The Truth About Todays Buyer Demand

When it comes to the latest news in real estate, there are a lot of sensational headlines in the media. In times like this, when it can be hard to know what to believe, put your trust in the experts. Those of us in the housing market respect that buying or selling a home is a major life decision, and we offer advice based on what the data shows.

Despite what you may have read, the housing market is still undeniably strong. Here's a look at what leading experts have to say about buyer demand today and how it continues to shape the industry:

Michael Lane, President at ShowingTime:

In general, there are definite signs of cooling demand. However, buyer traffic is still at historically high levels compared to pre-pandemic showings.

Odeta Kushi, Deputy Chief Economist at First American:

Seasonally adjusted purchase applications tick up slightly to the highest level since July. Demand for homes remains strong and steady. Excluding 2020 (not a good benchmark) purchase applications are the strongest in a decade.

Selma Hepp, Deputy Chief Economist at CoreLogic:

Home buyer demand pushed price growth to a new record high in June, with S&P CoreLogic national Case-Shiller Index clocking in an 18.6% year-over-year growth rate. The month-to-month index jumped 2.18%, making it another strong monthly growth, and the fastest May-to-June increase since the data series began.

What It Means for You

As a seller, buyer demand is an important factor that helps influence how fast your house will sell and how many buyers may be competing for it. When buyers have to compete against each other for a limited supply of available homes, bidding wars can drive prices up. While things have cooled slightly since the peak of the pandemic housing rush, buyer demand is still far surpassing historical norms. That's why were still in a sellers market.

Bottom Line

If you're torn on whether or not you want to sell your home this year, rest assured its still a great time to make a move. Lets connect to discuss how you can sell now and do it on your best terms thanks to todays buyer demand.

 

 

 

Investigating Disaster Insurance

Homeowner’s insurance plays an important role in protecting your home and everything within it. With any luck you’ll never actually need it, but it provides a nice safety net in case the worst comes to pass. But did you know that there are some things that can happen to your home that aren’t covered by homeowner’s insurance?

If your home is damaged by a natural disaster such as a flood, earthquake, or tornado, you may find that your existing insurance policy doesn’t cover these natural events. In some cases, even man-made disasters may not be covered if the damage was caused by something like an explosion or a riot. Regardless of the cause, recovering after a disaster can be very expensive. To help protect against these costs in the event of a disaster, you usually have the option to purchase additional disaster insurance that gives you additional coverage beyond what your standard homeowner’s policy provides.

The Limits of Homeowner’s Coverage

Some homeowners believe that their existing policies cover everything that could happen to their homes, only to find out at the worst possible time that they aren’t actually covered. This usually is the result of an exceedingly rare occurrence such as flood damage, earthquake, or wildfire. Even insurance policies that claim to cover “all” damage typically make exclusions for a few types of disasters since those disasters aren’t localized to one specific property or home.

If you aren’t sure what sort of disaster coverage your existing insurance has, take a moment to review your policy or contact your insurance agent. Within your policy you should find the specifics of your coverage, as well as any exceptions that the policy doesn’t cover. If you want protection from those uncovered instances, you’ll need to pick up additional coverage.

How Disaster Coverage Works

Depending on your insurer and the type of disaster coverage you want to get, there are a few different ways that you could get this additional coverage. You may be able to buy blanket disaster coverage that covers multiple disaster types, though even it may have a few exceptions built in. If this isn’t available or if you want coverage for specific types of disasters, you may be able to buy single-disaster policies that only cover individual disaster types. Depending on your insurer and policy availability, your disaster coverage may be available as separate policies, or it may simply be an addition to your existing homeowner’s insurance.

Once you’ve taken out your disaster coverage, it will function similarly to your existing insurance. Should a disaster occur, your claim will be filed against your disaster policy or any disaster add-ons you’ve purchased instead of your standard homeowner’s insurance. Depending on the type of disaster and any other damage that may have occurred, there may also be claims made against your health insurance, vehicle insurance, or other insurance types; disaster insurance won’t replace or supersede any applicable insurance, it just helps to close gaps that previously didn’t have coverage.

Do You Need Disaster Insurance?

Whether you want to pay the additional costs of disaster insurance largely comes down to personal preference. By their nature most disasters are pretty rare, though some areas are more prone to disaster than others. The more likely it is that you could wind up in a disaster, the more beneficial disaster insurance would be to you, but keep in mind that disasters can still strike in locations where they aren’t common. It is also worth noting that if you live in an area where occasional disasters are likely (such as a flood plain that has a track record of heavy flooding during certain seasons) then you may not be able to get some types of disaster insurance or may have to pay higher premiums.

 5 Tips for Making Your Best Offer

In todays sellers market, standing out as a buyer is critical. Multi-offer scenarios and bidding wars are the norm due to the low supply of houses for sale and high buyer demand. If you're buying this fall, you'll want every advantage, especially when you've found the home of your dreams.

Below are five things to keep in mind when its time to make an offer.

