Buying a home and wondering if your inspection is necessary? While some buyers may decide to waive their inspection, it’s risky decision.
Your home inspection is a crucial step in the homebuying process. It assesses the condition of the home you plan to purchase, so you can avoid costly surprises down the road.
Let’s connect so you have expert advice and a trusted professional who will keep your interests top of mind.
Put an experts eye on your home search! You’ll receive personalized matches of results delivered directly to you. We’ll take into account your goals, criteria, and preferences to find properties that are exactly what you were always dreaming of. Start Here!
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?
If you’re thinking about selling your house in 2022, you truly have a once-in-a-lifetime opportunity at your fingertips. When selling anything, you always hope for strong demand for the item coupled with a limited supply. That maximizes your leverage when you’re negotiating the sale. Home sellers are in that exact situation right now. Here’s why.
Demand Is Very Strong
According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), 6.18 million homes were sold in 2021. This was the largest number of home sales in 15 years. Lawrence Yun, Chief Economist for NAR, explains:
“Sales for the entire year finished strong, reaching the highest annual level since 2006. . . . With mortgage rates expected to rise in 2022, it’s likely that a portion of December buyers were intent on avoiding the inevitable rate increases.”
Demand isn’t expected to weaken this year, either. In addition, the Mortgage Finance Forecast, published last week by the Mortgage Bankers’ Association (MBA), calls for existing-home sales to reach 6.4 million homes this year.
Supply Is Very Limited
The same sales report from NAR also reveals the months’ supply of inventory just hit the lowest number of the century. It notes:
“Total housing inventory at the end of December amounted to 910,000 units, down 18% from November and down 14.2% from one year ago (1.06 million). Unsold inventory sits at a 1.8-month supply at the present sales pace, down from 2.1 months in November and from 1.9 months in December 2020.”
The reality is, inventory decreases every year in December. That’s just how the typical seasonal trend goes in real estate. However, the following graph emphasizes how this December was lower than any other December going all the way back to 1999.
Right Now, Sellers Have Maximum Leverage
As mentioned above, when there’s strong demand for an item and a limited supply of it available, the seller has maximum leverage in the negotiation. In the case of homeowners who are thinking about selling, there may never be a better time than right now. While demand is this high and inventory is this low, you’ll have leverage in all aspects of the sale of your house.
Today’s buyers know they need to be flexible negotiators that make very competitive offers, so here are a few areas that could tip in your favor when your house goes on the market:
Competitive sales price
Flexible closing date
Potential for a leaseback to allow you more time to find a home
Minimal offer contingencies
Bottom Line
If you’re thinking of selling your house this year, now is the optimal time to list it. Let’s connect to discuss how you can put your house on the market today.
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?
Put an experts eye on your home search! You’ll receive personalized matches of results delivered directly to you. We’ll take into account your goals, criteria, and preferences to find properties that are exactly what you were always dreaming of. Start Here!
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[et_pb_column type=”4_4″][et_pb_text admin_label=”Text”]Americans are more aware than ever of the effects climate change and natural disasters can have on their homes. According to a report from realtor.com:
“More than 3 in 4 recent buyers, 78%, took [natural disasters] into account when choosing the locations of their homes, . . .”
The study also found that many existing homeowners (34%) have already considered selling their houses and moving to a new location because of the changing climate. If you’re like those homeowners and are weighing your options about what to do next, here’s some information to keep in mind as you begin the process of selling your existing house and searching for your new home.
Do Your Research and Work with a Real Estate Advisor To Find a Home That Meets Your Needs
As a homeowner, it’s impossible to control what types of weather events your home is exposed to. As Maiclaire Bolton Smith, Senior Leader of Research and Content Strategy for CoreLogic, says:
“You can’t necessarily remove the location from around you, but there are things you can do to mitigate damage that can happen.”
The first step is understanding how to navigate your home sale and purchase with these specific issues in mind. While that can seem like a difficult undertaking at first, with the appropriate resources and experts on your side, you can simplify the process.
