Realtor.com® Listapalooza – the best time to list – is now a national holiday, according to National Day Archives
SANTA CLARA, Calif., April 6, 2022 /PRNewswire/ — As the final countdown begins to Realtor.com® Listapalooza (April 10-16), a new national holiday, the company today released survey data that shows homeowners are gearing up to sell this Spring and Summer.
According to the report, 64% of prospective 2022 sellers anticipate doing so within the next six months, and with high expectations for making a profit.
Still, the potential uptick in newly-listed homes indicates some much-needed relief could be on the horizon for buyers – especially first-timers. Today’s sellers expect to ask for relatively affordable prices and include a higher share of millennials than last Spring, suggesting that more Americans plan to upgrade from their starter homes.
The Realtor.com® survey of 3,000 consumers, which was conducted online by HarrisX in February 2022, also asked about the experiences of recent sellers, who said determining the right time to list was the longest stage of the process.
“Our survey data illustrates the importance of helping empower homeowners to take control of the listing process, by providing information about market conditions, prices and seasonal trends, like the best dates to list your home. While sellers are expected to hold the upper hand in 2022, navigating the listing process remains a challenge – particularly for those also buying in today’s fast-paced market,” said George Ratiu, Senior Economist & Manager of Economic Research at Realtor.com®. “Homeowners who are ready to move forward with pandemic-delayed plans will find plenty of opportunity this Spring and Summer. Although accelerating inflation is leading to higher housing costs and living expenses, many buyers remain interested in finding a home. At the same time, recent housing trends suggest demand is beginning to moderate as higher mortgage rates push monthly payments out of some buyers’ budgets, underscoring the long-term need for more affordable inventory.”
Homeowners are ready to take advantage of the Spring and Summer buying seasons
Survey data suggests some relief is on the horizon for Americans grappling with one of the worst housing shortages of all-time. Almost two-thirds (64%) of prospective 2022 sellers anticipate listing a home within the next six months. Whether these sellers follow-through with their plans will be key to the forecasted 2022 inventory recovery and critical for buyers hoping to find a home before mortgage rates climb even further. In a positive sign that homeowners are serious about listing, many sellers are already getting their home ready. However, they’re doing so with great expectations of the current market, which means buyers should prepare for sellers asking for high offer prices, quick closes, waived contingencies and more.
- The majority of 2022 prospective sellers plan to list within the next six months, with 9% already listed and the remaining getting ready to list within the next 30 days (11%), 1-3 months (24%) or 4-6 months (20%).
- Compared to those who planned to list last Spring, this year’s prospective sellers have higher expectations of the hot housing market, including asking for more than their home is worth (42% vs. 29%) and refusing to pay for repairs or improvements (28% vs. 24%).
- When asked why they’re planning to list in 2022, surveyed sellers’ top reason was wanting to profit off the current market, tied with their home no longer meeting their families needs (each at 31%).
- Homeowners’ motivating factors behind moving also reflect the impact of pandemic trends, such as wanting different features after spending so much time at home (15%) and no longer needing to live near their office (14%).
Millennials are moving on up, signaling more starter homes for first-time buyers
With the oldest millennials already 40-years-old, these homeowners are playing an important role in adding to the supply of starter homes. Millennials represent nearly half (49%) of sellers who plan to list within the next six months and many anticipate selling at relatively affordable prices. This is welcome news for first-time buyers, who face fierce competition for limited available starter homes. Combined with rising affordability issues as home prices and mortgage rates climb, survey data offers some hope for first-time buyers, based on:
- More millennials plan to list within the next six months than in March 2021 (75% vs. 66%), and account for a higher share of all 2022 prospective sellers (42.0% vs. 26.0%).
- In a further sign that older millennials are moving on up from their starter homes, the share of surveyed millennials who have sold a home before was nearly as high as the overall rate (61% vs. 64%).
- Millennials have plenty of financial motivation to stick to their plans, with top reasons for selling reflecting the pressures of rising inflation and economic uncertainties. Compared to all survey respondents, higher shares of Gen Y sellers want a more affordable home (34% vs. 21%) and need the sale money ASAP (14% vs. 11%).
- In a potential sign of more starter homes coming onto the market, the majority of 2022 prospective sellers expect to list in relatively affordable price ranges: $350,000 or less (43%) and $351,000-$500,000 (22%).
Recent experiences highlight the importance of preparation, even in a seller’s market
The COVID housing market has largely favored sellers and many who recently sold were able to take advantage of bidding wars, fast closings, waived contingencies, inspections and appraisals, and more. At the same time, sellers’ experiences highlight the importance of preparation, especially as buyer demand is beginning to moderate. Even among recent sellers who found success, the majority took steps to get their home ready to list, such as making repairs, cleaning and decluttering. Additionally, although many sellers were able to list quickly, 41% said the process took longer than they originally anticipated.
