3 Graphs Showing Why You Should Sell Your House Now

There's no doubt that 2021 is the year of the seller when it comes to the housing market. If you're a homeowner thinking of moving to better suit your changing needs, now is the perfect time to do so. Low mortgage rates are in your favor when you're ready to purchase your dream home, and high buyer demand may give you the leverage you need to negotiate the best contract terms on the sale of your house. Here's a look at what's driving this sellers advantage and why there's so much opportunity for homeowners who are ready to move this season.

1. Historically Low Inventory

The National Association of Realtors (NAR) explains:

Total housing inventory at the end of March amounted to 1.07 million units, up 3.9% from February’s inventory . . . Unsold inventory sits at a 2.1-month supply at the current sales pace, marginally up from February’s 2.0-month supply and down from the 3.3-month supply recorded in March 2020.

Even with a slight rise in the number of houses for sale this spring, inventory remains near an all-time low (See graph below):High buyer interest is creating a major imbalance between supply and demand, but as the small uptick in inventory shows, sellers are beginning to reenter the market. Selling your house now enables you to take advantage of buyer demand and get the most attention for your house before more listings come to the market later this year.

2. Frequent Bidding Wars

As a result of the supply and demand imbalance, homebuyers are entering bidding wars at an accelerating rate. NAR reports the average number of bids received on the most recently closed sales is 4.8 offers. This number has doubled since the first quarter of 2020 (See graph below):As buyers face increasingly tough competition while searching for homes to purchase, they're more likely to be flexible and generous in their negotiations. This gives a seller the opportunity to choose the best buyer for their needs and be selective about things like time to close, contingencies, renovations, and more. Working with your trusted agent is the best way to determine how to navigate the negotiation process when selling your house.

3. Days on the Market

In todays market, sellers aren't waiting very long to find a buyer for their house, either. NAR reports:

Properties typically remained on the market for 18 days in March, down from 20 days in February and from 29 days in March 2020. 83% of the homes sold in March 2021 were on the market for less than a month. (See graph below):

NAR Chief Economist Lawrence Yun explains:

“The sales for March would have been measurably higher, had there been more inventory Days-on-market are swift, multiple offers are prevalent, and buyer confidence is rising.

Bottom Line

If you're thinking about moving, these three graphs clearly show that its a great time to sell your house. Lets connect today so you can learn more about the opportunities in our local area.

 

Experts Say Home Prices Will Continue to Appreciate

Its clear that consumers are concerned about how quickly home values are rising. Many people fear the speed of appreciation may lead to a crash in prices later this year. In fact, Google reports that the search for When is the housing market going to crash? has actually spiked 2450% over the past month.

In addition, Jim Dalrymple II of Inman News notes:

One of the most noteworthy things that came up in Inmans conversations with agents was that every single one said they've had conversations with clients about whether or not the market is heading into a bubble.

To alleviate some of these concerns, lets look at what several financial analysts are saying about the current residential real estate market. Within the last thirty days, four of the major financial services giants came to the same conclusion: the housing market is strong, and price appreciation will continue. Here are their statements on the issue:

Goldman Sachs Research Note on Housing:

Strong demand for housing looks sustainable. Even before the pandemic, demographic tailwinds and historically-low mortgage rates had pushed demand to high levels. … consumer surveys indicate that household buying intentions are now the highest in 20 years. As a result, the model projects double-digit price gains both this year and next.

Joe Seydl, Senior Markets Economist, J.P.Morgan:

Home buyers 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.

Morgan Stanley, Thoughts on the Market Podcast:

Unlike 15 years ago, the euphoria in today’s home prices comes down to the simple logic of supply and demand. And we at Morgan Stanley conclude that this time the sector is on a sustainably, sturdy foundation . . . . This robust demand and highly challenged supply, along with tight mortgage lending standards, may continue to bode well for home prices. Higher interest rates and post pandemic moves could likely slow the pace of appreciation, but the upward trajectory remains very much on course.

