Are Homeowners Renovating to Sell or to Stay?

Are Homeowners Renovating to Sell or to Stay?

Are Homeowners Renovating to Sell or to Stay? | Simplifying The Market

Over the past few years, two trends have emerged in the housing market:

  1. Home renovations have shot up
  2. Inventory of homes available for sale on the market has dropped

 

A ‘normal’ housing market is defined by having a 6-month supply of homes for sale. According to the latest Existing Home Sales Report from the National Association of Realtors, we are currently at a 4.4-month supply.

This low inventory environment has many current homeowners worried that they would be unable to find a home to buy if they were to list and sell their current houses, which is causing many homeowners to instead renovate their homes in an attempt to fit their needs.

According to Home Advisor, homeowners spent an average of $6,649 on home improvements over the last 12 months. If that number seems high, it also includes homeowners who recently bought fixer-uppers.

A new study from Zillow asked the question,

“Given a choice between spending a fixed amount of money on a down payment for a new home or fixing up their current home, what would you do?”

Seventy-six percent of those surveyed said that they would rather renovate their current homes than move. The results are broken down by generation below.

Are Homeowners Renovating to Sell or to Stay? | Simplifying The Market

More and more studies are coming out about the intention that many Americans have to ‘age in place’ (or retire in the area in which they live). Among retirees, 91% would prefer to renovate than spend their available funds on a down payment on a new home.

If their current house fits their needs as far as space and accessibility are concerned, then a renovation could make sense. But if renovations will end up changing the identity of the home and impacting resale value, then the renovations may end up costing them more in the long run.

With home prices increasing steadily for the last 6.5 years, homeowners have naturally gained equity that they may not even be aware of. Listing your house for sale in this low-competition environment could net you more money than your renovations otherwise would.

Bottom Line

If you are one of the many homeowners who is thinking about remodeling instead of selling, let’s get together to help you make the right decision for you based on the demand for your house in today’s market.

Focusing on the right renovations can make a big impact on resale when the time is right.

MESSAGE JOHN
Source: Michigan Real Estate Updates

4675 Westshire Dr NW, Comstock Park – Opportunity Knocks!

Enjoy this excellent location, wooded lot on a quiet cul-de-sac street with fenced in yard and storage shed. The 2 Stall garage, storage shed, and over 1800 sqft of space offer tons of room. This house is ready for your touch to ”make it your own” offering an opportunity not found often in today’s market. Enjoying being close to shopping, dining, downtown Grand Rapids, major highways and more.

 

4675 WESTSHIRE DR NW DETAILSby7

Wage Increases Make Home Buying More Affordable

Wage Increases Make Home Buying More Affordable

Everyone knows that housing affordability has been negatively impacted by rising prices and increasing mortgage rates, but there is another piece to the affordability equation – wages.

How much a family earns obviously impacts how easy or difficult it is for them to afford to own a home. Because of an improving economy, wages are finally beginning to increase – and that dramatically affects home affordability.

According to the National Association of Realtors’ (NAR) September 2018 Housing Affordability Index, wages have increased in every region of the country:

Wage Increases Make Home Buying More Affordable | Simplifying The Market

After applying current salaries, home prices, and mortgage rates to their Home Affordability Index equation, the index, though still lower than this time last year (160.1 to 146.7), increased over the last month (141.2 to 146.7). For the complete methodology used by NAR, click here.

The percentage of income needed to own a home has also decreased each of the last three months. It currently sits at 17% which is substantially lower than historic numbers.

Wage Increases Make Home Buying More Affordable | Simplifying The Market

Bottom Line

If you are a first-time buyer or a move-up buyer who believes that purchasing a home is not within your budget, let’s get together to determine if that is still true.

MESSAGE JOHN

Source: Michigan Real Estate Updates

New High for Home Sellers Net at Resale in Q3 2018

New High for Home Sellers Net at Resale in Q3 2018

According to a recent report by ATTOM Data Solutions, home sellers who sold their homes in the third quarter of 2018 benefited from rising home prices and netted an average of $61,232.

This is the highest average price gain since the second quarter of 2007 and represents a 32% return on the original purchase prices.

After the Great Recession, many homeowners were left in negative equity situations but home price appreciation in the recovery period since then has given homeowners something to smile about.

The results from ATTOM fall right in line with data from the latest edition of the National Association of Realtors’ (NAR) Profile of Home Buyers and Sellers. Below is a chart that was created using NAR’s data to show the percentage of equity that homeowners earned at the time of sale based on when they purchased their homes.

Home Sellers in Q3 Netted $61K at Resale | Simplifying The Market

Even though those who purchased at the peak of the market netted less than those who bought before and after the peak, the good news is that there was a double-digit profit to be had! Many homeowners believe that they are still underwater which has led many of them to not even consider selling their houses.

