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:
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.
An increase in burglaries during the summer months means it’s time to help safeguard your clients’ homes while they’re away for the season or absent while selling. Ooma, a smart home phone and security company, offers six tips for preventing break-ins.
- Front door surveillance. Because 34 percent of break-ins happen through the front door of a home, recommend that your clients install a smart doorbell that routes to their phone. Other security options Ooma mentions include two-way speakers that will give visitors the impression the owner is home, or video cameras so your clients can see who’s at the door from their phone.
- Secured windows. The second most common break-in location is a first floor window, the access point of 23 percent of burglars. Ooma recommends installing sash locks and wireless motion sensors that will alert the homeowner if a window is opened or broken.
- Don’t forget the AC unit. Pushing in a window air conditioning unit is another common break-in method. Suggest motion sensors near the AC unit, or tell your clients to remove the unit while they’re away, Ooma says.
- Barring patio and sliding glass doors. Sliding doors should not only be locked, but should also have a barrier bar in the tracks. Ooma suggests homeowners place motion detectors in this area as well.
- Leave the lights on. The goal is to make the home appear lived in, even if your clients are vacationing or have already moved out. Ooma recommends smart lights that homeowners can control from their phone, or at the very least, light timers.
- Call 911 from afar. A homeowner trying to reach the police from a remote location can take valuable minutes. Home security companies, including Ooma, offer remote 911 calling.
Source: Ooma Home Security
Shared from DAILY REAL ESTATE NEWS
With summer upon us and many taking vacations, it’s important that you keep your home secure, especially while your home is listed on the market. This list is a good start to a safe home. Remember to always verify with your Listing Company who is showing your home!
“In many ways, housing is an invisible crisis,” says Jonathan Reckford, CEO of Habitat for Humanity International. “There are still too many families without access to safe, secure, and affordable housing. This survey highlights the value all of us place on a decent place to call home and underscores the critical need to increase access to affordable housing.”
According to the survey, nine out of 10 Americans say owning a home is one of their greatest achievements in life. Also, 68 percent of U.S. renters say owning a home is one of their chief goals, according to the survey. PSB, on behalf of Habitat for Humanity, surveyed 1,000 people in the U.S. and Canada to gauge their perceptions of and challenges to affordable housing.
Ninety-one percent of American homeowners credited owning a home with making them more responsible, and 44 percent said it helped them build a nest egg. Forty-one percent say homeownership has given them stability.
But homeownership remains out of reach for many. Nine out of 10 Americans and Canadians say it’s important to find solutions to the lack of affordable housing. At 59 percent, concerns regarding U.S. affordability in particular easily topped other housing issues like safety (16%) and quality (11%).
One major barrier to homeownership cited among survey respondents: the high costs of rent. Eighty-four percent of survey respondents said the high cost of rent was preventing them from buying, followed by 75 percent who said obtaining a mortgage was proving to be a big barrier.
Many of the survey respondents said they’ve struggled to pay housing costs at some point in their life. Among U.S. respondents, 27 percent of respondents said they struggled to pay housing costs in their 20s; 22 percent in their 30s; 11 percent in their 40s; and 9 percent in their 50s.
Source: “Nine Out of 10 Americans and Canadians Call for Affordable Housing Solutions,” Habitat for Humanity (June 20, 2017)
Shared from DAILY REAL ESTATE NEWS
It seems hard to believe in our market here in Colorado and how housing prices have been increasing over the past 3 years but here is a short list of areas in the country where housing prices are actually dropping.
Investors are scouring real estate markets looking for low-priced homes, and they’re increasingly stepping on the toes of first-time buyers, who are hunting in the same price range. “The investor is starting to gobble up pretty much anything under $200,000,” Dennis Cisterna, chief revenue officer for Investability Real Estate, which markets rental homes, told The Dallas Morning News. “We are not adding any new supply to the market to serve that first-time home buyer.”
