Three Reasons Homebuyers Are Ready to Purchase This Year

Three Reasons Homebuyers Are Ready to Purchase This Year

A recent survey by Lending Tree tapped into behaviors of over 1,000 prospective buyers. The results indicated 53% of all homebuyers are more likely to buy a home in the next year, even amid the current health crisis. The survey further revealed why, naming several reasons buyers are more likely to move this year (see graph below):Three Reasons Homebuyers Are Ready to Purchase This Year | MyKCM

Let’s break down why these are a few of the key factors motivating buyers to actively engage in the home search process, and the corresponding wins for sellers as well.

1. Low Mortgage Rates

The biggest reason potential homebuyers indicated they’re eager to purchase this year is due to current mortgage rates, which are hovering near all-time lows. Today’s low rates are making it more affordable than ever to buy a home, which is a huge incentive for purchasers. In fact, 67% of respondents in the Lending Tree survey want to take advantage of low mortgage rates. This is no surprise when comparing historic mortgage rates by decade (see below):Three Reasons Homebuyers Are Ready to Purchase This Year | MyKCM

Sam Khater, Chief Economist at Freddie Mac recently said:

“As the economy is slowly rebounding, all signs continue to point to a solid recovery in home sales activity heading into the summer as prospective buyers jump back into the market. Low mortgage rates are a key factor in this recovery.”

2. Reduced Spending

Some people have also been able to save a little extra money over the past few months while sheltering in place. One of the upsides of staying home recently is that many have been able to work remotely and minimize extra spending on things like commuting expenses, social events, and more. For those who fall into this category, they may have a bit more saved up for down payments and closing costs, making purchasing a home more feasible today.

3. Re-Evaluating Their Space

Spending time at home has also given buyers a chance to really evaluate their living space, whether renting or as a current homeowner. With time available to craft a wish list of what they really need in their next home, from more square footage to a more spacious neighborhood, they’re ready to make it happen.

What does this mean for buyers and sellers?

With these three factors in play, the demand for housing will keep growing this year, especially over the summer as more communities continue their phased approach to reopening. Buyers can take advantage of additional savings and low mortgage rates. And if you’re thinking of selling, know that your home may be in high demand as buyer interest grows and the number of homes for sale continues to dwindle. This may be your moment to list your house and make a move into a new space as well.

Bottom Line

If you’re ready to buy or sell – or maybe both – let’s connect to put your plans in motion. With low mortgage rates leading the way, it’s a great time to take advantage of your position in today’s market.

Questions to Ask During Your Virtual Home Tour

Questions to Ask During Your Virtual Home Tour

Thanks to COVID-19, the new reality is that many open houses and home tours are being conducted virtually. For prospective home buyers, this new territory brings an added element to prepare for in the home buying process. Some of the questions that should be asked in a virtual home tour parallel those of in-person tours, but others are unique to today’s virtual world.

Could you zoom in?

  • Sometimes it can be difficult to get a true glimpse at what you want to see in a room. Asking the agent to zoom in on specific features is commonplace in virtual home tours, and they understand this is part of the viewer experience. Don’t hesitate to ask multiple times. Getting a better look at everything you want to see will help you feel like you’ve gotten the most out of your virtual tour.

How many square feet are in this room?

  • Virtual tours can slightly distort space, making it tough to gauge the size. The room-to-room square footage is information the agent is sure to have handy. Since you can’t be there in person, it will help you piece together the virtual visuals with the sense of physical space that we’re all accustomed to feeling in the places we live.

What color is that?

  • In the smartphone era, and computer era at large, we have come to understand that digital representations of color are not always true to the eye. Ask the agent to confirm specific colors so you can plan accordingly. Have a color swatch on hand or look the colors up online as you go through the tour.  

When were the appliances last updated?

  • The importance of this question rings true in past, present, and future. Knowing the state of the home’s appliances, and the likelihood and timing of when they will need replacement, is vital information for both assessing the move-in readiness of the home and understanding what costs might lie ahead.

Has the seller provided an inspection?

  • This is another example of a critical question, whether your home tour is virtual or physical. If the seller has already done an inspection, ask the agent to lead you to any areas of concern based on the inspector’s findings. If there is anything that has not yet been addressed by the seller, have your agent ask what their plan is for making the necessary repairs/updates.

When is the offer review date?

  • Understanding the seller’s timeline for reviewing and accepting offers will help guide your decision-making process and allow you to strategize based on the timeline.

Whether your home tour is physical or virtual, getting the information you need to make an informed decision remains paramount. Although there is no substitute for physically being in the home you are looking to buy, keeping these questions in mind will position you well as you progress through the home buying journey.

This post originally appeared on the Windermere.com Blog.

Real Estate Will Lead the Economic Recovery

Real Estate Will Lead the Economic Recovery

With more U.S. states reopening for business this summer, and as people start to return to work, we can expect the economy to begin improving. Most expert forecasts indicate this economic recovery will start to happen in the second half of this year. As we get back to work and the financial landscape of the country begins to turn around, many experts also agree that real estate has the potential to lead the way in the recovery process.

According to Ivy Zelman of Zelman & Associates:

 “Housing will fare better than expected during this severe downturn.”

In addition, CNBC notes:

“Mortgage demand from home buyers shows unexpectedly strong and quick recovery…The quick recovery has surprised most forecasters.”

Robert Dietz, Chief Economist and Senior Vice President for Economics and Housing Policy of the National Association of Home Builders (NAHB) says:

“Overall, the data lend evidence to the NAHB forecast that housing will be a leading sector in an eventual economic recovery.”

