Category Archives: Market Conditions

How Rising Prices Will Help You Build Family Wealth In 2018

legacy-rising prices

Over the next five years, home prices are expected to appreciate on average by 3.35% per year and to grow by 24.34% cumulatively, according to Pulsenomics’ most recent Home Price Expectation Survey.

So, what does this mean for homeowners and their equity position?

As an example, let’s assume a young couple purchases and closes on a $250,000 home this month (January). If we only look at the projected increase in the price of that home, how much equity will they earn over the next 5 years?

legacy-rising prices graph

Since the experts predict that home prices will increase by 4.2% in 2018, the young homeowners will have gained $10,500 in equity in just one year.

Over a five-year period, their equity will increase by nearly $45,000! This figure does not even take into account their monthly principal mortgage payments. In many cases, home equity is one of the largest portions of a family’s overall net worth.

What does this mean to you?

Not only is homeownership something to be proud of, but it also offers you and your family the ability to build equity you can borrow against in the future. If you are ready and willing to buy, find out if you are able to today!

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Longmont’s Tower Of Compassion Helps Tell One Local Family’s History

legacy-kanamoto cover

Cover photo: John Clark Helzer

Longmont has a rich, diverse history and one local Japanese family has made a large impact on our community – an impact that led to the construction of one of Longmont’s most unique structures.

It all started in 1908, when a young Japanese immigrant left his home in Hiroshima, Japan and headed to Mexico. That young man, Goroku Kanemoto, began working for the railroad, and on a trip heading north to Canada, he hopped off the train in the Denver area to try his hand at farming Colorado’s fertile soil.

Goroku married a young woman, Setsuno Nakasaki, also from Hiroshima. The marriage was arranged by his parents, and she was sent to live with him in Colorado. The two had three children, Jimmie, George, and Faith, and in 1919, settled in the Longmont, Colorado area. They rented a farm where they grew sugar beets and vegetables, saving up to one day own their own farm.

In 1935, Goroku died in an automobile accident and his oldest son Jimmie took over the family business. Both Jimmie and his younger brother George worked hard to support their family. The Kanemotos eventually purchased land in south Longmont where they farmed for nearly 30 years, selling their fresh produce at their South Main Street roadside market, Freshway Market.

legacy-kanemoto market

The Kanemoto’s Freshway Market in the 1950s (Photo Courtesy: Longmont Museum & Cultural Center)

Jimmie and George continued the family business of farming while starting other ventures. In the mid-1960s, they opened Kane Manufacturing and Supply Company and built a 700-home subdivision, known as Southmoor Park. The neighborhood included a shopping center and apartments, capitalizing on the growth brought by new construction of the nearby IBM and Federal Aviation Administration facilities.

The brothers donated land back to the City of Longmont near the Southmoor Park neighborhood in 1966. The City decided to make the land a park, and Jimmie and George asked that it be named after their father, so the seven-acre Kanemoto Park was established. The brothers continued to give back to the Longmont community donating land for a fire station, St. Stephen’s Episcopal Church, the St. Vrain Greenway, a Buddhist temple, a school administration building and Burlington Elementary School.

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Aerial view of Southmoor Park in 1963 (Photo: Longmont Museum & Cultural Center)

In 1972, the Kanemoto brothers commissioned the Tower of Compassion, located in Kanemoto Park. The five-story tower was built in the traditional style of a Japanese temple, and each level represents the meaning of compassion – Love, Empathy, Understanding, Gratitude, and Selfless Giving. The tower was donated to the City of Longmont with gratitude from the Kanemoto family for the kindness the community showed the family during World War II, when most Japanese immigrants were forced into internment camps.

Jimmie Kanemoto died in 2006, Faith passed away in 2007, and George died in 2009. Today, the Kanemoto family continues to reside in Longmont, and many family members have been actively involved in the community. When you visit Longmont, make the Tower of Compassion a must-see on your itinerary.

