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Surprising Shift Favors Homeowners: Buyers Now Prefer Existing Homes
In April, the National Association of Home Builders (NAHB) posted an article, Home Buyers’ Preferences Shift Towards New Construction, which reported:
“60% of people who were looking to buy a home in 2020 said they’d prefer new construction to an existing home.”
However, it seems buyers are now shifting their preferences back to existing homes.
The latest Consumer Confidence Survey reveals the percentage of Americans planning to buy a home in the next six months is virtually the same as it was back in March. However, the percentage that plan to buy a newly constructed home is lower for that same period.
NAHB confirms this sentiment in their latest Housing Trends Report. The organization explains that existing homes are now the top preference among today’s buyers. Here’s a breakdown of those findings:
Why the shift?
There are several reasons why buyer preference is shifting. Here are two that impact purchasers looking to move in now:
- The process may move faster. Builders may not be able to guarantee when the house will be complete and ready for move-in due to supply chain challenges with materials like lumber and appliances. If you buy an existing home, not only is it ready, it also likely has a refrigerator, range, and other necessary home appliances already.
- There are no unexpected costs during the buying process. With the price of land, labor, and lumber being so volatile, many builders are including an escalation clause in the price negotiation to cover rising expenses. With an existing home, the final price you will pay is negotiated upfront.
Bottom Line
If you’re a homeowner looking to sell, your house is more attractive to a greater number of buyers as compared to earlier in the year. This might be the time for us to connect to discuss the possibility.
Maybe with the leverage you currently have, you can negotiate a deal that will allow you to make the move of your dreams.
What’s your home’s value?
Contact one of Our Agents today!
Sellers: Make Today’s Home Price Appreciation Work for You
Home prices continue to rise as we move through the summer, and that’s good news for sellers who are looking to maximize their home’s potential. If you’re on the fence about whether to list your house now or later, the question you should really ask is: will this price appreciation last?
Here’s what three leading industry experts have to say about what lies ahead:
Lawrence Yun, Chief Economist, National Association of Realtors (NAR):
“At a broad level, home prices are in no danger of a decline due to tight inventory conditions, but I do expect prices to appreciate at a slower pace by the end of the year.”
Selma Hepp, Deputy Chief Economist, CoreLogic:
“The imbalance between robust demand and dismal availability of for-sale homes has led to a continual bidding over asking prices, which reached record levels in recent months . . . . Nevertheless, with more new listings and new home construction, home price acceleration that has built momentum, and continues to reach new highs, will likely slow later this summer but remain in double digits.”
George Ratiu, Chief Economist, realtor.com:
“Many sellers are going to take advantage of higher prices. This summer is going to signal the move to the next chapter, and this will very much be the year they’re going to put their home on the market.”
What It Means for You:
The experts agree that the summer months give sellers a great opportunity to capitalize on today’s home prices. And while prices aren’t expected to depreciate, the rise in prices is forecast to moderate over the next few years. That means selling your house today could set you up for a bigger win.
Bottom Line
Listen to the experts. If you’re ready to make a move, let’s connect to discuss selling your house sooner rather than later so you can take advantage of today’s home price appreciation before it moderates.
Maybe with the leverage you currently have, you can negotiate a deal that will allow you to make the move of your dreams.
What’s your home’s value?
Contact one of Our Agents today!
With Rents on the Rise – Is Now the Time To Buy?
According to recent data from realtor.com, median rental prices have reached their highest point ever recorded in many areas across the country. The report found rents rose by 8.1% from the same time last year. As it notes:
“Beyond simply recovering to pre-pandemic levels, rents across the country are surging. Typically, rents fluctuate less than 1% from month to month. In May and June, rents increased by 3.0% and 3.2% from each month to the next.”
If you’re a renter concerned about rising prices, now may be the time to consider purchasing a home.
