Category: Market Updates

Are you a current home owner who is considering listing your property on the market in 2015?

If so, then you’re likely to enjoy a lot of success!

After all, Realtor.com recently released its top predictions for the housing market in the New Year. And all of them seem to favor home sellers.

Let’s Take a Closer Look at National Housing Market Predictions

Millennials will enter the market en masse. This is something the housing market has needed for the last couple of years: More Millennials entering the market as first time home buyers. And according to projections, that’s what you can expect in the New Year, with more than two thirds of household formation being credited to this demographic. Helping matters is the fact that about 2.5 million jobs are expected to be added next year, improving home buying power.

There will be an increase in existing home sales. These sales are expected to increase 8 percent during the New Year. Meanwhile, as more people gain employment and increased incomes, distressed property inventory is expected to decline. All of this means a lower real estate inventory. This coupled with a surplus of buyers will create a seller’s market.

Home prices will rise. This generally follows when housing inventory shrinks. In fact, prices are expected to increase by an average of at least 4.5 percent in the coming year. Thus, if you’re thinking about possibly selling your home, 2015 is likely going to be a good year for doing so.

Mortgage rates will increase as well. For much of 2014, these rates have hovered around 4 percent and under. But with the previously mentioned factors and the Federal Reserve’s expected rate hike in the early part of 2015, residents can expect home loans to shoot up to 5 percent in 2015. If you have been thinking about re-financing, it makes sense to do it sooner rather than later since mortgage rates are likely to increase.

Home affordability will decline. With all of these changes on the market expected, home affordability is projected to decrease by 5 to 10 percent. This will be driven by price appreciation, mortgage rate hikes and tighter housing inventory. Again, if you’re thinking about possibly selling your home, 2015 is likely to be a good year for home sales.

See You In 2015!

We hope that as a home seller, you’ve found the above predictions encouraging.

We’ll be back in the New Year to discuss whether these real estate predictions come true and to revisit how they will impact buyers and sellers.

For now, we hope you and your family have a happy holiday season!

Big homes are a big deal on the national housing market, according to a recent article in USA Today.

Evidently, a growing number of home buyers are looking for larger homes to accommodate their every need and desire.

In fact, of the 569,000 homes built last year in the US, about 33 percent (or 188,000 homes) had three or more bathrooms. That’s the largest share since tracking of new construction homes started in 1987.

Meanwhile, 44 percent of last year’s total new homes (or 251,000 homes) featured four or more bedrooms – which is the largest share it’s been since 1973.

These homes also tend to come with a lot more amenities:

• 53 percent of the homes built last year (301,000) had a patio
• 63 percent (361,000) had a porch
• And 22 percent (127,000) had a deck

It’s quite an interesting trend, especially given that at the same time, home ownership rates are remaining stable and the size of families and households is actually decreasing.

Let’s Take a Closer Look At This Recent U.S. Trend

Here are some recent real estate market statistics that will provide additional context on this trend:

• The average square footage of new single-family homes in the United States jumped almost 57 percent to 2,598 in 2013, compared with 1,660 in 1973.
• The Northeast boasts the second-highest average square footage, with that number jumping from 1,959 to 2,636 during that same time period. That’s an increase of 65 percent!
• Meanwhile, the number of people actually living in these homes has continued to decrease. In fact, the average number of people per household in the US decreased from 3.01 in 1973 to 2.54 in 2013.
• Specifically, families have decreased from 3.48 to 3.12 during that same time period.
• As one might expect, bigger homes have caused a rise in the average sales price of new construction homes. In fact, that figure skyrocketed from $62,500 in 1978 to $324,000 in 2013.
• The Northeast has the highest average sales price, which exploded from $63,000 in 1978 to $469,000 in 2013 – an increase of 646 percent.
• Even within the short time frame of 2012 to 2013, sales prices still showed huge increases. For instance, the average sales price of newly built single-family homes jumped 20 percent – from $292,000 in 2012 to $324,000 in 2013.

Yet the income levels of individuals are not keeping pace with these bigger (and more expensive) homes. For instance, the median income in the US increased by 9 percent from 1978 to 2012 – from $56,975 to $62,241.

