Where Will Home Prices be in 5 Years?

That’s a big question, huh?

It’s hard enough to predict the value of a home even six months from now, much less several years. But quarterly, consulting firm Pulsenomics surveys over 100 researchers, professionals, and economists to get a handle on where the real estate market’s heading. And the good news is…the news is good!

The big data points are:

  • Cumulative home appreciation is expected to be 18.1% (!!!) by 2019
  • Home prices are up year-over-year in the Southeast by 6.12%
  • Even bear-ish minds speculate cumulative appreciation will be over 10% in the next five years

So, what does all this mean? It means smart investors are ready to buy homes NOW. Values aren’t going down any time soon and with inventory short and prices inching towards pre-bubble rates, the sooner buyers dig in, the better.

Take a look at this graph and think about what it means for your home search.

Pulsenomics graph 2015

 

Looking to buy? Now is the time. Hoping to sell? Talk to us about whether it’s smarter to take advantage of the current seller’s market or if your value could go even higher by holding for a while.

We’re ready to chat.

American Home Buyers in 2014 (The Data)

Every year, the National Association of Realtors (NAR) puts out an informative report on the US real estate market.

Of course, compiling data on the hundreds of thousands of sellers, buyers, and agents around the country takes time, but the data’s finally out on 2014! Why should you care? Because these data points can inform your buying process, make you a better-prepared seller, and help you decide whether to use a REALTOR and which one to use.

Let’s take a look at some of the most interesting statistical findings from the 2014 NAR Real Estate report on who’s buying homes in America:

  • 33% of buyers in 2014 were “first time” homebuyers. While that seems like a lot, it’s still down from the historical average of about 40%. About 65% of these first time buyers were recently married couples.
  • Despite a proliferation of online resources, 88% of buyers used a real estate agent to purchase their home. In 2001, that number was only 69%.

first time buyers graph

  • The average home purchased was about 1,870 square feet and 80% were single family homes. It took the typical buyer 10 weeks (down from 12 weeks in 2013) to find a home to buy, and they viewed an average of 10 homes.
  • Age of the average homebuyer? It rose slightly from 42 to 44 in 2014, and buyers in the South tend to be older than buyers in the Midwest and Northeast. Single male or female buyers made up only a quarter of all buyers nationwide.
  • The average southern homebuyer’s combined family income was $85,000 (slightly higher than many other regions.)
  • New homes were understandably more expensive than previously-owned homes, averaging $277,000. Previously owned homes averaged about $200,000.

Now, what do you need to know about how buyers purchased a home and what the homes they purchased had in common?

  • 84% of buyers bought a previously-owned home rather than new construction. That figure has actually held steady for the last four years, nationally; in the South, only 79% of people purchased previously-owned homes.
  • Which factors were most important overall when it came to purchasing a home? In order, the quality of the neighborhood, convenience to work, and the overall affordability of the housing market were most crucial.

satisfaction graph

  • Overall, 88% of buyers used both the internet and an agent when sourcing market information. Among first time buyers, only 11% contacted a real estate agent as a first step when looking for a home. That number rose to 18% for repeat buyers (experience tells all!)
  • Among buyers who used the internet to search and possibly find, a house, about 90% ultimately used a real estate agent to complete the purchase of the home.
  • Since 2001, the percentage of home buyers who used a buyer’s agent has risen dramatically. In 2001 the number was 69% and in 2014 about 89% of all buyers used an agent.

 

Of course, the study is enormous and is chock full of fascinating data about everything from the listing process to the way most buyers finance their home purchase. If you have time, we really encourage you to give it a glance – you may learn something interesting about the home search (or selling) process that you didn’t know!

NAR 2014 Study PDF

Click here to download the full NAR Profile 2014

We always think it’s best to talk to a real estate professional rather depend on charts and graphs when you’ve got questions about buying a home. Are your needs typical? Do your expectations align with the average home buyer’s? We’re happy to chat when you’re ready for more information about the homebuying process here in Charlotte – give us a call!

Team 2.13.2014

 

This Month in Real Estate: July 2015

What does the national real estate market look like this month?

