5 Reasons Todays Housing Market Is Anything but Normal

There are many headlines out there that claim were reverting to a more normal real estate market. That would indicate the housing market is returning to the pre-pandemic numbers we saw from 2015-2019. But that's not happening. The market is still extremely vibrant as demand is still strong even while housing supply is slowly returning.

Here's the definition of normal from the Merriam-Webster Dictionary:

conforming to a type, standard, or regular pattern: characterized by that which is considered usual, typical, or routine.

Using this definition, here are five housing industry metrics that prove were nowhere near normal.

1. Mortgage Rates

If we look at the 30-year mortgage rate chronicled by Freddie Mac, we can see the average rates by decade:

• 1970s: 8.86%
• 1980s: 12.7%
• 1990s: 8.12%
• 2000s: 6.29%
• 2010s: 4.09%

Today, the average mortgage rate stands at 2.87%, which is very close to the historic low.

Currently, mortgage rates are anything but usual, typical, or routine.

2. Home Price Appreciation

According to Black Knight, a housing data and analytics company, the average annual appreciation on residential real estate prices since 1995 has been 4.14%.

According to the latest forecast from the National Association of Realtors (NAR), home price appreciation will hit 14.1% this year, which will be greater than any year since Black Knight began collecting this data.

Currently, home price appreciation is anything but usual, typical, or routine.

3. Months Supply of Inventory (Homes for Sale)

According to NAR:

Months supply refers to the number of months it would take for the current inventory of homes on the market to sell given the current sales pace. Historically, six months of supply is associated with moderate price appreciation, and a lower level of months supply tends to push prices up more rapidly.

As of the latest Existing Homes Sales Report from NAR, the current months supply of inventory stands at 2.6. That's less than half of a normal supply.

Currently, the supply of homes for sale is anything but usual, typical, or routine.

4. Days It Takes To Sell a Home

The days-on-market metric gives an indication of how hot a market is and how quickly homes are selling. In 2019, prior to the pandemic, the average days on market stood at 35, according to NAR. Today, that number is cut in half and is now at 17 days.

Currently, the days-on-market metric is anything but usual, typical, or routine.

5. Number of Offers per Listing

According to NAR, the number of offers per listing stood at 2.2 in 2019. Today, that number is double at 4.5.

Currently, the number of offers per listing is anything but usual, typical, or routine.

Bottom Line

When

1. Mortgage rates are near historic lows
2. Price appreciation is at historic highs
3. Housing inventory is less than half of the normal amount
4. The time it takes to sell a home is cut in half, and
5. There are twice as many offers on each house

its hard to say were in a normal market.

Your Agent Is Key When Pricing Your House

Some Highlights

• Pricing your house right takes market experience and expertise.
• To find the best list price, your agent balances current market demand, values of homes in your neighborhood, where prices are headed, and your homes condition.
• If you're ready to sell, don't guess on the price. Lets connect today so we price your house to attract multiple offers and maximize your return on investment.

 

Are Awnings Making a Comeback?

Awnings have been around for a long time; examples of awnings date back as far as ancient Egypt, and their use was common in the height of the Roman Empire. Despite their lasting popularity, modern awning use has really dropped off in recent years. Some blame gentrification, others think that it’s just a shift in design sensibilities, but whatever the reason, there haven’t been nearly as many awnings in use for a decade or more.

Is this a continuing trend, or is awning use starting to turn around? What are the reasons that people might want to get awnings? While a lot of the use of awnings comes down to personal preference, here are some of the reasons that awnings fell into disfavor… and why they just might be making a comeback.

Why the Awning Hate?

Once upon a time, awnings were all the rage. This peaked somewhere around the 1950s, where you just about couldn’t find a home or business that didn’t include awnings in any renovation plans that came up. This popularity actually played a large part in their falling out of fashion, however; awnings were so ubiquitous during this period that homes and other buildings that had awnings in place began to appear dated with a “1950’s look” that was contrary to more modern design sensibilities.

A big contributor to this was the way that many awnings of the time were made from either aluminum or fiberglass. Though the materials were popular at the time, they didn’t translate well to changing design aesthetics and ended up being synonymous with older and less popular design styles. More and more remodels opted to remove awnings as a way to update the look of buildings and make them appear more modern, resulting in a slow but steady decline in awning popularity.

Advantages of Awnings

Even though they were becoming less popular year after year, awnings still carried some significant advantages. They provide shade over windows and glass panels in doors, helping to cut back on cooling costs during the summer months. Awnings over doors also serve to block rain and other unwanted precipitation when coming or going or trying to lock or unlock the door. Despite the decreasing popularity of awnings, they also do serve a decorative purpose; much like decorative shutters, they provide a space for color or patterns on what might otherwise be a bland or single-colored wall.

