Should I Stage My Home When Selling?

Should I Stage My Home?

There are so many decisions that need to be made when selling your home. You have to decide when to sell it, who to hire to sell it, what price to set, and on and on. Part of what makes selling inherently stressful is the ongoing decision making required.

Another question that might need to be answered is: “Should I stage your home, or sell it empty?”

Like so many real estate questions, the answer to this one is, “It depends.” Comforting, right?

The reason why there is not necessarily a clear answer here is that there are benefits and drawbacks that come with each option. Which one you ultimately choose will need to be based on your own preferences. You have to weigh the advantages and disadvantages and go from there. Selling a home empty vs. occupied has it’s positives and negatives as well.

What is Staging a Home?

Before you can even start to make a decision, it will be helpful to know what a staged home is in the first place.

If you have ever walked through an open house or a home for sale and seen a perfectly designed interior, with everything placed just so, you may have witnessed a staged home. 

A staged home is one that is filled with things to make it more appealing to potential buyers. There are professionals who specialize in staging homes for sale. They may bring in furniture, appliances, paintings, curtains—everything needed to create a particular look. Once they are finished, the home appears to be lived in. Many sellers feel this look is preferable to a big empty house.

Staging a home has become quite popular with builders across the country. They will have a “model home” which is used to showcase their options and craftsmanship. Staging puts the frosting on the cake by making the house feel like a home.

For some buyers, staging can help them conceptualize better how they will plan out their own furniture. For the average homeowner, professional staging may not be necessary. If you live in a gorgeous home to start with staging will make a negligible difference.

What’s important is that your home is prepared for the sale. An effort should be made to have it looking it’s best before the for sale sign hits the lawn. The prior reference has some simple staging tips to help your place looking acceptable.

Some Highlights:

    • The National Association of Realtors surveyed their members & released the findings of their Profile of Home Staging.
  •  
    • 62% of seller’s agents say that staging a home decreases the amount of time a home spends on the market.
  •  
  •  
    • 77% of buyer’s agents said staging made it easier for buyers to visualize the home as their own.
  •  
    • The top rooms to stage in order to attract more buyers are the living room, master bedroom, kitchen, and dining room.

Final Thoughts

There are many decisions that need to be made when selling a home. Some sellers will need to decide whether to sell their home empty or staged. We look at all factors to help our sellers make the best decision.  We also work together with San Diego’s top staging company. They provide excellent service and have the best prices in all of Southern California.  If you have questions about staging or selling your home, don’t hesitate to reach out to us today.  

 

Brought you San Diego Real Estate Agent and Real Estate Broker, Glen Henderson.  Glen has been a San Diego Realtor for 15 years and has been involved in over 1,000 home sales throughout San Diego County.  Contact him today with any questions at 619-500-3222 or visit Premier Homes at www.MyPremierHomes.com

If you would like to Search Houses for Sale in San Diego, visit www.GreaterSanDiegoAreaHomes.com

Home Buyers are Optimistic About Homeownership in 2019

When we consider buying an item, we naturally go through a research process prior to making our decision. We ask our friends and family members who have made similar purchases about their experience, we get opinions and insights, and we read reviews online. There’s no difference when considering a home purchase!

Most home buyers start by listening to the news to hear what is being said about the real estate market. They check with family and friends about their experience. They spend time online reading reviews about their desired neighborhood. All are wondering where home prices are headed in 2019.

The challenge is that comments from the news and those closest to us can contradict the data and reports. One source says one thing, while another source says something completely different.

There is a group of homebuyers that are not allowing comments about an upcoming recession to interfere with their decision to buy a home. According to a survey by realtor.com®,

Nearly 70 percent of home shoppers this spring think the U.S. will enter a recession in the next three years, but that hasn’t stopped them from trying to close on a home…Despite the fact that they foresee an economic downturn, they generally expressed confidence that a future recession will be better than 2008 for the housing market.”

The report provides more insights from the survey:

    • Nearly 30% of the active home shoppers* surveyed expect the next recession to begin sometime in 2020.
    • 56% of shoppers believe home prices have hit their peak.
    • 41% believe housing will fare better than in 2008.
    • 45% of home shoppers feel at least slightly more optimistic about homeownership.
    • 33% reported no impact on their feelings about homeownership.