Legacy-tower of compassion

Longmont’s Tower of Compassion (Photo: L. Nathan Pulley Photography)

 

article shared from visitlongmont .com

 

 

Home Design Trends That Defined 2017

2018

From techniques to make listing photos pop to methods for staging small spaces, these were the design crazes that made the biggest difference in home sales. We strived to offer both news and practical advice in our home and design section throughout the year, but we also kept an eye on forthcoming trends. As you can see, our roundup of 2018 design trends—which was published only this month—quickly became our most popular design article of the year.

What’s Hot: Trends in the Pipeline for 2018
The housing trends on tap next year center around integrating technology and creating healthy and connected living environments. Here are the need-to-know products and services promising to transform homes and your clients’ lifestyles over the next year or so.

Staging for a Cozy, Minimalist Look
Real estate agents often have to work with either barren rooms or sloppy, overstuffed spaces. But what’s truly attracting the most buyers is a deft balance of tidy austerity and a comfortable, lived-in feel. Here are five recommendations to strike the right tone.

How to Make a Big Statement With a Small Yard
Not everyone dreams of a lush and sprawling backyard, so playing down diminutive outdoor space in your listing could be a missed opportunity to connect with a buyer who sees a postage-stamp lawn as a plus. Here’s how to make a splash with the most compact outdoor spaces.

4 Surefire Tips for Better Listing Photos
Interior shots pose a variety of photographic challenges that are difficult for amateur photographers. Real estate pros shouldn’t be expected to transform overnight into professional camera wielders, but you can benefit from a few tricks and some decent equipment.

These Doors Can Modernize Your Listing’s Look
The front door has always had a starring role in a home’s curb appeal. But lately, the doors inside a home are getting a closer look for their ability to add style and address design challenges. Consider these simple yet elegant options for dividing a space while earning design points.

—REALTOR® Magazine/DAILY REAL ESTATE NEWS

 

 

Appealing to Investors: ‘Emerging’ Markets Show Strength

Downtown Nashville Tennessee Skyline

Housing markets in the three largest metropolitan areas—Chicago, Los Angeles and New York—have always attracted capital, eagerly handed over by investors recognizing profit potential, safety and security. Now, according to new research, other major metro areas are diverting the flow, drawing increased investment in real estate.

The common denominator? Economies flourishing with jobs and skilled workers.

“The growing interest in smaller cities by real estate investors is influenced by their relative affordability, coupled with a concentration of young, skilled workers,” says Mitch Roschelle, co-publisher of “Emerging Trends in Real Estate® 2018″ by PwC and the Urban Land Institute (ULI), and partner with PwC. “The diverse, robust economies of these smaller cities make them very desirable to investors.”

A barrier, for one, has been eliminated. Investors have become knowledgeable about markets outside the usual vehicles, according to PwC and the ULI. These other markets, also, have been less saturated with supply.

Additionally, cities with growth are ideal for investors because returns could parallel their trajectory. The cities with high interest from investors, “Emerging Trends” shows, are (in order): Seattle, Wash.; Austin, Texas; Salt Lake City, Utah; Raleigh-Durham, N.C.; Dallas-Ft. Worth, Texas; Ft. Lauderdale, Fla.; Los Angeles, Calif; San Jose, Calif; Nashville, Tenn.; and Boston, Mass. While Los Angeles appears in the top 10, the real story is in the others.

For No. 1 Seattle, challenging conditions exist.

“The booming employment market in Greater Seattle has brought multiple years of double-digit [home] price growth and less than two months’ [housing] inventory available,” says Sam DeBord, managing broker of the Seattle Homes Group and vice president of Strategic Growth with Coldwell Banker Danforth. According to Zillow, home prices in Seattle have soared 12.4 percent year-over-year.

The influx of newcomers, DeBord says, is piling onto the severe shortage.

“Since our building hangover from the last downturn, the region just hasn’t been able to keep up with growing demand for more housing units,” says DeBord. “Seventy-thousand-plus people are moving into King County every year, while we’re only permitting 10,000 new homes per year. The demand will continue to make rents and prices rise.”