Merrill Lynchs Capital Market Outlook:

There are reasons to believe that this is likely to be an unusually long and strong housing expansion. Demand is very strong because the biggest demographic cohort in history is moving through the household-formation and peak home-buying stages of its life cycle. Coronavirus-related preference changes have also sharply boosted home buying demand. At the same time, supply is unusually tight, with available homes for sale at record-low levels. Double-digit price gains are rationing the supply.

Bottom Line

If you're concerned about making the decision to buy or sell right now, lets connect to discuss what's happening in our local market.

 

 

Your HVAC Estimate Checklist

There’s nothing like the feeling of a rush of cool air from your air conditioning system, but what happens when that cool air turns lukewarm, or worse, won’t kick on at all? It may be time to get that ailing HVAC system replaced.

Talking to an HVAC professional about an air conditioning replacement can be intimidating. There’s a lot to know, and it’s probably not going to be cheap. But considering that a typical air conditioning unit lasts 10 to 15 years, what you invest today will help pay for itself in the longer term. That being said, it’s still important to know what to ask and the pitfalls to watch for.

Always Ask About Licensing and Insurance

Before you so much as let someone start to quote your HVAC job, ask about their licensing and insurance status. Not only will this save you a ton of time by weeding out anyone who isn’t actually a practicing professional, you’ll avoid issues that can arise if, for example, your HVAC is installed without a permit, or there’s a jobsite accident without proper coverage. HVAC installers should always be licensed according to your state and local guidelines.

Your installer should also carry the proper insurance policies. For example, a comprehensive policy will protect you should there be damage to your property as a result of a mistake made during the installation. And Workers Compensation insurance can also help by protecting you from being held liable should your HVAC workers have an accident on the job. Be aware that small shops don’t always carry Workers Compensation because of rules on who can be insured, so if your installer doesn’t carry Workers Compensation, be sure to get a liability waiver.

Your HVAC Estimate

As far as the estimate itself is concerned, there are several questions you should ask right up front. These questions and their answers should also be included on the estimate itself, as it serves as a sort of informal contract on the job you’re having done. Make sure you’ve hit these points:

• What’s the brand and SEER rating of the unit that will be installed? If you’re having both your furnace and air conditioner replaced, ask about the fuel type and efficiency of the furnace, as well. If you’ve got a standard heating and air conditioning system, this is your opportunity to switch to something a bit more energy efficient, like a heat pump, so be sure to ask if there are other options that can use your existing ductwork.
• What size is the unit that will be installed? Make sure to note the size of the unit you’re having removed and how well it worked during its service. A single like-for-like replacement unit should be the same size if the performance was good, or should be adjusted slightly depending on your actual needs. Note that you will need a matching A-coil if you change air conditioner sizes without changing your furnace, too.
• Will you need ductwork? Ductwork can usually be reused, but as it gets older it can develop damage, come apart, or rust through, depending on the materials and conditions it’s subjected to. If any amount of ductwork is being replaced, make sure to have this noted and broken out in the estimate, because ductwork costs can add up fast. On the other hand, this is also a great time to add additional registers or cold air returns in older homes to help improve efficiency.
• What other things will be done while they’re working? HVAC companies do more than just install heating and air conditioning units. They can remove old furnaces left behind in crawl spaces, clean your ductwork, install smart thermometers, or provide you with electrostatic filters, just to name a few. If any of this work is being done, have it included in the estimate and later ensure it was completed as promised.
• Is there a warranty? Most importantly, make sure you have all the details on any warranties offered. Most HVAC systems will come with warranties on the individual parts, as well as a separate warranty on labor. This information can be extremely useful should your air conditioner need unexpected repairs, like a replacement control board or compressor.

How Do You Find Qualified HVAC People?

There’s no easier way to find the right person for the job than to look in your HomeKeepr community where you’ll find recommendations of HVAC pros in your area from people you know and trust.

