NAR Reports Show Now Is a Great Time to Sell!

We all realize that the best time to sell anything is when demand is high and the supply of that item is limited. The last two major reports issued by the National Association of Realtors (NAR) revealed information that suggests that now continues to be a great time to sell your house. Let’s look at the data covered by the latest Pending Home Sales Report and Existing Home Sales Report.

THE PENDING HOME SALES REPORT

The report announced that pending home sales (homes going into contract) are up 2.4% over last year, and have increased year-over-year now for 22 of the last 25 consecutive months. Lawrence Yun, NAR’s Chief Economist, had this to say:

“The one major predicament in the housing market is without a doubt the painfully low levels of housing inventory in much of the country. It’s leading to home prices outpacing wages, properties selling a lot quicker than a year ago and the home search for many prospective buyers being highly competitive and drawn out because of a shortage of listings at affordable prices.”

Takeaway: Demand for housing will continue throughout the end of 2016 and into 2017. The seasonal slowdown often felt in the winter months did not occur last winter and shows no signs of returning this year.

THE EXISTING HOME SALES REPORT

The most important data point revealed in the report was not sales, but was instead the inventory of homes for sale (supply). The report explained:

• Total housing inventory rose 1.5% to 2.04 million homes available for sale
• That represents a 4.5-month supply at the current sales pace
• Unsold inventory is 6.8% lower than a year ago, marking the 16^th consecutive month with year-over-year declines

There were two more interesting comments made by Yun in the report:

“Inventory has been extremely tight all year and is unlikely to improve now that the seasonal decline in listings is about to kick in. Unfortunately, there won’t be much relief from new home construction, which continues to be grossly inadequate in relation to demand.”

In real estate, there is a guideline that often applies; when there is less than a 6-month supply of inventory available, we are in a seller’s market and we will see appreciation. Between 6-7 months is a neutral market, where prices will increase at the rate of inflation. More than a 7-month supply means we are in a buyer’s market and should expect depreciation in home values. As Yun notes, we are, and will remain, in a seller’s market with prices still increasing unless more listings come to the market.

“There’s hope the leap in sales to first-time buyers can stick through the rest of the year and into next spring. The market fundamentals — primarily consistent job gains and affordable mortgage rates — are there for the steady rise in first-timers needed to finally reverse the decline in the homeownership rate.”

Takeaway: Inventory of homes for sale is still well below the 6-month supply needed for a normal market. Prices will continue to rise if a ‘sizable’ supply does not enter the market.

Bottom Line

If you are going to sell, now may be the time to take advantage of the ready, willing, and able buyers that are still out looking for your house.

---

Members: Sign in now to set up your Personalized Posts & start sharing today! Not a Member Yet? Click Here to learn more about KCM’s newest feature, Personalized Posts.

As Flood Risk Threatens Properties, Realtors® Can Play Key Role Keeping Buyers and Sellers Informed

ORLANDO, Fla. (November 6, 2016) – Floods are widespread throughout the nation, with Hurricane Matthew and this summer’s flooding in Louisiana serving as the latest examples.

Homebuyers need to be aware of the threat that flooding poses to their investment, as well as to their safety, and Realtors® can play an important role in helping clients address that risk before disaster strikes.

Melanie M. Graham of H2O Partners told an audience at the 2016 REALTORS® Conference & Expo in Orlando, Florida,… Read More

5 home security lessons learned from the big screen

There were 153,054 burglaries in Texas last year, and according to the U.S. Department of Justice, most of them took place in broad daylight with the perpetrators entering a front or back door. While movies and TV shows might not always have the firmest grounding in reality, security lessons can be learned from the criminals depicted on screen.

Reinforce doors and locks.

The Discovery Channel’s “It Takes a Thief” follows two former burglars as they break into the homes of willing victims. They go through the process of a robbery while simultaneously teaching viewers what they can do to protect their homes from thieves.

One lesson they often stress is to reinforce your doors with metal plates and install extra locks. This extra protection will encourage a potential thief to move on rather than take the extra time needed to break in.

Install high-definition security cameras.

In numerous episodes of the TV series “CSI: Crime Scene Investigation,” the team’s audio-video analyst turns to surveillance footage for leads on the cases. Like this analyst, you’ll get a high resolution image of someone who breaks into your house by installing a security system with 2K or 4K technologies. In addition to crisper images, there might be other improved features such as a better-quality digital zoom, night vision, wide-angle lenses, intelligent compression, and the capability to handle severe weather.

