What Does the Recent Rash of Price Reductions Mean to the Real Estate Market?

Last week, in a new report from Zillow, it was revealed that there has been a rash of price reductions across the country. According to the report:

• There are more price cuts now than a year ago in over two-thirds of the nation’s largest metros
• About 14% of all listings had a price cut in June
• Since the beginning of the year, the share of listings with a price cut increased 1.2%
• This is the greatest January-to-June increase ever reported, and more than double the January-to-June increase last year

Senior Economist Aaron Terrazas further explained:

“A rising share of on-market listings are seeing price cuts, though these price cuts are concentrated at the most expensive price-points and primarily in markets that have seen outsized price gains in recent years.”

What this DOESN’T MEAN for the real estate market…

This doesn’t mean home values have depreciated or are about to depreciate.

A seller may put a home worth $300,000 on the market for $325,000 hoping a bidding war will occur and an overanxious buyer will pay more than its actual value. That has happened often over the last few years. If the seller gets no offers and reduces the price to $300,000, it doesn’t mean the home dropped in value. It is still worth $300,000.

Home prices will continue to appreciate over the next 12 months. In this same report, Terrazas remarks:

“It’s far too soon to call this a buyer’s market, home values are still expected to appreciate at double their historic rate over the next 12 months, but the frenetic pace of the housing market over the past few years is starting to return toward a more normal trend.”

What this DOES MEAN for the real estate market…

This does mean that sellers should be more conservative when it comes to the price at which they list their homes – especially sellers in the upper end of each market.

Sellers have been listing their homes at inflated prices hoping a super-hot market will deliver a buyer willing to pay virtually any price to ensure they don’t lose the house. That strategy has worked somewhat successfully over the last two years. However, the time that strategy would have worked may have passed.

Again, quoting Aaron Terrazas in the report:

“The housing market has tilted sharply in favor of sellers over the past two years, but there are very early preliminary signs that the winds may be starting to shift ever-so-slightly.”

Bottom Line

Prices are not depreciating. However, if you want to sell your house quickly and with the least amount of hassles, pricing it correctly from the beginning makes the most sense.

5 Real Estate Reality TV Myths Explained

Have you ever been flipping through the channels, only to find yourself glued to the couch in an HGTV binge session? We’ve all been there, watching entire seasons of “Love it or List it,” “Million Dollar Listing,” “House Hunters,” “Property Brothers,” and so many more all in one sitting.

When you’re in the middle of your real estate themed show marathon, you might start to think that everything you see on TV must be how it works in real life, but you may need a reality check.

Reality TV Show Myths vs. Real Life:

Myth #1: Buyers look at 3 homes and decide to purchase one of them.
Truth: There may be buyers who fall in love and buy the first home they see, but according to the National Association of Realtors the average homebuyer tours 10 homes as a part of their search.  

Myth #2: The houses the buyers are touring are still for sale.
Truth: Everything is staged for TV. Many of the homes being shown are already sold and are off the market. 

Myth #3: The buyers haven’t made a purchase decision yet.
Truth: Since there is no way to show the entire buying process in a 30-minute show, TV producers often choose buyers who are further along in the process and have already chosen a home to buy. 

Myth #4: If you list your home for sale, it will ALWAYS sell at the open house.
Truth: Of course, this would be great! Open houses are important to guarantee the most exposure to buyers in your area but are only a PIECE of the overall marketing of your home. Keep in mind that many homes are sold during regular listing appointments as well. 

Myth #5: Homeowners decide to sell their homes after a 5-minute conversation.
Truth: Similar to the buyers portrayed on the shows, many of the sellers have already spent hours deliberating the decision to list their homes and move on with their lives/goals.

Bottom Line

Having an experienced professional on your side while navigating the real estate market is the best way to guarantee that you can make the home of your dreams a reality!

Have You Outgrown Your Starter Home?

For many Americans, buying their first home is their first taste of achieving part of the American Dream. There is a sense of pride that comes along with owning your own home and building your family’s wealth through your monthly mortgage payment.

It may seem hard to imagine that the first home you purchased (which made your dreams come true) might not be the home that will allow you to achieve the rest of your dreams. The good news is that it’s ok to admit that your home no longer fits your needs!

According to CoreLogic’s latest Home Price Index, prices in the starter home market have appreciated faster than any other category over the last year, at 9.4%. At the same time, inventory in this category has dropped 14.2%.

These two stats are directly related to one another. As inventory has decreased and demand has increased, prices have been driven up.