Constraints in housing are not just plaguing Seattle. In Raleigh (No. 4), homebuyers are facing a fast-moving market.

“The Raleigh-Durham area is and has been one of the fastest-growing cities in the U.S. thanks to the economic growth, weather, affordability and quality of life,” says Ryan Fitzgerald, owner of Raleigh Realty. “The growth in Raleigh-Durham has translated to a real estate market with home prices appreciating at a fast rate, especially in the high-demand neighborhoods and locations.”

Fitzgerald says Raleigh-Durham is mirroring another market ranked by PwC and the ULI: Austin.

“If you have watched how Austin, Texas, grew in the last 20 years, you will notice that Raleigh-Durham is following a similar trend,” says Fitzgerald. “The rougher neighborhoods with great locations are exploding with relocating millennials, who are willing to sacrifice neighborhood identity for convenience, location and affordability—and their bets are paying off. As a relocating millennial myself, I targeted the East Downtown Raleigh area for my first home purchase, and my property has doubled in value in two years.”

In nearby Nashville (No. 9), however—newer to the scene—inventory is largely keeping pace.

“Land is a precious commodity [in Nashville], but it’s being used and we’re selling it like crazy,” says Carrie Zeier, CEO and owner of RE/MAX Elite. “I think Nashville has done a great job of staying ahead of the curve and planning for that [demand], because prices of homes are very healthy.”

Nashville has advantages both economically and location-wise, Zeier says.

“We’ve always been known as Music City—[in 2016] at least 6,000 employees made up the entertainment and music industry here,” says Zeier. “Healthcare is another driver, as well as manufacturing and tourism and hospitality. For years, we would lose out on big corporations that went to Atlanta, Austin or even Charlotte. We’re winning those now, and that’s because of our low cost of living and the ease of doing business here.”

All told, investors have not been deterred—and, despite high prices and limited supply, the forecast is sunny. According to PwC and the ULI, the investor outlook for the markets in the top 10 has risen 12 percent in four years.

“There’s no financial indicator that says Seattle is in a bubble,” DeBord says. “Unlike the last bubble, buyers today are paying cash, have good jobs, large down payments and high credit ratings. Even with high prices, interest rates have remained low. Seattle’s job market will continue to attract people from all over the world, and our housing crunch will continue. We’ll likely see a slight slowdown in appreciation with high single-digit price growth, and a continued focus on building more housing units of all varieties to accommodate our growing population.”

There is the chance for a downturn, but one investors can withstand if they get in early and at a good price.

“There’s always a correction in the market in real estate—there always has and always will be,” Zeier says. “Nashville was the last to go into that recession and really one of the first to come out of it.”

“Real estate investors should be keeping a close eye on Durham,” Fitzgerald says. “This city is a few years behind Raleigh and offers many opportunities that might have already passed in other areas. You can still buy a great home in walking distance to all Durham has to offer for under $150,000—[but] the city offers too much for these prices to stay this low much longer.”

Overall, investor focus is shifting. Cities like Nashville, Raleigh, Seattle and others are establishing precedent.

“The trend of smaller markets displacing larger ones as investment hubs is setting a new course for urban development that is reshaping cities across the nation,” says Patrick L. Phillips, global CEO of the ULI. “These cities are positioning themselves as highly competitive in terms of livability, employment offerings, and recreational and cultural amenities.”

article written by Suzanne De Vita as RISMedia’s online news editor.

Borrowers More Cautious as Rates Rise

mortgage tiles

Mortgage rates inched higher last week, prompting more buyers and homeowners to retreat from taking out loans.

Total mortgage application volume, which includes refinancing and home purchases, dropped 2.6 percent last week on a seasonally adjusted annual basis, the Mortgage Bankers Association reported Wednesday. The index is now 20 percent lower than a year ago.

Refinancing saw the largest drop last week at 5 percent. Refinancing applications are 38 percent lower than the same week a year ago, when interest rates were lower.