Outsmart the bad guys.

The holiday season is a lucrative time for crooks, who like to target empty homes while owners are on vacation. The movie “Home Alone” teaches several valuable lessons in home security in a fun way:

• Put your interior and exterior lighting on a schedule.
• Leave your TV on. You might just be on an all-day, all-night Netflix binge.
• Strengthen first-floor windows with locks, sensors, and double-pane glass.
• Get a motion detector. (Kevin uses a blowtorch in the movie.)
• Conceal and protect your valuables in a safe.
• Be informed of what’s happening in your area.
• Know your neighbors and rely on them to keep an eye on your home while you’re away.

Don’t leave windows or doors unlocked.

In the movie “Ocean’s Twelve,” Danny Ocean’s accomplices attempt to heist the very first printed stock certificate from a well-protected mansion in Europe. To access the home, they sent a security system decoder on a cable through an open window.

The lesson here is to always shut and lock your windows and doors when not home. Even if you are home, be sure you don’t leave them open in plain view. Burglars can live right in your neighborhood.

Know your security measures.

Everyone in the house should know how to work the security measures you have in place, including the kids. During a scene in the movie “The Lost World: Jurassic Park,” a dinosaur is attempting to get through a door that can only be locked via the park’s computer system. While the parents are holding the door shut, the daughter is able to activate the security system and lock the doors, thus keeping the dinosaur on the opposite side of the door.

Look at your home through the eyes of a burglar, and take notice of areas where security may have been overlooked.

Anne-Marie Pritchett is a freelance writer, storyteller and idea girl who has lived in six states and two countries.

Proposed Changes to Appraiser Qualifications

On October 28, 2016, NAR submitted a comment letter to the Appraiser Qualifications Board (AQB) in response to their second exposure draft concerning proposed changes to the AQB’s Real Property Appraiser Qualification Criteria. NAR agreed with the AQB’s proposed reductions in degree requirements for Licensed and Certified Residential appraisers and asked that prior work experience count toward the degree requirement for Certified General appraisers. While NAR agreed with the AQB’s proposed removal of time limits on obtaining experience hours, NAR is concerned that… Read More

The Difference an Hour Makes This Fall [INFOGRAPHIC]

Every Hour in the US Housing Market: 

• 633 Homes Sell
• 253 Homes Regain Positive Equity
• Median Home Values Go Up $1.43

---

Members: Sign in now to set up your Personalized Posts & start sharing today! Not a Member Yet? Click Here to learn more about KCM’s newest feature, Personalized Posts.

The Difference an Hour Makes This Fall [INFOGRAPHIC]

Every Hour in the US Housing Market: 

• 633 Homes Sell
• 253 Homes Regain Positive Equity
• Median Home Values Go Up $1.43

---

Members: Sign in now to set up your Personalized Posts & start sharing today! Not a Member Yet? Click Here to learn more about KCM’s newest feature, Personalized Posts.

Gen Y Real Estate: Think All Millennials Live in Their Parent’s Basement? Think Again!

According to the Census Bureau, millennials have overtaken baby boomers as the largest generation in U.S. History. Millennials, or America’s youth born between 1982-2000, now represent more than one quarter of the nation’s population, totaling 83.1 million. There has been a lot of talk about how, as a generation, millennials have ‘failed to launch’ into adulthood and have delayed moving out of their family’s home. Some experts have even questioned whether or not millennials want to move out. The great news is that not only do millennials want to move out… they are moving out! The National Association of Realtors (NAR) recently released their 2016 Profile of Home Buyers and Sellers in which they revealed that 61% of all first-time homebuyers were millennials in 2015! The median age of all first-time buyers in 2015 was 31 years old.  Here is chart showing the breakdown by age: Many social factors have contributed to millennials waiting to buy their first home. The latest Census results show that the median age of Americans at the time of their first marriage has increased significantly over the last 60 years, from 23 for men & 20 for women in 1955, to 29 & 27, respectively, in 2015. Those who went to college and took out student loans are finally paying them off, as the terms on traditional student loans are 10 years. This means that a large portion of the generation is making its last loan payments and is working toward saving for a first home. As a whole, the first-time homebuyer share increased to 35% of all buyers, up from 32% in 2014. Not all millennials are first-time buyers, they also made up 12% of all repeat buyers!