This is great news if you own a starter home and are looking to move up to a larger home as the equity in your home has risen as prices have gone up. Even better is the fact that there is a large pool of buyers out there searching for your starter home to help them achieve their American Dream!

Bottom Line

If you have outgrown your starter home, contact a local real estate professional who can explain the market conditions in your area and help you find your next home!

Home Buying Myths Slayed

More Under Contract!

4970 Old Towne Village Circle |  Pfafftown

The details within this immaculately kept home will amaze you! Located in popular Pfafftown on a corner lot, you will be close to shopping, restaurants, schools and downtown Winston Salem. Granite throughout the home, the master shower is stunning! Enjoy the fenced backyard with storage shed or hang out at the neighborhood playground. This is all the space you will ever need! Home warranty.

http://bit.ly/4970OldTowneVillageCir 

1500 Polo Road  |  Winston Salem

Location, location, location! This adorable home is completely renovated on a great lot near Wake Forest University! Incredible updates throughout, including: NEW windows, AC, Furnace circa 2016, Kitchen updates with granite and new fixtures, bathroom updated, new tile flooring, hardwoods throughout refinished, Newer Roof circa 2013!!! Walkout basement could be finished. Home is AS IS, NO repairs will be made.

http://bit.ly/1500PoloRd 

Open House for August 5th

1509 Boxthorne Lane  |  Thornhill  |  Winston Salem

Stunning executive home in highly desired Thornhill, situated in the heart of Winston. This open floor plan features a gorgeous new screened porch, cooks kitchen, main level master suite and main level garage. Enjoy a walkout basement to the fenced, private lush lot. The lower level has an optional 5th bedroom and complete guest suite. Enjoy fishing in the stocked neighborhood pond. Highly requested zone 5 schools! Close proximity to downtown, shopping and great dining!

http://bit.ly/1509BoxthorneLn 

The #1 Reason to Put Your House on The Market TODAY!

The National Association of Realtors (NAR) released the results of their latest Existing Home Sales Report which revealed that home sales declined 0.6% to a seasonally adjusted annual rate of 5.38 million in June from 5.41 million in May, and are 2.2% below a year ago. Some may look at these numbers and think that now is a bad time to sell their house, but in fact, the opposite is true.

The national slowdown in sales is directly tied to a lack of inventory available for the buyers who are out in the market looking for their dream homes! In fact, the inventory of homes for sale had fallen year-over-year for 36 consecutive months before posting a modest 0.5% gain last month and has had an upward impact on home prices.

NAR’s Chief Economist Lawrence Yun had this to say,

“It’s important to note that despite the modest year-over-year rise in inventory, the current level is far from what’s needed to satisfy demand levels. Furthermore, it remains to be seen if this modest increase will stick, given the fact that the robust economy is bringing more interested buyers into the market, and new home construction is failing to keep up.”

The few houses that are on the market are selling fast! According to NAR’s Realtors Confidence Index, properties were typically on the market for 26 days.

Bottom Line

If you are one of the many homeowners who is debating listing your house for sale this year, the time is now! Let’s get together to discuss the specifics of our market!

Another Under Contract!

1559 Crestlawn Trail | Pfafftown

Don't miss seeing this Long Creek Village beauty! The perfect low maintenance, one level living home for you! Bright and cozy rooms including a spacious living area with vaulted ceilings and fireplace! Large kitchen with eat in dining area. Master bedroom has vaulted ceilings and a large closet. Two car garage includes attic storage space! Enjoy a level backyard or relax at the neighborhood pool and greenspace.  

http://bit.ly/1559CrestlawnTrl 

Under Contract!

3041 Cambridge Road  |  Winston Salem

Lovely centrally located, flowing and open floor plan 3 bedroom, 2 bath home is what you are looking for! Located near restaurants, shopping and downtown Winston Salem. Large screen porch with a spacious level back yard! Updates galore! New oil tank, updated bath, kitchen! Owned by the same owner for 42 years! Hurry this beauty won't last long!

http://bit.ly/3041CambridgeRd 

Will Your Current House Fit Your Needs in Retirement?

As more and more baby boomers enter retirement age, the question of whether or not to sell their homes and move will become a hot topic. In today’s housing market climate, with low available inventory in the starter and trade-up home categories, it makes sense to evaluate your home’s ability to adapt to your needs in retirement.