Monthly Rents Are Higher Than Monthly Mortgage Payments
When you weigh your options of whether to buy a home or continue renting, how much you’ll pay each month is likely top of mind. According to the National Association of Realtors (NAR), monthly mortgage payments are rising, but they’re still significantly lower than the typical rental payment. NAR indicates the latest data on homes closed shows the median monthly mortgage payment is $1,204.
By contrast, the median national rent is $1,575 according to the most current data provided by realtor.com. In other words, buyers who recently purchased a home locked in a monthly payment that is, on average, $371 lower than what renters pay today (see graph below):
Rents Are Rising Sharply, and They Continue To Increase
The difference in monthly housing costs when comparing renting and homebuying today is significant, but many would-be homebuyers wonder about the future of rental prices. If we look to historical Census data as a reference, the median asking rent has risen consistently since 1988 (see graph below):
The rise in rent over time clearly shows one of the major advantages homeownership has over renting: stable housing costs. Renters face increasing costs every year. When you purchase your home, your mortgage rate is locked in for 30 years, meaning your monthly payment stays the same over time. That gives you welcome peace of mind and predictability for many years ahead.
Bottom Line
With rents continuing to rise across the country, renters should consider if now is the right time to buy. There are multiple benefits to buying sooner rather than later. Let’s discuss your options so you can make your most powerful decision.
Contact one of Our Agents today!
See out Complete Inventory of Available Properties!
Maybe with the leverage you currently have, you can negotiate a deal that will allow you to make the move of your dreams.
What’s your home’s value?
July 2021 Housing Market Update
Geoff Green, host of the July 2021 Housing Market Update, welcomed viewers. Panelists for this month’s update were Keren Gonen and Kristi Anderson, both with Green Team New Jersey Realty, and Laura Moritz, Director of Sales at Classic Mortgage.
If you missed the July 20 webinar or would like to view it again, it is available here:
Is now a good time to buy a home?
According to J.P. Morgan Insights Report,
“Homebuyers – interest rates are still historically low, though they are inching up. Housing prices have spiked during the last six to nine months, but we don’t expect them to fall soon, and we believe they are more likely to keep rising. If you are looking to purchase a new home, conditions now may be better than 12 months hence…”
However, record price appreciation, extremely low inventory, record high percent of sales over list price, and record low days on market are all contributing to buyer fatigue.
Advice for Sellers
Even though we are in a Seller’s Market, here are some talking points for Sellers:
- Don’t be (too) unrealistic
- Wait and you’ll miss out on an extremely attractive market
- It’s never been a better time to sell
- Price appreciation will moderate as rates and inventory rise later this year
“Housekeeping” Items
July 2021 Housing Market Update Panel Discussion
Geoff Green and panelists Keren Gonen, Kristi Anderson, and Laura Moritz discussed what they were seeing in their day-to-day experience with both buyers and sellers. To view the data and panel discussion, click here.
Contact the Panelists
We’ll see you at the next Housing Market Update Tuesday, August 17, 2021 at 12:00 p.m.
To sign up for Housing Market Updates, click here.
2nd Quarter Sales Leaders
Green Team Realty has announced its 2nd Quarter Sales Leaders. They are Keren Gonen, of Green Team New Jersey Realty, and Kasey Malone, Green Team New York Realty.
Keren Gonen
Since joining Green Team New Jersey Realty in 2017, Keren has been a quarterly sales leader many times. In addition, she has twice been the yearly sales leader. Geoff Green, President of Green Team Realty, had this to say about Keren:
“What is most amazing about Keren is not her continued success as a top-producing Realtor, but rather her devotion to people. Keren donates time out of her very busy day to organizations such as Team Up for Hope, and the Sussex County Association of Realtors on top of being a great Mom and Realtor. Congratulations once again Super Star. Keep up the good work.”
Keren stated:
“Being able to assist buyers, sellers, and investors in this market has proven to be a test of my craft. I love Real Estate and hope that each and every one of my clients has felt my passion and desire to serve others. Learning how to serve my clients best in this crazy Market has been the biggest learning curve for me. I’ve had to get creative and definitely think outside the box. I am so grateful that I have been able to assist so many clients in finding or selling their homes or investment. Thank you, to all of you who have chosen me to accompany you on this journey. Be safe and let’s make 2021 the best year we’ve ever had!”
