Renters Believe Winter is the Best Time to Buy a Home

24% of Renters Believe Winter is the Best Time to Buy a Home

In real estate, the spring is often seen as the ideal time to buy or sell a house. The term “Spring Buyer’s Season” exists for a reason, as renters and those looking to move on from their current home thaw out from the winter and hit the market ready to buy.

According to Bank of America’s annualHome Buyer Insights Report, 41% of renters surveyed agree that spring is the best time to buy a home. The surprising result, however, is that when ranking the seasons, winter comes in second at 24%.

In many areas of the country, the spring and summer are the most competitive seasons for buyers. Families with children often want to move over the summer to make sure that their kids are ready for school in the fall. This often leads those families who haven’t found homes to buy to push pause on their search in the fall and winter months.

This creates a great environment for buyers to find a home with less competition. According to moving.com, scheduling a move during the winter months also comes with the best price.

If you define ‘best’ by cost then, generally speaking, you are more likely to save on a move during the late September to April window. Demand for movers usually slows down during this time frame and rates are low.

There are also many benefits to listing your house for sale during the winter months as well!

As we recently mentioned, buyers who are out in the winter are serious about wanting to find a home, and there is traditionally less competition on the market which gives you greater exposure to those buyers.

Bottom Line

As always, the best time to buy or move all depends on each individual buyer or seller’s goals and needs. If you are one of the many who would like to make a move this winter, let’s get together to create a plan to make it happen!

 

Related Article: The #1 Reason to List Your House for Sale NOW.

Buyers: Don’t Be Surprised by Closing Costs!

Buyers: Don’t Be Surprised by Closing Costs!

Many homebuyers think that saving for their down payment is enough to buy the house of their dreams, but what about the closing costs that are required to obtain a mortgage?

By law, a homebuyer will receive a loan estimate from their lender 3 days after submitting their loan application and they should receive a closing disclosure 3 days before the scheduled closing on their home. The closing disclosure includes final details about the loan and the closing costs.

But what are closing costs anyway?

According to Trulia:

Closing costs are lender and third-party fees paid at the closing of a real estate transaction, and they can be financed as part of the deal or be paid upfront. They range from 2% to 5% of the purchase price of a home. (For those who buy a $150,000 home, for example, that would amount to between $3,000 and $7,500 in closing fees.)”

Keep in mind that if you are in the market for a home above this price range, your costs could be significantly greater. As mentioned before,

Closing costs are typically between 2% and 5% of your purchase price.

Trulia continues to give great advice, saying that:

“…understanding and educating yourself about these costs before settlement day arrives might help you avoid any headaches at the end of the deal.”

Bottom Line

Speak with your lender and agent early and often to determine how much you’ll be responsible for at closing. Finding out that you’ll need to come up with thousands of dollars right before closing is not a surprise anyone is ever looking forward to.

Featured Listing: 4703 Old Gate Lane in Parker

4703 Old Gate Lane in Parker

Idyllic country living on 2-acre property next door to the city. Drive out to Parker and discover peaceful and picturesque living. Beautifully treed front yard with iron pipe fencing surrounds this beauty. The traditional ranch home is loaded with charm and updates – hardwood and marble floors, beautiful see through fireplace between living and exercise, fully updated master suite and bath, rich granite throughout, adorable claw foot tub in guest bath. Fully renovated kitchen features custom cabinets, granite counter tops, double ovens, microwave, cook top and dishwasher. Step out to an incredible outdoor space with pool and spa and gazebo- refreshing and private for your entertaining. Large acre in back is ideal for horses. Property also features a large barn.

 

Offered at $525,000

 

Property Details for 4703 Old Gate Lane

  • 2,504 Square Feet
  • Built in 1978
  • 2.060 Acres
  • 4 Bedrooms
  • 2.1 Baths
  • 1 Living Area
  • 2 Dining Areas
  • Pool
  • Fireplace
  • 2 Garage Spaces
  • Plano ISD:
    • Elementary School: Hickey
    • Middle School: Bowman
    • High School: Williams
    • Senior High School: Plano East
  • Living Room: 21 x 16 / 1
  • Kitchen 17 x 10 / 1
  • Dining Room: 12 x 11 / 1
  • Breakfast Room: 11 x 10 / 1
  • Master Bedroom: 18 x 14 / 1
  • Bedroom: 12 x 11 / 1
  • Bedroom: 12 x 10 / 1
  • Bedroom: 11 x 11 / 1
  • Exercise Room 21 x 9 / 1

 

Contact The Indigo Skye Group to schedule your personal showing of this  property: Connect@IndigoSkyeGroup.com or 214-814-8400.

