Category: Real Estate

The Condo Market Is Rebounding | Realtor Magazine

Home shoppers are taking advantage of some discounts occurring in the condo market, fueling the sector’s recovery since the start of the COVID-19 pandemic.

Many home buyers have been drawn to upsizing during the pandemic, heading to the suburbs in favor of larger single-family homes with greater privacy. But as single-family home prices soar, some buyers are being priced out and drawn back to condos for their affordability. The average single-family home sold in the U.S. cost 17.3%—or $58,000—more than the average condo, according to a recent analysis of the condo market from the real estate brokerage Redfin.

Condos are lingering on the market longer, averaging 36 days in October compared to single-family homes’ 27-day average. Nearly 23% of condos sold for more than their list price compared to about 37% of single-family homes.

But after a 50% sales plunge this spring, condo sales have recovered. In October, condo sales increased 22.7% compared to a year earlier on a seasonally adjusted basis, Redfin’s data shows.

“Condo sales are rebounding because buyers are finding great deals,” says Daryl Fairweather, Redfin’s chief economist. “Families are fleeing cities in search of more space in the suburbs, which has presented an opportunity for millennials who are looking to become homeowners but don’t need extra bedrooms or a backyard.”

Indeed, home buyers are turning to condos for the sake of affordability when up against the high prices of single-family homes.

“Before the pandemic, it was challenging to find a condo in Seattle for less than $500,000, but now there are plenty selling for under $400,000,” says Forrest Moody, a real estate professional with Redfin. “The people who are buying condos now are the people who couldn’t afford to buy one a couple of years ago because prices were so high. I recently sold a condo that was within walking distance of Amazon’s headquarters for $510,000. Condos in that building normally go for $550,000 and up.”

Why Open Houses Still Have a Bright Future | Realtor Magazine

Technology has changed the way many buyers shop for homes during the pandemic. As social distancing measures remain in place, the in-person open house has been put on hold in many markets. That has prompted some real estate professionals to believe open houses may become a thing of the past post-pandemic, too.

Forbes Real Estate Council recently asked 14 real estate execs whether they believe in-person open houses will fade in favor of more digital and virtual options to show homes in the future. However, the real estate execs were still mostly bullish on open houses for now and for the future.

“Open houses are not dead, but they are becoming safer than ever,” Kevin Hawkins, WAV Group Inc., told Forbes.com. “While agents use of live and recorded video technology has taken a huge leap forward, for some sellers, a safe open house (with masks required and visitors limited) is still the preferred method as they don’t want two dozen separate buyer visits.”

Real estate pro Mike Shapiro says open houses can help humanize house shopping. “Open houses are valuable, but during the pandemic, they are not the safest thing to do,” Shapiro says. “I do believe both are important during normal times. However, when not available, an agent should become the person that would be looking at the home and living there. They have to become the buyer and transmit the emotions as housing is very emotional. It needs to be humanized, not marketed.”

Agents say open houses help provide more exposure for a home and help the consumers view more homes. It also serves as a low-cost solution for agents in getting more people to view a home and a way to gauge how much interest there is in it.

While the COVID-19 pandemic rages on, many real estate pros are relying on virtual open houses, virtual tours, and video walkthroughs to show buyers spaces safely from a distance. But agents believe in-person open house tours will return.

“Open houses are still relevant, regardless of how good videos, VR and 360-degree photography get,” Chris Ryan, Beyond Properties Group with eXp Realty, told Forbes.com. “Nothing beats walking through the home or property. These technologies will always leave out the noise you might hear from a busy road or the lack of sun the property gets. A picture might be worth a thousand words, but smell, noise, and how the property feels once you walk through it is irreplaceable.”

New-Home Sales Are 41.5% Higher Than a Year Ago | Realtor Magazine

Buyers are increasingly are targeting new-home construction as they face a low inventory of existing homes. New-home sales in October are 41.5% higher than they were a year ago, the Commerce Department reported late last week.

