Carolina Living Real Estate Can Help with homes of all sizes and prices!
Movies, tv shows, and celebrities often have us dreaming of owning large homes, but the reality for most people is quite different.
Since 2015, the square footage of newly built houses has been shrinking, according to Yahoo Finances. This is not projected to change as we continue into the beginning of the year.
“We expect this downsizing trend to continue in 2020, driven by a confluence of economic and demographic trends.”
Why are smaller homes trending now?
As noted in the article, there are a few main reasons for this demand:
“Many of today’s younger, millennial home buyers have expressed a preference for denser, more urban homes that are more walkable to shared amenities.”
“Today’s older homeowners are expressing a desire for smaller, less maintenance-heavy and more accessible (read: less stairs) homes as they age and move into newer homes.”
With these two demographic groups surging through the market, the demand for this type of home is rising. If you’re a homeowner with a smaller-scale house, now may be a great time to sell, as the demand for this end of the market is surely on the rise.
Bottom Line
The demand for smaller houses will continue to rise throughout 2020. Let’s get together to discuss what the housing inventory looks like in your neighborhood. It might be time for you to take advantage of this trend!
Contact Your Carolina Living Real Estate Agent to help your plans!
When closing out another year, it’s normal to wonder what’s ahead for the housing market. Though there will be future inventory issues, we expect interest rates to stay low and appreciation to continue.
Here’s what three experts are saying we’ll likely see in 2020:
“I think the biggest surprise from the forecast is how long the market is staying in this low inventory environment, especially as Millennials are in a major home-buying phase…sellers will contend with flattening price growth and slowing activity with existing home sales down 1.8%. Nationwide you can look to flat home prices with an increase of less than 1%.”
“If current trends hold, then slower means healthier and smaller means more affordable. Yes, we expect a slower market than we’ve become accustomed to the last few years…consumers will continue to absorb available inventory and the market will remain competitive in much of the country.”
As we can see, we’re still going to have a healthy market. It is forecasted to be a more moderate (or normal) market than the last few years, but strong enough for Americans to continue to believe in homeownership and to capitalize on the opportunities that come with low interest rates.
Bottom Line
If you’re wondering what’s happening in our local market, let’s get together today.
Call Carolina Living Real Estate for Comprehensive Review of Your Real Estate Needs!
This coming year the housing market will be defined by 3 things- inventory, interest rates, and appreciation. But the biggest issue the housing market will face in 2020 is an inventory shortage. There aren’t enough homes on the market for buyers, especially on the lower end of the market. This is a topic that has come up frequently within the past several months.
Based on what is forecasted, we know that interest rates are projected to remain low and that appreciation is expected to continue as we move into 2020. Additionally, the upcoming election will provoke many unique perspectives on the health of the US housing market. The challenge will be understanding what is actually happening and how you can best position yourself if you are thinking of buying or selling your home.
Here are several perspectives to consider on the inventory issue facing housing next year:
“Despite increases in new construction, next year will once again fail to bring a solution to the inventory shortage that has plagued the housing market since 2015. Inventory could reach a historic low as a steady flow of demand, especially for entry level homes, and declining seller sentiment combine to keep a lid on sales transactions.”
“Inventory has been falling annually for five straight months, after it recovered slightly toward the end of last year, due to a spike in mortgage rates. Rates began falling again by spring of this year. Homebuilders have been increasing production slowly, but it’s not enough to meet the increasingly strong demand.”
“As millennials — the largest cohort of buyers in U.S. history — embrace homeownership and take advantage of this year’s unexpectedly low mortgage rates, demand is outstripping supply, causing inventory to vanish. The housing shortage is felt acutely at the entry-level of the market, where most millennials are looking to break into the market for their first home.”
Bottom Line
The most important thing you can do is understand what is happening in your local market. You may not be able to avoid some of the issues brought on by low inventory, but you can be educated and prepared. Let’s connect and discuss the options that make the most sense for you and your family.
The world of insurance is often a confusing one. There are a lot of things to consider, and there is typically a lot of jargon involved that does little to clear things up. However, one thing we can all agree on is that insurance is necessary, and also that it can be expensive.
Beyond that, though, there are still a lot of questions.
One of the most common questions we find people ask about insurance, especially homeowners insurance, deals with the deductible. What is it? How does it work? How does it affect your premium? And, perhaps most importantly, when you’re choosing a policy, which deductible should you go for?