Homebuyers are aware and making decisions with their eyes wide-open. As the report mentioned,

“The fact that some [36%] home shoppers expect the next recession to be harder on the housing market than the last recession suggests that they are buying homes with eyes wide-open and very sober, if not slightly pessimistic, views of the housing market.

This is a stark contrast to the years leading up to the last recession when ‘irrational exuberance’ was more common and yet another reason to expect that the next downturn will be very different for the housing market than the last.”

Bottom Line

If you are considering buying a home, let’s get together to help you understand our local market and determine if buying a home is the right choice for you now.

*Active home shoppers are those consumers who responded that they plan to purchase their next home in 1 year or less.

 

Brought you San Diego Real Estate Agent and Real Estate Broker, Glen Henderson.  Glen has been a San Diego Realtor for 15 years and has been involved in over 1,000 home sales throughout San Diego County.  Contact him today with any questions at 619-500-3222 or visit Premier Homes at www.MyPremierHomes.com

If you would like to Search Houses for Sale in San Diego, visit www.GreaterSanDiegoAreaHomes.com

2 Trends Helping to Keep Housing More Affordable

Two positive trends have started to emerge that impact the 2019 Spring Housing Market. Mortgage interest rates for a 30-year fixed rate loan have dropped to new lows, right as reports show that wages have increased at their highest rate in decades!

These two factors have helped keep housing affordable despite low supply of houses for sale driving up prices. First American’s Chief Economist, Mark Fleming, explains the impact,

“Ongoing supply shortages remain the main driver of the performance gap as the housing market continues to face an inventory impasse – you can’t buy what’s not for sale.

 However, an unexpected affordability surge, driven primarily by lower-than-anticipated mortgage rates, rising wages and favorable demographics, has boosted housing demand.”

Mortgage interest rates had been on the rise for most of 2018 before reaching their peak in November at 4.94%. According to Freddie Mac’s Primary Mortgage Market Survey, interest rates last week came in at 4.20%.

Average hourly earnings grew at an annual rate of 3.2% in March, up substantially from the 2.3% average pace seen over the last 10 years.

These two factors contributed nearly $6,000 worth of additional house-buying power for median households from February to March 2019, according to First American’s research. Fleming is positive about the prolonged impact of lower rates and higher wages.

“We expect rising wages and lower mortgage rates to continue through the spring, boosting housing demand and spurring home sales.”

Bottom Line

Low mortgage interest rates have kept housing affordable throughout the country. If you plan on purchasing a home this year, act now while rates are still low!

 

Brought you San Diego Real Estate Agent and Real Estate Broker, Glen Henderson.  Glen has been a San Diego Realtor for 15 years and has been involved in over 1,000 home sales throughout San Diego County.  Contact him today with any questions at 619-500-3222 or visit Premier Homes at www.MyPremierHomes.com

If you would like to Search Houses for Sale in San Diego, visit www.GreaterSanDiegoAreaHomes.com

The #1 Reason to Not Wait Until Spring to Sell Your House

 

Many sellers believe that spring is the best time to place their homes on the market because buyer demand traditionally increases at that time of year, but what they don’t realize is that if every homeowner believes the same thing, then that is when they will have the most competition!

The #1 Reason to List Your Home in the Winter Months is Less Competition!

Housing supply traditionally shrinks at this time of year, so the choices buyers have will be limited. The chart below was created using the months’ supply of listings from the National Association of Realtors.

The #1 Reason to Not Wait Until Spring to Sell Your House | Simplifying The Market

As you can see, the ‘sweet spot’ to list your home for the most exposure naturally occurs in the late fall and winter months (November – February). 

Temperatures aren’t the only thing that heats up in the spring – so do listings!

The #1 Reason to Not Wait Until Spring to Sell Your House | Simplifying The Market

In 2017, listings increased by nearly half a million houses from December to June. Don’t wait for these listings to come to market before you decide to list your house.

Added Bonus: Only Serious Buyers Are Out in the Winter

At this time of year, only those purchasers who are serious about buying a home will be in the marketplace. You and your family will not be bothered and inconvenienced by mere ‘lookers.’ The lookers are at the mall or online doing their holiday shopping.

Bottom Line

If you have been debating whether or not to sell your home and are curious about market conditions in your area, let’s get together to help you decide the best time to list your house for sale.

