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February 2021 Housing Market Update
Geoff Green, President of Green Team Realty, welcomed everyone to the February 2021 Housing Market Update. The webinar, held on February 16 at 12 p.m.. examined the housing market on both national and local levels.
If you missed the webinar or would like to view it again, it is available here.
Meet our Panel
Geoff was joined by panelists Keren Gonen, Kristi Anderson, Barbara Tesa, and Pam Zachowski, all of Green Team New Jersey Realty. In addition, Michael Giannetto of Cross Country Mortgage joined the panel, sharing his expertise.
Let’s Get National
“Existing home sales totaled 5.64 million in 2020, up from 5.6% from 2019 and the most since before the Great Recession.” – NAR
“Home seller profits skyrocketed in 2020. Seller profit on typical sale in 2020: $68,843. Up from $53,700 in 2019 and $48,500 in 2018.” – Atom Data
As Geoff has pointed out throughout 2020, sellers were the ones benefitting from that market. The amount of money made by sellers in 2020 was historic. Furthermore, price projections for 2021 signal an average of 5%. Historically, the housing market appreciates by approximately 3.8%.
Low mortgage rates have been driving the sustained market and affordability. The projections are showing that rates will start to climb from 2021 into 2022. However, the increases are not major. Predictions are a gradual increase to 3.2%.
Inventory at a historical low point
“Total housing inventory at the end of December totaled 1.07 million units, down 16.4% from November and down 23% from one year ago (1.39 million). Unsold inventory sits at an all-time low 1.9-month supply at the current sales pace, down from 2.3 months in November and down from the 3.0-month figure recorded in December 2019. NAR first began tracking the single-family home supply in 1982.” – NAR
Working from home
According to this 2020 Panel Consensus Forecast from NAR, there is a shift towards working from home since 2019. While down from 2020, the forecasts for 2021 and 2022 are at least twice as much as 2019. Geoff sees a restructuring of business models as employees and businesses see benefits of working from home.
What else are we talking about?
We’re talking about the price of lumber and new home sales activity. Also, exiting forbearance plans, housing affordability, and equity benefit of price appreciation
All of these topics are discussed in the February 2021 Housing Market Update.
Housing Market stats on national and local levels
Existing home sales and prices were up, with inventory way down, making for a true supply and demand marketplace.
“Housekeeping” Items
Hear from our Panelists
Finally, the realtors, all from Green Team New Jersey Realty this month, and Michael Giannetto of Cross Country Mortgage, discussed what they are seeing “on the ground.”
Again, if you missed the webinar, you can watch it now to hear the panel discussion. Just click here. And below is the contact information for this month’s panelists.
We’ll see you on Tuesday, March 15 at 12 p.m.
Sign up for Housing Market Updates at GreenTeamRealty.com/HMU
Should I Wait for Lower Mortgage Interest Rates?
Historically low mortgage rates are a big motivator for homebuyers right now. In 2020 alone, rates hit new record-lows 16 times, and the trend continued into the early part of this year. Many hopeful homebuyers are now wondering if they should put their plans on hold and wait for the lowest rates imaginable. However, the reality is, acting sooner rather than later may be the actual win if you’re ready to buy a home.
According to Greg McBride, Chief Financial Analyst for Bankrate:
“As vaccines become more widely available and a return to normal starts to come into view, we’ll see mortgage rates bounce off the record lows.”
While only a slight increase in mortgage rates is projected for 2021, some experts believe they will start to rise. Over the past week, for example, the average mortgage rate ticked up slightly, reaching 2.79%. This is still incredibly low compared to the trends we’ve seen over time. According to Freddie Mac:
“Borrowers are smart to take advantage of these low rates now and will certainly benefit as a result.”
Here’s why.
As mortgage rates rise, the increase impacts the overall cost of purchasing a home. The higher the rate, the higher your monthly mortgage payment, especially as home prices rise too. Sam Khater, Chief Economist at Freddie Mac, says:
“The forces behind the drop in rates have been shifting over the last few months and rates are poised to rise modestly this year. The combination of rising mortgage rates and increasing home prices will accelerate the decline in affordability and further squeeze potential homebuyers during the spring home sales season.”
What does this mean for buyers?
Right now, the inventory of houses for sale is also at a historic low, making it more challenging than normal to find a home to buy in many areas. As more buyers hit the market in the typically busy spring buying season, it may become even harder to find a home in the coming months. With this in mind, Len Keifer, Deputy Chief Economist for Freddie Mac, recommends taking advantage of both low mortgage rates and the opportunity to buy:
“If you’ve found a home that fits your needs at a price you can afford, it might be better to act now rather than wait for future rate declines that may never come and a future that likely holds very tight inventory.”
