Where is the Real Estate Market Going?

As everyone tries to guess where the market is going, we wanted to share some information from a recent publication as well as the thoughts of our listing specialist, Sandy Erickson.

Here is the summary of the press release in the latest edition of the Home Price Expectations Survey that has just been published.

  • Among the more than 100 experts surveyed in the Zillow Home Price Expectations Survey, a majority said they don’t expect the housing market to normalize for at least three more years.
  • More than 100 expert panelists predict that U.S. home values will end 2014 up an average of 4.8 percent from 2013, to a median value of $176,760.
  • On average, respondents said they expect home values to exceed their pre-recession peak in February 2018.
  • In the longer term, respondents are most concerned by low household formation rates, would-be first-time buyers in a weak financial position and demographic changes that are affecting the housing market.

Sandy Erickson’s professional summary:

  • After 6 years of strong depreciation (30-40% from 2006 to 2012), we experienced 18-24 months of strong appreciation (15%+ from 2012-fall of 2014) and are in a market now where the appreciation is leveling off to be what everyone use to consider “normal appreciation”…around 4%.  I think that is great news!  Who wants to experience double digit increases if it means we have to lose in the double digits as well?!  Have we all gained back what we have lost?  NO.  According to the general statistics in this article, we need a few more years to get there…I agree with that on average in the Twin Cities area.  Certainly some areas did better and some did worse during the down turn, but on average we are not yet back to pre-recession values.  However, if a seller is buying right after their sale then the house they are buying is in the same market so it’s all relative anyway!
  • It’s a great time to be selling or buying a home right now!  Homes priced right and that show well are still selling in a short amount of time.  Home prices and interest rates are still lower than they could be for buyers.  Inventory will likely start to “go on sale” as sellers and realtors realize that appreciation is normalizing.
  • After 8 years of craziness, this is no market to complain about for either a buyer or a seller!  And, who knows what the future really holds…could be better next year, could be the same, and could be worse.  You can’t time any market perfectly because you don’t know exactly where you are at in it until it is behind us.  The best time always to sell or buy is when you are personally ready!

Thanks for taking the time to understand the market.

HOW TO SPOT AN OVERPRICED HOME

shutterstock_3291389

Looking for a house to buy that suits you and your needs can be a daunting, time-consuming task that involves a large financial commitment. And because of this, you need to make sure that you are paying a fair price for a house that you want to buy.

Overpricing a home is one of the biggest mistakes sellers can make. It is important to list your home with a fair and competitive price and just as important, buyers need to know how to spot an overpriced home.  Here’s a checklist to guide you to be able to spot an overpriced home.

DAYS ON THE MARKET. If the house has been on the market for quite a considerable time, it’s an indication that the house might be overpriced. Competitively priced homes tend to bring more offers and tend to sell quickly. That said, be sure to look at the market history of the home to see if they have reduced the price. Also consider the absorption rate of the neighborhood. Some areas move more quickly than others, so a “long” time is relative to the surrounding market.

COMPARABLE PRICES.  One indicator of a home’s value is looking at the listing price of other homes in the same neighborhood. Find out what neighboring properties are selling for or look for homes that was recently sold and for how much. Homes that are in the same neighborhood with similar amenities generally have similar pricing.

CONDITIONS OF A HOUSE. A home that has been updated and cared for meticulously will be worth more than a home that is outdated or unkempt because of the renovation cost. Conditions that would cause a house to be lower includes outdated fixtures, awkward floor plan, rotted fencing, and other obviously needed repairs.

LOCATION. It’s a real estate cliché that location is everything. Location can affect the price of the home. A home is generally worth less if it’s located where schools are poorly rated, located near busy traffic, or neighborhood is filled with unappealing homes. Homes typically have higher values if it’s located near waterfronts, schools are highly rated and or the neighborhoods are associated with newly built homes.

If you are looking to buy a new home or you need help fairly pricing your home for sale, please let us know! Send us an email or give us a call!

Sandy Erickson Real Estate Team of Keller Williams Realty
Direct: 651-269-3487
Email: Sandy@SandyErickson.com
Website: <http://www.ericksonteamhomesearch.com/>

5 Reasons Why You Should Sell Your House During the Winter Season

Winter is not traditionally regarded as being the best time to put a property on the market, so most sellers opt to wait until Spring arrives when they expect greater interest from buyers. But times have changed! Spring tends to be the busiest time for real estate overall, but that does not make it the best time to sell. Why?

  • With fewer listings to choose from in the winter, your home faces less competition then during the busy Spring season. This increases the chances that showings will turn into offers. You can expect a flood of new inventories in the first quarter of 2015 and as supply increases, the likelihood of you getting an offer at an acceptable price decreases.
  • Buyers have more time to look for homes when they are likely to have time off work
  • Some people are eager to buy before the end of the year for tax reasons
  • People who look for homes now are serious buyers! They won’t be dissuaded by the weather like “Spring shoppers” who are just curious, but not really looking to buy.
  • Buyer’s emotions tend to run high during this season as they look for a new home to celebrate the Holidays in. You can help garner these warm feelings by having a decorated home ready to show off just how welcoming your home really is.
  • Interest rates remain incredibly low this year. Savvy buyers will be taking advantage of this while it lasts. By Spring, the interest rates may be rising! Lower interest rates also allow buyers to afford a more expensive home than they could with high interest rates – a win-win for both buyers and sellers!

Winter is not the dead zone of real estate anymore! Call me today to learn what your home is worth! 651-269-3487 or fill out the form at: http://sandyerickson.com/atj/user/CMAFormGetAction.do Take advantage of the market this winter!