According to the National Association of Exclusive Buyers Agents (NAEBA), there are 7 factorsthat you should consider when choosing your retirement home.1

1. Affordability

“It may be easy enough to afford your home today but think long-term about your monthly costs. Account for property taxes, insurance, HOA fees, utilities – all the things that will be due whether or not you have a mortgage on the property.”

Would moving to a complex with homeowner association (HOA) fees actually be cheaper than having to hire all the contractors you would need to maintain your home, lawn, etc.? Would your taxes go down significantly if you relocated? What is your monthly income going to be like in retirement?

2. Equity

“If you have equity in your current home, you may be able to apply it to the purchase of your next home. Maintaining a healthy amount of home equity gives you a source of emergency funds to tap, via a home equity loan or reverse mortgage.”

The equity you have in your current home may be enough to purchase your retirement home with little to no mortgage. Homeowners in the US gained an average of over $16,300 in equity last year.

3. Maintenance

“As we age, our tolerance for cleaning gutters, raking leaves and shoveling snow can go right out the window. A condominium with low-maintenance needs can be a literal lifesaver, if your health or physical abilities decline.”

As we mentioned earlier, would a condo with an HOA fee be worth the added peace of mind in knowing that you do not have to do the maintenance work yourself?

4. Security

“Elderly homeowners can be targets for scams or break-ins. Living in a home with security features, such as a manned gate house, resident-only access and a security system can bring peace of mind.”

As scary as that thought may be, any additional security and an extra set of eyes looking out for you always adds to peace of mind.

5. Pets

“Renting won’t do if the dog can’t come too! The companionship of pets can provide emotional and physical benefits.”

Evaluate all of your options when it comes to bringing your ‘furever’ friend with you to a new home. Will there be necessary additional deposits if you are renting or moving in to a condo? Is the backyard fenced in? How far are you from your favorite veterinarian?

6. Mobility

“No one wants to picture themselves in a wheelchair or a walker, but the home layout must be able to accommodate limited mobility.”

Sixty is the new 40, right? People are living longer and are more active in retirement, but that doesn’t mean that down the road you won’t need your home to be more accessible. Having to install handrails and make sure that your hallways and doorways are wide enough may be a good reason to look for a home that was built to accommodate these needs.

7. Convenience

“Is the new home close to the golf course, or to shopping and dining? Do you have amenities within easy walking distance? This can add to home value!”

How close are you to your children and grandchildren? Would relocating to a new area make visits with family easier or more frequent? Beyond being close to your favorite stores and restaurants, there are a lot of factors to consider.

Bottom Line

When it comes to your forever home, evaluating your current house for its ability to adapt with you as you age can be the first step to guaranteeing your comfort in retirement. If after considering all these factors you find yourself curious about your options, let’s get together to evaluate your ability to sell your house in today’s market and get you into your dream retirement home!

Preparing Children for Moving

Buying a new home and creating new memories with your family is a very exciting experience. If you are moving your family, it helps to prepare children for living in a new home. When moving, it is common for children to experience homesickness and a bit of anxiety about living in a new home. Make the most of your move and follow these tips to help your children feel at home in your new house!

• Prepare – Preparation during the time leading up to the move will have a large impact on how easily children adapt. Let children know a few months in advance that the move is happening and explain to them that all their things inside the house will be coming with them. If you are selling your home, you may also want to explain that there could be potential buyers walking through at times.
• Keep children involved in the moving process – Keep children in the loop and involve them in planning and packing. Allow them to help pack their own rooms or favorite items. Younger children might even enjoy decorating their boxes with markers or crayons. If you are purchasing any new furniture or décor for your new home, allowing the children to help choose things for their room may also make them more excited about the new space.
• Familiarize with new surroundings – Spend some time in the area surrounding your new home before you make the move. If there are parks nearby, walk children around or go for a bike ride so they will feel comfortable and familiar. Look into opportunities for children to sign up for activities where they will be able to meet other neighborhood children.
• Become involved in new schools – If your children will be switching schools with the move, reach out to the school and schedule a visit. Allow children to meet their new teacher and set them up with after-school activities to help them meet friends.
• Continue family pastimes – Bring family traditions from your old house to the new one to help children feel at home. Start new traditions in your new home, too! Find a restaurant that you all love or start a family game night.
• Stay positive – Children will likely develop feelings about the move by watching their parents. Stay positive about the move to create reassurance with children. If you are excited, they will be excited!