Answering all these questions will help you not only make a smart decision when it comes time to selecting a deductible, but it will also help you better understand homeowners insurance in general, which will make you a smarter shopper who is more capable of finding the best deal.
As Always, contact Carolina Living Real Estate for comprehensive real estate advice and assistance. We are professional, experienced, patient and knowledgeable.
If
you are in need of a home office space, consider a garage conversion. Atypical garage is a great size for
a nice home office where you can have some peace to get some work done. So,
follow these tips to convert your garage to an incredible home office.
What If You Don’t Have a
Garage?
If
you don’t have a garage (or your garage is just too full), but you have space
on your property for a small structure, you should consider erecting a
building. When building a structure to accommodate your dream office, you can
choose from a variety of different materials, the most popular choices being
wood and steel. Wood is definitely beautiful, and it’s also an energy-efficientnatural insulator. Wood also
absorbs sound rather than amplifying it, so it can minimize echo in office
spaces. On the other hand, rain and snow can cause wood to warp and rot. Also,termites, carpenter ants, and other
insects can damage wood frames.
Steel
is extremely strong and can withstand earthquakes, strong winds, and torrential
rains. When wet, it doesn’t warp, expand, or attract fungus. Steel is also not
flammable, and it’s resistant to insects. Steel buildings are typically faster and easier to erect than
wood structures because the steel parts are pre-cut and ready to assemble.
Whether
you are using your existing garage space or erecting a new building, these tips
will help you create a beautiful home office space.
Pick Your Flooring
Your
garage probably has a concrete floor, and you can just clean it, polish it, and
be done with it — or you can go a completely different route. Engineered wood,vinyl flooring, carpeting, and
ceramic tile are all suitable options for your home office. If you are
upgrading to one of these choices, you may need toinstall a subfloor before laying
down your new flooring.
Insulate and Drywall
If
the walls of your space aren’t finished, you’ll want to add insulation and
drywall. This is a great DIY project that most anyone who is handy can do.
You’ll need to fill in any cracks and gaps with expanding foam, add the fiberglass insulation, and then
screw and glue the drywall.Dumpsters.com offers detailed
instructions on how to insulate your garage.
Add Electrical Outlets and
Lighting
Your
garage may not be equipped with enough outlets for your home office. If you
need more outlets, call in the pros; electricity is not something you want to
mess around with if you don’t really know what you are doing. An electrician
can add additional overhead lighting to the space as well as a circuit to your
breaker panel if necessary.
Put in Heating and Cooling
The
pricey option would be to extend your existing HVAC system to an attached
garage space or add a new separate system to your detached building. The more
reasonable choice would simply be to use aspace heater in the winter and
portable air conditioner in the summer. Fortunately, you can find affordable
options at your home improvement store.
Get WiFi
Your
office definitely needs reliable internet service. Your home WiFi might work well
if you are converting an attached garage, but you may need to move the router
closer to the garage. However, if your home WiFi is too weak to reach your new
office space, you can buy a stronger router, a WiFi network extender, or a
powerline network adapter toget a better signal.
Converting
a garage to an office space doesn’t have to be time-consuming or expensive. And
now for the fun part: decorating. Check local furniture stores, estate sales,
and online shops to find furniture that fits your needs and your design style.
From modernstand-up desks to classic, stately
pieces, you are sure to find something you love. Add a cozy couch, fun wall décor,
and other accent furniture to make the space your own.
Let Carolina Living Real Estate Help You With Your Next Real Estate Decision
In today’s market, low inventory dominates the conversation in many areas of the country. It can often be frustrating to be a first-time homebuyer if you aren’t prepared. Here are five tips from realtor.com’s article, “How to Find Your Dream Home—Without Losing Your Mind.”
1. Get Pre-Approved for a Mortgage Before You Start Your Search
One way to show you’re serious about buying your dream home is to get pre-qualified or pre-approved for a mortgage. Even if you’re in a market that is not as competitive, understanding your budget will give you the confidence of knowing whether or not your dream home is within your reach. This will help you avoid the disappointment of falling in love with a home well outside your price range.
2. Know the Difference Between Your ‘Must-Haves’ and ‘Would-Like-To-Haves’
Do you really need that farmhouse sink in the kitchen to be happy with your home choice? Would a two-car garage be a convenience or a necessity? Before you start your search, list all the features of a home you would like. Qualify them as ‘must-haves’, ‘should-haves’, or ‘absolute-wish list’ items. This will help you stay focused on what’s most important.
