If you’re one of the many homeowners thinking about taking your house off the market for the holidays, hang on. You definitely don’t want to miss the great selling opportunity you have right now. Here’s why this month is the optimal time to make sure your house is available for holiday buyers.
The latest Existing Home Sales Report from The National Association of Realtors (NAR) shows the inventory of houses for sale has dropped to an astonishing all-time low. It now sits at a 2.5-month supply at the current sales pace.
Historically, a 6-month supply is necessary for a ‘normal’ or ‘neutral’ market, in which there are enough homes available for active buyers (See graph below):When the supply of houses for sale is as low as it is today, it’s much harder for buyers to find homes to purchase. This means competition among purchasers rises and more bidding wars take place, making it essential for buyers to submit very attractive offers.
As this happens, prices rise and sellers are in the best position to negotiate deals that meet their ideal terms. So, if your neighbors decide to remove their listings this season, your house may quickly rise to the top of a holiday buyer’s wish list if you stay on the market.
Today, there are many buyers who are ready, willing, and able to purchase. Record-low mortgage rates and a year filled with unique changes have prompted buyers to think differently about where they live and to take action. The supply of homes for sale is not keeping up with this high demand, making now the optimal time to sell your house.
Home prices are appreciating in today’s sellers’ market. Making your home available over the next few weeks will give you the most exposure to buyers who will be actively competing against each other to purchase it.
This year, the opportunity to work remotely has increased the demand for vacation homes. Gay Cororaton, Senior Economist and Director of Housing and Commercial Research at the National Association of Realtors (NAR), notes:
“Working from home is a positive factor in demand for vacation homes.”
Buyers are taking advantage of the fact that working from home might be someplace other than their primary residence – at the beach, in the mountains, or somewhere in between. NAR explains:
“Sales in vacation-home counties increased 48% on average year over year in the third quarter; overall, 81% of vacation-home counties saw a year-over-year sales increase.”
If you’ve been thinking about selling your vacation home, putting it on the market now while demand is high might be your best move. Here are two reasons why.
1. Vacation Homes Are Selling Quickly
These homes are not staying in the market for very long. NAR also notes:
“In September, 68% of vacation homes sold in less than a month. Historically, about 30% sell that quickly…It’s a pretty amazing uptick compared to past years.”
2. Home Prices Are Rising
With an increase in demand, prices go up. NAR continues:
“In the third quarter, prices in vacation-home counties rose by about 32% year over year. Seventy-nine percent of these counties experienced year-over-year price gains. NAR defines a vacation-home county as one in which seasonal housing accounts for at least 20% of stock.”
If your vacation home is sitting idle, maybe not attracting as many renters as you usually see, or if you simply want to sell it so you can trade up or take it off your worry list, now may be the time. Demand is high, so you’re in the ideal spot to get a stronger return on your investment today.
Demand is on the rise, so let’s discuss your next steps when it comes to selling your vacation home.
Today’s real estate market has high buyer interest and low housing inventory. With so many buyers competing for a limited number of homes, it’s more important than ever to know the ins and outs of making a confident and competitive offer. Here are five keys to success for this important stage in the homebuying process.
A recent article from Freddie Mac offers guidance on making an offer on a home in today’s market. Right off the bat, it points out how emotional this can be for buyers and why trusted professionals can help you stay focused on the most important things:
“Remember to let your homebuying team guide you on your journey, not your emotions. Their support and expertise will keep you from compromising on your must-haves and future financial stability.”
Your real estate professional should be your primary source for answers to the questions you have when you’re ready to make an offer.
Having a complete understanding of your budget and how much house you can afford is essential. The best way to know this is to reach out to your lender to get pre-approved for a loan early in the homebuying process. Only 44% of today’s prospective homebuyers are planning to apply for pre-approval, so be sure to take this step so you stand out from the crowd. It shows sellers you’re a serious, qualified buyer and can give you a competitive edge if you enter a bidding war.
According to the Realtors Confidence Index, published monthly by the National Association of Realtors (NAR), the average property being sold today is receiving more than three offers and is only on the market for a few weeks. These are both results of today’s competitive market, showing how important it is to stay agile and vigilant in your search. As soon as you find the right home for your needs, be prepared to work with your agent to submit an offer as quickly as possible.
