Nearly 80% of Americans say now is a good time to sell a house, according to a recent survey from the National Association of Realtors. This may be good news for buyers. These days, there are more home buyers than there are homes for sale, which is the primary factor causing prices to rise. But rising prices have also caused homeowners to think about the benefits of selling their home. And, if the results of the NAR’s Housing Opportunities and Market Experience survey are any indication, a growing number of them are beginning to consider putting their home on the market. If so, it’ll help provide additional choices for home buyers while also slowing the rate at which prices move upward. Lawrence Yun, NAR’s chief economist, says he believes American homeowners were waiting to see if the gains got any better before making a decision. “With prices having risen so quickly, many consumers were deciding to wait to list their homes hoping to see additional price and equity gains,” Yun said. “However, with indications that buyers are beginning to pull out, price gains are going to decelerate and potential sellers are considering that now is a good time to list and bring more properties to the market.” More here.
Number Of Sellers Reducing Their Price Increases
Naturally, potential home buyers become more concerned about affordability conditions as prices and mortgage rates rise. And since the past few years have seen both things happen, there’s been increasing concern about whether or not now is a good time to buy a house. That’s not to say there hasn’t been demand for homes. In fact, there are plenty of interested buyers and not enough homes to accommodate them, which is why prices have been rising in the first place. But recently, there’s been more data suggesting that home prices are beginning to soften. In fact, one recent report shows that 26.6 percent of homes listed for sale in September dropped their price, which is a nearly 5 percent increase from the same time last year. That’s good news for buyers, as is the fact that price drops have been showing year-over-year improvement since the end of March. Added to the fact that mortgage rates, while higher than last year, are still well below what is historically normal, the news about home prices means affordability may, once again, be moving in a more balanced direction and one that benefits buyers. More here.
Financial Security Boosts Housing Sentiment
It’s said that there are two sides to every story. But there are also two sides to the calculations potential home buyers undergo when deciding whether or not it’s a good time for them to look for a new house. After all, buyers have to take into consideration the cost of homes in the areas they’re looking to live but also their own financial security. That’s why Fannie Mae’s most recent Home Purchase Sentiment Index is encouraging. Because, though Americans have concerns about housing affordability, they are feeling confident financially and secure in their jobs. In fact, the number of survey respondents who said they aren’t concerned about losing their job rose 15 percent over the month before and those reporting that their income is higher than it was 12 months earlier hit a new survey high. Doug Duncan, Fannie Mae’s chief economist, says Americans are feeling the effects of a stronger economy. “Consumers are attuned to the divergence between the slowing housing market and strong macro economy,” Duncan said. “Consumers were less optimistic this month about both home buying and home selling conditions, while perceptions of income growth and confidence about job security are at survey highs.” More here.
Few Buyers Research Their Prospective Neighborhood
Choosing a house to buy is an important decision. After all, you’re committing a lot of money and several years of your life to a particular property. And so, home buyers tend to know what they want, whether it be a large kitchen, an appealing outdoor space, or an ample amount of storage. But surprisingly, large majorities of home buyers spend too little time paying attention to the neighborhood surrounding the home they’re considering. And, make no mistake, the neighborhood you move to will play an important role in how much you enjoy your new home. Surrounding amenities, schools, and safety are just a few of the factors that can lead to a case of buyer’s remorse. And, according to a recent survey, there are lot of buyers who’ve experienced just that. In fact, 36 percent of respondents said they’d have chosen a different neighborhood had they known more about the one they moved to. One reason this is so common is the number of buyers who do very little neighborhood research before buying. For example, less than half of recent home buyers searched photos of different parts of the neighborhood, visited hot spots, researched police reports, or took a trip to the area after dark. If you want to be certain you’re making a smart choice, do your homework and consider the area outside your potential new house just as much as you do the inside. More here.