- Over half (53%) of sellers spent less than a month preparing their home for listing, while another 26% said the process took 1-3 months.
- Forty-one percent of recent sellers said getting their home ready to list took longer than they expected. Determining the right time to enter the market took longer than any step of the home prep process, with 38% of respondents reporting that this decision took more than 3 months.
- Among steps successful sellers took to prepare their home for listing, top responses included repairs and updates (59%) and cleaning and decluttering (67%). While minor cosmetic updates were the top repair sellers made before listing, at 53% of respondents, nearly as many fully repainted interiors and replaced flooring (47% each).
- The majority (80%) of recent sellers sold at or above their asking price. Other top benefits of the competitive market included: buyers forgoing repair concessions (28%), offers within a week (27%), and waived contingencies like inspections (25%).
This Realtor.com® survey was conducted online within the United States from February 16-18, 2022 among 3,000 adults in the United States by HarrisX. The sampling margin of error of this poll is plus or minus 1.8 percentage points. The results reflect a nationally representative sample of U.S. adults. Results were weighted for age by gender, region, race/ethnicity, and income where necessary to align them with their actual proportions in the population.
Realtor.com® makes buying, selling, renting and living in homes easier and more rewarding for everyone. Realtor.com®pioneered the world of digital real estate more than 25 years ago, and today through its website and mobile apps offers a marketplace where people can learn about their options, trust in the transparency of information provided to them, and get services and resources that are personalized to their needs. Using proprietary data science and machine learning technology, Realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, Realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today’s on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. For more information, visit Realtor.com®.
Lenders Uncovering Identity Theft in Mortgage Reviews – Protect Yourself!
August 10, 2021
About 14.4 million adults are victims of identity theft each year.
But many may not even realize it until they try to qualify for lending. A financial review by a lender may be tripped up if their identity has been taken, and their homebuying dreams could quickly be taken from them.
“Identity theft is on the rise, and if you don’t pay attention, you could have a harsh awakening when applying for a mortgage to purchase a home,” cybersecurity expert Sandra Estok, author of the “Happily Ever Cyber!” book series, told realtor.com®.
Identity theft can take many forms.
Some criminals steal a Social Security number and then use it to open credit cards or loans in the person’s name. That can ruin a credit score, needed to qualify for a mortgage.
Home buyers should do advance work in ensuring their finances are up to par and have not been hacked, experts say.
“One proactive step to take before putting in an offer, or even before you consider looking at homes, is to review your credit report at annualcreditreport.com or directly with all three major bureaus—Equifax, Experian, and TransUnion,” Estok told realtor.com®. “Each of these companies maintains a separate report that can give you clues if something doesn’t add up.”
Check bank statements too. Credit card companies offer enrollment in fraud detection programs as well. Often, there is a 60-day window to report any suspicious activity in an account. After that, you may be on the hook for any amounts stolen from your accounts.
Estok also suggests visiting haveibeenpwned.com to check whether your email address or phone number has been part of a data breach. If so, change your passwords immediately.
“Could Identity Theft Keep You From Buying a House?” realtor.com® (Aug. 9, 2021)
Survey: Bidding Wars Aren’t the Big Problem Anymore
August 9, 2021
Many would-be home buyers say they aren’t having much luck in finding a home.
Sixty-six percent of buyers who were actively engaged in searching for a home in the second quarter say they’ve spent three months looking without success.
In the fourth quarter of 2020 and the first quarter of this year, active house hunters blamed being outbid by other offers as the most common reason for their inability to make a purchase.
But the top reason changed in the second quarter: More would-be buyers said that high home prices are sidelining them lately, according to The Housing Trends Report, a survey from the National Association of Home Builders.
Thirty-nine percent of active buyers surveyed said the inability to find an affordably priced home was the main reason they couldn’t buy.
Forty-three percent of surveyed buyers said if they continue to be unsuccessful, they will expand their search area while shopping for a home.
Forty-two percent will remain persistent and continue looking for the “right” home in the same location.
Overall, most long-term house hunters aren’t willing to give up. The share who are likely to put off their home search until next year or later has declined over the last two quarters, dropping to 20% in the second quarter.
Home buyers continue to search for the right home, even if it takes more than three months to finally find one in their price point.
“High Prices Are (Again) Most Common Reason Active Buyers Can’t Buy,” National Association of Home Builders’ Eye on Housing blog (Aug. 3, 2021)
Don’t hesitate to call the Sierra Lifestyle Team for evaluations of your home’s value or to tour homes on the market you have an interest in. We are here for you, and Alisa (almost) always answers her cell phone, 530-559-4871.