Are Homeowners Renovating to Sell or to Stay?

 

Are Homeowners Renovating to Sell or to Stay?

Over the past few years, two trends have emerged in the housing market:

  1. Home renovations have shot up
  2. Inventory of homes available for sale on the market has dropped

A ‘normal’ housing market is defined by having a 6-month supply of homes for sale. According to the latest Existing Home Sales Report from the National Association of Realtors, we are currently at a 4.4-month supply.

This low inventory environment has many current homeowners worried that they would be unable to find a home to buy if they were to list and sell their current houses, which is causing many homeowners to instead renovate their homes in an attempt to fit their needs.

According to Home Advisorhomeowners spent an average of $6,649 on home improvements over the last 12 months. If that number seems high, it also includes homeowners who recently bought fixer-uppers.

A new study from Zillow asked the question,

“Given a choice between spending a fixed amount of money on a down payment for a new home or fixing up their current home, what would you do?”

Seventy-six percent of those surveyed said that they would rather renovate their current homes than move. The results are broken down by generation below.

More and more studies are coming out about the intention that many Americans have to ‘age in place’ (or retire in the area in which they live). Among retirees, 91% would prefer to renovate than spend their available funds on a down payment on a new home.

If their current house fits their needs as far as space and accessibility are concerned, then a renovation could make sense. But if renovations will end up changing the identity of the home and impacting resale value, then the renovations may end up costing them more in the long run.

With home prices increasing steadily for the last 6.5 years, homeowners have naturally gained equity that they may not even be aware of. Listing your house for sale in this low-competition environment could net you more money than your renovations otherwise would.

Bottom Line

If you are one of the many homeowners who is thinking about remodeling instead of selling, let’s get together to help you make the right decision for you based on the demand for your house in today’s market.

Home Sellers in Q3 Netted $61K at Resale

Home Sellers in Q3 Netted $61K at Resale

According to a recent report by ATTOM Data Solutions, home sellers who sold their homes in the third quarter of 2018 benefited from rising home prices and netted an average of $61,232.

This is the highest average price gain since the second quarter of 2007 and represents a 32% return on the original purchase prices.

After the Great Recession, many homeowners were left in negative equity situations but home price appreciation in the recovery period since then has given homeowners something to smile about.

The results from ATTOM fall right in line with data from the latest edition of the National Association of Realtors’ (NAR) Profile of Home Buyers and Sellers. Below is a chart that was created using NAR’s data to show the percentage of equity that homeowners earned at the time of sale based on when they purchased their homes.

home sellers enjoy increase Indigo Skye Group blog

Even though those who purchased at the peak of the market netted less than those who bought before and after the peak, the good news is that there was a double-digit profit to be had! Many homeowners believe that they are still underwater which has led many of them to not even consider selling their houses.

Bottom Line

If you are curious about how much equity you’d earn if you sold your home, let’s get together to perform an equity review and determine the demand for your home in today’s market!

 

Related article: The #1 Reason To List Your Home For Sale Now.

Why Has Housing Supply Increased as Sales Have Slowed Down?

According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), the inventory of homes for sale this year compared to last year has increased for the last four months, all while sales of existing homes have slowed compared to last year’s numbers.

For over three years leading up to this point, the exact opposite was true; Inventory dropped as sales soared.

NAR’s Chief Economist Lawrence Yun shed some light on what could be contributing to this shift,

“This is the lowest existing home sales level since November 2015. A decade’s high mortgage rates are preventing consumers from making quick decisions on home purchases. All the while, affordable home listings remain low, continuing to spur underperforming sales activity across the country.”