Contributed by Ashley McKenzie-Sharpe  

Phone: 336-748-4599    |    ashleym@fairwaymc.com

Just Listed in Pfafftown

4970 Old Towne Village Circle | Pfafftown

The details within this immaculately kept home will amaze you! Located in popular Pfafftown on a corner lot, you will be close to shopping, restaurants, schools and downtown Winston Salem. Granite throughout the home, the master shower is stunning! Enjoy the fenced backyard with storage shed or hang out at the neighborhood playground. This is all the space you will ever need! Home warranty.

http://bit.ly/4970OldTowneVillageCir 

UNDER CONTRACTS IN LESS THAN 12 DAYS

UNDER CONTRACT IN 11 DAYS!!

3124 Kinnamon Road  |  Winston Salem

Darling Country Club Estates/Buena Vista home with a super layout, lots of natural light and a fabulous walkout basement complete with office or studio. Enjoy features such as hardwoods, large bedrooms, a cooks kitchen with breakfast nook and sunroom overlooking the lush lot. New HVAC 2017! Quick commute to Thruway, downtown Winston, Greensboro or the hospitals. Plenty of room to expand or store loads of belongings. Hurry as this gem won't last!!! HIGHLY requested Zone 6 schools Whitaker, Reynolds!

http://bit.ly/3124KinnamonRd   

UNDER CONTRACT IN 9 DAYS!!

820 Poplar Grove Road    Winston Salem

Beautiful home w/large rocking chair front that porch greets you as you arrive! This is an entertainers delight with a cooks kitchen and a fabulous and private patio ready for your gatherings or quiet time. Upstairs you will find a fabulous master bedroom w/sitting room/office & two walk in closets! Basement area has a separate driveway and entrance, making it a great guest suite. New HVAC in 2016. Easy access to Muddy Creek Greenway. Enjoy a low maintenance lot & highly requested schools. No HOA!

http://bit.ly/820PoplarGroveRd

UNDER CONTRACT IN 2 DAYS!

710 Sterling Brooke Court | Winston Salem

This immaculate end unit town home will immediately capture your heart! Open foyer and upstairs loft make this home feel amazingly spacious. This home is centrally located close to shopping, hospitals, restaurants and highways. Upstairs laundry is easy access to all bedrooms! Enjoy lounging in your private fenced patio area or use the neighborhood pool and clubhouse! Hurry this one won't last long!

http://bit.ly/710SterlingBrookeCt 

JUST LISTED IN CLEMMONS

5252 Bridge Point Drive |  Clemmons

This stunning home welcomes you home from the moment you arrive! Situated on a lush private lot, you'll enjoy the multi level decking and main level garage. Beautiful bright sunny light throughout with tall ceilings for impact. Updates include kitchen, new carpet, downstairs HVAC replaced in 2016. Potential for expansion in the walk out basement with rough plumbing and framing! LOTS of storage throughout as well as multiple walk in closets! Don't miss this amazing home!

http://bit.ly/5252BridgePointeDr

OPEN HOUSES for July 15th!

120 Chestnut Hill Court  |  Winston Salem

Beautiful 4 bedroom, 3 1/2 bath traditional brick home on cul-de-sac lot in established neighborhood. Brand new kitchen with custom cabinetry, stainless steel appliances, marble subway tile back splash, granite counter tops, and large island with bar seating. Spacious eat-in kitchen area leads to 26X16 screened porch. Fresh paint, hardwoods throughout the entire home, large rooms, great floor plan and huge finished basement with full bath. Neighborhood pool is great for relaxing this summer!

http://bit.ly/120ChestnutHillCt 

2811 Darrow Road  |  Walkertown

Live in the center of it all! You'll be surprised how much space is packed into this cozy house!  This adorable 3 bedroom / 2 bath home is a must see - close to schools, restaurants, parks and churches! Updated deck, new carpet and fresh paint add to the appeal!  Possible rezoning to commercial use. Don't miss this one!

http://bit.ly/2811DarrowRd

5252 Bridge Point Drive |  Clemmons

This stunning home welcomes you home from the moment you arrive! Situated on a lush private lot, you'll enjoy the multi level decking and main level garage. Beautiful bright sunny light throughout with tall ceilings for impact. Updates include kitchen, new carpet, downstairs HVAC replaced in 2016. Potential for expansion in the walk out basement with rough plumbing and framing! LOTS of storage throughout as well as multiple walk in closets! Don't miss this amazing home!

http://bit.ly/5252BridgePointeDr

Cost Across Time

Some Highlights:

• With interest rates still around 4.5%, now is a great time to look back at where rates have been over the last 40 years.
• Rates are projected to climb to 5.1% by this time next year according to Freddie Mac.
• The impact your interest rate makes on your monthly mortgage cost is significant!
• Lock in a low rate now while you can!