The majority of consumers continue to mistakenly believe they need at least a 20% down payment to purchase a home,but the truth is the average down payment among all buyers is just 12%, according to National Association of REALTORS® data.
Younger buyers tend to put down the least: For example, those between the ages of 22 and 30 put down an average of 6%, and those between the ages of 31 and 40 make an average 10% down payment.
Financial experts often say a 20% down payment is ideal because it helps borrowers qualify for a mortgage and avoid the extra costs of private mortgage insurance.
But it’s not always practical advice, especially as affordability dwindles. For example, a 20% down payment on an entry-level single-family home in the Los Angeles area could be between $200,000 and $400,000.
Several conventional lenders allow buyers to purchase a home with a down payment as low as 3%, while some government-backed programs like through the VA issue loans with no money down.
Borrowers may find such options through FHA, USDA, or VA loans as well as down payment assistance programs.
5 Mortgage Trends to Watch
Young adults, in particular, may be missing out on key information to move forward in the housing market.
Two out of three recently surveyed say they are waiting for lower mortgage rates before starting the homebuying process, according to a survey of 1,000 millennials (ages 25 to 40) conducted by Lombardo Homes. However, economists have largely predicted that mortgage rates will edge upwards in the coming weeks. Further, one in four millennials underestimated their buying potential by $150,000 or more, the study finds.
Also, 59% of consumers say they did not know that the seller pays the real estate agents’ commission, the Lombardo Homes survey shows. Respondents also expressed confusion about many real estate terms, such as earnest money, FRM (fixed-rate mortgage), and PITI (principal, interest, taxes, and insurance).
Real estate pros can educate buyers on common terms and financing resources.
After all, home buyers of all ages are more likely to contact a real estate agent before a mortgage lender when they begin the homebuying process, according to NAR’s 2021 Home Buyers and Sellers Generational Trends report.
Source: “Most Would-Be Home Buyers Are Wrong About the Down Payment They’ll Need,” The Ascent/Motley Fool (July 11, 2021)
Don’t hesitate to call the Sierra Lifestyle Team for evaluations of your home’s value or to tour homes on the market you have interest in. We are here for you, and Alisa (almost) always answers her cell phone, 530-559-4871.
Nevada County Housing Market Observations
Lack of inventory in Nevada County continues.
Numbers are consistent with previous months, 520 houses for sale October 2019 vs 286 houses for sale October 2020, 45% lower year to year. Houses sold are up 25%, 157 Oct last year, 157 houses sold this October.
Inventory reduction is from 4.2 months of inventory last October to 1.8 months of inventory this October.
A very strong SELLER’S MARKET continues, especially considering Nevada County’s attractiveness as one of the premier work-from-home communities, and media outlets have taken notice.
Average SOLD price per square foot is up 13.7% year to year ($234 vs $266. Average price sold is up 14.6%, from $435,000 to $570,000. Higher list prices are prevailing.
Nevada County continues to be strongly attractive to buyers looking for safer havens.
Especially coupled with the myriad lifestyle opportunities and community connections the foothills offer. Days on market has fallen 48%, from 75 days last year in October to 39 days in October this year. Buyers are energized to jump on good, well-priced houses especially given our current low inventory environment.
We continue to see a slight slowing of the market in our own area, likely due to national elections coupled with the coming holidays. That said, good houses are still commanding significant attention from buyers and garnering strong offers. While prices are climbing, appraisals tend to lag the market a bit, so some circumspection in pricing is smart.
Don’t hesitate to call us for evaluations of your home’s value or to tour homes on the market you have an interest in. We are here for you, and Alisa (almost) always answers her cell phone, 530-559-4871.
Johnson’s Sierra Lifestyle Team Adds Instagram expertise to support client listings!
Social Media has many benefits, especially for businesses.
It is a tool that many people tend to overlook. Having a good social media presence is especially important as we move further and further into a world dependent on technology. Perhaps the best way to get business is by word of mouth and advertising, social media combines those. When a business posts something on social media, not only is it being spread to more people than you can reach with typical advertising, but it also creates a personal connection between the business and the consumer making them more likely to pick that business over any other. Social media can help businesses grow immensely in size, and reach new younger customers that are essential to keeping a business alive. Overall, Social Media is only a positive for businesses looking to grow, reach more customers, and to create more personal connections with customers.
The Sierra Lifestyle Team utilizes our robust Social Media skills to benefit the sale of your home, reaching thousands of qualified buyers on Facebook.
We don’t rest on our laurels…and are pleased to announce a new INSTAGRAM manager, Karissa Johnson. Karissa will head up our new Instagram program to highlight your properties to thousands of interested buyers, giving you significant new exposure to interested real estate buyers.
Brought to you by Johnson’s Sierra Lifestyle Team!