Bottom Line

If you are curious about how much equity you’d earn if you sold your home, let’s get together to perform an equity review and determine the demand for your home in today’s market!

MESSAGE JOHN

Source: Michigan Real Estate Updates

2018 Summary of Buyer and Seller Trends

Each year the National Association of Realtors (NAR) assembles an informative report that summarizes national data concerning buying and selling trends and characteristics for the current year. Below are 2 interesting infographics produced by NAR summarizing this data.

Some of these facts may seem logical yet others may surprise you.  The most important information we focus on is the impact these trends have on individual properties.  How does this trend affect the purchase or sale of the specific property you want to buy or sell?   To learn more about how these trends can affect your real estate goals, reach out and let’s discuss.

MESSAGE JOHN

How Will Home Sales Measure Up Next Year?

How Will Home Sales Measure Up Next Year?

How Will Home Sales Measure Up Next Year? | Simplifying The Market

There are many questions about where home sales are headed next year. We have gathered the most reliable sources to help answer this question. Here are our sources:

Mortgage Bankers Association (MBA) – As the leading advocate for the real estate finance industry, the MBA enables members to successfully deliver fair, sustainable, and responsible real estate financing within ever-changing business environments.

The National Association of Realtors (NAR) – The largest association of real estate professionals in the world.

Freddie Mac – An organization which provides liquidity, stability, and affordability to the U.S. housing market in all economic conditions extending to all communities from coast to coast.

Fannie Mae – A leading source of financing for mortgage lenders, providing access to affordable mortgage financing in all markets.

Here are their projections:

How Will Home Sales Measure Up Next Year? | Simplifying The Market

Bottom Line

Every source sees home sales growing next year. Let’s get together to chat about what’s going on in our neighborhood.

Now more than ever planning combined with the right marketing approach will make the difference. Let’s get together and discuss your real estate plans and the effect of these projects on successfully achieving your goals.

MESSAGE JOHNMESSAGE JOHN

Source: Michigan Real Estate Updates

399 S Ellsworth Petoskey – 27+ Acres 5 Bedrooms 3.5 baths

This custom Chateau style 2 story offers 5 Bedrooms, 3+ Baths with 27+ Acres of wooded acreage, private spring fed pond, and large pole barn. Perfect for your own retreat! Enjoy the majestic cathedral ceilings found in each ”turret” room. The quality craftsmanship throughout features the finest building material available including: interior and exterior custom trim of vertical grain redwood, stained cedar siding, quality decking, amazing attention to detail and each level is crafted to allow for all of the comforts you look for in your home. Energy efficiency is foremost with its 10” walls, LED recessed lighting, dual high efficiency furnaces and external wood boiler. Schedule your tour and see the numerous reasons this home stands apart.

399 S ELLSWORTH DETAILS

Island Retreat – Now Is The Time

1943 S Duck Bay Trail | Cedarville, MI 49719

Property Description

MOTIVATED SELLER – NOW IS THE TIME TO ACT  – 8.4 Acres on Marquette Island with over 896 feet of private waterfront on Duck Bay in the Les Cheneaux Islands of Lake Huron. Gorgeous pristine natural waterways offer the best of boating and nature. The Les Cheneaux Islands are known for their rich history providing calm waters off the Straights of Mackinac for boaters and outdoor enthusiasts. This one-of-a-kind site has kept its natural beauty while offering on-site electric, water, 2 log cabins, cook shelter and more. With several build sites opportunities this setting is perfect to enjoy as it is or for your dream home. The Les Cheneaux Islands is a boat friendly community offering several amenities within a short boat ride including restaurants, shopping, entertainment, golf and more. 8.4 Acres on Marquette Island with over 896 feet of private waterfront on Duck Bay in the Les Cheneaux Islands of Lake Huron. Gorgeous pristine natural waterways offer the best of boating and nature. The Les Cheneaux Islands are known for their rich history providing calm waters off the Straights of Mackinac for boaters and outdoor enthusiasts. Listen to the trees whisper in the wind while you enjoy your days fresh catch around an open fire. This one-of-a-kind site has kept its natural beauty while offering on-site electric, water, 2 log cabins, cook shelter and more. With several build sites opportunities this setting is perfect to enjoy as it is or for your dream home. Abundant with wildlife and peaceful calm that can only be found some of the most sought after and unique water in the Northern Hemisphere. The Les Cheneaux Islands is a boat friendly community offering several amenities within a short boat ride including restaurants, shopping, entertainment, golf and more. Contact listing agent John Rice, 616-951-4663, for your private tour today.

NOTE: Seller is open to dividing the property and Land Contract Terms are available

1943 S DUCK BAY TRAIL DETAILS