Cape Coral Real Estate BlogRecently posted or modified blog posts in the category - Selling Your Homehttps://www.sunshinesherry.com/blog/Copyright SunshineSherry.com2023-07-11T10:16:42-07:00tag:sunshinesherry.com,2012-09-20:22331A Look at Home Price Appreciation Through 2025A Look at Home Price Appreciation Through 2025
<img width="750" height="410" src="https://files.mykcm.com/2021/07/02143314/20210706-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="A Look at Home Price Appreciation Through 2025 | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2021/07/02143314/20210706-KCM-Share.jpg 750w, https://files.mykcm.com/2021/07/02143314/20210706-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2021/07/02143314/20210706-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
Home prices have increased significantly over the last year, which in turn has grown the net worth of homeowners. Appreciation and home equity are directly linked – as the value of a home increases, so does a homeowner’s equity. And with these recent gains, homeowners are witnessing their financial stability and well-being grow to <a href="https://www.simplifyingthemarket.com/2021/06/23/homeowner-wealth-increases-through-growing-equity-this-year/?a=587680-734f8a5eaa98ed5a3a2370082a3553ef" title="record levels" target="_blank" rel="noopener noreferrer">record levels</a>.
In more good news for homeowners, the most recent Home Price Expectations Survey – a survey of a national panel of over one hundred economists, real estate experts, and investment and market strategists – <a href="https://pulsenomics.com/surveys/#home-price-expectations" title="forecasts" target="_blank" rel="noopener noreferrer">forecasts</a> home prices will continue appreciating over the next five years, adding to the record amount of equity homeowners have already gained over the past year. Below are the expected year-over-year rates of home price appreciation from the report:<a href="https://files.simplifyingthemarket.com/2021/07/02143316/20210706-MEM-Eng-1.png?a=587680-734f8a5eaa98ed5a3a2370082a3553ef" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-98476" src="https://files.mykcm.com/2021/07/02143316/20210706-MEM-Eng-1.png" alt="A Look at Home Price Appreciation Through 2025 | MyKCM" width="600" height="450" /></a>
What Does This Mean for Homeowners?
Home prices are climbing today, and the data in the survey indicates they’ll continue to increase, but at rates that approach a more normal pace. Even still, the amount of household wealth a homeowner stands to earn going forward is substantial. This truly becomes clear when we consider a scenario using a median-priced home purchased in January of 2021 and the projected rate of appreciation on that home over the next five years. As the graph below illustrates, a homeowner could increase their net worth by a significant amount – over $93,000 dollars by 2026.<a href="https://files.simplifyingthemarket.com/2021/07/02143318/20210706-MEM-Eng-2.png?a=587680-734f8a5eaa98ed5a3a2370082a3553ef" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-98477" src="https://files.mykcm.com/2021/07/02143318/20210706-MEM-Eng-2.png" alt="A Look at Home Price Appreciation Through 2025 | MyKCM" width="600" height="450" /></a>
Home Price Appreciation and Home Equity
CoreLogic recently released their quarterly <a href="https://www.corelogic.com/intelligence/homeowner-equity-insights/" title="Homeowner Equity Insights Report" target="_blank" rel="noopener noreferrer">Homeowner Equity Insights Report</a>, which tracks the year-over-year increases in equity. It shows an average annual gain of $33,400 per borrower over the past 12 months. In the report, Dr. Frank Nothaft, Chief Economist for CoreLogic, further explains:
"Double-digit home price growth in the past year has bolstered home equity to a record amount. The national CoreLogic Home Price Index recorded an 11.4% rise in the year through March 2021, leading to a $216,000 increase in the average amount of equity held by homeowners with a mortgage.”
The expected, sustained growth of home prices means homeowners can continue to build on the past year’s record levels of home equity – and their financial prosperity. It also presents today’s homeowners with a unique opportunity: using their growing equity for a home upgrade. With so few homes available to purchase and strong buyer demand, there may not be a better time to <a href="https://www.simplifyingthemarket.com/2021/06/16/dont-wait-to-sell-your-house/?a=587680-734f8a5eaa98ed5a3a2370082a3553ef" title="sell your current house" target="_blank" rel="noopener noreferrer">sell your current house</a> and move into one that better meets your needs.