It’s only natural to want the best deal you can get on a home. However, Freddie Mac also warns that submitting an offer that’s too low can lead sellers to doubt how serious you are as a buyer. Don’t submit an offer that will be tossed out as soon as it’s received. The expertise your agent brings to this part of the process will help you stay competitive:
“Your agent will work with you to make an informed offer based on the market value of the home, the condition of the home and recent home sale prices in the area.”
After submitting an offer, the seller may accept it, reject it, or counter it with their own changes. In a competitive market, it’s important to stay nimble throughout the negotiation process. Your position can be strengthened with an offer that includes flexible move-in dates, a higher price, or minimal contingencies (conditions you set that the seller must meet for the purchase to be finalized). There are, however, certain contingencies you don’t want to forego. Freddie Mac explains:
“Resist the temptation to waive the inspection contingency, especially in a hot market or if the home is being sold ‘as-is’, which means the seller won’t pay for repairs. Without an inspection contingency, you could be stuck with a contract on a house you can’t afford to fix.”
Today’s competitive market makes it more important than ever to make a strong offer on a home, and a trusted expert can help you rise to the top along the way.
This year’s record-low mortgage rates sparked high demand among homebuyers. Current homeowners, however, haven’t put their houses on the market so quickly. This makes finding a home to buy today challenging for many potential buyers. With an obstacle like this, those searching for their dream homes may be pressing pause on their searches as we approach the end of the year, but that could be a big mistake for many hopeful house hunters. Here’s why.
According to the most recent Housing Trends Report from the National Association of Home Builders (NAHB):
“The length of time spent searching for a home continues to grow.”
The report indicates that 62% of buyers now spend 3 months or more looking for a home, an increase from 58% one year ago. A primary cause for the delay is the heavy competition today’s buyers face when making an offer on a home. Based on recent data from the National Association of Realtors (NAR), the average house in today’s market receives 3.4 offers before it’s sold. This means for every buyer who purchases a home, there are on average two or three buyers who have to begin their search all over again.
Compared to this time last year, the NAHB report shows that buyers are having more success finding homes in their price range. However, it also notes the percentage of buyers saying they’re getting outbid when they make an offer has jumped from 15% to 27%. Buyers are indicating that bidding wars are a major obstacle to finding their dream home (See graph below):If this is a challenge you’re up against in your home search, you’re not alone. Feeling stuck in the process can be frustrating, but if there’s ever been a year to power through, this is the one. NAHB noted:
“Difficulties finding a home to buy will likely lead 20% of active buyers to give up until next year or later. That share is up from 15% a year earlier.”
Experts anticipate home prices will continue to rise into 2021, and the incredibly low interest rates we’ve seen this year are also forecasted to increase as the economy strengthens. Hopeful homebuyers who decide to hold off on their search until there’s less competition run the risk of finding a more expensive housing market when they start looking again. If affordability is a key motivator behind your decision to buy a home, this winter is still the best time to make it happen.
Bidding wars may be one of the greatest challenges buyers face in today’s housing market, but they shouldn’t be a deal-breaker. Having the right expert on your side throughout the buying process will give you the advantage you need when it comes to finding the right home and making a competitive offer. If you’re ready to buy this winter, let’s connect to discuss how to position yourself for success.
If you’ve been working from home this year, chances are you’ve been at it a little longer than you initially expected. Businesses all over the country have figured out how to operate remotely to keep their employees healthy, safe, and productive. For many, it may be carrying into next year, and possibly beyond.
While the pandemic continues, Americans are re-evaluating their homes, floorplans, locations, needs, and more. Some need more space, while others need less. Whether you’re renting or own your home, if remote work is part of your future, you may be thinking about moving, especially while today’s mortgage rates are so low.
A recent study from Upwork notes:
“Anywhere from 14 to 23 million Americans are planning to move as a result of remote work.”
To put this into perspective, last year, 6 million homes were sold in the U.S. This means roughly 2 – 4X as many people are considering moving now, and there’s a direct connection to their ability to work from home.
The same study also notes while 45.3% of people are planning to stay within a 2-hour drive from their current location, 41.5% of the people who are citing working from home as their primary reason for making a move are willing to look for a home more than 4 hours away from where they live now (See graph below):In some cases, moving a little further away from your current location might mean you can get more home for your money. If you have the opportunity to work remotely, you may have more options available by expanding your search. Upwork also indicates, of those surveyed:
“People are seeking less expensive housing: Altogether, more than half (52.5%) are planning to move to a house that is significantly more affordable than their current home.”