JOIN HOMEKEEPR

https://homekeepr.com/join/shayne-stone

 Its Not Too Late To Apply For Forbearance

Over the past year, the pandemic made it challenging for some homeowners to make their mortgage payments. Thankfully, the government initiated a forbearance program to provide much-needed support. Unless they're extended once again, some of these plans and the corresponding mortgage payment deferral options will expire soon. That said, there's still time to request assistance. If your loan is backed by HUD/FHA, USDA, or VA, you can apply for initial forbearance by June 30, 2021.

Recently, the Consumer Finance Institute of the Federal Reserve Bank of Philadelphia surveyed a national sample of 1,172 homeowners with mortgages. They discussed their familiarity with and understanding of lender accommodations that might be available under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The results indicate that some borrowers didn't take advantage of the support available through forbearance:

Most borrowers who had not used forbearance during the pandemic reported that it was because they simply did not need it. However, among the remainder, a lack of understanding about available accommodations may also be playing a role. Around 2 out of 3 in this group reported not seeking forbearance because they were unsure or pessimistic about whether they would qualify even though a high fraction of borrowers are eligible for forbearance under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Here are some of the reasons why those borrowers didn't opt for forbearance:

• They were concerned forbearance may be costly
• They didn't understand how to request forbearance
• They didn't understand how the plans worked and/or whether they would qualify

If you have similar questions or concerns, the following answers may ease your fears.

If youre concerned forbearance may be costly:

The Consumer Financial Protection Bureau (CFPB) explains:

For most loans, there will be no additional fees, penalties, or additional interest (beyond scheduled amounts) added to your account, and you do not need to submit additional documentation to qualify. You can simply tell your servicer that you have a pandemic-related financial hardship.

Its important to contact your mortgage provider (the company you send your mortgage payment to every month) to explain your current situation and determine the best plan available for your needs.

If you're not sure how to request forbearance:

Here are 5 steps to follow when requesting mortgage forbearance:

1. Find the contact information for your servicer
2. Call your servicer
3. Ask if you're eligible for protection under the CARES Act
4. Ask what happens when your forbearance period ends
5. Ask your servicer to provide the agreement in writing

If you don't understand how the plans work and/or whether you will qualify:

This is how the Consumer Financial Protection Bureau (CFPB) explains the program:

Forbearance is when your mortgage servicer or lender allows you to pause or reduce your mortgage payments for a limited time while you build back your finances

Forbearance doesn't mean your payments are forgiven or erased. You are still obligated to repay any missed payments, which, in most cases, may be repaid over time or when you refinance or sell your home. Before the end of the forbearance, your servicer will contact you about how to repay the missed payments.

The CFPB also addresses who qualifies for forbearance relief:

You may have a right to a COVID hardship forbearance if:

• You experience financial hardship directly or indirectly due to the coronavirus pandemic.
• You have a federally backed mortgage, which includes HUD/FHA, VA, USDA, Fannie Mae, and Freddie Mac loans.

For mortgages that are not federally backed, servicers may offer similar forbearance options. If you are struggling to make your mortgage payments, servicers are generally required to discuss payment relief options with you, whether or not your loan is federally backed.

Bottom Line

Like many Americans, your home may be your biggest asset. By acting quickly, you might be able to take advantage of critical relief options to help keep you in your home. Even if you tried to apply at the beginning of the pandemic and it for some reason didn't work out, try again. Contact your mortgage provider today to determine if you qualify. If you have additional concerns, lets connect to answer your questions and determine if there are other mortgage relief options in our area as well.

 

Your House Could Be the Oasis in an Inventory Desert

Homebuyers are flooding the housing market right now to take advantage of record-low mortgage rates. Many have a sense of urgency to find a home soon since experts forecast a steady rise in both rates and home prices this year and next. As a result, buyer demand greatly outweighs the current housing supply. Here's how the shortage of houses for sale sets yours up to be the oasis in an inventory desert.