Kasey Malone
Geoff Green congratulated Kasey on being the 2nd Quarter Sales Leader for the New York office:
“A big congratulations to Kasey who is a first-time Quarterly Sales Leader. Kasey lives out the phrase, “work by referral”. Kasey’s friends, neighbors, and relatives all know how honest and hard-working she is. Now the rest of the world does too. Great job Kasey, and keep up the good work.”
Kasey shared her thoughts on being the Q2 Sales Leader at Green Team New York Realty:
“Doing real estate part-time and strictly by word of mouth has made me solely rely on building my reputation as a real estate agent. Each year I set a goal for myself to beat last year’s sales, this year has been my best so far! I had the distinct opportunity to work with famous clients who were referred to me through a close friend and I am grateful that they chose me for their real estate needs. I love my Green Team! They give you all the tools you need to succeed and we get to build great business relationships with each other along the way! This is a huge milestone for me in my real estate career and I am so excited to receive this award!”
Pip Klein Celebrates 10 Years with the Green Team
Congratulations to Pip Klein as she celebrates 10 years with the Green Team!
In the beginning…
When Pip started at the Green Team as a part-time marketing consultant, she had not even considered real estate as a career. But Geoff Green encouraged her because he felt she had the personality, contacts AND most importantly, her late parents’ home was on the market with another broker!!! “Get your license PIP,” she remembers him saying loudly. And so she did – a decision which she is very grateful that she made. In addition, her techie son Ben was in high school at the time and also joined the team, working on redesigning the Green Team website. It was the right time for both Ben and Pip. Plus, it was fun for them to work together during those last years of his high school.
Goals
One of Pip’s original sales goals was to earn Captains Club status by reaching the $3 million mark. Pip got her license in May 2011, and she made Captains Club in 2015, 2016, 2017, and 2020. She made Presidents Club (for $5-$10 million in sales) in 2018. In addition, she was the 3rd Quarter Sales Leader for that year. Pip achieved honorable mention (for sales of $1.5 to $3 million) in 2019. She found that once her business was up and running, it became easier to achieve goals. Also, the market improved, providing the opportunity for more sales. She is also very proud of being named the Green Team’s first “Momentum Builder,” a new award in 2015 for achievements and helping inspire others. Pip’s goals have been consistent. Keep learning, growing, and enjoying the work. And, to make at least Captains Club every year!
Teamwork and Friendship
Pip has found Green Team is truly a great “team” of people. Over her decade there, she has made valuable friendships with both agents and clients. Indeed, friends for life.
Pip Klein, Associate Broker/Manager Lucyann Tinnirello, and Toni Vogel
A few of Pip’s favorite (and least favorite) things
Pip likes connecting people to the right home. She calls it being a house matchmaker. Once she gets to know people, she can really get a sense of the type of house they want. Pip and her husband Bob bought a unique home 30 years ago. It was a renovated onion barn! She also enjoys writing and hopes to continue with personal blogging about real estate. Pip’s least favorite thing? When transactions become tangled in situations beyond control while everyone is waiting to close. That can be frustrating. Red tape, legal snafus, etc. can be difficult. You have to focus on the endpoint, which is closing.
Biggest Accomplishments since starting at Green Team
Pip believes it has been a decade of accomplishments. Sometimes the smaller transactions are big victories as you help people buy or sell and make their next chapter easier to move on to. According to Pip, no one likes transition, and realtors are in the middle of that angst on all sides. They have to be calm and extend the best advice. Communication is key. She did have one memorable day in 2018. Three closings, $2.4 million volume in a day! That was a once-in-a-lifetime tsunami of good luck. What’s more, the commission hit her bank account on her birthday.