One of the big reasons why housing has the potential to be such a driving force is the significant impact it has on the local economy. This impact is particularly strong when a newly constructed home is built and sold. According to a recent study by the National Association of Realtors (NAR), the average new home sale has a total economic impact of $88,416. As outlined in the graphic below, this is a combination of income generated from real estate industries, expenditures, and new home construction.Real Estate Will Lead the Economic Recovery | MyKCM

With so many unknowns today, especially in the wake of a worldwide pandemic, one known factor is the bright spark the housing market can play in local and national recovery. Buying and selling a home goes well beyond personal growth and satisfaction – it supports our economy as a whole.

Bottom Line

According to experts, the economy will begin to recover in the second half of this year. With real estate as a driver, that recovery may start sooner than we think.

Local Market Update – June 2020

Local Market Update – June 2020

As we move to the next phase of reopening, life feels like it’s slowly inching back towards normal.  The same is true in real estate. Statistics on home sales in May provided the first true picture of the effects of COVID-19. Those reports confirmed the incredible strength and stability of the local real estate market.  

  • The Stay Home order, as expected, continued to impact the number of sales. However, the market is starting to move its way towards more normal activity. Pending sales, a measure of current demand, have risen every week since April.
  • The slight drop in median closed sale price is a result of a proportionately larger number of lower priced homes selling than is normal. It should not be interpreted as a decrease in individual home value.
  • There were significantly fewer homes for sale in May than the same time last year. With less than a month of available inventory, competition among buyers was intense. Bidding wars and all-cash offers were common.    

The monthly statistics below are based on closed sales. Since closing generally takes 30 days, the statistics for May are mostly reflective of sales in April. If you are interested in more information, every Monday Windermere Chief Economist Matthew Gardner provides an update regarding the impact of COVID-19 on the US economy and housing market. You can get Matthew’s latest update here.  As we adapt to new phases of reopening, know that the safety of everyone remains our top priority.

This post originally appeared on GetTheWReport.com

The Teal Deal

The Teal Deal

THE TEAL DEAL

a home decor photo series

Teal is timeless. This worldly blue refreshes a room with instant elegance no matter the era. In this photo series, we explore home decor designed in shades of teal.

Timeless with a twist. The classic all-white overall look never gets old. Add a bit of art deco romance with a teal velvet bed frame, fabulous chandelier, and gold statement mirror for an elegant, modern style. Natural textures and materials add additional coziness to the overall look with lace-lined bedding, glass and shell accents, and a contemporary rug.

In this elegant bedroom, a dark teal feature wall is set off with organic white decor and plush bedding. Soft, textured accents such as the paper lanterns, neutral leaf duvet, and decorative branches play against the luxuriant color-washing wall treatment creating a classic look that is both warm and refreshing.

Sometimes you just have to take a risk and go all out! This bold teal pattern makes a statement and takes center stage when paired with modest furnishings. Additional white and reflective accents help break up the pattern making for a chic and modern living room.

This mid-century modern influenced room incorporates fun graphic prints and classic teal accents. The teal tone of the full size drapes pairs well against the grey color walls. Contrasting and matching shades of decor sprinkled around the room are grounded in the geometric rug in the center.

Teal and red, mixed with timber and notes of copper, is a daring combination that truly makes a statement. While both are strong, bright colors, they complement each other for a timeless, luxury look.

This fun, retro-inspired sitting room contrasts bold teal paint with pops of natural tones to create this comfortable setting. The dual sofa’s button tufting and golden leather upholstery are a nod to the classic design and double the warmth of this room. The intriguing paintings and indoor plants further add to the playful styling.

Cozy and rich. This bedroom is immersed in deep teal lending to a feeling of comfort. Minimalist decor and luscious finishes further warm the space.

It is not necessary for teal to be the main color for your room to make a bold statement. Use it in small accent pieces and place this color throughout the room to create a cohesive connection.

This exquisite teal chandelier is highlighted by dreamy velvet upholstery and clean lines. Rich hardwood floors, cast brass accents, and inky bursts of deep purple convey a sense of poetic nostalgia.

Stairs are a practical part of the home – but that doesn’t mean they can’t be fun too! A bold statement staircase can be a simple and striking way to brighten up your entry or add some visual interest in your open concept home. Although often overlooked creatively, the staircase can become quite the eye-catching feature when handled with a bit of outside-the-box thinking.

This alluring teal bedroom is filled with serene jewel tones creating a relaxing, chic escape. The combination of richer blues and greens along with pops of lush velvet textures, achieve an effect that effortlessly balances luxury with comfort. Softer grays with cool undertones create a calming, easily-elevated look.

A vibrant shade of teal can inject brightness into any small or dark space. The white farmhouse sink pops against the bold high-gloss teal covering the kitchen walls, cabinets, and trim. Warm wood counter-tops and shiny silver fixtures and appliances all work together to reflect light around this cozy space.

This room’s bright jewel tones create a space that is both dynamic and intimate. Contrasting glossy and matte textures, as well as clashing patterns and opposite color combinations, creates an unexpected and soothing effect. The supple velvet teal sofa stands vibrant against the matte wall and helps to amplify the warmth from the brass decor for a fun yet sophisticated look.

Moody vibes envelop this luscious living room with dark teal walls and matching sofa. A warm vintage side table and ethereal layered art combine with pops of white to create a calm and soothing sanctuary.

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