“Buyer traffic remained strong in October even as the country’s attention was focused on the elections and policy issues going into 2021,” says Chuck Fowke, chairman of the National Association of Home Builders. “Mortgage rates remain low and builder confidence is at an all-time high indicating that demand remains steady and sales will remain solid.”

Sales of newly built single-family homes in October were down only 0.3% compared to September’s revised numbers. But even with the slight monthly decline, new-home sales remain significantly elevated this year.

According to the NAHB’s data, “the gap between construction and sales was at an all-time high in early fall,” says Robert Dietz, the NAHB’s chief economist. “Thus, the NAHB forecast contains an acceleration in single-family starts and some slowing of the pace of growth for new homes sales to allow a catch up. Demand remains strong as home buyers seek out lower density markets as part of the suburban shift.”

The median sales price of a new home in October was $330,600. For comparison, a year earlier, the median sales price was $322,400.

Inventories remain tight at a 3.3-month supply at the current sales pace. Despite high buyer demand, inventories of new single-family homes is 13.4% lower than a year ago. Homebuilders point to ongoing labor and lot shortages and rising lumber prices as reasons new-home construction has slowed.

New-home sales are hottest in the Northeast and Midwest, where, on a year-to-date basis, sales are up 29.9% and 29.8%, respectively. New-home sales on a year-to-date basis are also up by 20.1% in the West and by 18.5% in the South.

How to Win a Bidding War | Home Made

Trying to buy a home in today’s market is tough. COVID has motivated a lot of people to look for a home, but also deterred a lot of people from listing their home so the options are limited. Even though I look at housing trend data every day as part of my job at realtor.com and my husband and I just bought our second home, every time you buy feels a little bit like your first time, especially in such a HOT market. 

 

This time around we learned a few things that are helpful no matter how experienced you are, such as the importance of familiarizing yourself with the home buying process beforehand. We also used some of the same strategies that we used in our first home purchase such as using the realtor.com app and saving searches so we could find out in real time as homes hit the market. 

One of the more challenging parts of our home search was going toe-to-toe with other buyers in a bidding war. I’m proud to say, we beat out the other buyers and are now the owners of a beautiful three-bedroom, three-bathroom home in Porter Ranch, Calif. Here are some things to consider if you find yourself in the same situation. 

Tip #1: Know how much you can afford — This is extremely important for all buyers, especially first-time home buyers who have never been locked into a mortgage payment. There’s a lot of emotion that goes into buying a home, and it’s easy to let those emotions get the best of you. Use a mortgage calculator to figure out the maximum amount of house you can afford and be prepared to walk away if a home doesn’t fit in your budget. 

Tip #2: Get pre-approved — Sellers want to make sure that at the end of the day, the sale is going to go through. Pre-approval letters are necessary in today’s competitive market. You can even go one step farther and have your lender prepare a pre-approval letter that is specific to the property you are bidding on. This will help show that you have the financial wherewithal to purchase the home.

Tip #3: Increase your down payment or earnest money — A higher down payment or increasing your earnest money (the deposit made when you make an offer) shows the seller that you are serious. A higher down payment can be enticing when a bidding war is pushing the selling price above the potential appraised value. Consider talking to your agent about upping your earnest money from the typical 1% to 10 or 20% of the purchase price as another way to reinforce your interest. 

Tip #4: Offer a higher price — For many sellers, cash is king and they will sell to the highest bidder. However, that doesn’t mean you have to offer tens of thousands of dollars more. Often, just going up a few thousand dollars can make the difference between winning a house and losing out on it. You’ll need to keep in mind that just because you are willing to pay more, your lender may not be. Your loan cannot exceed the appraised value of the home, so you’ll have to cover anything over the appraised value by bringing additional cash to the closing. 

Tip #5: Consider waiving contingencies — This tip is not for everyone. While some buyers are willing to go to extremes and will waive financial and inspection contingencies in order to show how badly they want a house, it can come at a price or at least some sleepless nights. Contingencies give the buyer the ability to back out should financing fall through or renegotiate terms and price or walk away if the inspection turns up major issues. Waving one or more contingencies could be what it takes to get the house, but you’ll need to decide if it’s worth the risk. 