Mortgage applications for home purchases dropped 1 percent during the week. However, purchase applications are still 10 percent higher than a year ago.

The average on a 30-year fixed-rate mortgage rose to its highest level since July last week at 4.22 percent, the MBA reports.

“Rates increased last week as speculation over the next Fed chair continued, and the European Central Bank announced plans to taper its asset purchase program, signaling increased confidence in the euro zone economies,” says Joel Kan, an MBA economist.

However, investors are feeling confident the Fed won’t move rates at its next meeting and will instead choose to do so at its December meeting, writes Matthew Graham, chief operating officer of Mortgage News Daily. Instead, investors are more closely watching President Donald Trump’s pick to replace current Federal Reserve chair Janet Yellen. He’s expected to make his announcement on Thursday.

Source: “Weekly Mortgage Applications Fall 2.6% as Rates Move Even Higher,” CNBC (Nov. 1, 2017)

article written by DAILY REAL ESTATE NEWS and shared from RealtorMag

Double-Digit Growth in the Wild West: Is a Bubble Next?

Row of new houses painted various colors in Seattle WA

Demand is forcing home prices out West to keep ticking up, even though the home-buying and -selling season is winding down, according to the September Zillow® Real Estate Market Report. Appreciation is highest in the San Jose, Calif., and Seattle, Wash., metropolitan areas, where prices have rocketed (in order) 10.3 percent, to a median $1,052,500, and 12.4 percent, to a median $455,800, year-over-year. Appreciation nationally is 6.9 percent, to a median $202,700.

Rents out West are also on a swift upswing. Rents in Riverside, Calif. have climbed 6.0 percent year-over-year—the most of the metro areas in the report—to a median $1,833. Rents in Seattle have gone up 5.5 percent to a median $2,189; rents in Portland, Ore., have increased 4.7 percent to a median $1,863; and rents in Los Angeles, Calif., have risen 4.5 percent to $2,714. Appreciation nationally is 2 percent, to a median $1,430.

“In these West Coast markets, heightened demand is being met with limited supply of homes for sale, which naturally causes prices to rise,” says Dr. Svenja Gudell, chief economist at Zillow. “That limited supply and high demand dynamic is a widespread phenomenon impacting high-growth metros like Seattle, as well as slower-moving markets, like Indianapolis.

“It might be easy to assume another bubble is emerging, with home values growing 10 or 12 percent per year, but don’t worry—the market is reacting to basic economic laws, and is behaving exactly the way we would expect it to given good overall growth, limited supply of homes for sale and decent housing affordability thanks to low mortgage interest rates,” Gudell says.

Nationally, there are now 12 percent fewer homes for sale compared to one year ago, the report shows.

Zillow_Sept_17

 

article written by Suzanne De Vita, RISMedia’s online news editor.

Solutions To Saving Money On Your Next Move

Digital Image by Sean Locke Digital Planet Design www.digitalplanetdesign.com

Buying a house and moving in is gonna cost you. There’s no way around it. Right? Well, actually, there may just be a way to make it not quite so painful. A willingness to negotiate and put in a little work plus a little inside info on special deals you can take advantage of can help you cut some costs. Here are eight ways to save money on your move and move in.

1. Don’t take it all with you

Furniture you’re no longer in love with or appliances like washers and dryers or the fridge you have in the garage can be a pain to move. You can potentially save money (and time and hassle) by including them in your home sale. First-time buyers or someone moving from out of state may appreciate your old stuff far more than you, and you don’t have to pay to haul it to your next place.

2. Leave the flat screen

If you have a mounted flat screen TV that’s at least a few years old, consider leaving it behind too. The cost of taking it down and repairing the wall behind it plus the care involved in moving it might not be worth it. Flat-screen technology is always improving while costs are coming down, so it’s a good excuse to buy something bigger and better without spending a lot.

3. Negotiate everything

If you’ve been looking for a house or have bought one before, you’re probably already aware of closing costs. But you might not be aware of how much you can negotiate with your lender.

