In a year full of uncertainty, agents have mastered how to make it safe to engage in a real estate transaction, and technology is leading the way. DM me to learn how options like virtual home tours can make your buying experience a safe and successful one.
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At the onset of the economic disruptions caused by the COVID pandemic, the government quickly put into place forbearance plans to allow homeowners to remain in their homes without making their monthly mortgage payments. Today, almost three million households are actively in a forbearance plan. Though 29.4% of those in forbearance have continued to stay current on their payments, many have not.
Yanling Mayer, Principal Economist at CoreLogic, recently revealed: “A distributional analysis of forborne loans’ payment status reveals that more than one third (39.1%) of all forborne loans are now 150+ days behind payment, while as many as 1-in-4 (25.5%) are 180+ days past due.” These homeowners have been given permission to not make their payments, but the question now is: how many of them will be able to catch up after their forbearance program ends? There’s speculation that a forthcoming wave of foreclosures could be the result, and that could lead to another crash in home values like we saw a decade ago. However, today’s situation is different than the 2006-2008 h ousing crisis as many homeowners have tremendous amounts of equity in their homes. What are the experts saying? Over the last 30 days, several industry experts have weighed in on this subject. Michael Sklarz, President at Collateral Analytics: “We may very well see a meaningful increase in the number of homes listed for sale as these borrowers choose to sell at what is arguably an intermediate top in the market and downsize to more affordable homes rather than face foreclosure.” Odeta Kushi, Deputy Chief Economist at First American: “The foreclosure process is based on two steps. First, the homeowner suffers an adverse economic shock…leading to the homeowner becoming delinquent on their mortgage. However, delinquency by itself is not enough to send a mortgage into foreclosure. With enough equity, a homeowner has the option of selling their home, or tapping into their equity through a refinance, to help weather the economic shock. It is a lack of sufficient equity, the second component of the dual trigger, that causes a serious delinquency to become a foreclosure.” Don Layton, Senior Industry Fellow at the Joint Center for Housing Studies of Harvard University: “With a greater cushion of equity, troubled homeowners have dramatically improved options: a greater ability to access funding (e.g. home equity lines) to keep paying monthly expenses until family finances might recover, improved ability to qualify for and support a loan modification, and, if push comes to shove, the ability to sell the home and monetize their increased net worth while reducing monthly payment obligations. So, what should lenders and servicers expect: a large number of foreclosures or only a modest increase? I believe the latter.” With today’s positive equity situation, many homeowners will be able to use a loan modification or refinance to stay in their homes. If not, some will go to foreclosure, but most will be able to sell and walk away with their equity. Won’t the additional homes on the market impact prices? Distressed properties (foreclosures and short sales) sell at a significant discount. If homeowners sell instead of going into foreclosure, the impact on the housing market will be much less severe. We must also realize there is currently an unprecedented lack of inventory on the market. Just last week, realtor.com explained: “Nationally, the number of homes for sale was down 39.6%, amounting to 449,000 fewer homes for sale than last December.” It’s important to remember that there weren’t enough homes for sale even then, and inventory has only continued to decline. The market has the potential to absorb half a million homes this year without it causing home values to depreciate. Bottom Line The pandemic has led to both personal and economic hardships for many American households. The overall residential real estate market, however, has weathered the storm and will continue to do so in 2021. SOURCE KCM #DistressedProperties #Shortsales #Foreclosures #SimardRealtyGroup
2021 will be a great year to buy a home. Let's connect to make sure you're ready for success in today's housing market.
#TopGranbyRealtor #StephenSimard #ExpRealty #GranbyRealEstate #GranbyConnecticut #FindyourGranbyhome #Newhomesforsale #SimardRealtyGroup #Granbyhomesforsale #JoinExpRealty #Simsburyhomes SHOW LESS According to many experts, the real estate market is expected to continue growing in 2021, and it’s largely driven by the lasting impact the pandemic is having on our lifestyles. As many of us spend extra time at home, we’re reevaluating what “home” means and what we may need in one going forward.