Tip #5: Be prepared to move quickly — If you think there are going to be multiple offers on a home you are bidding on, ask your agent to prepare several contracts with different purchase offers. This gives your agent the ability to act quickly. Another strategy is to include an escalation clause as an addendum to your offer that lets the seller know that you are willing to increase your offer by a set amount if another buyer matches your offer. Sellers may also favor your offer, if you agree to do the home inspection quickly. This will allow them to know where they stand with you and not lose a lot of time with other buyers should you decide not to move forward.

Tip #6: Be flexible — Make it easy on the seller. Although some sellers may want to move as quickly as possible, others may want to stay in their home longer if they are waiting on new construction or would like their children to finish the school year. If you can, agree to a closing date that accommodates their needs or allow them to stay in the house for a few days without compensation following the closing. If they need more time, consider allowing them to rent back the house for a set period following the closing.

All that being said, sometimes, no matter how good your offer is, you are just going to be out bid. And while inventory is low, it’s important to remember that more homes that you like will come along and while it might take some time, you’ll find the home that’s right for you. 

Looking for a New Place? Use This Time to Create Your Wishlist – Stay Informed and Inspired

If your move is delayed, evaluate the features of your current home so you know just what you want in your next one.

• MAY 29 2020

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Now that many of us have spent several weeks living inside, we’ve become quite familiar with our homes — in some cases, maybe too familiar. If you were planning to move before COVID-19, and still plan to do so when the timing is right, you might want to take this time to reflect on what’s working and what’s not in your current home. For instance, those stairs you’ve climbed 10 times a day may have kept you moving while you’ve stayed home, but maybe you’d like stair-free living in your next home. Or perhaps the yard you thought you could do without has now become a must-have.

We’ve come up with a list of questions to help you pinpoint what you like and don’t like about your current home so you can find more comfort and pleasure in your next one.

What’s working for you — and what’s not?

• On a scale of 1-10, how do you like your current home?
• What’s your home’s best quality?
• And its worst quality?
• Do you like the style of your home? If not, is there an architectural style or era you prefer?
• What’s your favorite room, and what makes spending time there pleasurable?

Space and flow: How do you feel when you’re at home?

• Do you have enough space or too much? Where could you use more/less space?
• How would you describe the layout — an open floor plan or more compartmentalized? Does it suit your lifestyle?
• Do you have enough or too many bedrooms? Bathrooms?
• Do you like the number of levels (single or multistory)?
• Are you happy with the windows (enough natural light, well-placed, too sunny)?
• Do you like the fixtures and finishes?
• Is there a specialized room you’ve never had but have always wanted (such as a home office, workout room, sewing room, laundry room or mudroom)?

What’s outside — and how does it affect your experience of home?

• If you have an outdoor space, do you enjoy spending time there?
• If you don’t have one, do you feel like you’re missing out?
• Do you enjoy taking care of a yard… or feel burdened by it (be honest!)?
• Does your home have curb appeal? If not, what needs to be improved?
• Do you have adequate parking? Is a garage or carport a must-have?
• How much time and effort does the exterior require for upkeep (painting, staining, etc.)?

Your neighborhood: Community connections can make life all the sweeter

• Are you happy with your neighborhood? Think about all its characteristics, including walkability, parks, nearby activities, density, noise level and neighbor involvement.
• Do you have to travel far for basics such as groceries or a doctor’s appointment?
• Are you happy with your commute?
• Are there enough activities going on around you — or too many?

6 DIY Home Repair Mistakes to Avoid Before Selling Your House – Redfin

DIY (do it yourself) is a common approach to home repairs for a variety of reasons, from budget to perceived simplicity. For those preparing to sell their home, pinching pennies can be a common motivation for tackling fixes without professional involvement. In some cases, DIY solutions are a great way to save time and money with very little risk, but at times, neglecting the abilities of a pro can cause costly problems. 