“Shop around before choosing a mortgage lender, but don’t stop there,” said Bankrate. “When you receive your good faith estimate  of closing costs, or GFE, the negotiation hasn’t ended.” This itemized list of estimated closing costs includes lender’s fees as well as items such as appraisal charges and title insurance premiums.

“The lender or broker charges some fees, and third parties charge others. The first step is to find out which are loan origination fees and which are third-party fees. Don’t guess. Ask the lender or broker.”

Bankrate advises that while “some items are non-negotiable: taxes, city and county stamps, recording fees, prorated interest and reserves,” negotiating on others that can “be waived or reduced” can save you money.”

4. Barter for services

Need a handyman and have appliances or furniture you’re getting rid of? You just might be able to make a deal. Ask around for referrals and then introduce a barter system into the equation during your first conversation. You might be surprised what you can get for what you’ve already got.

5. Move Smart

Once you’re out of college, or maybe out of your first post-college apartment, thinking about renting a U-Haul and moving yourself (or with a few good friends) seems less than desirable. But if you’re willing to sweat a little (ok, a lot) you can save a bundle. Just remember two important things to entice and thank your friends: Pizza. And beer.

If you don’t want to do the whole thing on your own, think of ways you can save by doing a hybrid move:

  • Do the packing and unpacking yourself
  • Have everything on one floor. Stairs can add considerably to the cost of a move.
  • Pare down. Maybe you don’t need to bring all that stuff with you. Selling it will earn you a few bucks and save you a few more.

6. Consider moving and storage hybrid options

A company like PODS  or U-Pack  might be a solution for you if you need self storage wrapped into your move. Essentially, the company drops off a mobile storage unit at your house and you pack it up yourself. They then pick it up and move it for you. You can tack on storage at the end if needed, making this a particularly good solution for those who have time between their move out and their move in. This type of move can cost up to 35 percent less than traditional movers, but keep in mind you will be doing the labor – just not the driving.

7. Take advantage of special offers

Move-in offers for cable, Internet, and phone service can save you a lot of money. But they often come with a catch that could cost you down the line. Look out for special limited-time offers – one-year or six-month specials that expire, leaving you with much higher rates after the introductory period.

8. Don’t rush the renos

Chances are, after you move in, you’re going to start receiving all kinds of junk mail asking if you want to refi, redo your lawn, and apply for 72 different credit cards. In what seems like an endless pile of junk mail will be some special offers for new homebuyers, but they might not arrive for a month or more. Look out for coupons from handymen, companies selling flooring and window coverings, home furnishing companies like Bed Bath and Beyond and World Market, and offers from landscapers with discounts for new clients. If you’re planning to shop, renovate, or do some work on your interior or exterior, taking advantage of a few of these offers can help shave down the cost.

WRITTEN BY JAYMI NACIRI and shared from RealtyTimes

5 Ways Your Listing Can Go Cold in a Hot Market

truth homeowner equity

Sometimes a great listing hits the market and just doesn’t sell. The reasons may be easy to pinpoint, but other times it takes some work to determine what the problem is. Here are some of the biggest reasons your listing may be stagnating on the market.

Clutter
First impressions are everything; if a potential buyer walks into a listing that has clutter everywhere, they can’t truly visualize and see the home for what it truly is. Buyers can’t fall in love with a house that has clutter everywhere. Make sure your listing isn’t buried under furniture, knick-knacks, papers and laundry. Also make sure everything from the floor, ceiling, and walls is spick and span.

liv 5

Staging
If clutter is not the issue but your listing is still not selling, you may want to consider staging. Staging has been found to not only decrease the amount of time a listing spends on the market, but also increase the selling price. Find staging tips here.