Awnings can do more than protect a doorway or window, too. Larger awnings (especially retractable ones) can also be used to create shaded areas outdoors, covering a patio or otherwise giving you some added room outdoors to grill or lounge without the heat of the direct sun beating down. Some of these awnings may even have cloth screens attached to their supports, giving you a bug-free outdoor space that you can enter and exit easily.

s It Time for an Awning Renaissance?

While some consider awnings to be a dated look, awnings themselves have actually come a long way since the era that caused so many people to dislike their appearance. A lot of awnings are made from waterproof canvas or other cloth materials these days, providing a more stylistic look that can be printed on or otherwise modified to better accent your home. Gone are the days when awnings were fading eyesores; modern awnings are intended to offer both style and substance, and many are created to be more easily updated or retracted than older versions.

What Do Experts Say About Todays Mortgage Rates?

Mortgage rates are hovering near record lows, and that's good news for todays homebuyers. The graph below shows mortgage rates dating back to 2016 and where today falls by comparison.

Generally speaking, when rates are low, you can afford more home for your money. That's why experts across the industry agree todays low rates present buyers with an incredible opportunity. Here's what they have to say:

Sam Khater, Chief Economist at Freddie Mac, points out the historic nature of todays rates:

As the economy works to get back to its pre-pandemic self, and the fight against COVID-19 variants unfolds, owners and buyers continue to benefit from some of the lowest mortgage rates of all-time.

Mark Fleming, Chief Economist at First American, talks about how rates impact a buyers bottom line:

Mortgage rates are generally the same across the country, so a decline in mortgage rates boosts affordability equally in each market.

Danielle Hale, Chief Economist at realtor.com, also notes the significance of todays low rates and urges buyers to carefully consider their timing:

Those who haven't yet taken advantage of low rates to buy a home or refinance still have the opportunity to do so this summer.

Hale goes on to say that buyers who don't act soon could see higher rates in the coming months, negatively impacting their purchasing power:

We expect mortgage rates to fluctuate near historic lows through the summer before beginning to climb this fall.

And while mortgage rates are still low today, the data from Freddie Mac indicates rates are fluctuating ever so slightly right now, as they moved up one week before inching slightly back down in their latest release. Its important to keep in mind the influence rates have on your monthly mortgage payment.

Even small increases can have a big impact on what you pay each month. Trust the experts. Todays rates give you opportunity and flexibility in what you can afford. Don't wait on the sidelines and hope for a better rate to come along; the rates were seeing today are worth capitalizing on.

Bottom Line

Mortgage rates hover near record lows today, but experts forecast they'll rise in the coming months. Waiting could prove costly when that happens. Lets connect today to discuss todays rates and determine if now's the time for you to buy.

What To Do with Your Vacation Home as Summer Ends

As summer comes to a close, is it time to think about selling your vacation home? Based on recent data and expert opinions, its something you may want to consider. According to research from the National Association of Realtors (NAR), vacation home sales are up 57.2% year-over-year for January-April 2021.

If you've taken your last vacation this summer, here are reasons you should consider selling your vacation home this year.

1. Remote work continues to drive demand for vacation homes.

As the report from NAR says, based on continuously evolving work needs, there could be more interest in your second home than you think:

In 2020, across all nine divisions, the fraction of the workforce that work from home is typically higher in the vacation home counties than in the non-vacation home counties The opportunity to work from home could further raise the demand for vacation homes in future years.

Recent data shows well likely see a sustained increase in the rate of remote work over the next five years. That means your vacation home could be highly sought after by certain buyers. Lawrence Yun, Chief Economist at NAR, puts it best, saying:

“Vacation homes are a hot commodity at the moment . . . . With many businesses and employers still extending an option to work remotely to workers, vacation housing and second homes will remain a popular choice among buyers.”

2. Selling could allow you to upgrade your vacation spot or even your day-to-day scenery.

When demand is high, so is buyer competition. When competition is strong, buyers will do everything they can to make their offer on your vacation home as appealing as possible. This can include things like all-cash offers and more. If you sell now, you'll be able to benefit from high buyer competition and pick the offer with the best possible terms for you. That offer could give you the opportunity to purchase the primary residence of your dreams.

Or, if you find that you'll continue working from home, you could consider taking up more permanent residence in your vacation home and selling your primary residence instead. While this isn't a choice everyone can consider, it could be a great option.

No matter what the situation, you don't have to make the decision on your own. Your trusted real estate advisor can help you determine your best option when you're ready to sell.

Bottom Line

Buyers remain interested in vacation homes this year for a number of reasons. Now that summer is winding down, its time to think about taking advantage of todays demand for vacation homes. Lets connect today if you're ready to give your second home its day in the sun.