1. Know Your Budget

Knowing your budget and what you can afford is critical to your success as a homebuyer. The best way to understand your numbers is to work with a lender so you can get pre-approved for a loan. As Freddie Mac puts it:

This pre-approval allows you to look for a home with greater confidence and demonstrates to the seller that you are a serious buyer.

Showing sellers you're serious can give you a competitive edge. It enables you to act quickly when you've found your perfect home.

2. Be Prepared To Move Fast

Speed and the pace of sales are contributing factors to todays competitive housing market. According to the latest Existing Home Sales Report from the National Association of Realtors(NAR), the average home is on the market for just17 days. As the report notes:

Eighty-nine percent of homes sold in July 2021 were on the market for less than a month.

When homes are selling fast, staying on top of the market and moving quickly are key. After you've worked with your agent to find the home that suits your needs, they'll help you put together and submit your best offer as soon as possible.

3. A Real Estate Professional Can Lead You to Victory

No matter what the housing market looks like, rely on a trusted real estate advisor. As Freddie Mac says:

The success of your homebuying journey largely depends on the company you keep. . . . be sure to select experienced, trusted professionals who will help you make informed decisions and avoid any pitfalls.

Agents are experts in the local real estate market. They have insight into what’s worked for other buyers in your area and what sellers may be looking for in an offer. It may seem simple, but catering to what a seller may need can help your offer stand out.

4. Craft a Strong, Fair Offer

In the past, offering at or near the asking price was enough to make your offer appealing to sellers. In todays market, that's often not the case. According to the latest Realtors Confidence Index from NAR, 50% of offers are above the list price.

In such a competitive market, emotions and prices can run high. Having an agent to help craft a strong, fair offer is critical in these situations. Your agent can help you understand:

• The market value of the home
• Recent sales trends in the area
• Current buyer demand

5. Understand the Sellers Needs, but Resist Waiving Certain Contingencies

When crafting an offer, you'll want to keep both your best interest and the interest of the seller in mind. Your trusted real estate advisor will help you consider which levers you could pull, including contract contingencies (conditions you set that the seller must meet for the purchase to be finalized). Of course, there are certain contingencies you don't want to give up, like the home inspection.

Freddie Mac explains:

Resist the temptation to waive the inspection contingency, especially in a hot market or if the home is being sold as-is, which means the seller wont pay for repairs. Without an inspection contingency, you could be stuck with a contract on a house you cant afford to fix.

Bottom Line

Todays competitive housing market makes it more important than ever to make a strong offer on a home. Lets connect to make sure your offer rises to the top.

 Is the Number of Homes for Sale Finally Growing?

An important metric in todays residential real estate market is the number of homes available for sale. The shortage of available housing inventory is the major reason for the double-digit price appreciation we've seen in each of the last two years. Its the reason many would-be purchasers are frustrated with the bidding wars over the homes that are available. However, signs of relief are finally appearing.

According to data from realtor.com, active listings have increased over the last four months. They define active listings as:

The active listing count tracks the number of for sale properties on the market, excluding pending listings where a pending status is available. This is a snapshot measure of how many active listings can be expected on any given day of the specified month.

What normally happens throughout the year?

Historically, housing inventory increases throughout the summer months, starts to tail off in the fall, and then drops significantly over the winter. The graph below shows this trend along with the month active listings peaked in 2017, 2018, and 2019.

What happened last year?

Last year, the trend was different. Historical seasonality wasn't repeated in 2020 since many homeowners held off on putting their houses up for sale because of the pandemic (see graph below). In 2020, active listings peaked in April, and then fell off dramatically for the remainder of the year.

What's happening this year?

Due to the decline of active listings in 2020, 2021 began with record-low housing inventory counts. However, we've been building inventory over the last several months as more listings come to the market (see graph below):There are three main reasons we may see listings continue to increase throughout this fall and into the winter.

1. Pent-up selling demand Homeowners may be more comfortable putting their homes on the market as more and more Americans get vaccinated.
2. New construction is starting to take off Though new construction is not included in the realtor.com numbers, as more new homes are built, there will be more options for current homeowners to consider when they sell. The lack of options has slowed many potential sellers in the past.
3. The end of forbearance will create some new listings Most experts believe the end of the forbearance program will not lead to a wave of foreclosures for several reasons. The main reason is the level of equity homeowners currently have in their homes. Many homeowners will be able to sell their homes instead of going to foreclosure, which will lead to some additional listings on the market.

Bottom Line

If you're in the market to buy a home, stick with it. There are new listings becoming available every day. If you're thinking of selling your house, you may want to list your home before this additional competition comes to market.

 

Have You Ever Seen a Housing Market Like This in 2021?

Some Highlights

• Whether you're buying or selling todays housing market has plenty of good news to go around.
• Buyers can take advantage of today’s mortgage rates to escape rising rents and keep monthly payments affordable. Sellers can reap the benefits of multiple offers and a fast sale.
• If this sounds like good news to you, lets connect today so you can capitalize on the unique opportunity you have in todays market.