Let’s take a deeper look:

Interest Rates

Since January, 30-year fixed mortgage interest rates have increased nearly a full percentage point (from 3.95% to 4.9%). Fannie Mae, Freddie Mac, the National Association of Realtors, and the Mortgage Bankers Association are all in agreement that rates will continue to increase to about 5.2% over the next 12 months.

“The rise in [mortgage] rates paired with this very strong price appreciation absolutely is slowing housing,” said Fannie Mae’s Chief Economist Doug Duncan.

Even though rates are higher than they’ve been in a decade, they still remain below the average for the 1970s, 80s, 90s, and 2000s!

Mismatch of Inventory

Elizabeth Mendenhall, President of NAR, said it best, “Despite small month over month increases, the share of first-time buyers in the market continues to underwhelm because there are simply not enough listings in their price range.”

Prices of starter and trade-up homes have appreciated faster than their higher-priced counterparts. Over the last 5 years, the lowest-priced homes have appreciated by 47% while the highest-priced homes have appreciated by only 24%.

According to the Institute of Luxury Home Market’s Luxury Market Report, the $1M-and-up price range is now experiencing a buyer’s market. This means that supply (inventory) has finally caught up with demand and buyers are in the driver’s seat when it comes to negotiations. Additionally, many listings in this price range have experienced price cuts in order to entice buyers to put in offers.

Natural Disasters

Although not fully to blame for the national shortage in sales and inventory, natural disasters like Hurricane Florence, Hurricane Michael, and the wildfires on the West Coast have certainly had an impact.

Bottom Line

Additional inventory coming to market could help normalize the housing market and allow incomes to catch up to home prices. For more information about sales and inventory in our area, let’s get together so we can help you make the best decision for you and your family.

Real Estate is Transforming and DFW Leads the Way

With appreciation slowing, there are faint indicators of a market shift steeping—but for agents and brokers, prospects are ripe, and will continue to be in 2019, according to a report by the Urban Land Institute (ULI).

“The notion that real estate is a people business has, thankfully, not dropped out of the conversation,” the authors of the report state. “Human capital has been very much a part of the driving forces in real estate demand.”

From affordability to disruptors to the inventory shortage, challenges have emerged in housing in the last 10 years—challenges expected to lead to a normalization in two or three years, along with a broader economic stabilizing. According to the report, breakthroughs come from embracing, not fighting, the shifting tide.

“The real estate market is experiencing more than just a transition from one stage of the typical real estate cycle to another—the market is dealing with transformation on multiple fronts,” the authors state. “While all the changes may seem daunting, and there are increased risks, there are also opportunities for those who are prepared to move forward in the transformed real estate market.”

The most critical issues, according to the report, are the costs of construction, which has been impacted more recently by tariffs, and land, which is scarce. When it comes to affordable housing, the margins, simply, are slim.

For brokers, builders and other constituents, adopting creative fixes is key. Areas like Boston, Dallas-Fort Worth—No. 1 for opportunity, according to the report—and Denver are attracting a diverse pool of talent; builders are developing in response, with future homeowners and their interests in mind.

“Success will emerge from those markets that tackle their problems innovatively—requiring precision in providing the right real estate in an increasingly specialized economy,” the authors state. “Success will elude those markets remaining passive or stubbornly applying 20th century approaches—real estate expansion to ride economic growth—to 21st century challenges.”

In Dallas-Fort Worth, there were a collective 37,000-plus newcomers over one year, according to Census estimates from 2016-2017. In Dallas, home prices are up 4.7 percent year-over-year, but the amount of listings on the market is perking up, as well—a help to the millennial workforce. For millennials, a DFW-area home is easier, relatively, to save for: According to a RealEstate.com report, they can accumulate enough for a down payment on an entry-level home in about three-and-a-half years.

Millennials are not the only ones with promising prospects. DFW was named one of 2019’s Best Places to Retire by U.S. News & World Report for its affordable housing, among other factors.

If you are thinking of buying or selling a home, contact The Indigo Skye Group to learn about your local market conditions and what options are available to you. 

 

Related article: How Will Home Sales Measure Up Next Year?

Featured Home: 5703 Willow Wood Lane

Looking for a modern Art-Deco home that’s waiting for you to add your own personal touches? Good bones, priced to sell? This is the house for you.