 

What is an Electrostatic Filter?

Air filters serve a wide range of purposes in your home. They remove dust and dander from the air, eliminate other allergens, keep some odors under control, and even reduce the wear and tear that your HVAC system experiences throughout the year. Depending on the filters you use, you may even be able to remove some viruses and bacteria from the air to keep the people in your house healthier. With all of the benefits that good air filters provide, the only real downside is that you have to replace them every few months to keep your home’s filtration system filtering at its best.

There are a few other options available when it comes to filter types, however. One air filter that’s increasingly popular with homeowners is the electrostatic filter, which not only provides excellent filtration but is also cleanable and reusable. If you’re not familiar with electrostatic filters or how they differ from the disposable filters that you’re used to, here’s the basics of what you need to know.

How Electrostatic Filters Work

Traditional air filters work by putting pleated material that’s made of a lot of material fibers in the way of air moving through your system, allowing the air itself to pass through but catching dust and other unwanted material on those fibers. It’s fairly effective, but if there aren’t any fibers in the way of any given particle then the particle will pass through without resistance. Electrostatic filters work differently, actually attracting those particles even if they would otherwise be able to pass through the filter unimpeded.

This attraction is caused by static electricity, which is the same thing that causes socks to stick to your clothes in the dryer and can make balloons stick to the wall if you rub them in your hair. These filters carry a slight static charge, allowing them to attract even microscopic particles that would normally be too small for a filter to stop. Particles passing through the filter become ionized, meaning that they pick up a charge themselves which causes them to have a natural attraction that pulls them toward a collecting layer in the filter. Once the particles are attracted to the filter, they become stuck, just like that proverbial sock or balloon.

Cleaning and Maintenance

One positive of traditional pleated filters is that they become more efficient as they build up more dust and other particles; because the stuff filtered out of the air clogs up holes that small particles could pass through in the filter, it becomes less likely that additional particles will pass through. Unfortunately, this isn’t an advantage that electrostatic filters share. As electrostatic filters attract dirt and other particles out of the air, the available attractive material becomes covered up and they actually become less efficient. The good news is that this can be taken care of simply by cleaning the filter.

Cleaning an electrostatic filter is a pretty straightforward process. After turning off the HVAC system and removing the filter, simply take it outdoors and spray it with a hose in the opposite direction that the air would normally flow. Keep rinsing until the water comes out clean, then allow the filter to air dry. Once it’s dried, simply reinstall the filter and it’s ready to start filtering fine particles out of the air again. Repeat this process once a month or whenever the filter appears dirty.

Should You Upgrade Your Home’s Filtration?

Though electrostatic filters cost more up front, the ability to clean them and the greater efficiency that they show when clean means that you can actually save money on filters in the long run. Making the switch is definitely worth considering, and might be worth discussing with an HVAC professional when you schedule a maintenance check before switching on the heat this winter.

Why 2021 Is Still the Year To Sell Your House

If you're trying to decide whether or not to sell your house, this is the time to think seriously about making a move. Fannie Maes recent Home Purchase Sentiment Index (HPSI) reveals the number of respondents who say its a good time to sell is higher now than it was over the past few summers (see graph below). Today, the majority of consumers, 75 percent, say its a good time to sell a house.

Why is sellers sentiment up year-over-year?

The higher good time to sell sentiment has to do with todays market conditions, specifically low housing supply and high buyer demand. In the simplest terms, we don't have enough houses available for sale to meet buyer demand.

According to the latest data from the National Association of Realtors (NAR), were still firmly in a sellers market because housing supply is well below a balanced norm (shown in the graph below). Clearly, the scales are tipped in a sellers favor today. But while housing supply is undeniably low, the right side of the graph shows how the inventory situation is improving little by little each month as more sellers list their homes for sale.

As a seller, that means each month, buyers have more options to pick from. By extension, that means your house may get less buyer attention with time. Danielle Hale, Chief Economist for realtor.com, explains it like this:

More homeowners continue to list homes for sale compared to a year ago Notably, while new listings continue to lag behind a more normal 2019 pace, the gap is shrinking. Even though homes continue to sell quickly thanks to high demand and limited supply, new listings are subtly shifting the balance of market conditions in favor of buyers.

So, what's that mean for you?

If you've been waiting for the perfect time to sell, there may not be a better chance than right now. Inventory is gradually increasing each month, so selling sooner rather than later will help you maximize your homes potential.

Bottom Line

If you're planning to sell your house, 2021 is still the year to do it. The unique mix of low supply and high demand wont last forever. Lets connect to discuss what you need to do now to sell your house and take advantage of this sellers market.