Hire a Professional for These Home Repairs

Not all home repairs are made equal. Basic home projects, like putting up wallpaper, are relatively low risk and don’t pose the potential for big problems down the line. However, more substantial projects can require a level of expertise above and beyond what the average homeowner can accomplish. When not handled properly, these kinds of DIY fixes can result in serious damage that could cost a small fortune to fix. That’s why we created a list of projects that should be handled by the professionals, rather than doing it yourself.

1. Electrical Work

Dealing with any notable wiring issues throughout a home is best left in the hands of an electrician. While something simple, like replacing a lightbulb, is certainly possible without a pro, anything larger requires someone trained in electrical systems.

Accessing electrical boxes, installing new lighting fixtures, replacing wiring, adding new wiring, or anything else more complicated has the potential to harm both you and your property without proper oversight. Accidents with electrical work can cause electrocution or start fires, putting both your health and your home at risk. Without the expertise of an electrician, there’s no way to know whether the tutorials you’re reading or viewing online are appropriate for your property.

2. Plumbing

Plumbing, like electrical work, can be tricky to get right for those without formal training. It’s not unusual for DIY home repairs to cause burst pipes or leaks, opening the door for potential water damage to your home. When these leaks or broken pipes are found within walls or difficult to detect it can become a serious issue. 

Before trying to do something like replacing a pipe or installing new fixtures, contact a plumber to make sure your repairs are appropriate and up to code. It’s cheaper to hire a professional for small tasks from the start than to bring in a plumber once a problem arises. Installing a new faucet is much cheaper than to both install a new faucet and fix the problems caused by a DIY installation gone awry.

3. Full Bathroom Remodels

Bathroom remodeling projects often seem easy, but can actually entail much more than you may think. Oftentimes, these projects can require elements of other kinds of home repairs, like plumbing and electrical work. 

Tackling a bathroom from top to bottom can be an excellent way to boost your home’s value before listing it, but approaching a remodel in the wrong way can be disastrous. An error in plumbing, cabinet and counter installation, wiring, or anything else could be more costly than beneficial. When you want your bathroom to look – and function – it’s very best, you will want help from a licensed contractor or remodeler who can adhere to building codes and prevent major problems.

4. Foundation and Crawl Space Repairs

Little foundation fixes or crawl space repairs may look simple on the surface, but these kinds of projects can be serious endeavors and require the training and tools the average homeowner doesn’t have. This is particularly true with foundation repairs, especially if you live in an area with a wet climate like Seattle, WA. Failing to address signs of foundation damage can threaten the stability of your entire home. Additionally, an improper DIY home repair can yield more costly treatments down the road and leave room for much more serious damage. 

Identifying and fixing foundation problems can require anything from construction equipment to hydraulic lifts. Instead of taking the easy way out, partner with a professional to make sure these serious repairs are made the right way.

5. Roof Replacement or Repairs

Roofing is both challenging and potentially dangerous, making this a poor choice for a DIY project. Replacing shingles or repairing structural issues can be tempting – roofing prices can be steep – but these kinds of tasks are easy to do incorrectly. When shingles aren’t placed properly, insulation is lacking, chimneys aren’t adequately navigated, and safety precautions aren’t taken, big problems can happen. 

Climbing around on the top of your house with tools and heavy materials is a home repair project best left for a professional. The risk for improper insulation, wrong shingle placement, or even slips and falls makes roofing jobs far too challenging for a standard homeowner. Also, having a professional step in for a big project like this will ensure everything is done well and in a timely manner. 

6. Replacing Siding

The siding on your home looks deceptively simple, but replacing a whole house worth of siding can be a seriously challenging home repair. This task can take days on end, and placing siding straight and even is a much harder project than it may appear to be on the surface.

It’s also important to remember that siding is more than an aesthetic feature. Siding that’s installed incorrectly can cause water and weather damage, driving increased temperature control costs, the likelihood of pest damage, and potential structural issues. Simply put, if you are planning to replace your siding to increase your home value, make sure a professional is involved in the process.

