THE BUZZ
We are heading into the spring buying season. With the wind of February and March at our backs and pushing the market upwards, I am expecting strong sales in the months ahead. Pending sales are at the highest level since June of 2013 in the West and Midwest. The Northeast and South have experienced small declines.
Lawrence Yun, the Chief Economist for the National Association of Realtors, says, "Pending sales are showing solid gains. A steadily improving labor market, mortgage rates hovering around 4% and the likelihood of more renters looking to buy bode well for the prospect of an uptick in sales in the coming months."
All good news except that inventory is low. First time home buyers are being particularly hit by the low availability of homes in lower price ranges. The demand is outweighing the supply in many markets, which drives prices up.
Total existing-home sales in 2015 are forecast to increase by 6.4% from 2014. The national median existing-home sales for all of this year is expected to increase around 5.6% according to the NAR. While buyer demand is high, it is a good time to sell. Of course, we may need to find your next purchase first. I'll help you play the game to win.
Q: What is a green home?
A: In popular vernacular, a green home is an energy efficient home. Newly built homes offer many environmentally friendly features that bring lower monthly costs. Energy efficiency that increases the desirability of a purchase include the following:
- Heating and cooling costs: 86%
- Appliances: 68%
- Energy efficient lighting: 66%
- Landscaping for energy conservation: 46%
- Solar panels: 11%
Many buyers want a green home but find them in demand and, therefore, pricey. But you can do lots to improve on efficiency of any residence. And if you are a seller, we can highlight any energy efficiency in your home in all of the listing marketing pieces to improve the value and price of your home in the eyes of buyers.
The American Society of Home Inspectors (ASHI) recently posted a checklist to help homeowners target areas that may need repairs. I found the following particularly interesting and important:
- Check the drainage of your home. A gutter that isn't draining correctly can cause water to enter a crawl space or basement. Ensure that all downspouts empty at least eight inches from the foundation and that drains are free of any debris.
- Perform a visual roof inspection. Look for loose, buckled, or cracked shingles that should be replaced. Also check the floating around chimneys, skylights, and plumbing vents. If your roof is more than 20 years old, you may want to have a roof inspection.
- Firewood should never be stored close to your home. It needs to be 24 inches from your house and 18 inches above the ground.
Democraphers refer to individuals born in the United States by generations.
2000 - 2015 = Generation Z
1980 - 2000 = Generation Y or Millenials
1965 - 1979 = Generation X
1946 - 1964 = Baby Boomers
1925 - 1945 = Silent Generation
1900 - 1924 = G.I. Generation
A recently released 2015 NAR Report shows trends by generations. Some interesting stats include the following:
- 13% of all buyers purchased a multi-generational home. The most common reasons for this living arrangement was children over 18 moving back into the house (37%) and aging parents moving into the home (21%).
- Generation Y comprises the largest share of homebuyers at 32%. Generation X made up 27% of all home buyers.
- Income peaks between the ages of 35 and 59. As the age increases for home buyers, the rate of owning more than one home also increases. The older the home buyer, the fewer compromises the buyer tends to make with his or her home purchase.
- For home buyers of all generations, the first step in the buying process is looking online for properties for sale. As age increases, the time a buyer spends searching for a home decreases. Buyers under 50 tend to search for a home for 11 weeks before buying. Buyers over 50 tend to look for 8 weeks and are more likely to turn to a realtor for help.