Where Buyers Are Stretching Their Budgets Most
When calculating how much house you can comfortably afford, there are a few commonly cited rules that can be used. Among them, the one that says your home’s price shouldn’t be more than three times your annual income is popular. Of course, there are many other factors that play a role, including the amount of debt you have, your retirement goals, other expenses, etc. However, as a simple rule, it can be a good way to quickly come up with a ballpark price range before you work out the fine details. Using a variation on this rule, a recent study took data from the Home Mortgage Disclosure Act and looked at the median amount home buyers borrowed and compared it to borrowers’ median income to calculate how and where buyers were pushing their financial limits to purchase a house. The results, in all but a few cases, weren’t that surprising. That’s because the cities where home buyers had to stretch the most were mostly out West, including Los Angeles, San Francisco, Denver, and Seattle. However, though rust-belt metros like Cleveland, Detroit, and Buffalo were the least leveraged, the middle of the pack included places like Atlanta, Orlando, Chicago, Dallas, and Houston, which might not be the first places thought of when listing affordable areas to buy a house. More here.
HOW TO HURRICANE-PROOF YOUR HOME
Whether you are evacuating from the area or sheltering in place, performing a general assessment of your home and making it hurricane-ready is always the best plan. To prepare your home for hurricane season we suggest you perform an inspection of your property, get the supplies needed to strengthen your home, and talk with your insurance provider to ensure you have proper coverage.
The strong winds present during Hurricanes Matthew in 2016 lead to extensive property damage throughout Chatham County. Many of the ancient oak trees and tall Georgia pines found throughout the area were toppled over with their root system exposed. Before a hurricane strikes, be sure to remove or trim any dead or diseased tree limbs that are hanging over your house or garage. Ensure that trees that can reach your home are healthy and, if they are not, have them removed.
Take time now to do a quick home assessment for any outdoor hazards or repairs that need to be made. Make a list of any work that needs to be done outside as well as any openings to your home that could be penetrated by wind or rain. Check all outside entry doors to ensure they are securely fastened to their frame. If you have a garage door, ensure that you have a brace to help secure it against the strong winds seen during tropical storms and hurricanes. If strong winds are able to breach the garage door the only direction the wind can travel is up, which could remove the roof of your home.
By assessing your property, you could potentially save your home during a hurricane. The other benefit to assessing your home now is that it gives you the time you need to make repairs and purchase supplies. Before a storm hits, many stores sell out of essential items for protecting homes. Purchasing supplies early can save time, money, and ensure you have the products you need to secure your home
Did you know that most homeowner’s and renter’s insurance policies do not include flood insurance? This means that without a separate flood policy, you may be responsible for covering all hurricane-related flood damage out-of-pocket. This could leave you and your family in a tough situation. Given that flooding due to storm surge and heavy rain is one of the leading causes of damage during a hurricane, we urge you to do an insurance checkup. To do this, simply review your homeowner’s or renter’s insurance policy or call your insurance provider to ask if you have adequate coverage and a flood insurance policy. If you need coverage, CLICK HERE. FEMA provides the National Flood Insurance Program to help connect you to local flood insurance agents. Having flood insurance is a vital step in being prepared for hurricane season; act now- flood insurance policies require a 30 day waiting period. Also, it is important to note that flood zones for Chatham County are freshwater ratings, this means that they rate the risk of flooding from rain only and do not take into consideration the risk of rising saltwater flooding from storm surge. If you live in Chatham County you live in a storm surge zone and are at risk of saltwater flood damage. To see what evacuation zone you live in and what your storm surge risk is, CLICK HERE.
Lastly, when filing an insurance claim after a storm, insurance companies may ask for documentation of damages; this includes damage to your home, property, and belongings. One of the easiest things you can do to make this process smoother is to document your home on a regular basis. Documenting your home consists of taking photos and/or videos of your property, home, and belongings. This way you have proof of what you own and what condition your home was in prior to the storm.
By strengthening your home and checking in with your insurance provider now, you are helping to strengthen our community.
Please check out our September Newsletter!!
