#infographics #HousingMarketUpdates #SimardRealtyGroup #eXpRealty
No one knows for sure when the next recession will occur. What is known, however, is that the upcoming economic slowdown will not be caused by a housing market crash, as was the case in 2008. There are those who disagree and are comparing today’s real estate market to the market in 2005-2006, which preceded the crash. In many ways, however, the market is very different now. Here are three suppositions being put forward by some, and why they don’t hold up.
A critical warning sign last time was the surging gap between the growth in home prices and household income. Today, home values have also outpaced wage gains. As in 2006, a lack of affordability will kill the market.
The “gap” between wages and home price growth has existed since 2012. If that is a sign of a recession, why didn’t we have one sometime in the last seven years? Also, a buyer’s purchasing power is MUCH GREATER today than it was thirteen years ago. The equation to determine affordability has three elements: home prices, wages, AND MORTGAGE INTEREST RATES. Today, the mortgage rate is about 3.5% versus 6.41% in 2006.
In 2018, as in 2005, housing-price growth began slowing, with significant price drops occurring in some major markets. Look at Manhattan where home prices are in a “near free-fall.”
The only major market showing true depreciation is Seattle, and it looks like home values in that city are about to reverse and start appreciating again. CoreLogic is projecting home price appreciation to reaccelerate across the country over the next twelve months.
Regarding Manhattan, home prices are dropping because the city’s new “mansion tax” is sapping demand. Additionally, the new federal tax code that went into effect last year continues to impact the market, capping deductions for state and local taxes, known as SALT, at $10,000. That had the effect of making it more expensive to own homes in states like New York.
Prices will crash because that is what happened during the last recession.
It is true that home values sank by almost 20% during the 2008 recession. However, it is also true that in the four previous recessions, home values depreciated only once (by less than 2%). In the other three, residential real estate values increased by 3.5%, 6.1%, and 6.6%.
Price is determined by supply and demand. In 2008, there was an overabundance of housing inventory (a 9-month supply). Today, housing inventory is less than half of that (a 4-month supply).
We need to realize that today’s real estate market is nothing like the 2008 market. Therefore, when a recession occurs, it won’t resemble the last one.
#HousingMarketUpdates #MoveUpBuyers #SimardRealtyGroup #eXpRealty
Price Improved! 4 Randall Ave, East Granby now @ $275k!
Want a like new home? Come see 4 Randall Ave East Granby. This fabulous home has undergone a complete remodel and awaits a new lucky owner. Neutral fresh paint in all rooms. Great open floor plan with the kitchen open to the dining area and living room.
Want more photos and info about this gorgeous property? Click the link below:
#PriceReduced #4RandallAve #SellingCT #SimardRealtyGroup #eXpRealty
OPEN HOUSE SUNDAY! 258 Hartford Ave, East Granby, CT priced @ $217,500!
Drop by on Sunday, October 20, on 258 Hartford Ave, East Granby for an amazing Open House - starts at 12:30PM-2:00PM. Hope to see you!
"Come home to this well cared for ranch set on the East Granby/Granby line. On the main level find the eat-in kitchen with ample cabinet space, tiled backsplash, and stainless appliances. The first floor is complete with a dining room, full bath, and three good sized bedrooms. "
Read full property info here:
#OpenHouse #Hartford #SellingCT #SimardRealtyGroup #eXpRealty
If you’re searching for a home online, you’re not alone; lots of people are doing it. The question is, are you using all of your available resources, and are you using them wisely? Here’s why the Internet is a great place to start the home-buying process, and the truth on why it should never be your only go-to resource when it comes to making such an important decision.
According to the National Association of Realtors (NAR), the three most popular information sources home buyers use in the home search are:
Here are 3 top reasons why using a real estate professional in addition to a digital search is key:1. There’s More to Real Estate Than Finding a Home Online. It’s a lonely and complicated trek around the web if you don’t have a real estate professional to also help you through the 230 possible steps you’ll face as you navigate through a real estate transaction. That’s a pretty staggering number! Determining your price, submitting an offer, and successful negotiation are just a few of these key steps in the sequence. You’ll definitely want someone who has been there before to help you through it.
2. You Need a Skilled Negotiator. In today’s market, hiring a talented negotiator could save you thousands, maybe even tens of thousands of dollars. From the original offer to the appraisal and the inspection, many of the intricate steps can get complicated and confusing. You need someone who can keep the deal together until it closes.
3. It Is Crucial to Make a Competitive and Compelling Offer. There is so much information out there in the news and on the Internet about home sales, prices, and mortgage rates. How do you know what’s specifically going on in your area? How do you know what to offer on your dream home without paying too much or offending the seller with a lowball offer?