3. Research and Choose a Neighborhood Where You Want to Live
Every neighborhood has unique charm. Before you commit to a home based solely on the house itself, take a test-drive of the area. Make sure it meets your needs for “amenities, commute, school district, etc. and then spend a weekend exploring before you commit.”
4. Pick a House Style You Love and Stick to It
Evaluate your family’s needs and settle on a style of home that will best serve those needs. Just because you’ve narrowed your search to a zip code doesn’t mean you need to tour every listing in that vicinity. An example from the article says, “if you have several younger kids and don’t want your bedroom on a different level, steer clear of Cape Cod–style homes, which typically feature two or more bedrooms on the upper level and the master on the main.”
5. Document Your Home Visits
Once you start touring homes, the features of each individual home will start to blur together. The article suggests keeping your camera handy and making notes on the listing sheet to document what you love and don’t love about each property you visit.
Bottom Line
In a high-paced, competitive environment, any advantage you can give yourself will help you on your path to buying your dream home.
Moving Homes: How to Get Comfortable in a New City
Moving is sometimes a necessary part of life.
While it can be exciting and adventurous, it can also be stressful to develop a
new routine in an unfamiliar city. To help avoid the added anxiety during this
process, make sure you go into it prepared.
Visit Before
the Move
The last thing you want is to move house, need
something badly that was forgotten, and not know where to buy a replacement.
With that in mind, Trulia suggests trying to visit your new place before you
move to get a feel for its ins and outs, as well as make note of local resources. For added support,
look to build a network there so you can
hit the ground running. If possible, ask friends, family, and even coworkers if
they know anyone who would like to meet up with you. Should they have a few
contacts you can use, you can chat with them before you deal with the chaos of
moving, and you’ll have someone to call if you need advice.
Prep
Your Home for Arrival
Of course, the best time to do any work on
your property is while it’s empty. So, if your house needs remodeling, attempt
to get everything done before it’s filled with your possessions. Then, it’s a
matter of prioritizing behind-the-scenes work over the
aesthetic tasks of new floors, counters, or a new coat of paint. If you need the
home rewired, for example, it could be
an extensive project since it involves upgrading the main service panel,
installing circuits for each appliance, and adding in electrical outlets.
Get
Into the Neighborhood
Getting used to your new area is especially
important if you havechildren andpets. To help them adjust to a
fresh routine and atmosphere, try taking them out for walks to learn the
neighborhood. If you have kids, they might be interested in meeting other
children, so keep an eye out for any community classes, groups, or the local
Boy Scouts and Girl Scouts. Similarly, your pets will need plenty of attention
and distraction, and dogs might benefit from regular visits to the park. Still,
indoor pets may simply need you close to feel reassured, so try to take a few
days off of work to get them used to their surroundings.
Decorate
for Comfort
One way to get comfortable quickly in an
unfamiliar environment is to decorate. To get started, you could focus on
giving each room a consistent color scheme. As you decorate and add personal
touches to make your property feel like home, try to keeppracticality in mind. If you need
extra storage, add aesthetic baskets here and there, or place hooks on doors.
For added comfort, you could bring out art or decorative pieces that remind you
of home, and place them where they can be seen. Even if you end up moving them
later, viewing them will give you a reassuring warmth as you go about your day.
Minimize
Clutter Before It Starts
Having a chaotic environment breeds stress,
and unpacking is going to be just that—chaotic. So, to help minimize any issues
developing, take some time to plan out where things will go, particularly items
that create clutter. By knowing where items belong, you prevent pile-ups from
happening. For instance, you might want to invest in pieces to help you store items, such as a file for
loose papers or extra shelving in the kitchen to sort plates and plasticware.
It may seem like additional effort, but it can be worth it to ensure your home
is a pleasant environment.
Turn to
These Additional Resources
The following resources are either required by
law or can help you to further familiarize yourself with your new city:
Updated your auto insurance. Your
zip code can determine the cost of your premiums. So if you live in a
highly-populated area, know the rates can be higher. You can reduce the cost of auto insurance
by bundling your policies and shopping around.
Stick to your fitness goals by
applying for a local gym
membership.