Whether you can eliminate your daily commute to the office, or you simply need more space to work from home, your plans may be changing. If that’s the case, it’s time to connect with a local real estate professional to assess your evolving needs and determine your path together.
This has been a year of change, and what you need in a home is no exception. Let’s connect today to make sure you have expert guidance on your side to help you find a home that fits your remote work needs.
As the economy recovers from this year’s health crisis, the housing market is playing a leading role in the turnaround. It’s safe to say that what we call “home” is taking on a new meaning, causing many of us to consider buying or selling sooner rather than later. Housing, therefore, has thrived in an otherwise down year.
Today’s high buyer demand combined with low housing inventory means we’re seeing home prices appreciate at an above-average pace. This demand is being driven by those who want to take advantage of historically low mortgage rates. According to Freddie Mac:
"The record low mortgage rate environment is providing tangible support to the economy at a critical time, as housing continues to propel growth."
These factors are driving a positive impact on the economy as a whole. According to the National Association of Realtors (NAR), the real estate industry provided $3.7 billion dollars of economic impact to the country last year. To break it down, in 2019, the average newly constructed home contributed just over $88,000 per build to local economies. Across the country, real estate clearly makes a significant impact (See map below):In addition, last week, the Bureau of Economic Analysis announced the U.S. Gross Domestic Product increased at an annual rate of 33.1% in the 3rd quarter of this year, after decreasing by 31.4% in the second quarter. There’s no doubt the growing economy is being fueled in part by the soaring housing market. Experts forecast this housing growth to carry into 2021, continuing to make a big impact on the economy next year as well.
The American Dream of homeownership has continued to thrive in the midst of this year’s economic downturn, and “home” has taken on a new meaning for many of us during this time. Best of all, the housing market is making a significant impact as the economy recovers.
The 2020 housing market has surpassed all expectations and continues to drive the nation’s economic recovery. The question is, will this positive trend continue throughout the rest of the year, especially given the uncertainty around the current health crisis, the upcoming election, and more?
Here’s a look at what several industry-leading experts have to say.
Lawrence Yun, Chief Economist, National Association of Realtors
“Home sales continue to amaze, and there are plenty of buyers in the pipeline ready to enter the market…Further gains in sales are likely for the remainder of the year, with mortgage rates hovering around 3% and with continued job recovery."
Frank Martell, President and CEO, CoreLogic
"Homeowners’ balance sheets continue to be bolstered by home price appreciation, which in turn mitigated foreclosure pressures…Although the exact contours of the economic recovery remain uncertain, we expect current equity gains, fueled by strong demand for available homes, will continue to support homeowners in the near term."
“Zillow's predictions for seasonally adjusted home prices and pending sales are more optimistic than previous forecasts because sales and prices have stayed strong through the summer months amid increasingly short inventory and high demand.The pandemic also pushed the buying season further back in the year, adding to recent sales. Future sources of uncertainty including lapsed fiscal relief, the long-term fate of policies supporting the rental and mortgage market, and virus-specific factors, were incorporated into this outlook.”
“Zillow's predictions for seasonally adjusted home prices and pending sales are more optimistic than previous forecasts because sales and prices have stayed strong through the summer months amid increasingly short inventory and high demand.
The pandemic also pushed the buying season further back in the year, adding to recent sales. Future sources of uncertainty including lapsed fiscal relief, the long-term fate of policies supporting the rental and mortgage market, and virus-specific factors, were incorporated into this outlook.”
Many economists are in unison, indicating the housing market will continue to fuel the economy through the end of the year, maintaining this unprecedented strength.
Come and see North Key Largo Real Estate at the Ocean Reef Club. Enjoy the fabulous family friendly festivities on offer.
To keep up with the Watsons follow their antics on Instagram and Facebook. Staying up to date with events on The Reef in these interesting times has never been easier with the Ocean Reef Press. Don't lose sight of home prices and new listings in this always interesting marketplace.
Watson Luxury Properties is based at Ocean Reef, right on the Golf Course! We are North Key Largo Real Estate's property experts who really 'Know The Reef.'
We know Real Estate at the Ocean Reef Club as well as Ocean Reef Club Rental Properties. Specialists in a broad field for many decades, our family team can help you with your investment or home search.
Perhaps you began your search in the nearby Key Largo Real Estate market but didn't find what you were seeking. Allow us to help you find your home in North Key Largo Real Estate's exceptional family-oriented environment.