According to the National Association of Realtors (NAR), todays housing inventory sits at an incredibly low 2.1-month supply, far below the 6-month mark for a neutral market. Inventory of single-family homes a year ago was already very low, and as you can see in the graph below, this years levels are even lower:Due to these market conditions, todays buyers frequently enter fierce bidding wars while trying to purchase a home. This in turn drives up home prices and gives sellers incredible leverage in the negotiation process, two big wins if you're going to sell your house this year.

Bottom Line

In such a hot market, it can feel as though the supply of homes has virtually dried up, leaving buyers to wander in an inventory desert. That's why there's never been a better time to sell. To a parched buyer needing to secure a home as soon as possible, your house could be a true oasis.

 

 

Picking a Peck of Nursery Plants

Spring is a great time to get things done around the home, and this includes revamping your landscaping. Maybe you’ve always wanted to add flowers and other plants but have never had the time, or you just want to expand on what’s already growing around your home. Regardless of why you’re shopping for new plants, knowing what to look for to find the best new plants will save you a lot of frustration and wasted effort in the long run. Here are some things to keep in mind the next time you hit the nursery.

Check the Leaves, Stems, and Roots

A lot of people buy plants based on the early appearance of flowers and buds, but that can be misleading. If you want a better idea of how healthy a plant is, there are much better places to look. Some of the biggest indicators come in the form of the leaves and stems. You want to pick plants with undamaged leaves that have vivid colors that are even across the plant, with no signs of wilting, yellowing, or drooping. Stems should have smooth surfaces, as opposed to cracks or rough patches which can be signs of insect damage or other problems.

Another way to check the health of a plant before buying it is to examine the container it’s growing in for signs that the plant may be rootbound. While you won’t always be able to tell, there are a few signs that could indicate a problem. Plants with root tendrils growing out of drainage holes in the container or obvious root growth across the surface of the soil have clearly been in containers that are too small for too long. It can take a long time for rootbound plants to recover fully, and some never will, so avoid plants that show signs of this problem.

Look for Signs of Trouble

It was mentioned that you should look for signs of insect damage when looking at leaves and stems, but holes in the leaves or marks on the stem aren’t the only indicators that a plant might have been damaged by insects. Spots on the top or bottom of leaves, signs of webbing, or oddly shaped leaves and buds can also signal that insects have been on the plant. Feel the leaves and stems as well to see if they feel sticky or excessively soft, both of which could indicate small insects have infested the plant itself. Also, take a look at the soil for signs of insect activity, especially if it looks like something has burrowed down into it.

You should also compare the plant you’re considering to others of its type. Look for signs of disease, such as the plant being generally paler than others, or spots or discolorations on its stems and leaves that are either darker or lighter than the rest of the plant. Color patterns or patterns on leaves or stems that appear on one plant and aren’t present on the others can also be a sign of disease that you don’t want to spread to other plants around your home.

One other potential sign of trouble that you should keep an eye out for is grass, weeds, or other types of unexpected plants growing in the same container as the plant you’re buying. While these often won’t directly attack your plant and can be easily removed, they are still competing with the plant for the same water and nutrients in the container. This can weaken the plant and lead to growth and development problems down the road.

Getting a Second Opinion

If you aren’t sure about which plants are best, don’t be afraid to ask the nursery workers about the various plants you’re considering. They can give you an additional insight into the health of these plants and how well they’ll do in different lighting conditions in your yard. They’re there to help, so be sure to make use of that resource.

Of course, if the prospect of finding the perfect plants among all the nursery’s options seem overwhelming, you can also consider calling a local landscaper to help you choose the perfect options for your property. HomeKeepr can help you find the right pro for the job; sign up for a free account today to find landscaping pros in your area.

When It Comes To Selling a House, Your Time Is Money

Some Highlights

• Selling a house is no small task. If you decide to try to do it on your own, keep in mind you'll be responsible for all the expert-level work of a real estate professional.
• The vital tasks an agent manages for you include listing and marketing your house, handling legal documentation, negotiating with all parties, and navigating local laws and regulations.
• If you're ready to sell while the market is in your favor, lets connect to make sure you have the professional expertise you need every step of the way.