JUST LISTED ON KINNAMON ROAD!

3124 Kinnamon Road  |  Winston Salem

Darling Country Club Estates/Buena Vista home with a super layout, lots of natural light and a fabulous walkout basement complete with office or studio. Enjoy features such as hardwoods, large bedrooms, a cooks kitchen with breakfast nook and sunroom overlooking the lush lot. New HVAC 2017! Quick commute to Thruway, downtown Winston, Greensboro or the hospitals. Plenty of room to expand or store loads of belongings. Hurry as this gem won't last!!! HIGHLY requested Zone 6 schools Whitaker, Reynolds!

http://bit.ly/3124KinnamonRd

How Long Do Most Families Live in a House?

The National Association of Realtors (NAR) keeps historical data on many aspects of homeownership. One of their data points, which has changed dramatically, is the median tenure of a family in a home, meaning how long a family stays in a home prior to moving.

As the graph below shows, over the last twenty years (1985-2008), the median tenure averaged exactly six years. However, since 2014, that average is almost ten years – an increase of almost 50%.

Why the dramatic increase?

The reasons for this change are plentiful!

The fall in home prices during the housing crisis left many homeowners in a negative equity situation (where their home was worth less than the mortgage on the property). Also, the uncertainty of the economy made some homeowners much more fiscally conservative about making a move.

With home prices rising dramatically over the last several years, 95.3% of homes with a mortgage are now in a positive equity situation, according to CoreLogic.

With the economy coming back and wages starting to increase, many homeowners are in a much better financial situation than they were just a few short years ago.

One other reason for the increase was brought to light by NAR in their 2018 Home Buyer and Seller Generational Trends Report. According to the report,

“Sellers 37 years and younger stayed in their home for six years…”

These homeowners, who are either looking for more space to accommodate their growing families or for better school districts to do the same, are likely to move more often (compared to typical sellers who stayed in their homes for 10 years). The homeownership rate among young families, however, has still not caught up to previous generations, resulting in the jump we have seen in median tenure!

What does this mean for housing?

Many believe that a large portion of homeowners are not in a house that is best for their current family circumstance; they could be baby boomers living in an empty, four-bedroom colonial, or a millennial couple living in a one-bedroom condo planning to start a family.

These homeowners are ready to make a move, and since a lack of housing inventory is still a major challenge in the current housing market, this could be great news.

Why Should You Use A Professional to Sell Your Home?

When homeowners decide to sell their houses, they obviously want to get the best possible price for their home with the least amount of hassles along the way. However, for the vast majority of sellers, the most important result is actually getting their homes sold.

In order to accomplish all three goals, a seller should realize the importance of using a real estate professional. We realize that technology has changed a buyer’s behavior during the home buying process. According to the National Association of Realtors’ 2018 Home Buyer & Seller Generational Trends Report, the first step that “42% of recent buyers took in the home buying process was to look online at properties for sale.”

However, the report also revealed that 94% of buyers who used the internet when searching for homes ultimately purchased their homes through either a real estate agent/broker or from a builder or builder’s agent. Only 2% of buyers purchased their homes directly from a seller whom they didn’t know.

Buyers search for a home online but then depend on an agent to find the home they will buy (52%), to negotiate the terms of the sale (47%) & price (38%), or to help understand the process (60%).

The plethora of information now available has resulted in an increase in the percentage of buyers who reach out to real estate professionals to “connect the dots.” This is obvious, as the percentage of overall buyers who have used agents to buy their homes has steadily increased from 69% in 2001.

Bottom Line

If you are thinking of selling your home, don’t underestimate the role a real estate professional can play in the process.

What’s the Median Home Value in Your State?

If you’ve entered the real estate market as a buyer or a seller, you’ve inevitably heard the mantra “location, location, location” in reference to identical homes increasing or decreasing in value based on where they’re located.

In today’s housing market where home prices are appreciating quickly, it’s important to know that not every home appreciates at the same rate. The map below demonstrates that point on a state-by-state basis using data from the National Association of Realtors.

Demand often dictates value, even for houses in the same area of the country! High demand for starter and trade-up homes have driven prices up in these categories by nearly 10% over the past year, while those in the premium markets have appreciated at closer to 6%.

Bottom Line

If you are debating whether or not to buy and/or sell a home this year, let’s get together to help you figure out exactly what’s going on in our market.