Just because you changed houses doesn’t mean
you can’t feel at home. With the right preparation, as well as staying active
in your new community, you can ease your transition. It will take work, but all
worthwhile things do.
When thinking about selling their house, homeowners have many options. A relatively new option is using an “iBuyer.” What is an iBuyer?
According to Jovio, the definition is:
“A company or investor that uses Automated Valuation Models (AVMs) to make instant offers on homes. It allows sellers to close on a property quickly. Once sold, the company then turns around and resells the home for a profit.”
Today, there are many iBuyer companies such as OfferPad, Zillow Offers, Knock, Opendoor, and Perch. Even some more traditional companies offer the same or similar services (ex. Keller Williams, Redfin, Realogy). Ivy Zelman reported in her ‘Z’ Report that some traditional brokers are partnering with some of the larger iBuyers too:
“Keller Williams announced a partnership with Offerpad, aligning the largest franchise-based brokerage brand in the U.S. with the five-year-old iBuyer. The move follows Realogy’s partnership with Home Partners of America last year as an established brokerage player more directly providing an iBuyer alternative…
Likewise, in early July, Redfin and Opendoor announced a partnership, starting in Phoenix and Atlanta – aligning interests of the 13-year old, tech-enabled and value-focused brokerage with the largest and longest-standing iBuyer. Outside of these larger scale alliances, Zillow’s strategy has been to work with local brokerages as partners on a market-by-market basis.”
Does it make sense to sell your home to an iBuyer?
It depends. Collateral Analytics recently released a study which revealed the advantages and disadvantages of using an iBuyer. According to the study, if the homeowner is looking for the convenience of a quick sale with less uncertainty, using an iBuyer may make sense.
“iBuyers offer quicker closings for sellers who would like to avoid the uncertainty of knowing when and if their home will sell. For motivated sellers who want a predictable sale date and need to move, perhaps a long distance from the current location, there is no question that iBuyers have provided a welcome alternative to traditional brokerage.”
The study, however, also showed there is a cost for that convenience. Collateral Analytics explained:
“Traditional brokers fees generally range from 5% to 7% of the sales price…In addition to this cost, buyers typically pay some closing costs including lender related charges in the range of 1% to 3%.”
In contrast:
“iBuyers charge sellers a ‘convenience fee’ of 6% to 9.5%, some also charge the seller for fees typically paid by buyers at closing adding another 1% or more. Most iBuyers will inspect the home, assess a generous home repair allowance and negotiate a (an additional) credit to handle such repairs…Overall the total direct costs, ignoring repair credits, will run 7% to 10% for an iBuyer, versus the typical 5% to 9% combined seller and buyer costs with a traditional broker. Yet, that is not the end of the story or comparison.”
The study went on to explain how iBuyers need to charge even more because they have additional expenses beyond that of the traditional broker. They include:
Carrying costs involving significant amounts of capital – The iBuyer must pay the expenses of the house between the time they purchase it and the time they sell it to a new buyer.
Safeguarding the home risks – A home with an iBuyer ‘For Sale Sign’ alerts anyone passing that the house is vacant. The study suggests that these homes could become targets for vagrants and criminals.
Adverse selection risks – The study explains that since iBuyers use computer models to determine their offer, they may be unaware of certain challenges in the neighborhood that could adversely impact the value.
Potential home price declines – As the survey states:
“A downturn in home prices, not forecast by the iBuyer market analysts could be devastating as they ramp up their business platforms, particularly if the cost of capital increases. At the same time, downturns are precisely when the most sellers would want this option.”
Bottom Line
After taking a thorough look at the iBuyer platform, the study concludes that using an iBuyer is more expensive for the homeowner than the traditional brokerage model, but for some sellers, it may still make sense:
“These preliminary empirical results suggest that sellers are paying not just the difference in fees of 2% to 5% more than with traditional agencies, and a generous repair allowance, but another 3% to 5% or more to compensate the iBuyer for liquidity risks and carrying costs. In all, the typical cost to a seller appears to be in the range of 13% to 15% depending on the iBuyer vendor. For some sellers, needing to move or requiring quick extraction of equity, this is certainly worthwhile, but what percentage of the market will want this service remains to be seen.”
Housing Inventory in Charlotte is low and there are buyers out there!
Many buyers are wondering where to find houses for sale in today’s market. It’s a true dilemma. We see an increase in buyer demand, but the supply available for purchase isn’t keeping up.