The Mortgage Reports provides some tips for purchasing your next house, including, but not limited to:
Vetting the location before you buy
Researching Climate Action Plans and learning if the city or state has one
Working with professionals for additional assessments on the home’s ability to withstand natural disasters
Ultimately, your best resource throughout the process is a trusted real estate professional. An agent will help you navigate the sale and required disclosures for your existing home, be your expert advisor on local guidelines and information, and keep your goals and concerns top of mind. Even if your advisor doesn’t have the answers to all your questions about how your next home will stand up to natural disasters, they can help connect you with experts and resources who will.
Bottom Line
If you’re becoming more mindful about the effects of climate change and you’re ready to make a move, you’re not alone. Let’s connect so you have a trusted advisor on your side to help you navigate the sale of your current house and find the perfect spot for your next home.
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?
Put an experts eye on your home search! You’ll receive personalized matches of results delivered directly to you. We’ll take into account your goals, criteria, and preferences to find properties that are exactly what you were always dreaming of. Start Here![/et_pb_text][/et_pb_column]
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Many members of Generation Z (Gen Z) are aging into adulthood and deciding whether to rent or buy a home. If you find yourself in this group, it’s important to understand you’re never too young to start thinking about homeownership. The sooner you start planning, the sooner you can move on from renting.
As you set off on your journey and plan your next move, here are a few reasons to think about homebuying this year.
The Reasons Gen Z Want To Become Homeowners
While the majority of Gen Z haven’t entered the housing market yet, a large portion plan to according to a realtor.comreport. The report found that 72% of Gen Z would rather purchase a home than rent long-term. As George Ratiu, Manager of Economic Research for realtor.com,says:
“With nearly three-quarters of those surveyed preferring to buy versus renting long-term, the housing industry should be prepared for millions of Gen Z buyers to bring a new wave of demand along a similar stage-of-life timeline as the millennial generation before them.”
But why do so many members of Gen Z value homeownership? According to the latest Home Buyers and Sellers Generational Trends Report from the National Association of Realtors (NAR), young homebuyers – more than any other age group – want to become homeowners because they want to have a place of their very own.
That may be because one of the biggest benefits of homeownership is having a place that you can truly make your own by customizing it to your style and personality. Whether that’s the décor, painting, or renovations, when you own your home, you don’t have to limit yourself to what your lease and landlord will allow.
Not to mention, owning a home provides much greater long-term stability and security than renting. When you own a home, there’s also protection from steadily rising rental costs because your monthly mortgage payment is locked in for the length of your loan (typically 15 to 30 years).
Work with a Real Estate Professional To Achieve Your Goals
Whether you’re just getting started on your homebuying journey, you want to learn more about the process, or you’re fully committed to buying your first home this year, it’s especially important to connect with a trusted real estate advisor soon, as you won’t be the only first-time buyer in the market. According to a recent survey from realtor.com, a majority of first-time buyers surveyed are looking to purchase a home in 2022. As the survey notes:
“First-time home buyers retain their optimism despite a challenging housing market in the past year. Hoping to achieve their goal of homeownership and provide a comfortable space for their families, young buyers are setting out to learn what they can about the market and setting their list of priorities for their home purchase.”
That means you’ll likely face strong competition from other first-time buyers. One way to get a leg-up on that competition is to work with a real estate professional to make sure you have the support you need to make an informed and confident decision.
Bottom Line
If you’re planning your next move, you’re not alone. Just know it’s never too early to consider the benefits of homeownership over renting. To learn more, let’s connect today so you have a trusted professional on your side to help you explore your options.
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?
Put an experts eye on your home search! You’ll receive personalized matches of results delivered directly to you. We’ll take into account your goals, criteria, and preferences to find properties that are exactly what you were always dreaming of. Start Here!
You may have heard that it’s important to get pre-approved for a mortgage at the beginning of the homebuying process, but what does that really mean, and why is it so important? Especially in today’s market, with rising home prices and high buyer competition, it’s crucial to have a pre-approval letter prior to making an offer. Here’s why.
Being intentional and competitive are musts when buying a home this year. Pre-approval from a lender is the only way to know your true price range and how much money you can borrow for your loan. Just as important, being able to present a pre-approval letter shows sellers you’re a qualified buyer, something that can really help you land your dream home in an ultra-competitive market.