 

Brought you San Diego Real Estate Agent and Real Estate Broker, Glen Henderson.  Glen has been a San Diego Realtor for 15 years and has been involved in over 1,000 home sales throughout San Diego County.  Contact him today with any questions at 619-500-3222 or visit Premier Homes at www.MyPremierHomes.com

If you would like to Search Houses for Sale in San Diego, visit www.GreaterSanDiegoAreaHomes.com

Where are Home Values Headed in 2019

There are many questions about where home prices will be next year as well as where they may be headed over the next several years to come. We have gathered the most reliable sources to help answer these questions:

The Home Price Expectation Survey – A survey of over 100 market analysts, real estate experts, and economists conducted by Pulsenomics each quarter.

Zelman & Associates – The firm leverages unparalleled housing market expertise, extensive surveys of industry executives, and rigorous financial analysis to deliver proprietary research and advice to leading global institutional investors and senior-level company executives.

Mortgage Bankers Association (MBA) – As the leading advocate for the real estate finance industry, the MBA enables members to successfully deliver fair, sustainable, and responsible real estate financing within ever-changing business environments.

Freddie Mac – An organization whose mission is to provide liquidity, stability, and affordability to the U.S. housing market in all economic conditions extending to all communities from coast to coast.

The National Association of Realtors (NAR) – The largest association of real estate professionals in the world.

Fannie Mae – A leading source of financing for mortgage lenders, providing access to affordable mortgage financing in all markets always.

Here are their projections of prices going forward:

Where are Home Values Headed over the Next Few Years? | Simplifying The Market

Bottom Line

Every source sees home prices continuing to appreciate – just at lower percentages as we move through the next several years.

Would you like to know how much your home is currently worth? Check your home’s value at https://www.greatersandiegoareahomes.com/evaluation

 

 

Brought you San Diego Real Estate Agent and Real Estate Broker, Glen Henderson.  Glen has been a San Diego Realtor for 15 years and has been involved in over 1,000 home sales throughout San Diego County.  Contact him today with any questions at 619-500-3222 or visit Premier Homes at www.MyPremierHomes.com

If you would like to Search Houses for Sale in San Diego, visit www.GreaterSanDiegoAreaHomes.com

Baby Boomers are Downsizing

Baby Boomers are Downsizing, Are You Ready to Move? | Simplifying The Market

For a while now baby boomers have been blamed for a portion of the housing market’s current lack of housing inventory, but should they really be getting the blame?

Here’s what some of the experts have to say on the subject:

Aaron Terrazas, Senior Economist at Zillow, says that “Boomers are healthier and working longer than previous generations, which means they aren’t yet ready to sell their homes.

According to a study by Realtor.com, 85% of baby boomers indicated they were not planning to sell their homes.

It is true that baby boomers are healthier and are thus working and living longer, but are they also refusing to sell their homes? 

Last month, Trulia looked at the housing situation of seniors (aged 65+) today compared to that of a decade ago. Trulia’s study revealed that:

Although seniors appear to be delaying downsizing until later in life, as a group, households 65 and over are still downsizing at roughly the same rate as in years past.”

Trulia also explains that, 

5.5% of households 65 and over moved, pretty evenly split between moves to single family (2.7%) and multifamily (2.4%) homes. In 2005, these percentages were virtually the same, with 5.5% of senior households moving, including 2.5% into single family and 2.5% into multifamily homes.”

So, if these percentages are the same, what is the challenge?

Recent reports tell us that the older population grew from 3 million in 1900 to 47.8 million in 2017.

In addition, the Census recently revised the numbers from their National Population Projections:

The aging of baby boomers means that within just a couple decades, older people are projected to outnumber children for the first time in U.S. history…By 2035, there will be 78.0 million people 65 years and older compared to 76.7 million under the age of 18.

Bottom Line

If you are a baby boomer who is not sure whether you should downsize or move to a warmer climate (other people are doing it, why not you?), let’s get together so we can help you evaluate your options today!

 

Brought you San Diego Real Estate Agent and Real Estate Broker, Glen Henderson.  Glen has been a San Diego Realtor for 15 years and has been involved in over 1,000 home sales throughout San Diego County.  Contact him today with any questions at 619-500-3222 or visit Premier Homes at www.MyPremierHomes.com

If you would like to Search Houses for Sale in San Diego, visit www.GreaterSanDiegoAreaHomes.com

What Is Happening With Home Prices 2018

According to CoreLogic’s latest Home Price Insights Report, national home prices in August were up 5.5% from August 2017. This marks the first time since June 2016 that home prices did not appreciate by at least 6.0% year-over-year.

