

Matte metal hardware

What kind of drawer pulls and light fixtures do you want with those wood cabinets? Matte metal! Homeowners are moving away from shiny silver- or gold-accented kitchen hardware — they can make the space feel cold.

Photo from Zillow listing.

2017 fads to forget

All-white kitchens

This look has been popular for a while, but it’s on the way out, according to the Zillow Home Trend Forecast.

Expect to see more color in kitchens next year, especially if the homeowner is planning to sell. Zillow data shows homes with blue kitchens sell for $1,800 more than homes with white kitchens.

Adding color and texture in the kitchen can help make the space feel more inviting. “While homes with all-white kitchens can be beautiful in photos, they are hard to keep clean and they may sell for less money,” says Zillow home design expert Kerrie Kelly.

Beautiful kitchen having electrical automatic cooking gas and fruits, flowers kept on table

You’ll see designers and bloggers painting their kitchen islands navy blue or deep red (maybe even purple!) or using white countertops to contrast with medium or light wood cabinets.

Bar carts

While perfectly staged bar carts look beautiful, most people don’t use theirs every day. Instead, the carts take up space and collect dust.

But don’t get rid of your cart just yet! Experts predict a shift toward coffee carts, which can be equally trendy, but far more practical.

Succulents

Succulents are easy to care for and relatively affordable, but so many other vibrant indoor plant options are out there. Nobody’s saying to toss out your beloved Haworthia, but do consider incorporating other plant varieties into your home — perhaps a palm or hearty fiddle-leaf fig.

Haworthia Fasciata Sitting Near Window; Shutterstock ID 167096096; PO: Cat Overman; Job: blog post

 

Posted by Cat Overman on Zillow

What is the Cost of Waiting Until Next Year to Buy?

We recently shared that over the course of the last 12 months, home prices have appreciated by 7.0%. Over the same amount of time, interest rates have remained historically low which has allowed many buyers to enter the market.

As a seller, you will likely be most concerned about ‘short-term price’ – where home values are headed over the next six months. As a buyer, however, you must not be concerned about price, but instead about the ‘long-term cost’ of the home.

The Mortgage Bankers Association (MBA), Freddie Mac, and Fannie Mae all project that mortgage interest rates will increase by this time next year. According to CoreLogic’s most recent Home Price Index Report, home prices will appreciate by 4.7% over the next 12 months.

What Does This Mean as a Buyer?

If home prices appreciate by 4.7% over the next twelve months as predicted by CoreLogic, here is a simple demonstration of the impact that an increase in interest rate would have on the mortgage payment of a home selling for approximately $250,000 today:

Bottom Line

If buying a home is in your plan for 2018, doing it sooner rather than later could save you thousands of dollars over the terms of your loan.

 

Posted by The KCM Crew

These Real Estate Trends Will Be Game-Changers in 2018

We’re almost there: the long-awaited home stretch of 2017. And quite a year it’s been! Already, we can’t help imagining what developments next year might bring to the wild world of U.S. real estate. So we asked our realtor.com® data team to give us the inside scoop. The team sifted through historical real-estate data and other major economic indicators to come up with a realistic forecast of just what might be in store next year.

And it looks like a sea change is brewing.

From housing inventory to price appreciation to generational and regional shifts, these are the top trends that will shape, and reshape, real estate markets in 2018. Buckle up! It’s going to be quite a ride.

Ravitaliy/iStock

Game-changer no. 1: Supply finally catching up with demand

After three years of a crushing shortage of homes for sale, the realtor.com economics team is predicting that the shortfall will finally ease up in the second half of 2018.

“The majority of the year should be challenging for most buyers, but we do expect growth in inventory starting in the fall,” says Danielle Hale, chief economist for realtor.com.

That’s a potentially transformative development for many would-be buyers who’ve been frustrated in their search for a home that meets their needs—and their budget.

“Once we start to see inventory turn around, there is plenty of demand in the market,” Hale says.

Although for-sale housing inventory is expected to stay tight in the first quarter of the year,  reaching a 4% year-over-year decline in March, if it increases as predicted by fall, that will be the first net inventory gain since 2015. Markets such as BostonDetroit, and Nashville—all of which recently made it onto our monthly list of the nation’s hottest real estate markets—may see inventory recover first.

Bullish construction is the engine that’s turning this ship around, bringing new homes to the market and creating opportunity for people to trade up into new homes.