Here are 4 reasons people are reconsidering where they live and why they’re expecting to buy a home this year. 1. Record-Low Mortgage Interest Rates In 2020, the average interest rate for a 30-year fixed mortgage hit a record low 16 times, continuing to fall further below 3%. According to Freddie Mac, the average 30-year fixed interest rate today is 2.65%. Many wonder how low these rates will go and how long they’ll last. Len Keifer, Deputy Chief Economist for Freddie Mac, advises: “If you’ve found a home that fits your needs at a price you can afford, it might be better to act now rather than wait for future rate declines that may never come and a future that likely holds very tight inventory.” This sense of urgency is driving many to buy this year. 2. Working from Home Remote work is a new normal for many businesses, and it’s lasting longer than most expected. Many in the workforce today are discovering they don’t need to live close to the office anymore and they can get more for their money by moving a little further outside of the city limits. David Mele, President at Homes.com, says: “The surge in the work-from-home population has rewritten the playbook for many homebuying and rental decisions, from when and where to relocate, to what people are looking for in their next residence.” The reality is, for some people, working remotely in their current home is challenging, especially when there may be other options available. 3. More Outdoor Space Another new priority for homeowners is having more usable outdoor space. Being at home is driving those in some areas to seek less densely populated neighborhoods so they have more room to stretch their legs. In addition, those living in apartments and townhomes are often looking for extra square footage, both inside and out. According to the State of Home Spending report by HomeAdvisor, of the households surveyed, almost half reported spending 27% more on outdoor living over the past year. This is a trend that’s expected to grow in 2021 and beyond. 4. Avoiding Renovations It’s recently come to light that many homeowners would also rather buy a new home than go through the process of fixing up the one they have. According to the 2020 Profile of Home Buyers and Sellers report from the National Association of Realtors (NAR), 44% of homebuyers purchased a new home to “avoid renovations or problems with the plumbing or electricity.” Depending on what needs to be addressed, today’s high buyer demand may make it possible to skip some renovations before selling. Many of these homeowners have prioritized buying over renovating for convenience and potential cost savings. Bottom Line It’s clear that homeownership needs are changing. As a result, Americans are expected to move in record numbers this year. If you’re trying to decide if now is the right time to buy a home, contact a local real estate professional today to discuss your options. SOURCE KCM #ForBuyers #InterestRates #SimardRealtyGroup There continues to be good news about today’s homebuying process. A recent survey found that right now, buyer’s remorse is rare, which means this is the chance to have #noregrets about a home purchase. DM me to learn why today’s market is so promising for homebuyers.
#expertanswers #stayinformed #staycurrent #powerfuldecisions #confidentdecisions #realestate #realestatenews #realestateagent #realestateexpert #realestateagency #realestateadvice #realestatetipsoftheday #realestatetipsandadvice #keepingcurrentmatters According to the latest CoreLogic Home Price Insights Report, nationwide home values increased by 8.2% over the last twelve months. The dramatic rise was brought about as the inventory of homes for sale reached historic lows at the same time buyer demand was buoyed by record-low mortgage rates. As CoreLogic explained: “Home price growth remained consistently elevated throughout 2020. Home sales for the year are expected to register above 2019 levels. Meanwhile, the availability of for-sale homes has dwindled as demand increased and coronavirus (COVID-19) outbreaks continued across the country, which delayed some sellers from putting their homes on the market. While the pandemic left many in positions of financial insecurity, those who maintained employment and income stability are also incentivized to buy given the record-low mortgage rates available; this is increasing buyer demand while for-sale inventory is in short supply.” Where will home values go in 2021? Home price appreciation in 2021 will continue to be determined by this imbalance of supply and demand. If supply remains low and demand is high, prices will continue to increase. Housing SupplyAccording to the National Association of Realtors (NAR), the current number of single-family homes for sale is 1,080,000. At the same time last year, that number stood at 1,450,000. We are entering 2021 with approximately 270,000 fewer homes for sale than there were one year ago. However, there is some speculation that the inventory crush will ease somewhat as we move through the new year for two reasons: 1. As the health crisis eases, more homeowners will be comfortable putting their houses on the market. 2. Some households impacted financially by the pandemic will be forced to sell. Housing DemandLow mortgage rates have driven buyer demand over the last twelve months. According to Freddie Mac, rates stood at 3.72% at the beginning of 2020. Today, we’re starting 2021 with rates one full percentage point lower than that. Low rates create a great opportunity for homebuyers, which is one reason why demand is expected to remain high throughout the new year. Taking into consideration these projections on housing supply and demand, real estate analysts forecast homes will continue to appreciate in 2021, but that appreciation may be at a steadier pace than last year. Here are their forecasts: Bottom Line
There’s still a very limited number of homes for sale for the great number of purchasers looking to buy them. As a result, the concept of “supply and demand” mandates that home values in the country will continue to appreciate. SOURCE KCM #InterestRates #SimardRealtyGroup #Pricing #SimardRealtyGroup What’s today’s biggest housing market challenge? There just aren’t enough homes for sale and buyers are scooping them up faster than they’re coming to market. If you’re thinking of making a move this year, DM me and we’ll walk through all the wins for sellers that may tip in your favor while inventory is historically low.