But of course, it’s not about the dollars. Truly, for Pip, it’s the culmination of hard work and getting things to the finish line. Her father always said, “Do what you enjoy, then you enjoy what you do.” Sage advice. He didn’t see his “work” as something separate. When you are a Realtor, you are living, breathing real estate all the time. And it doesn’t feel like “work” when you are truly happy with what you are doing.
Some sage advice from Pip
“Life is an adventure and you have to take risks!” Starting a new career at age 60 was challenge enough, but the best part was that she didn’t realize how much she would learn about herself and others. It really is the type of work that embraces a lot of different aspects of a “job.” Especially because Realtors deal so closely with people, most of whom they don’t know and never met. That keeps it fresh. According to Pip, it was sort of like having a baby in her 40s, which she did. It was a great learning experience and chock full of new friends and experiences. She has no regrets!
One of the biggest lessons that Pip has learned is to accept rejection. Not everything works out in your favor. Sometimes, you just don’t get the listing for whatever reason. Or the deal falls through. Don’t take it personally. Be yourself and carry on.
Memories
Pip has had many memorable experiences. One of her favorites is this:
“A family from NY was looking for their dream home/farm property. They had a very specific wish list, but I found 3 homes for them to see. The FIRST house was spectacular and everything they hoped for. The land, the extra house, and all redone – a great Victorian. While racing around the bottom level I noticed a painting on the wall. There was something familiar about it and I went up close to look. Yes, there it was – my mother’s signature – Phyllis Klein. This was a painting I had donated to a fundraiser years before and the owner of this house had purchased it. I turned to my new client and said, “Well, you simply have to buy this house. My mother’s painting is hanging on the wall!” They did!”
2021 Summer Social
Green Team Summer Social – A Time to Celebrate
It’s been a while since our Green Team family has been able to be together. The 2020 Green Team Summer Social was canceled due to the pandemic. The annual Awards Ceremony took place on Zoom. COVID-19 has had the world adjusting to a new normal. In addition to the physical effects of COVID-19, many small businesses and industries have been impacted negatively. However, the impact on the real estate market was just the opposite. Sheltering-in-place led many to reconsider what their needs were in terms of home. Remote learning, remote working, and the need for privacy as well as communal space had many urban dwellers seeking homes that would accommodate their needs. Many decided to move to suburban and rural areas, including here in Orange and Sussex Counties. Despite all of the regulations and restrictions governing the real estate industry in New York and New Jersey, business was booming and our Green Team sales associates rose to the challenges.
Now, it is a time to come together once again as the Green Team Family. On July 24 at 4 p.m. we’re gathering at beautiful Spring Brook Farm in Warwick, NY. We’ll have a chance to reconnect with colleagues and meet new members of the Green Team family, as well as some of our sponsors. Of course, we’ll get to meet their family members, too! There will be lots of food, and games, as well as fun with a purpose.
Team Up for Hope with us!
For those of you not familiar with Team Up for Hope, it is a 501(c)(3) non-profit organization created by Geoff Green and Amy Green. It is an all-volunteer organization with a team of Green Team Sales Associates and staff lending their time, efforts, ideas, and passion for its mission. TUH seeks to address the impact of mental illness, drug use, and suicide in our communities. We do that by raising funds for and awareness of the local non-profit organizations at the forefront of these crises. However, we also want to do our part in ending the stigma that goes along with mental health diagnoses, drug use, and suicide. We do this by collaborating with experts from organizations and private practice who share their knowledge and expertise through the webinars we produce.
The 2021 Summer Social is also a fundraiser for Team Up for Hope. There will be a 50/50 raffle – and the winner must take the cash! We’ll have t-shirts for sale. Perhaps best of all, there will be a dunk tank. And, Geoff Green has graciously volunteered to be dunked to raise money for Team Up for Hope. We’ll have representatives from the National Alliance on Mental Illness (NAMI) Orange and Sussex County affiliates, who will talk to us about the important work being done by their organizations. Daniel McQuade, local artist, sculptor, photographer, and mental health advocate will also be joining us. Donations to Team Up for Hope are distributed to NAMI Orange and NAMI Sussex, as well as to other local organizations. So, come prepared, cash in hand, to support Team Up for Hope.