With limited housing inventory, there are many more buyers active in the market than there are sellers, and that’s creating some serious competition. According to the National Association of Realtors (NAR), homes today are receiving an average of 3.8 offers for sellers to consider. As a result, bidding wars are still common. Pre-approval gives you an advantage if you get into a multiple-offer scenario, and these days, it’s likely you will. When a seller knows you’re qualified to buy the home, you’re in a better position to potentially win the bidding war.
“By having a pre-approval letter from your lender, you’re telling the seller that you’re a serious buyer, and you’ve been pre-approved for a mortgage by your lender for a specific dollar amount. In a true bidding war, your offer will likely get dropped if you don’t already have one.”
Every step you can take to gain an advantage as a buyer is crucial when today’s market is constantly changing. Interest rates are rising, prices are going up, and lending institutions are regularly updating their standards. You’re going to need guidance to navigate these waters, so it’s important to have a team of professionals such as a loan officer and a trusted real estate advisor making sure you take the right steps and can show your qualifications as a buyer when you find a home to purchase.
Bottom Line
In a competitive market with low inventory, a pre-approval letter is a game-changing piece of the homebuying process. Not only does being pre-approved bring clarity to your homebuying budget, but it shows sellers how serious you are about purchasing a home.
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?
Put an experts eye on your home search! You’ll receive personalized matches of results delivered directly to you. We’ll take into account your goals, criteria, and preferences to find properties that are exactly what you were always dreaming of. Start Here!
According to a Gallup poll, real estate has been rated the best long-term investment for eight years in a row.
Real estate tops the list because you’re not just buying a place to call home – you’re investing in your future. Real estate is typically considered a stable and secure asset that can grow in value over time.
Let’s connect today if you’re ready to make real estate your best investment this year.
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?
Put an experts eye on your home search! You’ll receive personalized matches of results delivered directly to you. We’ll take into account your goals, criteria, and preferences to find properties that are exactly what you were always dreaming of. Start Here!
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Green Team Realty has announced its 4th Quarter 2021 Sales Leaders. Tiffany Megna is the Green Team New York Realty 4th Quarter 2021 Sales Leader. Rounding out the top three are Dean Diltz and Jennifer DiCostanzo. Keren Gonen of Green Team New Jersey Realty is once again Quarterly Sales Leader, Rounding out the top three are Kristi Anderson and the team of Charles Nagy and Ted Van Laar.
Tiffany Megna, Green Team New York Realty
Tiffany is most often described by clients as honest and passionate. She combines that passion with her tenacity, and work ethic to benefit her clients. . Tiffany has sold homes in all price ranges. For instance, she’s sold starter homes and high-dollar estate properties to condominiums and investment properties. Most importantly, as a Realtor, her first priority is to make her clients happy. She listens to her client’s wants and needs to achieve the best outcome in every transaction. And, she strives to ensure that the buying or selling process is fun, easy, and stress-free. In 2021, Tiffany earned a spot in Top Agent Magazine for her stellar example of being a prominent leader in real estate. Furthermore, Tiffany achieved Green Team’s Platinum Award, for $10 to $15 million in sales volume for 2021.
Geoff Green, President of Green Team Realty, had this to say about Tiffany:
“2021 was a banner year for Tiffany Megna. Not only did she win the Green Team New York Realty 4th Quarter Sales Leader Award, but she also finished 2021 in second place, which means she climbed 4 spots from 2020. Remarkably, this is the first time that Tiffany has won the quarterly sales leader award. That said, I am sure this will not be her last! Great job Tiffany. Here is to a very bright future!”
When Tiffany was asked what she thought about being the 4th quarter sales leader, she responded
..Do the extras! “The difference between ordinary and extraordinary is that little extra! “.
Keren Gonen, Green Team New Jersey Realty
Born in Israel, Keren moved to the USA in her early teens. She has a true passion for living a balanced life and helping others. For instance, she has been a foster parent for animal rescues. Furthermore, she volunteers for different charities. Keren firmly believes your location directly affects your happiness and enjoyment of life. She also believes that moving should not be looked at as an obstacle but as a new adventure. And, because of this belief, Keren enjoys assisting others in buying or selling their home. Thus, she helps them to achieve the type of lifestyle they desire and require to lead a balanced and happy life.