“It’s adding inventory instead of just shuffling people around in existing homes,” Hale says.

But those itching to buy a starter home may have to be patient for a while longer.

“We expect the relief to start in the upper tiers, and it will make its way down to the lower tiers,” Hale says. Specifically, most of the initial inventory growth will be in the mid- and upper-tier price ranges, $350,000 and up.

As the market eases, home prices are expected to slow to 3.2% growth year over year nationally. But again, it’s the higher-priced homes that will be appreciating less. And even slower appreciation still means that prices will continue to rise.

“Overall, prices are expected to increase, and we’re expecting to see more of that in lower-priced homes,” Hale says. “It will get a bit worse before it gets better for buyers of starter and midprice homes.”

Game-changer no. 2: Millennials starting to come into their own

The housing market in 2018 will continue to present challenges for millennials—sorry, all of that student loan debt isn’t just going to disappear—but there are some bright spots on the horizon for these millions of Americans.

Millennials seem to be having more success at taking out mortgages on homes at varying prices, and not just starter homes, Hale says.

“They’re at that point where they’re seeing their incomes grow, and that will help them take on bigger mortgages,” she says. That’s because of both the overall strong economy and their own career development.

And as the largest generation in U.S. history reaches that sweet spot in their 20s to 30s when they’re settling down and starting families, they’re particularly motivated to buy. Millennials could make up 43% of home buyers taking out a mortgage by the end of 2018, up from an estimated 40% in 2017, based on mortgage originations. That 3% uptick could translate into hundreds of thousands of additional new homes. As inventory starts to rebound in late 2018 and in years to come, first-time home buyers will likely make up an even larger share of the market.

They probably shouldn’t wait too long to buy, either—mortgage rates are expected to reach 5% by the end of 2018 due to stronger economic growth, inflationary pressure, and monetary policy normalization.

Game-changer no. 3: Southern homes selling like crazy

When it comes to home sales growth, bet on Southern cities to beat the national average in 2018. We’re especially looking at you, Tulsa, OKLittle Rock, ARDallas; and Charlotte, NC. Those markets are expected to see 6% growth or more, compared with 2.5% nationally.

The South has been luring corporations and individuals to its balmy cities with its low costs of real estate, and living in general. The resulting strong economic growth and strong household growth, combined with an accommodating attitude toward builders, is setting the stage for an accelerating boom in homeownership, Hale says.

As soon as there are more homes to sell, these places will be selling strong.

Game-changer no. 4: Tax reform (maybe)

The Republican Party’s proposed changes to the tax system could change everything—but with both the House and Senate versions in limbo, the jury is still out on this one.

If a version of tax reform does pass with the current provisions affecting real estate, Hale says she would expect to see fewer home sales and declining home prices. However, it would be the upper price tiers that would likely be affected the most, in areas with expensive homes and high taxes, such as coastal cities, especially in California.

 

Posted by Cicely Wedgeworth on realtor.com

Buying in 2018? 7 Steps to Take Now

With some careful prep work in the next few months, your family could be in a new home by summer.

Now is the time to get things in order for a home search next year.

If you’re thinking about buying a home in 2018, November and December are the perfect time to “warm up” for the house hunt so you can hit the ground running in the new year. And whether you’re looking in Athens, GA, or Athens, NY, the prep work is relatively the same.

We’ve asked real estate and mortgage professionals to chime in about what prospective homebuyers should do to ready themselves for buying a home. From organizing your finances to save money to finding a real estate agent and mortgage lender, there is plenty to keep you busy!

7 Steps to Be Ready to Buy a House in 2018

  1. 1. Check your credit score.

    A credit score is a numerical representation of your credit report. FICO scores range from 300 to 850, and the higher your score, the better. “Good credit is like gold when obtaining a mortgage,” says Denise Supplee, a Pennsylvania agent. Typically, you’ll get the best interest rate on a loan if your score is 740 and above. “A higher credit score should net you a lower mortgage rate,” says Lee Gimpel, co-creator of The Good Credit Game, which specializes in financial education. “That lower rate, even if it’s only 1 or 2 percent lower, can mean saving thousands of dollars per year.” If your credit score falls short, get busy repairing it. Correct any errors that might be on your report, start paying all your bills on time, and get your credit limit raised. Note, though, that you shouldn’t max out your card each month. It’s best to use 30 percent or less of your total available credit.

  2. 2. Don’t open new credit cards.