Thanks to our Sponsors
We would not be able to do events like the Green Team Summer Social without the generous support of our sponsors. They are:
Diamond Sponsor ($1,000 level)
Platinum Sponsors ($500 level)
Gold Sponsors ($250 level)
- VHT Studios
- Iron Mountain Home Inspections LLC
- Road Trip RV Service LLC
- Law Office of Gary S. Goldstein, Esq.
- The Stage Law Firm
And thank you to the local vendors
It’s important to us to utilize the services of local businesses and vendors whenever possible. These are some of the vendors that we’re working with to make the Summer Social a big success:
- Country Courtesy Caterers
- A&T’s House of Bounce
- Orange County Party Rentals
- Warwick Press
- Peck’s Wine & Spirits
Check back with us for our Summer Social Recap
We’ll have photos, stories, and a grand total of the amount raised for Team Up for Hope.
We’ll see you on July 24th!
4 Major Incentives To Sell This Summer
While the housing market forecast for the second half of the year remains positive, there may not be a better time to sell than right now. Here are four things to consider if you’re trying to decide if now’s the right time to make a move.
1. Your House Will Likely Sell Quickly
According to the most recent Realtors Confidence Index released by the National Association of Realtors (NAR), homes continue to sell quickly. The report notes homes are selling in an average of just 17 days.
Average days on market is a strong indicator of buyer competition, and homes selling quickly is a great sign for sellers. It’s one of several factors that indicate buyers are motivated to do what it takes to purchase the home of their dreams.
2. Buyers Are Willing To Compete for Your House
In addition to selling fast, homes are receiving multiple offers. NAR reports sellers are seeing an average of 5 offers, and these offers are competitive ones. Shawn Telford, Chief Appraiser at CoreLogic, said in a recent interview:
“The frequency of buyers being willing to pay more than the market data supports is increasing.”
This confirms buyers are ready and willing to enter bidding wars for your home. Receiving several offers on your house means you can select the one that makes the most sense for your situation and financial well-being.
3. When Supply Is Low, Your House Is in the Spotlight
One of the most significant challenges for motivated buyers is the current inventory of homes for sale, which while improving, remains at near-record lows. As NAR details:
“Total housing inventory at the end of May amounted to 1.23 million units, up 7.0% from April’s inventory and down 20.6% from one year ago (1.55 million). Unsold inventory sits at a 2.5-month supply at the present sales pace, marginally up from April’s 2.4-month supply but down from 4.6-months in May 2020.”
There are signs, however, that more homes are coming to market. Odeta Kushi, Deputy Chief Economist at First American, notes:
“It looks like existing inventory is starting to inch up, which is good news for a housing market parched for more supply.”
If you’re looking to take advantage of buyer demand and get the most attention for your house, selling now before more listings come to the market might be your best option.
4. If You’re Thinking of Moving Up, Now May Be the Time
Over the past 12 months, homeowners have gained a significant amount of wealth through growing equity. In that same period, homeowners have also spent a considerable amount of time in their homes, and many have decided their house doesn’t meet their needs.
If you’re not happy with your current home, you can leverage that equity to power your move now. Your equity, plus current low mortgage rates, can help you maximize your purchasing power.
But these near-historic low rates won’t last forever. Experts forecast interest rates will increase in the coming months. Nadia Evangelou, Senior Economist and Director of Forecasting at NAR, says:
“Nevertheless, as the economic outlook for the United States looks brighter for the rest of the year, mortgage rates are expected to rise in the following months.”
As interest rates rise, even modestly, it could influence buyer demand and your purchasing power. If you’ve been waiting for the best time to sell to fuel your move up, you likely won’t find more favorable conditions than those we’re seeing today.
Bottom Line
With supply challenges, low mortgage rates, and extremely motivated buyers, sellers are well-positioned to take advantage of current market conditions right now. If you’re thinking about selling, let’s connect today to discuss why it makes sense to list your home sooner rather than later.