Dave Ramsey, the financial guru, advises:
“When getting help with money, whether it’s insurance, real estate or investments, you should always look for someone with the heart of a teacher, not the heart of a salesman.”
Hiring a real estate professional who has his or her finger on the pulse of the market will make your buying experience an informed and educated one. You need someone who is going to tell you the truth, not just what they think you want to hear.
Bottom LineIf you’re ready to start your search online, don’t skip over the support of an educated and informed real estate professional. You’ll want someone at your side who can answer your questions and guide you through a process that can be complex and confusing if you go at it with the Internet alone.
#ForBuyers #HousingMarketUpdates #RealEstateProfessional #SimardRealtyGroup #eXpRealty
Homes are selling quickly, and inventory is typically low during this time of year. If you're considering listing your house, let's connect so you can settle into your dream home before the holidays
**FOR SALE** 33 CANAL ST, WEATOGUE CT @ $515k!**
"Attractive well kept building with large front porch/entrance, plenty of parking, 3 car detached garage, and newer roof. Seconded floor boasts a two bedroom apartment which can be converted into additional office space."
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#CanalSt #Weatogue #SellingCT #ForSale #SimardRealtyGroup #eXpRealty
You’ve likely heard a ton about Millennials, but what about Gen Z? In the next 5 years, this generation will be between the ages of 23 and 28, and they’re eager to become homeowners faster than you may think.
According to realtor.com, “Nearly 80 percent of Generation Z members say they want to own a home before age 30,” and Concentrix Analytics said, “52% of prospective Gen Z buyers are already saving to buy a home.”
Wikipedia defines Generation Z (Gen Z) as “the demographic cohort after the Millennials. Demographers and researchers typically use the mid-1990s to mid-2000s as starting birth years.”
The report from Concentrix goes a little deeper on Gen Z, identifying the main reasons this cohort wants to own homes:
Although they’re eager to buy, this generation also perceives a few challenges ahead:
It is also interesting to note that 21% of Gen Zers think their parents will provide financial help, 17% will use a down payment assistance program, and 15% believe other family members will help them. One of the highlights of the report mentioned,
“More than half of Gen Zers who think they’ll receive help also think they will need to pay their parents back, compared to 40 percent of millennials.”
It is never too early to start saving for your own home, whether you are part of Gen Z or a different generation. If you would like to know where to start and how much you need to save to reach your goal of buying a home, contact a local real estate professional to help you to understand the process.
#Demographics #Forbuyers #Millennials #SimardRealtyGroup #eXpRealty
For Sale! 37 Salmon Brook St, Granby, CT priced at $224,950!
"Enjoy entertaining on the stamped concrete patio area with fire pit. New septic 2015. Located across from the farmington valley bike trail, close to all amenities, and Granby/Simsbury centers. Granby offers small town charm, easy access to farms, parks, and great schools. Schedule your private showing."
View more photos and info on this link:
#ForSale #SalmonBrook #SellingCT #SimardRealtyGroup #eXpRealty
The best time to sell anything is when demand for that item is high and the supply of that item is limited. The latest Existing-Home Sales Report released by the National Association of Realtors (NAR), reveals that demand for housing continues to be strong, but the supply is struggling to keep pace. With this trend likely continuing throughout 2020, now is a great time to sell your house.
THE EXISTING-HOME SALES REPORT
The most important data revealed in this report was not actually sales. In reality, it was the inventory of homes for sale (supply). The report explained:
According to Lawrence Yun, Chief Economist at NAR,
“Sales are up, but inventory numbers remain low and are thereby pushing up
In real estate, there is a simple guideline that often applies here. Essentially, when there is less than a 6-month supply of inventory available, we are in a seller’s market and we will see greater appreciation. Between a 6 to 7-month supply is a neutral market, where prices will increase at the rate of inflation. More than a 7-month supply means we are in a buyer’s market and can expect depreciation in home values (see below):
As we mentioned before, there is currently a 4.1-month supply of homes on the market, and houses are going under contract fast. The Existing Home Sales Report also shows that 49% of properties were on the market for less than a month when they were sold. In August, properties sold nationally were typically on the market for 31 days. As Yun notes, this should continue,
“As expected, buyers are finding it hard to resist the current rates…The desire to take advantage of these promising conditions is leading more buyers to the market.”
Takeaway: Inventory of homes for sale is still well below the 6-month supply needed for a normal market, and supply will fail to catch up with demand if a sizable supply does not enter the market.
If you are going to sell, now may be the time to take advantage of the ready, willing, and able buyers who are out there searching for your house to become their dream home.
#ForSellers #HousingMarketUpdates #TimeToSell #SimardRealtyGroup #joineXpRealty
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