    If you think resisting taking a selfie when you’re face-to-face with your fave celebrity is a testament to your willpower, that’s sissy stuff compared with turning down every offer to open a credit card, even if you could save 20 percent (or more!) on your holiday purchases. Tempting as saving at checkout can be, opening new credit may hurt your chances of getting a mortgage, or at least of getting the best rate on a loan.

    “By opening the account, you have created another line of credit,” says Paul Anastos, president of Mortgage Master, a division of loanDepot, a nonbank lender. “That credit line, and what is borrowed, can change the application numbers and jeopardize the application.” What could save you a few dollars now could cost you far more in the long run if your mortgage payments will be higher. And along those same lines, “Don’t overspend during the holiday season,” says Dean Sioukas founder of Magilla Loans, an online lending exchange. “Especially on impulse purchases that can be tempting during the holidays.”

  3. 3. Suggest financial gifts for the holidays.

    Besides the mortgage loan, you’ll need a sizable amount of cash to buy a house. There’s the down payment to consider, closing costs, and moving costs. You should also set aside money for unexpected repairs and costs, says Brian Betzler, regional sales manager at TD Bank. Not being prepared “is probably why nearly half of millennials incurred up to $5,000 in unexpected costs during the mortgage process, according to a TD survey,” he says.

    A potential solution? Bulk up that emergency fund. “Instead of getting gifts for the holidays, [prospective homebuyers] can suggest cash instead that will be put toward their home,” says Paul Sian, a Kentucky and Ohio agent. And remember, you might be getting some money back after you file your tax return. Don’t blow it on vacation. “A tax refund is a great way to add to your cash reserves for a down payment,” says David Hosterman, branch manager of Castle & Cooke Mortgage in Colorado.

  4. 4. Interview potential real estate agents.

    If your neighbor, relative, or friend of a friend happens to know (or is) a real estate agent, that’s great. This person might be the perfect agent for you. But you owe it to yourself to shop around. “Look for [an agent] who is knowledgeable, good, integral, and can assist you in reaching the goal of homeownership,” says Chantay Bridges, a Los Angeles, CA, real estate agent. “Make sure they are not a novice, new, or just unaware of how to do a specific transaction.” The end of the year is usually a slow time for agents, so chances are they’ll be more accommodating to making an appointment on your schedule.

  5. 5. Keep tabs on interest rates.

    If you hear that interest rates are at historic lows or that interest rates are on the rise, you should not assume that you can get the rock-bottom rate. Not everyone gets the same interest rate on a mortgage loan. It depends on your financial picture and on the lender you choose. “Everyone knows that home prices are, at least to some extent, negotiable, but we find loans to be the same,” says Warren Ward, CFP with WWA Planning & Investments in Indiana. He advises that homebuyers shop around for the lowest interest rates. Note that closing costs can vary too, so discuss with your real estate agent ways to keep yours down. “We saved $150 on the closing fees by selecting the cheapest title company,” says Ward. “I guess that’s not much, but I think most people would bend over to pick up three $50 bills if they were lying on the sidewalk.”

  6. 6. Find a mortgage lender.

    Before you even start looking for a home (and yes, we even mean browsing online listings), look for a mortgage lender to find out if you can afford to buy a home. If you can’t right now, there’s no use torturing yourself by finding your dream home that’s just out of reach. But how do you find a lender? “If you have a bank you’ve been with for years, ask them,” says Bridges. “Your [real estate agent] can also refer a good lender to you. Compare [that lender] with two others. Look at what they offer, costs, points, and how long to close.” Once you know how much home you can afford, perform your home search based on your preapproval amount or less.

  7. 7. Get preapproved.

    When a lender gives your financials the once-over and preapproves you for a mortgage, you’ll be able to show sellers that you really can buy their house. But how do you get preapproved? By preparing a few documents, which you can do several months in advance of the actual purchase. Here’s what you need to buy a house.

    • Tax returns for the past two years
    • W-2 forms for the past two years
    • Paycheck stubs from the past few months
    • Proof of mortgage or rent payments for the past year
    • A list of all your debts, including credit cards, student loans, auto loans, and alimony
    • A list of all your assets, including bank statements, auto titles, real estate, and any investment accounts

    Paul Anastos also advises not to change jobs, make big purchases, or miss any debt payments as you prepare to get a mortgage.

    Originally published October 17, 2016. Updated October 30, 2017. 

    Published by Laura Agadoni on Trulia