There’s a lot to be said for the peace of mind that comes from partnering with an electrician, plumber, roofer, remodeling company, or contractor. Before charging ahead with a DIY home repair, make sure you understand the scope of the repairs you are trying to make, any risks, and the potential value of professional involvement.

FHFA Increases Conforming Loan Limits for 2021 | Realtor Magazine

Due to rising home prices, the Federal Housing Finance Agency announced Tuesday that it would raise loan limits for mortgages backed by Fannie Mae and Freddie Mac.

In most of the country, the 2021 maximum conforming loan limit for single-family properties will be $548,250. That marks a 7.4% increase from last year’s limit of $510,400. The FHFA’s loan limits define the maximum amount that Fannie and Freddie can finance for a one-unit single-family home.

In more expensive markets, such as California and New York, the new limit will be $822,375, up from $765,000 in 2000.

“With home prices setting records in many U.S. markets, the National Association of REALTORS® is pleased to see the FHFA raise its national conforming loan limits for 2021,” NAR President Charlie Oppler said in a statement. “With an assurance that loan limits will align with home price growth, this decision will help ensure homeownership remains within reach for countless American families.”

U.S. home prices have continued to rise during the COVID-19 pandemic. The latest NAR report on existing-home sales showed that median home prices were up 15.5% in October compared to a year ago.

Demand for Fencing Is Surging Despite Higher Costs | Realtor Magazine

While homeowners may be feeling more neighborly, they also are seeking greater privacy and security. That has sparked an increased demand for residential fences.

The rising requests for fences from homeowners, combined with a shortage of lumber and other materials, has sparked higher prices and longer waits for installation, The Wall Street Journal reports.

Harwell Fencing in Los Angeles reports a 60% spike in inquiries for fences since the COVID-19 outbreak. Owner Arian Harwell told The Wall Street Journal that most of the homeowners are requesting “wall toppers,” a wood fence installed atop a masonry wall to add height and enclosure to their property.

Wood is the most commonly used fence material for home residences, according to Home Innovation Research Labs’ 2019 report. However, the price of pressure-treated wood is about triple what it cost at the beginning of 2020. As such, homeowners are facing higher prices for their fences. Also, wood is the least durable fencing material, which requires upkeep and repair from homeowners.

PVC and other plastic fence materials also are growing more popular. Metal fences (such as wrought iron, ornamental steel, and aluminum) are as well, but still comprise only about 2% of the market share. Chain-link fencing is on the decline, according to the report.

Homeowners considering a fence should make sure to follow approval protocols before installation. For example, many homeowners must first get approval from their community’s homeowners association. They also will likely be required to get a survey completed prior to avoid any future boundary disputes with neighbors. Owners also may need to get a permit from their municipality before getting a fence.

Home Buyers Increasingly Seeking Friendly Neighbors | Realtor Magazine

As people spend more time at home, freed from long commutes and constant activity, they are discovering their priorities are shifting. Home shoppers are increasingly placing more weight on the neighborhood and how neighborly it feels since the pandemic, The Wall Street Journal reports.

Real estate professionals told WSJ they’ve noticed that buyers are changing the way they shop for homes, and neighbors have emerged as a critical factor in their home search.

Sixty-nine percent of 2,500 Americans recently surveyed by Improvenet say they’ve gotten to know their neighbors better during the pandemic. Sixty-five percent say they’ve made an effort to be more friendly than usual. Further, 57% say their neighbors have helped to fill the void of visiting with friends and family during the pandemic. More than half also said they’ve had at least one socially distanced gathering with neighbors.

At-home workers are looking to replace water cooler mingling with co-workers from the office now with strolls around the neighborhood. The Wall Street Journal reports that driveway cocktail parties are filling the social gap that live events once did too.

“Neighborhoods are just so much more important now,” Francie Malina, of the Francie Malina Team in Dobbs Ferry, N.Y., told WSJ. She says buyers are showing more interesting in belonging to a neighborhood, whether for socializing or organizing children’s learning pods for remote learning.