This is the 7th consecutive quarterly sales leader award for Keren Gonen. Not surprisingly, Keren is the first to obtain Green Team’s newly created Sapphire Award for $20 to $30 million in sales volume. When asked about how she had accomplished this, she replied:
“I truly care about my clients and their well-being. That’s why they keep coming back and giving me referrals. I treat buyers and sellers the way I would want to be treated. And, it’s also because I believe in hard work. Of course, I couldn’t accomplish all this without a great support system at home. My partner and my sons are fabulous, helping out any way they can.”
Geoff Green had the following words for Keren:
“A true professional who never lets up. If Keren Gonen was a term listed in the dictionary that would be her definition. This is the 7th straight quarterly sales leader award for Keren. Quite an accomplishment, but not a surprise. Way to go Keren. Keep up the great work!”
One key question that’s top of mind for homebuyers this year is: why is it so hard to find a house to buy? The truth is, we’re in the ultimate sellers’ market, so real estate is ultra-competitive for buyers right now. The number of buyers searching for a home greatly outweighs how many homes are available for sale.
While low inventory in the housing market isn’t new, it’s a challenge that continues to grow over time. Here’s a look at two reasons why today’s housing supply is low and what that means for you.
1. New Home Construction Fell Behind for Several Years
The graph below shows new home construction for single-family homes over the past five decades, including the long-term average for housing units completed. Builders exceeded that average during the housing bubble (shown in red on the graph). The result was an oversupply of homes on the market, so home values declined. That was one of the factors that led to the housing crash back in 2008.
Since then, the level of new home construction has fallen off. For the last 13 straight years, builders haven’t been able to construct enough homes to meet the historical average (as illustrated in green on the graph). That underbuilding left us with a multi-year inventory deficit going into the pandemic.
2. The Pandemic’s Impact on the Housing Market
Then, when the pandemic hit, it fueled a renewed appreciation and focus on the meaning of home. Having a safe space to live, work, school, and exercise became even more important for Americans throughout the country. So, as mortgage rates dropped to at or below 3%, buyers eagerly entered the market looking to capitalize on those low rates to secure a home that would fulfill their changing needs. At the same time, sellers hesitated to put their houses on the market as concerns about the pandemic mounted.
The result? The number of homes available for sale dropped even further. A recent article from realtor.comexplains:
“Last month, the number of home listings dropped 26.8% compared with the same time a year earlier.This meant there were about 177,000 fewer homes listed in what’s already typically a slower month due to the holidays and colder weather. . . .”
What Does All of This Mean for You?
For a buyer, low inventory can be a challenge. You want to find the home of your dreams, and you don’t want to settle. But what if there just aren’t that many homes to choose from?
There is some good news. Experts are projecting more homes will soon become available thanks to sellers re-entering the market. Danielle Hale, Chief Economist at realtor.com, shares this hope, but offers perspective:
“We expect that we’ll start to see a turnaround and inventory will stabilize and start to go up a little bit in 2022. . . . But that means we’re looking at inventory levels of roughly half of what we saw before the pandemic. For buyers, the market is likely to continue to move fast. If you see a home you like, you want to jump on it right away.”
Basically, inventory is still low, even though more homes are coming. But you shouldn’t put your plans on hold because you’re waiting for those additional houses to hit the market. Instead, stick with your search and persevere through today’s low inventory. You can find your next home if you’re patient and focused.
Remember your goals and why finding a home is so important. Those things should be the driving force behind your search. Share them with your agent and be clear about your priorities. Your trusted advisor is your greatest support as you navigate today’s low housing supply to find the home of your dreams.
Bottom Line
If you’re planning to buy this year, the key to success will be patience given today’s low inventory. Let’s connect to discuss what’s happening in our area, what homes are available, and why it’s still worthwhile to prioritize your home search today.
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?
Put an experts eye on your home search! You’ll receive personalized matches of results delivered directly to you. We’ll take into account your goals, criteria, and preferences to find properties that are exactly what you were always dreaming of. Start Here!
The January 2022 Housing Market Update took place on January 18 at 12 p.m. Geoff Green, President of Green Team Realty and Co-founder and CO of NuOp, hosts the monthly market updates. If you missed the live FaceBook and Zoom event, or you’d like to watch the webinar again, it is available below.
It all comes down to inventory – and the lack thereof
Geoff started the discussion with this quote from Bill McBride, Founder, Calculated Risk:
“It is possible that rising mortgage rates will slow the housing market… or the Fed might raise rates sooner than expected due to the recent pickup in inflation… but I believe one thing is certain: inventory will tell the tale!”