Located in Moss Creek-Bent Trail, in one of the most appealing and sought-after neighborhoods in North Dallas. Two-story entry leads to the open floorplan and living with oversized windows looking out to the backyard. Separated by a see-thru fireplace, the den opens to the kitchen area with black granite and gray cabinets.

The red Viking range and vent hood add a splash of bold color to complement the recent SS appliances. Large master suite with half-round shower, separate vanities and large closet. Second bedroom down and two more good-sized bedrooms and living area upstairs. Bring your ideas and inspiration. Needs some TLC and updating.

Great potential in an amazing location. Exemplary W Plano schools, Trinity Christian, and nearby private schools. Prime location – Minutes to Tollway-190-121, Legacy West, Shopping, dining.

Offered at $415,000.

5703 Willow Wood Ln Property Details

  • 3,176 SF
  • Year Built: 1992
  • Bedrooms: 4
  • Total Baths: 3.1
  • Living Areas: 2
  • Dining Areas: 2
  • Fireplaces: 1
  • Garage Spaces: 2
  • Security System: Yes
  • Pool: No
  • HOA: Moss Creek North/$200 Annually
  • School District: Plano ISD:
  • Elementary: Haggar
  • Middle School: Frankford
  • HS: Shepton
  • Senior HS: Plano West
  • Living Room: 14 x 13/1
  • Dining Room: 12 x 10/1
  • Breakfast: 13 x 10/1
  • Kitchen: 17 x 8/1
  • Den: 16 x 14/1
  • Utility Room: 7 x 7/1
  • Master Bed: 16 x 13/1
  • Bedroom: 14 x 10/1
  • Bedroom: 13 x 12/2
  • Bedroom 14 x 11/2

Featured Home: 4820 Cape Coral Drive

Amazing North Dallas lifestyle awaits in this beautiful Bent Tree North traditional home where southern French meets outdoor living at it’s best!

The two-story entry overlooks a beautiful backyard and cozy formal living. Opening perfectly to an oversized breakfast area, den, and wetbar, this cook’s kitchen has every amenity with an island, prep sink, warming drawer, recent Stainless Steel appliances, and a built-in refrigerator. The indulgent and tranquil master suite has an updated bath, double vanities, and a huge walk-in closet. The office downstairs could be extra bedroom.

The home offers 4 beds, 3 baths, a large gameroom upstairs. PLUS an incredible living space outside complete with covered patio, beautiful pool+spa, outdoor fireplace, pergola kitchen, built-in grill+frig+sink. For more details and to view the gallery and tour, visit www.4820CapeCoral.com

Offered at $865,000.

4820 Cape Coral Drive Property Details

  • 4,799 SF
  • Year Built: 1990
  • Bedrooms: 5
  • Total Baths: 6
  • Living Areas: 2
  • Dining Areas: 2
  • Fireplaces: 3
  • Garage Spaces: 3
  • Security System: Yes
  • Pool: Yes
  • Living Room: 17 x 16/1
  • Dining Room: 15 x 12/1
  • Breakfast: 14 x 12/1
  • Kitchen: 14 x 14/1
  • Study/Den: 24 x 16/1
  • Utility Room: 13 x 6/1
  • Game Room: 17 x 16/2
  • Office: 14 x 12/1
  • Master Bed: 18 x 16/1
  • Bedroom: 14 x 12/2
  • Bedroom: 14 x 13/2
  • Bedroom 14 x 12/2
  • Bedroom 13 x 13/2
  • HOA: Bent Tree North HOA/$400 Annually
  • School Disctrict: Plano ISD
  • Elementary: Mitchell
  • Middle School: Frankford
  • HS: Shepton
  • Senior HS: Plano West

How Will Home Sales Measure Up Next Year?

There are many questions about where home sales are headed next year. We have gathered the most reliable sources to help answer this question. Here are our sources:

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.

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

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

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

Here are their projections:

2019 home sales projections indigoskyegroup.com

Bottom Line

Every source sees home sales growing next year. Let’s get together to chat about what’s going on in our neighborhood.

 

Related Article: A Special Announcement from the Indigo Skye Group