The number of new housing permits issued prior to the great recession increased for 15 years until 2005 (from 1.12 million in 1990 to a pre-recession peak of 2.16 million in 2005). According to Apartment List,
“From 1990 to 2005, the number of single-family permits issued more than doubled, while the number of multi-family permits grew by 49 percent.”
When the housing market crashed, the number of new homes permitted decreased to its lowest level in 2009 (see below):Since then, supply and demand have been out of balance when it comes to new construction. According to the same report,
“Construction of single-family homes has recovered much more slowly — the number of single-family housing units permitted in 2018 was barely half the number permitted in 2005.”
Why is new construction so important?
As the U.S. population increases, there is also an increase in the need for new homes. Today, new construction is not keeping up with the increase in the nation’s population. The report continues:
“The total number of residential housing units permitted in 2018 was roughly the same as the number permitted in 1994, when the country’s population was 20 percent less than it is today.”
Essentially, the dip in home building coupled with the steadily increasing U.S. population means there is now a selling opportunity for homeowners willing to list their current houses.
Bottom Line
If you’re considering selling your home to move up, now is a great time to get a positive return on your investment in a market with high demand. Let’s get together to determine the specific options available for you and your family.
When a home
is on the market, it needs to be staged properly in order to sell quickly. If
you are selling your home while dealing with a busy parent schedule, however,
keeping your home clean and presentable can be stressful. So, use these super
easy staging, organizing, and cleaning tips to make the job much more
manageable.
Declutter and Downsize First
Clutter can
make your home look smaller and less inviting to potential buyers. Some things
you would not even think of as clutter, like family photos, can be distracting
to people who are trying to imagine themselves living in your house. Before you
move onto other staging projects, spend some time picking up any random items
and donate those items if you can. If
you have tons of toys, seasonal apparel, or holiday decor, you may even want to
consider placing them in storage to make those last-minute cleanups before showings much easier on you.
Renting a storage unit is often a smart choice for home sellers, but it can get
expensive, so shop around for the best deals. Prices range considerably; for
example, in the Huntersville area, a 5’x10’ unit can be rented for as little as
$40 a month even though the average
price for these units is $65 per month.
Invest in Some More Stylish Storage
Putting some
stuff away into a storage unit can help you keep your home staged. When you
have busy kids and a busy schedule to attend to, however, you may need to keep
some necessities in your home. If you need to store a few things around your
house or do not want to rent a storage unit, you can use stylish storage options to keep
those items from distracting potential buyers. Crates, baskets, boxes, and bins
can all make tidying up quickly less challenging and even add some style to
your staged home. This is an especially neat trick for families with busy
entryways, and it can help keep closets looking tidy too. When buyers view your
home, they are bound to sneak a peek into closets, as well as other storage
spaces. So, make sure you spend some time organizing pantries, cabinets and
other seemingly hidden spots.
Deep Clean and Then Maintain Order
If you can
pick up clutter and neatly tuck smaller items away, you can make your home look
and feel more presentable. However, it’s also important that your home be as
clean as possible when it is being listed on the real estate market. This is a
task that you simply cannot skip, so plan on spending some time on a good deep cleaning. Get the kids
out of the house and then work on wiping down surfaces, removing any grime and
getting floors looking their best. If you’re short on time, you can hire a
professional cleaning service to do the job for you.
Once you have
your home sparkling, clean and shiny, it should be easier to keep it that way. Pick up items and
put them away in storage bins as soon as you are done using them, and encourage
your children to do the same. Also, spend a few hours each day cleaning one
room or area to prevent yourself from having to deep clean over and over again.
Don’t Hesitate to Buy or Hire Help
Doing all the
cleaning, decluttering, and staging mentioned above can help you save money. If
your schedule is already filled with other responsibilities and you have some
wiggle room in your budget, you may want to just invest in some helpful tools.
A good robot vacuum can make keeping
up with dirt and spills on floors much less stressful. Do you still have a
little in your budget to spare? You can really help your home sell and make
your life easier by investing in a professional home stager (home
stagers usually charge $500 – $600 per room). This will
take all of the guesswork out of staging and prepping your home so you can use
your brainpower for more pressing matters.
Stop
stressing out about staging and selling your home! With the tips above, you can
knock out all of those cleaning and decluttering tasks — even if you are the
busiest of parents.