Bottom Line
While today’s low mortgage rates provide great opportunities for homebuyers, we may not see them stick around forever. If you’re ready to buy a home, let’s connect so you can take advantage of what today’s market has to offer.
Contact one of Our Agents today!
Green Team 2020 Awards Celebration
We’re going to party like it’s 2020!
That’s right! We’ll be celebrating on Zoom. 2020 was a year unlike any other. However, one of the constants was that life circumstances dictate if and when people need to buy or sell a home. That was true, even during a pandemic. COVID-19 inspired many people to leave cities for more suburban and rural areas, seeking larger homes with outdoor living spaces. Others redefined their version of home, seeking to downsize or upsize. Therefore, Green Team Sales Associates worked tirelessly through 2020, while following state and local health and safety guidelines. The time to celebrate their accomplishments is now. However, we’ll be doing it a little differently this year, and we hope that you’ll join us.
We’re breaking it down!
We’re breaking down the ceremony into three webinars, so mark your calendars!
- Wednesday, February 10th at 5 p.m. We’ll be celebrating sales awards. That includes Yearly and Quarterly Sales Winners, MVP Awards, Presidents, Captains and Honorable Mention Clubs.
- Thursday, February 11th at 5 p.m. We will be announcing and honoring the winners of the Team Player and Citizen of the Year Awards.
- Finally, on Friday, February 12th at 5 p.m., we will be presenting the Momentum Builder Award.
Join us!
We hope you’ll join us for this series of webinar celebrations. After a challenging year, and not knowing when it will be safe to hold our annual “in-person” Green Team Awards Event, we’re going to make the best of the situation. We applaud the accomplishments of our sales associates, and we’re looking forward to celebrating the great people who make up the Green Team.
To RSVP and Register for this 3-day event, use the links below:
Sales Leaders- February 10TH @ 5 PM-
https://us02web.zoom.us/webinar/register/3916124546470/WN_W8Pqfn83Q4eGLjX-5JptTA
Citizen of the Year / Team Player- February 11TH @ 5 PM-
https://us02web.zoom.us/webinar/register/7816124547133/WN_B9J3UgGtTDO5-EmVLF8Qmw
Momentum Builder- February 11TH @ 5 PM-
https://us02web.zoom.us/webinar/register/7016124547726/WN_N5HW_udkTSGBW9DWbl6HSA
4 Reasons People Are Buying Homes in 2021
According to many experts, the real estate market is expected to continue growing in 2021, and it’s largely driven by the lasting impact the pandemic is having on our lifestyles. As many of us spend extra time at home, we’re reevaluating what “home” means and what we may need in one going forward.
Here are 4 reasons people are reconsidering where they live and why they’re expecting to buy a home this year.
1. Record-Low Mortgage Interest Rates
In 2020, the average interest rate for a 30-year fixed mortgage hit a record low 16 times, continuing to fall further below 3%. According to Freddie Mac, the average 30-year fixed interest rate today is 2.65%. Many wonder how low these rates will go and how long they’ll last. Len Keifer, Deputy Chief Economist for Freddie Mac, advises:
“If you’ve found a home that fits your needs at a price you can afford, it might be better to act now rather than wait for future rate declines that may never come and a future that likely holds very tight inventory.”
This sense of urgency is driving many to buy this year.
2. Working from Home
Remote work is a new normal for many businesses, and it’s lasting longer than most expected. Many in the workforce today are discovering they don’t need to live close to the office anymore and they can get more for their money by moving a little further outside of the city limits. David Mele, President at Homes.com, says:
“The surge in the work-from-home population has rewritten the playbook for many homebuying and rental decisions, from when and where to relocate, to what people are looking for in their next residence.”
The reality is, for some people, working remotely in their current home is challenging, especially when there may be other options available.
3. More Outdoor Space
Another new priority for homeowners is having more usable outdoor space. Being at home is driving those in some areas to seek less densely populated neighborhoods so they have more room to stretch their legs. In addition, those living in apartments and townhomes are often looking for extra square footage, both inside and out.
According to the State of Home Spending report by HomeAdvisor, of the households surveyed, almost half reported spending 27% more on outdoor living over the past year. This is a trend that’s expected to grow in 2021 and beyond.