CoreLogic’s Chief Economist Frank Nothaft gave some insight into this change,

“The rise in mortgage rates this summer to their highest level in seven years has made it more difficult for potential buyers to afford a home. The slackening in demand is reflected in the slowing of national appreciation, as illustrated in the CoreLogic Home Price Index.  

National appreciation in August was the slowest in nearly two years, and we expect appreciation to slow further in the coming year.”

One of the major factors that has driven prices to accelerate at a pace of between 6-7% over the past two years was the lack of inventory available for sale in many areas of the country. This made houses a prized commodity which forced many buyers into bidding wars and drove prices even higher.

According to the National Association of Realtors’ (NAR) latest Existing Home Sales Report, we are starting to see more inventory come to market over the last few months. This, paired with patient buyers who are willing to wait to find the right homes, is creating a natural environment for price growth to slow.

Historically, prices appreciated at a rate of 3.7% (from 1987-1999). CoreLogic predicts that prices will continue to rise over the next year at a rate of 4.7%.

Bottom Line

As the housing market moves closer to a ‘normal market’ with more inventory for buyers to choose from, home prices will start to appreciate at a more ‘normal’ level, and that’s ok! If you are curious about home prices in your area, let’s get together to chat about what’s going on!

 

Brought you San Diego Real Estate Agent and Real Estate Broker, Glen Henderson.  Glen has been a San Diego Realtor for 15 years and has been involved in over 1,000 home sales throughout San Diego County.  Contact him today with any questions at 619-500-3222 or visit Premier Homes at www.MyPremierHomes.com

If you would like to Search Houses for Sale in San Diego, visit www.GreaterSanDiegoAreaHomes.com

Are We About to Enter a Buyers Market?

Are We About to Enter a Buyers’ Market?

Home sales are below last year’s levels, home values are appreciating at a slower pace, and there are reports showing purchasing demand softening. This has some thinking we may be entering a buyers’ market after sellers have had the upper hand for the past several years. Is this really happening?

The market has definitely softened. However, according to two chief economists in the industry, we are a long way from a market that totally favors the purchaser:

Dr. Svenja Gudell, Zillow Chief Economist:

“These seller challenges don’t indicate we’re suddenly in a buyers’ market – we don’t expect market conditions to shift decidedly in favor of buyers until 2020 or later. But buyers certainly are starting to balk at the rapid rise in prices and home values are starting to grow at a less frenetic pace.”

Danielle Hale, Chief Economist of realtor.com:

“The signs are pointing to a market that’s shifting toward buyers. But, in most places, we’re still a long way from a full reversal.”

In addition, Pulsenomics Inc. recently surveyed over one hundred economists, real estate experts, and investment & market strategists and asked this question:

“When do you expect U.S. housing market conditions to shift decidedly in favor of homebuyers?”

Only 5% said the market has already shifted. Here are the rest of the survey results:

Are We About to Enter a Buyers’ Market? | Simplifying The Market

Bottom Line

The market is beginning to normalize but that doesn’t mean we will quickly shift to a market favoring the buyer. We believe Ivy Zelman, author of the well-respected ‘Z’ Report, best explained the current confusion:

“With the rate of home price appreciation starting to decelerate alongside the uptick in inventory…we expect significant debate about whether this is a bullish or bearish sign.

In our view, the short-term narrative will probably be confusing, but more sustainable growth and affordability will likely be the end result.”

 

Brought you San Diego Real Estate Agent and Real Estate Broker, Glen Henderson.  Glen has been a San Diego Realtor for 15 years and has been involved in over 1,000 home sales throughout San Diego County.  Contact him today with any questions at 619-500-3222 or visit Premier Homes at www.MyPremierHomes.com

If you would like to Search Houses for Sale in San Diego, visit www.GreaterSanDiegoAreaHomes.com

2 Factors to Watch in Today’s Real Estate Market Whether Buying or Selling

should i buy or sell real estate 2018?

When it comes to buying or selling a home there are many factors you should consider. Where you want to live, why you want to buy or sell, and who will help you along your journey are just some of those factors. When it comes to today’s real estate market, though, the top two factors to consider are what’s happening with interest rates & inventory.

Interest Rates

Mortgage interest rates have been on the rise and are now over three-quarters of a percentage point higher than they were at the beginning of the year. According to Freddie Mac’s latest Primary Mortgage Market Survey, rates climbed to 4.72% for a 30-year fixed rate mortgage last week.