Inventory is at an all-time low throughout the U.S., down an average of 27% compared to December of 2020. As the industry survives on turnover, this is not good news. A normal market has 6 months’ inventory, while we are currently at less than 2 months.
Buyer demand remains strong
According to Michael Lane, VP & General Manager of ShowingTime,
“Showings traditionally lag during the holiday season, but the data remains strong. The fact that every region showed a year-over-year increase indicates that buyers are undeterred… It speaks to their desire to keep searching for their next home.”
Homeowner equity still strong, still surging
According to CoreLogic’s Q3 Homeowner Equity Report,
“This summer, home price growth reached the highest level in more than 45 years, pushing equity gains to another record high.”
Mortgage rate projections
Mortgage rate projections show rates slowly rising, but still remaining at historic lows. Maiclaire Boltonk-Smith, Senior Leader of Research, CoreLogic, says:
“So overall I do think that 2022 will be another strong year for housing. All be it a little bit higher mortgage rates and we do think home sales will continue to rise and actually reach a 16 year high in 2022.”
Other factors impacting the housing market
The discussion included Gen Z, a massive population in their late 20’s, with many looking to buy homes. Some people migrate back to cities following moving to suburbs and rural areas. Geoff predicts that many people who left the City due to the pandemic will be moving back as the commute and home maintenance are more difficult than anticipated.
Nationally, existing homes sales are still strong, as is average home price, though showing signs of deceleration (not decrease) of prices.
Meet the panel
Joining Geoff is Terry Gavan of Green Team New York Realty and Kristi Anderson of Green Team New Jersey Realty. Also joining in is Michael Giannetto of CrossCountry Mortgage, to lend his expertise to the discussion.
A lively discussion ensued regarding what these real estate professionals are seeing on the ground, and their take on Geoff’s prediction about homeowners returning to the cities, appraisal valuations, etc..
To watch the webinar, including current stats and the panel discussion, click here:
Last week, the average 30-year fixed mortgage rate from Freddie Macjumped from 3.22% to 3.45%. That’s the highest point it’s been in almost two years. If you’re thinking about buying a home, this news may have come as a bit of a shock. But the truth is, it wasn’t entirely unexpected. Experts have been calling for rates to rise in their 2022 projections, and the forecast is now becoming a reality. Here’s a look at the projections from Freddie Mac for this year:
Q1 2022: 3.4%
Q2 2022: 3.5%
Q3 2022: 3.6%
Q4 2022: 3.7%
As the numbers show, this jump in rates is in line with the expectations from Freddie Mac. And what they also indicate is that mortgage rates are projected to continue climbing throughout the year. But should you be worried about rising mortgage rates? What does that really mean for you?
As rates increase even modestly, they impact your monthly mortgage payment and overall affordability. If you’re looking to buy a home, rising mortgage rates should be an incentive to act sooner rather than later.
The good news is, even though rates are climbing, they’re still worth taking advantage of. Historical data shows that today’s rate, even at 3.45%, is still well below the average for each of the last five decades (see chart below):
That means you still have a great opportunity to buy now with a rate that’s better than what your loved ones may have paid in decades past. If you buy a home while rates are in the mid-3s, your monthly mortgage payment will be locked in at that rate for the life of your loan. As you can see from the chart above, a lot can change in that time frame. Buying now is a great way to protect yourself from rising costs and future rate increases while also securing your payment amount for the long term.
Nadia Evangelou, Senior Economist and Director of Forecasting at the National Association of Realtors (NAR), says:
“Mortgage rates surged in the second week of the new year. The 30-year fixed mortgage rate rose to 3.45% from 3.22% the previous week. If inflation continues to grow at the current pace, rates will move up even faster in the following months.”
Bottom Line
Mortgage rates are increasing, and they’re forecast to be even higher by the end of 2022. If you’re planning to buy this year, acting soon may be your most affordable option. Let’s connect to start the homebuying process today.
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?
Put an experts eye on your home search! You’ll receive personalized matches of results delivered directly to you. We’ll take into account your goals, criteria, and preferences to find properties that are exactly what you were always dreaming of. Start Here!
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