Bottom Line

Millennials will continue to drive the housing market next year, as well as in the years to come. As more and more realize that owning a home is within their grasp, they will flock to own their piece of the American Dream. Are you ready to buy your first or even second home?

---

Members: Sign in now to set up your Personalized Posts & start sharing today! Not a Member Yet? Click Here to learn more about KCM’s newest feature, Personalized Posts.

Think All Millennials Live in Their Parent’s Basement? Think Again!

According to the Census Bureau, millennials have overtaken baby boomers as the largest generation in U.S. History. Millennials, or America’s youth born between 1982-2000, now represent more than one quarter of the nation’s population, totaling 83.1 million. There has been a lot of talk about how, as a generation, millennials have ‘failed to launch’ into adulthood and have delayed moving out of their family’s home. Some experts have even questioned whether or not millennials want to move out. The great news is that not only do millennials want to move out… they are moving out! The National Association of Realtors (NAR) recently released their 2016 Profile of Home Buyers and Sellers in which they revealed that 61% of all first-time homebuyers were millennials in 2015! The median age of all first-time buyers in 2015 was 31 years old.  Here is chart showing the breakdown by age: Many social factors have contributed to millennials waiting to buy their first home. The latest Census results show that the median age of Americans at the time of their first marriage has increased significantly over the last 60 years, from 23 for men & 20 for women in 1955, to 29 & 27, respectively, in 2015. Those who went to college and took out student loans are finally paying them off, as the terms on traditional student loans are 10 years. This means that a large portion of the generation is making its last loan payments and is working toward saving for a first home. As a whole, the first-time homebuyer share increased to 35% of all buyers, up from 32% in 2014. Not all millennials are first-time buyers, they also made up 12% of all repeat buyers!

Bottom Line

Millennials will continue to drive the housing market next year, as well as in the years to come. As more and more realize that owning a home is within their grasp, they will flock to own their piece of the American Dream. Are you ready to buy your first or even second home?

---

Members: Sign in now to set up your Personalized Posts & start sharing today! Not a Member Yet? Click Here to learn more about KCM’s newest feature, Personalized Posts.

2016 REALTORS® Conference and Expo – Federal Issues Update

Going to the 2016 REALTORS® Conference in Orlando? Don’t miss the Federal Issues Update on Friday, Nov. 4 at 7:30am. NAR Government Affairs Senior Vice President, Jerry Giovaniello, and policy staff will provide information, analysis and perspectives on NAR Federal issues.

Download the presentation (PDF: 1.2M)

Federal Issues Update
Friday, Nov. 4
7:30am – 8:30am
Hyatt Regency Orlando
Windermere Ballroom Y / Convention Level

How Long Do Families Stay in a Home?

The National Association of Realtors (NAR) keeps historic data on many aspects of homeownership. One of the data points that has changed dramatically is the median tenure of a family in a home. As the graph below shows, for over twenty years (1985-2008), the median tenure averaged exactly six years. However, since 2008, that average is almost nine years – an increase of almost 50%.

Why the dramatic increase?

The reasons for this change are plentiful. The top two reasons are:

1. The fall in home prices during the housing crisis left many homeowners in a negative equity situation (where their home was worth less than the mortgage on the property).
2. The uncertainty of the economy made some homeowners much more fiscally conservative about making a move.

However, with home prices rising dramatically over the last several years, over 90% of homes with a mortgage are now in a positive equity situation with 70% of them having at least 20% equity. And, with the economy coming back and wages starting to increase, many homeowners are in a much better financial situation than they were just a few short years ago.

What does this mean for housing?

Many believe that a large portion of homeowners are not in a house that is best for their current family circumstances. They could be baby boomers living in an empty, four-bedroom colonial, or a millennial couple planning to start a family that currently lives in a one-bedroom condo. These homeowners are ready to make a move. Since the lack of housing inventory is a major challenge in the current housing market, this could be great news.

---

Members: Sign in now to set up your Personalized Posts & start sharing today! Not a Member Yet? Click Here to learn more about KCM’s newest feature, Personalized Posts.