Watson Luxury Properties at Ocean Reef Club - has been member owned and family operated since 1998
'Where Quality Service Is A Family Value'
The Watson family adheres to this adage, doggedly. We deliver client services with consistent levels of excellence.
Ask us anything, with over 50 years of combined experience in North Key Largo's exclusive Ocean Reef Club Real Estate sales and rentals, we 'Know The Reef!'
Our team is never happier than when we are out on property showings. Whether it is a water view, a slot for your boat or a peaceful golf course abode, we just know we have the perfect spot for you.
The Reef's full service marina offers a perfect place to purchase a slip for your boat. It is a world class marina and boasts some of the world's most elegant and quietly famous, beautiful yachts.
13B FAIRWAY LAKES - WITHIN STRIKING DISTANCE OF THE GOLF COURSE
PERFECTLY APPOINTED MARINA SLIPS FOR EASE OF ACCESS
Our two championship golf courses offer open fairways and beautiful foliage - with some challenging greens. What about a game of Golf this Independence Day weekend? Come see a little slice of heaven from your golf cart on our beautiful award-winning landscaped roads and pathways. This oasis never gets tiresome.
MICHAEL WATSON - ALWAYS IN THE SPORTING FRAME OF MIND
Because we are family operated we know a real estate showing is never 'just' a showing.
Please join us for a true lifestyle experience, by way of a showing. If your search for Premium Key Largo Real Estate didn't satisfy your tastes, we are happy to offer Ocean Reef Club Real Estate listings to improve the day.
And if COVID travel is restrictive we offer the ever more popular, increasingly effective virtual 'in person' tours
FABULOUS FEATURE? WE THINK SO! For your piece of paradise think about this water front land. This one is on the market and waiting for you. What an open water view too! Start building your dream home now in the friendly and safe confines of the Ocean Reef Club. We can't say enough good things about this view and the potential for your future enjoyment here.
Of course our family team would love to meet you to discuss your options. Our slower pace can really do wonders for everyone's state of mind. in particular clearing ones own mind to ascertain what is truly going to make you and everyone you love and cherish, absolutely happy.
North Key Largo Real Estate as it is known to locals offers buyers premium listings wrapped in this special environment. Watson's team offer condominiums, and homes with or without yacht slips, as well as waterfront homes, wooded hammock homes and homes with that great Golf Course view.
One feature many love about The Reef is 'safety.' The Reef is a well managed haven of elegance and a way of life that truly welcomes families within the community.
You can find us at 9 Barracuda Lane, Key Largo or call us and we would be happy to meet you socially. Perhaps join us you over the Independence Day weekend. Chat with us during Tee time on the Golf course. Or with lines in the water, we love to spend time in and on the ocean.
Enjoy Summer Golf - or just golfing in general - we've discovered that choosing to get your game right starts here. It really really does. Especially with the Big Cups Golf Tournament. A tradition not to be missed.
From Scott Kirkwood, Director of Golf, from the "Golden Tees""We have an exciting slate of summer tournaments this year, and the next one is coming up on Saturday, July 4. The annual Independence Day Big Cup Golf Tournament will be held on the Dolphin Course.
'You can make your own tee-time on ForeTees and the format will be individual stroke play. The catch is, the holes will be much larger than normal, more than twice the size! See how low you can go with our always popular Fourth of July tradition,' says Kirkwood.
If you are in love with the idea of Golf but cant imagine yourself out there, for love nor money, with no clue what to do. Or have played before but know you can do better, consider a training session with Derek Swoboda, who talks about Bioswing Dynamics and the Blueprint For Your Golf Swing. He is going to measure your Shoulder Plane, Torso Plane and Hip Plane and then you'll get to see how good you can really be.
North Key Largo is our Ocean Reef Club home and here at Watson we are so excited for the upcoming Independence Day 2020 events, primary amongst them would be the fireworks on Buccaneer Island from 9pm to 930pm. If you aren’t scheduling something from the list golf, fishing, shopping, drive in movie, this year it's Robin William's in 'Jumanji' it's not too late to register for Independence Day 2020 Ocean Reef activities.
Or simply arrive and enjoy. And what fabulous choices. Whether it's a new home or a fun Independence Day weekend with family and the possibility of a prime piece of Ocean Reef Club Real Estate. We hope you enjoy the decades of expertise presented to you by the member owned, family operated Watson Luxury Properties team. And we can't wait to meet you. We are here and loving the life, ready to share that enthusiasm with you.
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