4. Avoiding Renovations
It’s recently come to light that many homeowners would also rather buy a new home than go through the process of fixing up the one they have. According to the 2020 Profile of Home Buyers and Sellers report from the National Association of Realtors (NAR), 44% of homebuyers purchased a new home to “avoid renovations or problems with the plumbing or electricity.”
Depending on what needs to be addressed, today’s high buyer demand may make it possible to skip some renovations before selling. Many of these homeowners have prioritized buying over renovating for convenience and potential cost savings.
Bottom Line
It’s clear that homeownership needs are changing. As a result, Americans are expected to move in record numbers this year. If you’re trying to decide if now is the right time to buy a home, let’s connect today to discuss your options.
Contact one of Our Agents today!
Housing Market Update January 2021
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Geoff Green, President of Green Team Realty, welcomed everyone to the first Housing Market Update of 2021. Held on January 19 at 12 p.m., the webinar examined the housing market on both national and local levels.
If you missed the webinar or would like to view it again, it is available here.
Meet the Panel
Geoff was joined by Jennifer DiCostanzo and Tiffany Megna of Green Team New York Realty. Keren Gonen and Kristi Anderson of Green Team New Jersey Realty shared their knowledge of the Sussex County, NJ market. Finally, Kenneth Aulicino, Senior Loan Officer at Family First Funding LLC shared his expertise.
Where we were and where we are
The above image shows the contrast between the years leading up to the housing market crash of the Great Recession, compared to the past 6 years. Geoff pointed out that, even though we are in a recession, it doesn’t necessarily mean that home prices will come down. In fact, in four out of six recessions, home prices actually increased. That is true for 2020. Furthermore, it is anticipated that home prices will continue to rise.
In fact, the impact of Covid-19 has impacted the real estate market in many ways. According to David Mele, President at Homes.com
“The surge in the work-from-home population has rewritten the playbook for many homebuying and rental decisions, from when and where to relocate, to what people are looking for in their next residence…”
A survey by Redfin shows that 34% of homebuyers have already moved to a different city or area since the pandemic began. Furthermore, another 33% would consider moving if given the opportunity to work remotely on a permanent basis.
Unemployment, interest rates, and more
Discussion ensued on unemployment projections and how long it might take for unemployment rates to return to near pre-crisis level. Job loss and its impact on renters may make it difficult for them to become future homeowners.
Housing Market Stats – National and Local
National existing home sales have increased, accompanied by a major increase in home price and major decrease in supply of inventory. These trends reflect what is happening on the local level, too.
“Housekeeping” Items
Contact our Panelists
The panelists discussed the impact of the pandemic on the local Orange and Sussex County real estate markets. Covid-19 and the necessity of (and possibility for) many people to work from home has changed priorities, needs, and wants of many perspective home buyers, particularly those from New York City. To view the panel discussion, click here.
We’ll see you on Tuesday, February 16, 2021, at 12 p.m.
Click here to register.
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Turning a House into a Happy Home
We talk a lot about why it makes financial sense to buy a home, but more often than not, we’re drawn to the emotional reasons for homeownership.
No matter the living space, the feeling of a home means different things to different people. Whether it’s a certain scent or a favorite chair, the feel-good connections to our own homes are typically more important to us than the financial ones. Here are some of the reasons why.
1. Owning your home is an accomplishment worth celebrating
You’ve likely worked very hard to achieve this dream, and whether it’s your first home or your fifth, congratulations are in order for this milestone. You’ve earned it.
2. There’s no place like home
Owning your own home offers not only safety and security but also a comfortable place where you can simply relax and kick-back after a long day. Sometimes, that’s just what we need to feel recharged and truly content.
3. You can find more space to meet your needs
Whether you want more room in your home for your changing lifestyle (think: working from home, virtual school, or a personal gym), or you simply prefer to have a large backyard for socially-distant entertaining, you can invest in a location that truly works for your evolving needs.
4. You have control over renovations, updates, and your style
Looking to try one of those complicated wall treatments you saw on Pinterest? Tired of paying an additional pet deposit for your apartment building? Maybe you want to finally adopt that fur-baby puppy or kitten you’ve been hoping for. You can do all of these things in your own home.
Bottom Line
Whether you’re a first-time homebuyer or a move-up buyer who wants to start a new chapter in your life, now is a great time to reflect on the intangible factors that turn a house into a happy home.
Contact one of our professional agents today!