Reasons You Should Consider Selling This Fall

If you’re trying to decide when to sell your house, there may not be a better time to list than right now. The ultimate sellers’ market we’re in today won’t last forever. If you're thinking of making a move, here are four reasons to put your house up for sale sooner rather than later.

1. Your House Will Likely Sell Quickly

According to the Realtors Confidence Index released by the National Association of Realtors(NAR), homes continue to sell quickly on average, they’re selling in just 17 days. As a seller, that’s great news for you.

Average days on market is a strong indicator of buyer demand. And if homes are selling quickly, buyers have to be more decisive and act fast to submit their offer before other buyers swoop in.

2. Buyers Are Willing To Compete for Your House

In addition to selling quickly, homes are receiving multiple offers. That same survey shows sellers are seeing an average of 4.5 offers, and they're competitive ones. The graph below shows how the average number of offers right now compares to previous years:Buyers today know bidding wars are a likely outcome, and they’re coming prepared with their best offer in hand. Receiving several offers on your house means you can select the one that makes the most sense for your situation and financial well-being.

3. When Supply Is Low, Your House Is in the Spotlight

One of the most significant challenges for motivated buyers is the current inventory of homes for sale. Though its improving, it remains at near-record lows. The chart below shows how todays low inventory stacks up against recent years. The lighter the blue is in the chart, the lower the housing supply.
If you're looking to take advantage of buyer demand and get the most attention for your house, selling now before more listings come to the market might be your best option.

4. If You're Thinking of Moving Up, Now May Be the Time

If your current home no longer meets your needs, it may be the perfect time to make a move. Today, homeowners are gaining a significant amount of wealth through growing equity. You can leverage that equity, plus current low mortgage rates, to power your move now .But these near-historic low rates wont last forever.

Experts forecast interest rates will rise. In their forecast, Freddie Mac says:

While we forecast rates to increase gradually later in the year, we don’t expect to see a rapid increase. At the end of the year, we forecast 30-year rates will be around 3.4%, rising to 3.8% by the fourth quarter of 2022.

When rates rise, even modestly, itll impact your monthly payment and by extension your purchasing power.

Bottom Line

Don’t delay. The combination of housing supply challenges, low mortgage rates, and extremely motivated buyers gives sellers a unique opportunity this season. If you're thinking about making a move, let’s chat about why it makes sense to list your house now.

 

Smart Tags Help You Find the Missing Pieces

Day to day life has a lot of moving parts. Unfortunately, this sometimes makes it a little too easy to misplace some of those things that we use every day. This can be a real hassle, causing you to spend time looking for the various things you need instead of using them. Most smartphones come with a “find my phone” feature, so wouldn’t it be great if everything else had a similar function?

With the advent of smart tags, this is actually possible. These tags make it easy to locate lost items around the home and can even provide extra security against theft or loss while you’re out and about. The specific features and functions depend on the brand of smart tags that you use, but regardless of brand you’ll find that there are some features that are universal.

How Do Smart Tags Work?

Smart tags are small battery-powered devices that you can connect to with a phone or some other smart devices. When you’re looking for an item with a smart tag attached, the smart app can either show the location or cause the tag itself to make a noise to make it easier to find. Items with attached tags that are outside of Bluetooth range can still be tracked using the smart tag app as well. Many smart tags also feature GPS features, and even those that don’t tend to show their location the last time they were detected by the app so that you at least have a starting point in finding them.

Depending on the manufacturer and the specific model of smart tag you’re using, there are a few different ways that you can attach smart tags to items. Some tags are designed to attach to a keyring, carabiner clip, or similar attachment point, while others use adhesive backings to stick directly to objects. Specialized holders for smart tags can also be used to further customize your experience and keep track of the important things in your life.

Using Smart Tags in the Home

There are a wide range of items that you can use smart tags to keep track of around the home. Attaching smart tags to your keys seems like something of a no-brainer, saving you the time it takes to track them down when you’re already running late. Tablets, wireless home phones, remote controls, and purses are also good candidates for the smart tag treatment. Wallets featuring built-in smart tag holders or custom holders shaped like credit cards can make your wallet much easier to find as well.

This is just the tip of the iceberg when it comes to finding uses for smart tags in and around the home, however. Small tags can be attached to screwdrivers, hammers, or other tools that see frequent use around the home. Beloved toys can also have a tag attached, giving you an easy way to check that they aren’t left behind when traveling or visiting others on playdates. You can even attach a tag to your phone in case it’s lost, or for some models you can double-press a button on one of the tags and it will ring your phone to help you find it through the app. The usefulness of smart tags is limited only by your needs and your imagination.

Smart Tags to Organize Your Life

By making use of smart tags, you can ensure that items are easy to find and put back where they go. You can even use this as part of a larger overall organizational strategy, setting up specific places for various things and tagging them accordingly. If that sounds like a big task, there are pro organizers out there who can help you get it done.