Bottom Line
Home prices are expected to continue appreciating over the next five years, and the associated equity gains are the quickest way homeowners can build household wealth. If you're a current homeowner who’s ready to take advantage of your built-up equity, give me a call or shoot me a text today to discuss your options.
2022-09-24T08:51:00-07:002023-07-11T10:16:42-07:00Sherry Puchacztag:sunshinesherry.com,2012-09-20:223684 Major Incentives To Sell This Summer4 Major Incentives To Sell This Summer
<img width="750" height="410" src="https://files.mykcm.com/2021/07/06144227/20210712-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="4 Major Incentives To Sell This Summer | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2021/07/06144227/20210712-KCM-Share.jpg 750w, https://files.mykcm.com/2021/07/06144227/20210712-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2021/07/06144227/20210712-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
While the housing market forecast for the <a href="https://www.simplifyingthemarket.com/2021/06/30/what-do-experts-see-on-the-horizon-for-the-second-half-of-the-year/?a=587680-734f8a5eaa98ed5a3a2370082a3553ef" title="second half" target="_blank" rel="noopener noreferrer">second half</a> of the year remains positive, there may not be a better time to sell than right now. Here are four things to consider if you’re trying to decide if now’s the right time to make a move.
1. Your House Will Likely Sell Quickly
According to the most recent <a href="https://www.nar.realtor/research-and-statistics/research-reports/realtors-confidence-index" title="Realtors Confidence Index" target="_blank" rel="noopener noreferrer">Realtors Confidence Index</a> released by the National Association of Realtors (NAR), homes continue to sell quickly. The report notes homes are selling in an average of just 17 days.
Average days on market is a strong indicator of buyer competition, and homes selling quickly is a great sign for sellers. It’s one of several factors that indicate buyers are motivated to do what it takes to purchase the home of their dreams.
2. Buyers Are Willing To Compete for Your House
In addition to selling fast, homes are receiving multiple offers. NAR <a href="https://www.nar.realtor/research-and-statistics/research-reports/realtors-confidence-index" title="reports" target="_blank" rel="noopener noreferrer">reports</a> sellers are seeing an average of 5 offers, and these offers are competitive ones. Shawn Telford, Chief Appraiser at CoreLogic, <a href="https://www.seattletimes.com/business/homebuyers-increasingly-willing-to-pay-above-asking-price/" title="said" target="_blank" rel="noopener noreferrer">said</a> in a recent interview:
“The frequency of buyers being willing to pay more than the market data supports is increasing.”
This confirms buyers are ready and willing to enter <a href="https://www.simplifyingthemarket.com/2021/06/21/5-things-homebuyers-need-to-know-when-making-an-offer/?a=587680-734f8a5eaa98ed5a3a2370082a3553ef" title="bidding wars" target="_blank" rel="noopener noreferrer">bidding wars</a> for your home. Receiving several offers on your house means you can select the one that makes the most sense for your situation and financial well-being.
3. When Supply Is Low, Your House Is in the Spotlight
One of the most significant challenges for motivated buyers is the current inventory of homes for sale, which while improving, remains at near-record lows. As NAR <a href="https://www.globenewswire.com/news-release/2021/06/22/2251149/0/en/Existing-Home-Sales-Experience-Slight-Skid-of-0-9-in-May.html" title="details" target="_blank" rel="noopener noreferrer">details</a>:
“Total housing inventory at the end of May amounted to 1.23 million units, up 7.0% from April's inventory and down 20.6% from one year ago (1.55 million). Unsold inventory sits at a 2.5-month supply at the present sales pace, marginally up from April's 2.4-month supply but down from 4.6-months in May 2020.”
There are signs, however, that more homes are coming to market. Odeta Kushi, Deputy Chief Economist at First American, <a href="https://twitter.com/odetakushi/status/1407344750534041615" title="notes" target="_blank" rel="noopener noreferrer">notes</a>:
“It looks like existing inventory is starting to inch up, which is good news for a housing market parched for more supply.”