Check out this short video from Keller Williams for a peek inside some important numbers for buyers and sellers from July 2015.

And of course, contact us if you’ve got questions about what these numbers mean for you!

704-516-3318

New Team Sample 2

 

Spring Selling Mistakes You Don’t Want to Make

Everyone knows Spring is the “best” time to sell a home.

spring houseWell, statistics actually vary from place to place but in Charlotte the spring selling season tends to be the most active and houses generally get snapped up more quickly than in other seasons. But just because spring is a good time to sell doesn’t mean there aren’t mistakes to be made. Don’t be the kind of seller that overestimates the selling power of the season and inadvertently talks yourself out of a sale.

Here are a few of the most common mistakes spring sellers make. Avoid them when you can.

Banking on the “Spring” Push

Yes, spring is generally a good time to be a seller! But if you live in one of Charlotte’s popular neighborhoods like Dilworth or Plaza Midwood you know that homes haven’t lasted long on the market for months now. In fact, bidding wars are breaking out all across town and have been since back in 2014 because inventory has been historically low. Since so many sellers wait until spring to put their homes on the market you may actually be competing with more homes now, not less…that means your dream of an overnight, all-cash, full ask offer may be out of touch with reality.

Money in hand

Refusing an Open House

Open houses are one of the best things you can do to get your home sold quickly. Spring is actually one of the best times of year to hold open houses since the weather’s nice and your home’s likely to get better light. Don’t forget to consider “off” days like Saturdays or even weeknights (thanks, daylight savings time!) that might lure buyers who otherwise wouldn’t visit open houses. Foot traffic is essential to selling your home fast and for a great price so it’s important to have an open mind.

Putting Off Repairs

Another side effect of a low-inventory market is that all too many sellers leave small fixes on the table for buyers to deal with. One or two tiny home repairs usually aren’t a big deal but given the choice between a move-in-ready home and one that needs a little TLC, most buyers will take the home that’s good to go, even if it costs a bit more. NAR put out a useful fact sheet on cost vs. resale statistics last year that’s a worthwhile read if you’re selling and trying to decide how much time and money to put in. Don’t let your rush to get your home on the market “in spring” leave you listing it before it’s ready.

home repair

Overpricing

Always a peril for sellers, overpricing can be particularly tempting in the spring season when homes are “flying off the market.” Don’t get greedy with your asking price lest you risk alienating buyers who look at a house once then immediately discount it or consider it. You don’t want to be the only house in your neighborhood that’s reducing, reducing, reducing…listen to your agent’s advice on pricing to get offers on your home within the first few weeks. They know what they’re talking about!

 

Thinking of listing your home this spring?
Give us a call to talk about the benefits and drawbacks to selling your Charlotte home right now and get more info on pricing, timeline, and why you need a great real estate agent. We’re always ready to chat!

 

 

What’s New in Real Estate: April 2015

The real estate market in April 2015 is busy!

What does Keller Williams have to say about the real estate climate this month? This short video features quick stats and charts that give you a big-picture view of the buying and selling marketplace. What does this mean for you? Call us to find out!

We’re happy to talk to you about Charlotte real estate

This Month in Real Estate: March 2015

What’s going on in the real estate market this month?

The folks at Keller Williams have just released a video full of stats and facts about the national real estate market for March 2015. What does this mean for you? Call us to find out!

We can’t wait to talk Charlotte real estate with you.

This Month in Real Estate: February 2015

Wondering what’s going on in the real estate market right now?

The folks at Keller Williams have just released a video full of stats and facts about the real estate market in February 2015. As always, call us if you have questions about what this means for your purchase or sale!

We’re always happy to hear from you.

Video: The Real Estate Market in January 2015

Play the video below to find out real estate trends and predictions for the January 2015 market.

What’s all this information mean for your home sale or purchase in Charlotte? Let’s talk! Call On the Move Charlotte today!

This Month in Real Estate: December 2014

A recap of the December 2014 real estate market from the Keller Williams team.

If you have questions about what these numbers mean for you and your home, call On the Move Charlotte today!
Real estate market december 2014
Click the photo to watch the video