Price
The initial listing price of a home is instrumental in how quickly it sells. Many sellers assume setting the price high and coming down later or being willing to accept a reasonable counter-offer if they don’t get much traction is a safe way to ensure they get the highest price for their home. In reality, starting with a high listing price just ensures that the buyers who are most compatible with the listing either don’t see it or move on because it’s outside what they’re comfortable paying. The buyers who are looking at homes for the price you set will see that there are other houses at the same price with more expensive upgrades.

Details
If the price is right and your listing is squeaky clean and clutter-free, you may want to check your listing details. For example, an extra zero can turn your $450,000 listing into a $4,500,000 listing, where it’s probably not going to get much traction. Double-check to make sure your information is accurate, make sure the description is interesting and informative, and your photos are professional and numerous. View a list of powerful words you can use in your listing description.

Disrepair
If everything else seems in order and your listing still isn’t selling, the problem may be the house itself. According to the 2016 NAR Profile of Home Buyers and Sellers, only 19 percent of buyers were willing to compromise on the condition of the home. Major repairs, such as a new roof or updated water heater, may be necessary to attract a buyer.

 

 

Article written By Mark Mathis, General Manager of Broker and Agent Sales for Homes.com and shared from RISMedia

The Truth About Homeowner Equity

truth homeowner equity

A recent article from a reputable news source was titled: Here’s why some homeowners still can’t sell. In the opening bullets of the article, the author claimed, “Negative equity is one of the main reasons why there are so few homes for sale.” The article then goes on to soften that stance but we want to bring better clarity to the equity situation.

A recent report from CoreLogic (which was quoted in the article) revealed that over 80% of all homes now have “significant equity,” which means the home has over 20% equity. That level of equity allows the homeowner to sell their home if they so desire. (There was no reference to significant equity in the article.)

If eight out of ten homeowners now have significant equity in their homes, it is hard to make the claim that lack of equity is “one of the main reasons why there are so few homes for sale.”

Here is a map showing the percentage of homes in each state which currently have significant equity:

The Truth About Homeowner Equity | Keeping Current Matters

Thoughts on Homeowner Equity

If you are one of many homeowners who is debating selling your home and are wondering how much equity you have accumulated, contact a local real estate professional who can help you determine if now is the time to list.

How To Get The Most Money From The Sale Of Your Home

money for home

Every homeowner wants to make sure they maximize their financial reward when selling their home. But how do you guarantee that you receive maximum value for your house? Here are two keys to ensure that you get the highest price possible.

1. Price it a LITTLE LOW 

This may seem counterintuitive. However, let’s look at this concept for a moment. Many homeowners think that pricing their home a little OVER market value will leave them room for negotiation. In actuality, this just dramatically lessens the demand for your house (see chart below).

How to Get the Most Money from the Sale of Your Home | Keeping Current Matters

Instead of the seller trying to ‘win’ the negotiation with one buyer, they should price it so that demand for the home is maximized. By doing this, the seller will not be fighting with a buyer over the price, but will instead have multiple buyers fighting with each other over the house.

Realtor.com gives this advice:

“Aim to price your property at or just slightly below the going rate. Today’s buyers are highly informed, so if they sense they’re getting a deal, they’re likely to bid up a property that’s slightly underpriced, especially in areas with low inventory.”

2. Use a Real Estate Professional

This, too, may seem counterintuitive. The seller may think they would make more money if they didn’t have to pay a real estate commission. With this being said, studies have shown that homes typically sell for more money when handled by a real estate professional.

A new study by Collateral Analytics, reveals that FSBOs don’t actually save any money, and in some cases may be costing themselves more, by not listing with an agent.

In the study, they analyzed home sales in a variety of markets in 2016 and the first half of 2017. The data showed that:

“FSBOs tend to sell for lower prices than comparable home sales, and in many cases below the average differential represented by the prevailing commission rate.”

The results of the study showed that the differential in selling prices for FSBOs when compared to MLS sales of similar properties is about 5.5%. Sales in 2017 suggest the average price was near 6% lower for FSBO sales of similar properties.

Final Thoughts

Price your house at or slightly below the current market value and hire a professional. This will guarantee that you maximize the price you get for your house.