If you’re looking to take advantage of buyer demand and get the most <a href="https://www.simplifyingthemarket.com/2021/05/13/your-house-could-be-the-oasis-in-an-inventory-desert/?a=587680-734f8a5eaa98ed5a3a2370082a3553ef" title="attention" target="_blank" rel="noopener noreferrer">attention</a> for your house, selling now before more listings come to the market might be your best option.
4. If You’re Thinking of Moving Up, Now May Be the Time
Over the past 12 months, homeowners have gained a significant amount of wealth through growing equity. In that same period, homeowners have also spent a considerable amount of time in their homes, and many have decided their house doesn’t meet their needs.
If you’re not happy with your current home, you can leverage that equity to power your move now. Your equity, plus current low mortgage rates, can help you maximize your <a href="https://www.simplifyingthemarket.com/2021/03/30/how-a-change-in-mortgage-rate-impacts-your-homebuying-budget/?a=587680-734f8a5eaa98ed5a3a2370082a3553ef" title="purchasing power" target="_blank" rel="noopener noreferrer">purchasing power</a>.
But these near-historic low rates won’t last forever. Experts forecast interest rates will increase in the coming months. Nadia Evangelou, Senior Economist and Director of Forecasting at NAR, <a href="https://www.nar.realtor/blogs/economists-outlook/instant-reaction-mortgage-rates-june-17-2021" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“Nevertheless, as the economic outlook for the United States looks brighter for the rest of the year, mortgage rates are expected to rise in the following months.”
As interest rates rise, even modestly, it could influence buyer demand and your purchasing power. If you’ve been waiting for the <a href="https://www.simplifyingthemarket.com/2021/05/06/why-waiting-to-buy-a-home-could-cost-you-a-small-fortune/?a=587680-734f8a5eaa98ed5a3a2370082a3553ef" title="best time to sell" target="_blank" rel="noopener noreferrer">best time to sell</a> to fuel your move up, you likely won’t find more favorable conditions than those we’re seeing today.
Bottom Line
With supply challenges, low mortgage rates, and extremely motivated buyers, sellers are well-positioned to take advantage of current market conditions right now. If you’re thinking about selling, let’s connect today to discuss why it makes sense to list your home sooner rather than later.
2021-07-12T06:35:00-07:002021-07-12T06:38:56-07:00Sherry Puchacztag:sunshinesherry.com,2012-09-20:18546Why You Should Consider Selling in the Winter<img src="https://assets.site-static.com/userfiles/3175/image/selling-in-the-winter-attracts-serious-buyers.jpg" alt="Selling In Winter Attracts Serious Buyers" title="Selling In Winter Attracts Serious Buyers" height="410" width="750" />
The season you sell your home can have an impact on how much you get for your home and how quickly it sells. The season that has the most success in selling homes is spring. This is a good time of year for families moving to new school districts and is also more convenient weather for moving. Because of this trend, most people will recommend waiting to list your home until after the winter is over. Avoiding the winter is a huge misconception in the housing industry and can cause homeowners to miss out on opportunities.
Selling in the winter can give you a few advantages. There will be fewer houses on the market since most people assume winter is a bad time to sell. This gives your home more attention. Potential buyers are always looking no matter the time of year. Keeping your house on the market in the winter might bring the right buyer to your door. Real estate agents also tend to be less busy during these months and commit more time to getting your home sold.
Studies have shown winter buyers are buying because they need to move right away either for a relocation or personal situation. They will want to close quickly and allow for a much smoother sale.
Bottom Line
If you need to sell your home right away, or have some time but want to see what is out there, consider listing in the winter. Most homeowners who are going to sell will list their home in the spring, making for a competitive market. The winter allows buyers who are in a hurry to move consider your home and sell for more money than you would have in the spring.2021-01-11T13:11:00-07:002021-06-08T07:34:13-07:00Sherry Puchacz