The interest rate you secure when buying a home not only greatly impacts your monthly housing costs, but also impacts your purchasing power.

Purchasing power, simply put, is the amount of home you can afford to buy for the budget you have available to spend. As rates increase, the price of the house you can afford to buy will decrease if you plan to stay within a certain monthly housing budget.

The chart below shows the impact that rising interest rates would have if you planned to purchase a $400,000 home while keeping your principal and interest payments between $2,020-$2,050 a month.

2 Factors to Watch in Today’s Real Estate Market Whether Buying or Selling | Simplifying The Market

With each quarter of a percent increase in interest rate, the value of the home you can afford decreases by 2.5% (in this example, $10,000). Experts predict that mortgage rates will be over 5% by this time next year.

Inventory

A ‘normal’ real estate market requires there to be a 6-month supply of homes for sale in order for prices to increase only with inflation. According to the National Association of Realtors (NAR), listing inventory is currently at a 4.3-month supply (still well below the 6-months needed), which has put upward pressure on home prices. Home prices have increased year-over-year for the last 78 straight months.

The inventory of homes for sale in the real estate market had been on a steady decline and experienced year-over-year drops for 36 straight months (from July 2015 to May 2018), but we are starting to see a shift in inventory over the last three months.

The chart below shows the change in housing supply over the last 12 months compared to the previous 12 months. As you can see, in June, July, and August, inventory levels have started to increase as compared to the same time last year.

2 Factors to Watch in Today’s Real Estate Market Whether Buying or Selling | Simplifying The Market

This is a trend to watch as we move further into the fall and winter months. If we continue to see an increase in homes for sale, we could start moving further away from a seller’s market and closer to a normal market.

Bottom Line

If you are planning to enter the housing market, either as a buyer or a seller, let’s get together to discuss the changes in mortgage interest rates and inventory and what they could mean for you.

 

Brought you San Diego Real Estate Agent and Real Estate Broker, Glen Henderson.  Glen has been a San Diego Realtor for 15 years and has been involved in over 1,000 home sales throughout San Diego County.  Contact him today with any questions at 619-500-3222 or visit Premier Homes at www.MyPremierHomes.com

If you would like to Search Houses for Sale in San Diego, visit www.GreaterSanDiegoAreaHomes.com

How Does the Supply of Homes for Sale Impact Buyer Demand?

How Does the Supply of Homes for Sale Impact Buyer Demand? | Simplifying The Market

The price of any item is determined by the supply of that item, as well as the market’s demand for it. The National Association of REALTORS (NAR) surveys “over 50,000 real estate practitioners about their expectations for home sales, prices and market conditions” for their monthly REALTORS Confidence Index.

Their latest edition sheds some light on the relationship between seller traffic (supply) and buyer traffic (demand).  It also helps to answer the question: “Should I buy now, or wait until next year?”

Buyer Demand

The map below was created after asking the question: “How would you rate buyer traffic in your area?”

How Does the Supply of Homes for Sale Impact Buyer Demand? | Simplifying The Market

The darker the blue, the stronger the demand for homes is in that area. The survey showed that in 38 out of 50 states buyer demand was slightly lower than this time last year but remains strong. Only six states had a ‘stable’ demand level.

Seller Supply 

The index also asked: “How would you rate seller traffic in your area?”

As you can see from the map below, 23 states reported ‘weak’ seller traffic, 22 states and Washington D.C. reported ‘stable’ seller traffic, and 5 states reported ‘strong’ seller traffic. This means there are far fewer homes on the market than what is needed to satisfy the buyers who are out looking for homes.

How Does the Supply of Homes for Sale Impact Buyer Demand? | Simplifying The Market

Bottom Line

Looking at the maps above, it is not hard to see why prices are appreciating in many areas of the country. Until the supply of homes for sale starts to meet buyer demand, prices will continue to increase. If you are debating listing your home for sale, let’s get together so I can help you capitalize on the demand in the market now!

 

Brought you San Diego Real Estate Agent and Real Estate Broker, Glen Henderson.  Glen has been a San Diego Realtor for 15 years and has been involved in over 1,000 home sales throughout San Diego County.  Contact him today with any questions at 619-500-3222 or visit Premier Homes at www.MyPremierHomes.com

If you would like to Search Houses for Sale in San Diego, visit www.GreaterSanDiegoAreaHomes.com