We’re almost ten years removed from the housing market crash of 2008, but the aftermath has been long and far-reaching. In 2014, we began to see an upswing in the housing market, and 2017 looks to be a return to the industry favorite, “a seller’s market.” In fact, a low inventory of available homes means that those who wish to sell have an advantage! Jody Peske, a Broker in Charge at Keller Williams, shares some insight into the 2017 market, especially as school ends, and families begin to make decisions about their homes in the summer months.
DH: Is there, in fact, a shortage of home inventory?
JP: There is; CNN Money recently reported that the inventory of available homes was down, yet the home values are up. In fact, last November, I posted a request from those who follow me on Facebook to call me if they were interested in selling!
DH: What does that mean for sellers?
JP: A few years ago, there were more homes available than there were buyers. That trend has flipped. Less competition means sellers can get a better price for their house. However, sellers still need to be mindful about curb appeal, decluttered, neutral spaces that appeal to buyers.
DH: How does that bode for buyers who have fewer options?
JP: There’s something to be said for limited options, so it’s not necessarily a bad thing. It means that, with fewer options, buyers are less likely to be overwhelmed. That’s not to say that a buyer with more limited options should settle, but be open minded to what is available and what they can afford.
DH: Is this a good time to invest in real estate?
JP: Absolutely! Renting continues be more expensive, and while renting offers its own kind of benefit – namely, the lack of maintenance and maintenance costs – ownership and the tax benefits that come with it make it a worthwhile investment. Many people pay less in a mortgage than they do in rental!
DH: If someone is thinking of selling, what advice do you have before they list it?
JP: First, take your time. Don’t rush to market without making sure your house is ready to be presented. You want to take the time to neutralize any offbeat colors, make repairs, declutter, and frankly, depersonalize your space. Your home has been a reflection of you and your family, but if you’re selling it, you need to make it a place where others can see themselves. It’s never a bad idea to consider bringing in a home stager to help prepare your house for a buyer. Staged homes can sell up to 88% faster and bring in 20% more than non-staged homes!
DH: If someone is thinking of buying, what advice do you have?
JP: Dave Ramsey often says, “Live like no one else, so you can live like no one else.” He’s referring to living debt free, but it also applies to saving for the biggest investment someone will ever make. Though the market has made it easier to get a loan, lenders are still looking for that 20% down. If you are looking for homes in the $200,000 range, that’s $40,000. Trim your expenses and get serious about saving your money! Those without a 20% down payment may qualify for a home loan, but they will have to pay for private mortgage insurance until their equity reaches that 20% mark.
DH: We’ve heard of some markets having bidding wars on property. Is that a concern in our area?
JP: We haven’t had the same issue in this market as other areas of the country, but that doesn’t mean it’s not a possibility. Much would depend on the property and where it’s located. The big thing – don’t assume anything until you have a contract in place.
Thank you, Jody Peske, for sharing some of the commonly asked questions home buyers and home sellers may have. If you are interested in buying or selling, give Jody a call! Her number is 336.918.7496, and you can email her at Jody@KW.com. Visit Jody online at JodyPeske.com and be sure to follow her on Facebook!