Housing Market Update December 2020
Geoff Green, President of Green Team Realty, welcomed everyone to the December 2020 Housing Market Update. This webinar, held on Tuesday, December 15, at 2 p.m., examined the housing market on both national and local levels.
If you missed the webinar or would like to view it again, it is available here.
Meet the Panel
Panelists included Keren Gonen and Pam Zachowski of Green Team New Jersey Realty, Toni Kreusch, and Karen Gauvin of Green Team New York Realty. Michael Giannetto of CrossCountry Mortgage LLC joined them.
2020 – The Year in Review
What a year it has been! The real estate industry has had a strong year. The housing market has experienced a “V-shaped” recovery. Furthermore, according to Realtor.com, it continues to ascend based on demand, supply, price, and time on market.
There are no signs of an impending foreclosure increase. In fact, the number of mortgages in forbearance is decreasing.
Are prices going up too fast?
Geoff Green addresses this question, using actual and historic appreciation factors. However, it all comes back to supply and demand, as shown below. The less inventory you have, the more demand and prices go up.
Lawrence Yun, Chief Economist at NAR, explained why there is no comparison between today’s market and the frenzy of activity seen in 2006, which led to the recession. You can view his full quote in the December 2020 HMU video. Also, the good news is mortgage affordability based on household debt service as a percentage of disposable personal income. Furthermore, mortgage rates are projected to remain low in 2021, and home prices continue to increase.
The new Winter 2021 Buyer and Seller Guides are now available on the Green Team Realty website.
Click here and scroll halfway down the screen to request your guide.
Housing Market Stats – Nationwide and Local
Existing home sales have risen, and home prices continue to soar. Of course, inventory continues to plummet. Locally, average prices have soared. The panelists discussed the impact of current market conditions on both buyers and sellers, and what they are seeing in their businesses. You can see the panel discussion here.
“Housekeeping” Items
Contact our Panelists
We’ll see you on Tuesday, January 29, 2021, at 12 p.m.
Click here to register.
November 2020 Housing Market Update
Geoff Green, President of Green Team Realty, welcomed everyone to the November 2020 Housing Market Update. The webinar, held on Tuesday, November 17 at 2 p.m. examined the housing market on both national and local levels.
If you missed the webinar or would like to view it again, it’s available here:
Meet the Panel:
Panelists included Keren Gonen and Barbara Tesa, of Green Team New Jersey Realty and Carol Buchanan, with Green Team New York Realty. Also joining the discussion were Ken Ford of Warwick Valley Financial Advisors, and Laura Moritz with Classic Mortgage LLC.
First, let’s talk about the economy
In January, the economy was strong, there were no signs of the housing market slowing down. It took a major global event to slow down a roaring economy.
So, what did people do with stimulus checks?
35% used it to pay down debts. 36% saved the money, and 29% spent the money. U.S. Consumer spending since January 1, 2020, is down by -3.7%. Changes in consumer spending by state is shown below:
Unemployment filings and benefits
Weekly unemployment filings have been steadily coming down. However, unemployment does remain at a high number. The number of people receiving unemployment benefits is also trending downwards.
Mortgage Forbearance, Home Inventory, Home Appreciation, and Mortgage Rates
The number of mortgages in active forbearance is decreasing dramatically. As of Oct 20, out of 2,397,000 families granted forbearance, some have extended it, However, 44% came out of the program while paying on time. In addition, 500,000 people paid off their mortgage.
Moreover, stats show the decrease in inventory over the last 12 months. According to Zillow, the top reasons for people not putting their homes on the market now are financial uncertainty, uncertainty about life in general, and COVID-19 health concerns.
Most experts are bullish on home price appreciation. However, Mortgage Bankers’ Association is predicting rising mortgage rates over the next 3 years.
Learn more. Watch the Webinar.
For updates on what is happening in commercial real estate, the crisis facing renters at the end of moratoriums, and national and local market stats, click here.to watch the webinar. You’ll also be hearing from the sales associates, and financial and mortgage experts on what they are seeing in the market.
Furthermore, you can compare this month’s stats with those in the October Housing Market Update.
“Housekeeping” Items
Contact our Panelists
Join us for the last Housing Market Update of 2020 on Tuesday, December 15 at 2 p.m.
Sign up for updates now at GreenTeamRealty.com/HMU
Meet James J. Cosenza
When you first meet James J. Cosenza (“Jimmy”), there are a few things you’ll notice right away. Jimmy is a goal setter. He’ll do whatever is necessary to achieve his goals. He wants you to be a customer for life. Furthermore, Jimmy is happiest when he’s busy! All of these traits have served him well in the past, and they continue to do so now.