Contact one of Our Agents today!
See out Complete Inventory of Available Properties!
Maybe with the leverage you currently have, you can negotiate a deal that will allow you to make the move of your dreams.
What’s your home’s value?
Toni Vogel Celebrates 10 Years with the Green Team
Congratulations to Toni Vogel as she celebrates 10 years with the Green Team!
Back in the day
Antonette “Toni” Vogel started working at Green Team in 2011, as an Agent Service Manager. However, she knew Geoff Green and his wife Laura from their high school days. Toni not only worked in the Green Team office; she and her husband also own a reputable local construction company, Harvest Valley Construction. Inc. Thus, her education in the real estate industry was very hands-on.
Flexibility and changing goals
When Toni first started at the Green Team, her biggest goal was hitting a million in sales. Now she far exceeds that every year! In the early days of her career, Toni was busy raising her three sons. As of this year, they are all in school. Thus, she is able to set higher sales goals. One of her biggest accomplishments was making Captains Club in 2019, for meeting $3 to $5 million in sales.
A few of her favorite (and least favorite) things
What Toni likes most about being part of the Green Team is the camaraderie and support that she gets from her colleagues and the admin staff. Needless to say, her favorite part of the job is closings! In contrast, Toni’s least favorite aspect of real estate is something we’ve been hearing a lot about: the lack of inventory.
Toni’s biggest “lesson learned?” Check all information, recheck it, and check it again! Don’t assume that all the information you’re provided with is accurate. It’s important to do your due diligence and go above and beyond for all of your clients!
Memories
“Denise Schmidt will forever be a huge part of my success in the industry. She took me under her wing after I got my license and helped me grow professionally. Also, I took my real estate course, as well as the real estate exam, with Pip Klein. She will forever be my classmate and dear friend!”
Denise Schmidt and Toni Vogel
Green Team Goals for the future
Forever growing as a professional, Toni’s current goal is to focus on listing more properties.
We have no doubt that Toni will reach that goal and we’ll be reporting it when her next Green Team anniversary rolls around.
Tom Folino receives CIREC Certification
Green Team New York Realty is pleased to announce that Tom Folino has received his Commercial and Investment Real Estate Certification (CIREC).
What The CIREC Designation Means
According to the NAR Code of Ethics, agents must have the proper training for specialized services. Agents undertaking the extensive CIREC course obtain the needed foundation to provide commercial and investment real estate services. A wide range of topics is covered. Included are tax implications, 1031 Exchanges, valuing property, and more. Also covered, preparation of financial analyses, and comparing financial impacts of leasing vs. buying. Furthermore, negotiating concepts and tactics are important parts of the course.
From Teacher and Coach to Real Estate Salesperson
After 37 years as both a teacher and coach in the Warwick Valley School District, Tom changed his career path. His interest in real estate began with his personal experiences of buying and selling his own homes. Tom found that he actually enjoyed the process. In fact, he liked everything from obtaining financing to negotiating the best deals, and everything else involved. When he retired from teaching, he decided to pursue real estate full time.
Tom is motivated by a desire to help people sell their homes, and to find homes they’d love within the community he knows and loves. He brings the same enthusiasm and dedication that distinguished his career in education. Tom’s main goal is to place his clients’ needs and desires first. Furthermore, he has first-hand knowledge of the importance of a quality school system to a community. In addition, his knowledge of Warwick and its many neighborhoods and villages are definite assets.
Tom explained the benefits of this certification to clients seeking commercial and investment real estate.
“Having the Commercial & Investment Real Estate Certification will definitely enhance my ability to help and guide clients looking to get involved with the commercial and investment side of real estate. I have worked with many clients in the past that purchased properties for investments. Many of these clients looked at the combined use of commercial and single-family properties, I now have the resources and knowledge, in this area of real estate, to significantly help my clients as they pursue their dreams of getting involved with commercial and investment properties”.