Real estate pros can’t offer personal details about a neighborhood, however. The Fair Housing Act prohibits discrimination in housing based on race, religion, and many other factors. So real estate agents can’t respond to buyers’ questions on the demographics of particular neighborhoods.

Dana Bull, a real estate pro with Sagan Harborside Sotheby’s International Realty in Marblehead, Mass., encourages her buyers to learn more about the neighbors by talking to them. “You’d be surprised at how candid neighbors can be,” Bull told The Wall Street Journal. She will urge her buyers to even write letters and emails to neighbors to ask questions before buying, or joining Facebook neighborhood groups to learn more.

Regain Your Garage: Simple Tricks for Getting Organized

If your house is bursting at the seams, or simply short on storage options, the solution may be as close as your garage. To make the best use of this space, however, you first need to corral its current chaos.

This is, fortunately, a relatively simple task if you incorporate a few good storage ideas. With careful planning and a little effort, you can transform your garage from a messy catchall to an efficient, well-organized household annex.

Divide and conquer

First things first: Get rid of anything you no longer use. After you’ve winnowed down the contents of your garage, sort everything into groups. Keep garden tools with garden tools, and sports equipment with sports equipment. Items used together ought to be stored together.

Where possible, place like items into clear plastic containers with lids. It’s fine to use opaque bins, just be sure to label each one. Stackable containers are especially handy. They keep your belongings clean, protect against insects and rodents, increase the amount of usable floor space, and cut down on visual clutter.

What goes where?

The efficient use of space partly depends on positioning stored items in a thoughtful, strategic way. Are there certain items you’re likely to need on a regular basis, such as cleaning supplies? If so, store them near the door so you can access them quickly and easily. Stash rarely used or seasonal items, like sleds and skis, in harder-to-reach spots.

Off the wall

The key to garage storage and organization is getting things off the floor. Capitalizing on wall space enables you to fit the most into your garage, while keeping it all visible and easy to access. The type of wall storage you choose depends on your storage needs, project budget and personal preferences. Many homeowners opt for one or a combination of the following storage standbys:

• Pegboard. A favorite for generations, pegboard is inexpensive and easy to install. Because it can be outfitted with an array of compatible hooks, clamps, bins and shelves, pegboard can be used to store and organize just about anything, as long as the item to be stored isn’t especially heavy.
• Open shelving. Whether a wall-mounted track system or a set of stand-alone units, open shelves are affordable, versatile and user-friendly, and they keep everything in plain sight. Plus, depending on their construction, 12- or 16-inch-deep shelves are typically capable of holding heavier items.
• Closed cabinetry. If you plan to park your car in the garage, cabinets with doors may be the most desirable option, because closed storage means not having to come face-to-face with paint cans and garbage bags every time you leave or arrive home. Cabinets are available in countless materials and styles, but generally speaking, they are more expensive than other solutions. And because they are unable to accommodate very large items, cabinets are most effective when used in conjunction with another storage system.
• Panelized systems. Here, entire walls are covered with specially designed panels that hold any number of companion add-ons, such as hooks and shelves. Unlike pegboard, panelized systems can handle heavier items. But that strength and utility comes at a cost, especially since some proprietary products must be installed by licensed professionals.

Look up

For certain infrequently used belongings, the ceiling provides ideal, out-of-the-way storage space. Ladders and seasonal gear can be kept here, hung by clips or straps fastened to the ceiling joists. Or you can take advantage of hoist pulley systems, which cleverly operate like the cords on window blinds. Bear in mind, however, that ceiling storage must be oriented so that it doesn’t interfere with the operation of the garage door.

Safety steps

As you’re organizing your garage, it’s important to keep safety in mind. It’s unsafe to store gasoline and propane in the garage; a single spark could lead to tragedy.

Likewise, if you have children or pets, you should store hazardous materials like fertilizer and pesticides far out of reach. Locked cabinets are a good solution for these toxic materials, and they’re also a smart place to store power tools and sharp implements.