A Formula For Success
Jimmy grew up in Eastchester, which is located in Westchester County, New York. Playing sports was a big part of his high school experience. Many of his friends turned their sports skills into scholarship money. However, Jimmy realized that college was not in his future. Instead, he had other plans and other goals. Jimmy became a police officer in Mount Vernon, New York. Setting goals and achieving them guided his path in the police force. Jimmy worked his way up to Community Policing, then Street Crimes, and finally, he was promoted to Detective in the Narcotics Division.
Of course, life is what happens when you’re busy making other plans, and that’s what happened to Jimmy. He was injured in the line of duty and had to “retire” from the police department. Jimmy had to make new goals and adjustments had to be made. One of Jimmy’s passions was owning and training harness racehorses. His injury prevented him from training his horses, but he was still a proud owner. Another change was also happening.
A Friendly Place
Jimmy’s wife was born and raised in Orange County and in 2002 he moved from suburban Westchester to the beautiful rural landscape that is Orange. He readily admits that it was quite a culture shock coming from Westchester to Orange. When asked what it was that caused this culture shock, he immediately replied, “Everyone was so friendly!” He was also shocked by how peaceful and quiet Orange County is. Jimmy had another goal. In 2014 he opened his own business, Cosenza’s Gun Shop, in Monroe. With the spirit of an entrepreneur, an affinity for customer service, and a natural ability to negotiate, Jimmy has achieved the high standards he has set for himself. He strives to make every customer a customer for life.
The Road To Real Estate
With each goal that Jimmy achieved, he was closer to realizing another dream. Real estate had always been of interest. In fact, Jimmy and his wife purchased their first home in Warwick which then became a rental for them. They moved and currently reside in Monroe. Skills that Jimmy developed over the years are important for a real estate professional to have. His attention to detail, investigative and negotiating skills, and solving problems are all essential traits in his real estate business. So is the work ethic that led to opening a successful business. He does strive to make every customer a customer for life, and still sets goals and does whatever it takes to achieve them.
With his knowledge of Westchester and Orange Counties, Jimmy enjoys introducing clients to the warm and friendly lifestyle he and his family found here. His dedication to his clients also translates into providing the best service and negotiating the best deal for them.
October 2020 Housing Market Update
Geoff Geen, President of Green Team Realty, welcomed everyone to the October 2020 Housing Market Update. The webinar, held on Tuesday, October 20 at 2 p.m. examined the housing market on both national and local levels.
If you missed the webinar or would like to view it again, it’s available here.
Meet the Panel
October Housing Market Update panelists were Nancy Sardo, and Tammy Scotto of Green Team New York Realty, and Keren Gonen of Green Team New Jersey Realty. Also joining the discussion was Ken Aulicino, Mortgage Loan Originator at Family First Funding.
Can the housing market recovery be sustained?
The U.S housing market has been a “V-shaped” Recovery. However, inventory continues to decline and is a big challenge. So, can the housing market keep it up?
Pros
US Consumer Spending is almost in a V-shaped recovery. Unemployment has been coming down the last 6 to 7 months. The number of mortgages in active forbearance is decreasing. Prior to the Great Recession, it was a buyers market, due to the number of homes on the market. In the early 2000s, there was also a lot of new construction happening. Now, we are firmly in a sellers’ market. There are just not enough homes to satisfy the needs of the current market.
Cons
The shortage of inventory remains a major issue. According to Realtor.com,
“Since the beginning of the COVID pandemic in March, nearly 400,000 few homes have been listed compared to last year, leaving a gaping hole in the U.S. housing inventory…
As a result, home prices are accelerating at double last year’s pace.”
According to the National Association of Realtors, Existing Home Sales are up by 10.5%. However, listings are down 39%. Listings for New Homes are down by 31%. However, sales of new homes have increased by 43%.
This really shows the inventory story.
Local Stats
In Orange County, NY, there are increases in units sold and in average sales price. Sussex County, NJ is now showing strong increases in average sales price, as well as in units sold.
Learn More, Watch the Webinar
Watch Geoff’s full presentation on national and local economic and real estate trends. In addition, our expert panel discusses their experiences in this market, including new construction. Click here to view the webinar.
Furthermore, you can compare prior statistics and trends. Click here for the September 2020 Housing Market Update.
“Housekeeping” Items
Contact our Panelists