#sellyourhouse #housinginventory #inventoryshortage #realestate #homeownership #realestatelife #realestatenews #realestateagency #realestateadvice #realestateexperts #instarealestate #realestatetipsandadvice #justsold #keepingcurrentmatters Some Highlights
SOURCE KCM #BuyingMyths #FSBO #SellingMyths #SimardRealtyGroup #StephenSimard If one of the questions you’re asking yourself is, “Should I sell my house this year?” consumer sentiment about selling today should boost your confidence in the right direction. Even with the current health crisis that continues to challenge our nation, Americans still feel good about selling a house. Here’s why.
According to the latest Home Purchase Sentiment Index from Fannie Mae, 57% of consumer respondents to their survey indicate now is a good time to buy a home, while 59% feel it’s a good time to sell one: “The percentage of respondents who say it is a good time to sell a home remained the same at 59%, while the percentage who say it’s a bad time to sell decreased from 35% to 33%. As a result, the net share of those who say it is a good time to sell increased 2 percentage points month over month.” As you can see, many still believe that, despite everything going on in the world, it is still a good time to sell a house. Why is now a good time to sell? There simply are not enough homes available to meet today’s buyer demand, and they’re selling just as quickly as they’re coming to the market. According to the National Association of Realtors (NAR), unsold inventory available today sits at a 2.3-month supply at the current sales pace, which is down from a 2.5-month supply from the previous month. This record-low inventory is not even half of what we need for a normal or neutral housing market, which should have a 6.0-month supply of unsold inventory to balance out. With so few homes available for buyers to choose from, we’re in a true sellers’ market. Homeowners ready to make a move right now have the opportunity to negotiate the best possible contracts with buyers who are feeling the pull of intense competition when it comes to finding their dream home. Lawrence Yun, Chief Economist for NAR, notes how quickly homes are selling right now, further confirming the benefits to sellers this season: “The market is incredibly swift this winter with the listed homes going under contract on average at less than a month due to a backlog of buyers wanting to take advantage of record-low mortgage rates.” However, this sweet spot for sellers won’t last forever. As more homes are listed this year, this tip toward sellers may start to wane. According to Danielle Hale, Chief Economist at realtor.com, more choices for buyers are on the not-too-distant horizon: “The bright spot for buyers is that more homes are likely to become available in the last six months of 2021. That should give folks more options to choose from and take away some of their urgency. With a larger selection, buyers may not be forced to make a decision in mere hours and will have more time to make up their minds.” Bottom Line If you’re ready to make a move, you can feel good about the current sentiment in the market and the advantageous conditions for today’s sellers. Contact a local real estate professional today to determine the best next step when it comes to selling your house this year. SOURCE KCM #ForSellers #SellingMyths #SimardRealtyGroup In the digital age, being able to leverage modern technology to offer homebuyers the information they find most useful is one of the trademarks of a true real estate professional. If you’re getting ready to sell your house so we can put the best virtual plan in play to make it happen. having a pro on your side will make all the difference in maximizing the interest your house receives from buyers. DM me to learn more about how I can bring success to this process for you.
#digitaltools #sellyourhouse #realestate #homeownership #realestategoals #realestatetips #realestateagent #realestateexpert #realestatemarket #realestateexperts #instarealestate #realestatetipsoftheday #realestatetipsandadvice #justsold #keepingcurrentmatters |
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