Housing inventories are at the lowest level in 30 years, and the shortages are most pronounced in the low and middle price ranges. “We are losing inventory at a record pace and in the segment of the market with the most demand,” says Javier Vivas, a realtor.com® analyst.
Investors comprised 33 percent of all single-family and condo sales in 2016, the highest percentage ever recorded by real estate data firm ATTOM Data Solutions. “This is setting the stage for a boom in single-family rentals,” says Daren Blomquist, an economist at ATTOM.
But while institutional investors dominated the rental housing market after the housing crash, they’re increasingly being priced out of markets such as Denver and Dallas. Smaller mom-and-pop investors are now stepping in to take their place. “The investors are competing for those starter homes,” Blomquist says, adding that 61 percent of investor purchases are for homes between 1,000 and 2,000 square feet.
Investors also tend to pay cash, which is making it difficult for first-time buyers who need financing to compete. About 19 million single-family homes in the U.S. are now owned by investors, according to ATTOM Data Solutions.
Source: “First-Time Buyers Hunting Affordable Housing are up Against Property Investors … and Losing,” The Dallas Morning News (June 16, 2017)
Shared from: DAILY REAL ESTATE NEWS
This article is great as it describes the fact that First Time Homebuyers are being forced out of the market. This is due largely because housing values are increasing so significantly and buyer’s aren’t able to qualify for the average sale price of homes in the Front Range area. We are finding that an FHA loan or even a low down-payment conventional financed loan cannot compete against an investor cash offer who will use the home as a rental property. I am seeing a large percentage of investors taking their money out of their stock market investment portfolios and reinvesting in real estate.
Highest Sales Total Since 2008! …and Counting
Well, it’s official. The 999 total sales so far this year makes this the highest volume sales year since 2008. And barring the end of world on December 21st, we will beat 2008 too, to end the year with the most sales in Longmont since 2007! In fact, even if the world ends, we should still beat the 2008 number of 1,021 before the 21st.
This year has continually been one of surprises. Every month when I pull these numbers, create these reports, and write this commentary, there is another amazing statistic. This month, look at the sales total for single family homes in Longmont for the month of November. 86! When I did the October report, The Predictor gave a prediction of 77 sales in November. I didn’t publish that number because I thought it was waaaay out of line and I didn’t want to look foolish. Wrong and wrong again. I’ll tell you what it says for December, but I will tell you now that I can hardly believe it because it resembles a mid-summer number. 94. There, I said it and now you can’t believe it either. If we hit that number the world may just explode from all the headaches, closings and family moves amidst the holiday shopping and cheer.
Just to let you know that the 86 sales in November is pretty much a modern-day record. I had to pull the old stack of dusty and yellowed stats reports from storage, which are remnants of stuff I saved from even before I was at Land Title, to find out how long it had been since we had sales that high. In 2004(!) we had 90 closed transactions in November. The world of real estate has surely changed since 2004, and we are crawling out of the worst recession the world has ever seen, so what’s going on here?One huge difference between our 86 today and 90 back then: new construction. We were building new homes all over the place back then. The absence of new home construction in 2012 makes 86 sales today even more remarkable.
Click on the Report format below to get your copy:
Oh, and how did I forget to mention inventory. Low inventory is something we have heard quite frequently over the past year or so. Well it isn’t low anymore, it’s extremely low! In fact, it’s the second lowest month for as far back as I have records, which go back to January of 2004 – That’s 9 YEARS! And the way the market was going back then (681 listings in 01/04), I’m sure that streak goes much further back. Currently, the 315 listings in Longmont actually net out quite a bit lower if you remove the homes that are under contract (which I never do for this report by the way) and you have an actual available pool of listings of 194. That kind of low listing inventory is concerning especially when we have such high sales months because it represents barely more than 2 months of inventory. I was figuring that those 194 listings might be the ones nobody wants or they might be the remaining homes that are overpriced and I just can’t find anything to prove these theories. Case in point: the 194 Active listings have an Average Days on Market of just 90 days…