Industry

Inventory on Longest Downward Stretch in Two Decades

Arrow downHousing inventory is officially on its longest downward stretch in two decades, with 11 percent fewer homes on the market year-over-year in June, according to the latest data preview from realtor.com®. Prices in June were 9 percent higher than those one year ago, with the national median at $275,000 and the national median age of inventory at 60 days.

“We have now gone 24 months in a row seeing the number of homes drop on a year-over-year basis, the longest streak in more than two decades,” says Javier Vivas, manager of Economic Research at realtor.com. “More markets than ever are struggling with inventory problems; in 80 percent of markets, there are fewer homes for sale currently than this time last year.

shutterstock_232969765“It’s good to see that more homes are coming onto the market, but the bulk of those homes are too pricey for the largest, most desperate group of buyers. With no clear indication that newly-built homes will be able to provide short-term relief soon, there appears to be no end in sight for the inventory shortage. The market will likely remain very challenging for would-be buyers throughout the summer.”

The housing markets ranking in realtor.com’s Hotness Index for June:

1. Vallejo-Fairfield, Calif.
Median Age of Inventory: 31 days

2. San Francisco-Oakland-Hayward, Calif.
Median Age of Inventory: 29 days

3. Kennewick-Richland, Wash.
Median Age of Inventory: 34 days

4. Sacramento-Roseville-Arden-Arcade, Calif.
Median Age of Inventory: 34 days

5. Columbus, Ohio
Median Age of Inventory: 37 days

6. Detroit-Warren-Dearborn, Mich.
Median Age of Inventory: 37 days

7. Boston-Cambridge-Newton, Mass.-N.H.
Median Age of Inventory: 37 days

8. Colorado Springs, Colo.
Median Age of Inventory: 33 days

9. San Jose-Sunnyvale-Santa Clara, Calif.
Median Age of Inventory: 27 days

10. San Diego-Carlsbad, Calif.
Median Age of Inventory: 37 days

Information provided by Keller Williams Dallas Metro North. Call us today – we have over 400 qualified agents ready to assist you with your real estate needs!

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Sellers saying “Now is a good time to sell!”

shutterstock_1638721Many homeowners have been reluctant to list their homes for sale – some by choice, some for fear of being unable to afford a new home, or of coming out in the red.

71% of survey respondents believe now is a good time to sell
Recently released findings from a survey by the National Association of REALTORS® (NAR) show more homeowners are ready to move on and unload… or, at least, say they are. Seventy-one percent of survey respondents for the quarterly Housing Opportunities and Market Experience (HOME) report believe now is a good time to sell, an increase from 69 percent the previous quarter and 61 percent one year ago.

“There are just not enough homeowners deciding to sell because they’re either content where they are, holding off until they build more equity, or hesitant seeing as it will be difficult to find an affordable home to buy,” says Lawrence Yun, chief economist at NAR. “As a result, inventory conditions have worsened and are restricting sales from breaking out while contributing to price appreciation that remains far above income growth. Perhaps this notable uptick in seller confidence will translate to more added inventory later this year. Low housing turnover is one of the roots of the ongoing supply and affordability problems plaguing many markets.”

Renters less sure about their home-buying prospects
Renters, however, are less sure about their home-buying prospects. Fifty-two percent of renters surveyed believe now is a good time to buy a home, a decrease from 56 percent the previous quarter and 62 percent one year ago. Eighty percent of homeowners surveyed, to compare, believe now is a good time to buy. Forty-two percent of respondents believe homes are affordable, with respondents living in the Midwest most likely to believe homes are affordable and respondents living in the West least likely to believe homes are affordable.

Business 01Survey respondents are reining in their optimism in the economy, as well, according to the report. Fifty-four percent of those surveyed believe the economy is improving, which is in contrast to a record 62 percent the previous quarter. (Homeowners, notably, tend to be more optimistic about the economy.) The survey’s Personal Financial Outlook Index, which gauges respondents’ sentiment on their financial situation over the next six months, dropped to 57.2 in June.

“It should come as little surprise that the confidence reading among renters has fallen every month since January (64.8) and currently sits at its lowest level (53.8) since tracking began in March 2015 (65.7),” Yun says. “Paying more in rent each year and seeing home prices outpace their incomes is discouraging, and it’s unfortunately pushing homeownership further away – especially for those living in expensive metro areas on the East and West Coast.”

New Home - family - 01Twenty percent of respondents, especially those with annual incomes less than $50,000 and/or under age 34, would consider moving to a more affordable area.

“Areas with strong job markets but high home prices risk a migration of middle-class households to other parts of the country if rising housing costs in those areas are not contained through a significant ramp-up in new home construction,” Yun says.

Information provided by Keller Williams Dallas metro North. Call us today – we have over 400 qualified agents ready to assist you with your real estate needs.

Bounce Back in Pending Home Sales a Welcoming Sign

Business Growth 01

After declining for three straight months, pending home sales reversed course in June as all major regions, except for the Midwest, saw an increase in contract activity, according to the National Association of Realtors® (NAR).

The Pending Home Sales Index, a measure of housing contract activity, climbed 1.5 percent to 110.2 in June from an upwardly revised 108.6 in May. At 0.5 percent, the June index increased annually for the first time since March.

Lawrence Yun, NAR chief economist, says the bounce back in pending sales in most of the country in June is a welcoming sign. “The first half of 2017 ended with a nearly identical number of contract signings as one year ago, even as the economy added 2.2 million net new jobs,” he said. “Market conditions in many areas continue to be fast paced, with few properties to choose from, which is forcing buyers to act almost immediately on an available home that fits their criteria.” Added Yun, “Low supply is an ongoing issue holding back activity. Housing inventory declined last month and is a staggering 7.1 percent lower than a year ago.”

Couple Cheering 02Yun noted that there could potentially be a sliver of increased hope in the months ahead for prospective first-time buyers, who continue to struggle reaching the market. Sales to investors last month were the lowest of the year (13 percent), which helped push all cash transactions to 18 percent – the smallest share since June 2009 (13 percent).

Source: National Association of Realtors

Information provided by Keller Williams Dallas Metro North. Call us today – we have over 400 qualified agents ready to assist you with your real estate needs!

 

How To Hire a Mover

Moving - 2When moving, there’s a million small details to juggle. Hiring a moving company can save you a bundle of stress, but it’s important to note that not all moving companies are the same, and you want to make sure your items are safe and secure in the hands of your movers.

Here are some tips to keep in mind when looking to hire a moving company:

Hire a licensed company – Be sure to only use a licensed moving company and check for a valid U.S. Department of Transportation number on the main DOT website.

Find reassurance in valuation – Even if movers are bonded and insured, verify if belongings are covered during the move. Some states require a valuation of 60 cents per pound of coverage but in many cases additional valuation can be purchased for the move.

shutterstock_28772560Avoid imposters – Visit the official site of the moving company and ensure there is a local address and the office is staffed.

Get a real quote – Inspect the website to ensure they will not sell personal information to other movers to provide the quote and avoid sites that feature multiple quotes from different companies. Never pay for an estimate and consider an on-site estimate to ensure accuracy for larger moves.

Inquire about the movers – Be careful if choosing to move forward with a company that employs temporary or day laborers and does not have Workers’ Compensation coverage should anything happen.

moving - 3Research options – The Internet is filled with reviews and comments on social media pages, so take the time to read about pros and cons of a potential company. Learn from customers’ experiences and look into complaints on the Better Business Bureau website, as well. Understand, not every move can be perfect, but if the company is taking time to respond to customers comments and work toward resolution, it is a good sign.

Don’t fall for a too good to be true price – If the price seems like it is too good, it probably is going to cause headaches and problems down the line. Moving is expensive – even if completed without movers – be sure to look at all of your options as it’s best to go into the process prepared. Also, never move forward with a company that only accepts cash.

Check for hidden fees – When asking about pricing, be sure to understand what is included and if there are cancellation fees or a nonrefundable deposit. Most companies will refund a deposit if within a certain amount of days before the move, and see if there are extra fees for stairs, mileage or large items. Some movers will offer complimentary padding and stretch wrap to protect furniture, but not all companies will.

Movers - 6Reputation is important – Many reputable movers belong to the American Moving and Storage Association. Identify if a prospective company is a member before booking a move.

Ask for references – Get advice from friends and family who have had a good experience with movers. Did they feel like they were communicated with throughout the process and were told a window of time for the movers to arrive? Don’t forget to ask questions to feel confident with booking a company.

Information provided by Keller Williams Dallas Metro North. It’s highly beneficial to have a professional knowledgeable, local real estate agent by your side. Call Keller Williams Dallas Metro North today – we have over 400 qualified agents ready to assist you with your real estate needs!

KW | Dallas Metro North outperforming NTREIS!

Keller Williams Dallas Metro North is outperforming NTREIS!! Look at our figures: We’re selling $25,552 higher per home, taking 3.2% more listings and selling them 20 days faster in June 2017. Call us today for help with your real estate needs!

LORE JULY

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Existing Home Sales Up 1.1%

business - growth 8Existing-home sales rebounded in May following a notable decline in April, and low inventory levels helped propel the median sales price to a new high while pushing down the median days a home is on the market to a new low, according to the National Association of Realtors®. All major regions except for the Midwest saw an increase in sales last month.

Existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, climbed 1.1 percent to a seasonally adjusted annual rate of 5.62 million in May from a downwardly revised 5.56 million in April. Last month’s sales pace is 2.7 percent above a year ago and is the third highest over the past year.

House _Transparent.pngLawrence Yun, NAR chief economist, says sales activity expanded in May as more buyers overcame the increasingly challenging market conditions prevalent in many areas. “The job market in most of the country is healthy and the recent downward trend in mortgage rates continues to keep buyer interest at a robust level,” he said. “Those able to close on a home last month are probably feeling both happy and relieved. Listings in the affordable price range are scarce, homes are coming off the market at an extremely fast pace and the prevalence of multiple offers in some markets are pushing prices higher.”

Inventory is currently at a 3.8-month supply. Existing homes averaged 29 days on market in April, five fewer days than in March and 10 fewer days than one year prior. Non-distressed homes took 28 days to sell. All told, 52 percent of homes sold in April were on the market for less than one month.

Source: National Association of REALTORS®

It’s highly beneficial to have a professional, knowledgeable, local real estate agent by your side! Call Keller Williams Dallas Metro North today to help you with your real estate needs!