And the home ownership rate continued to decrease – from 65.4 percent during the fourth quarter of 2012 to 65.2 percent during the fourth quarter of 2013.

Experts say that those people in the higher income levels that are more active on the housing market. Maybe that’s why all-cash sales accounted for 42.7 percent of all U.S. residential property sales during the first quarter of 2014, up from 20 percent during the first quarter of 2011.

What Do You Make of This Recent Real Estate Trend?

We would love to hear your thoughts!

We certainly think that all of this market activity will have an overall positive impact on the U.S. real estate market.

For now, be sure to check back here soon for more valuable and up-to-date information that may impact you as a buyer or seller.

As more Baby Boomers retire, real estate experts all across the United States are seeing more cash deals, according to a recent report from Bloomberg.

Evidently, these Baby Boomers (defined as anyone born between 1946 and 1964) are opting to purchase their homes with all cash instead of taking out a mortgage.

Experts credit this in part to the fact that US home price gains have restored $3.8 trillion in value to home owners since 2012.

This means that a record number of Americans (including Baby Boomers) are using that equity to help them pay cash for properties, avoiding a home loan altogether.

Another factor is that these Baby Boomers have more money in savings, allowing them the option to pay with cash.

This is an important trend that is sure to have an effect on all home buyers, not just those who fall in the Baby Boomer cohort.

More Revealed on This Recent National Real Estate Trend

Here’s what else the recent Bloomberg article noted about Baby Boomers affecting real estate trends:

• In the first quarter, 29 percent of non-investment home buyers used cash.
• Most of the people making all-cash deals are Baby Boomers, mostly because this generation is starting to retire.
• For instance, in 2012, there were 61.8 million Americans over the age of 60, according to the Census. In 2000, that figure was 46.6 million.
• Home mortgage lending dropped to $115 billion during the first quarter, which is the lowest it’s been in three years
• Meanwhile, in the first three months of 2014, buyers paid $105.1 billion of their own money for properties, compared with $84.7 billion the year before.
• And the percentage of purchases made by investors (who are typically associated with all-cash deals) fell to the lowest first-quarter level since 2010.
• About 16.3 million Americans over the age of 60 owned their homes outright in 2012, according to Census data. In 2009, that number was 12.1 million.
• About 39 percent of Baby Boomers want to retire to a rural community, such as a farm or a small town, according to a Better Homes poll.
• About 27 percent want to move to an active adult community that offers activities like rock climbing and yoga.
• And 26 percent said they want to retire to a city.

Baby Boomers have historically been considered a very influential generation, in part because of their sheer size. And their latest activity on the national real estate market is likely to have a major impact on the state of the housing market for many years to come.

After all, about 10,000 Americans turn 65 every day, according to the Pew Research Center in Washington. And it’s estimated that between 2010 and 2020, Americans age 65 to 74 will jump 51 percent.

Experts are also saying that the Baby Boomer generation is expected to stay in the housing market longer than the previous generation.

Some even predict that Baby Boomers will be purchasing and selling properties well into their 80s because they have led active and healthier lives for a longer period than their parents.

Keeping An Eye on Key Real Estate Trends for You

It will be interesting to see how the Baby Boomer generation continues to shape real estate trends on a national scale.

We’ll keep you posted on this trend as well as any other trends that may affect you as a home buyer or seller.

Make sure to check back on July 1 for even more valuable information that will help you navigate the local real estate market.

As we move into 2014, we are seeing a lot of wonderful improvements in our market and we are also still seeing some of the lingering effects of the Real Estate bust. As you might have heard, our number of sales declined from last year and our average price of our homes that have sold have come down a little. There is still some fear in the market but this seesaw recovery should continue to improve over the next several years. All in all, the market is doing much better.

Selling in Today’s Local Real Estate Market

A lot of our sellers ask, “What should we expect if we put our home on the market?” First, we should see 4 to 8 showings in a period of 3 to 4 weeks and an offer. If we don’t get that, a great Realtor will be able to tell you exactly why you have not received an offer.

The market is generally responding in 3 ways in this recovering market. The 1^st way the market can respond is that the buyers won’t come see us. As long as your agent has a great marketing plan, the cause will be price. If the buyers don’t see enough value to get off their couch or out from in front of their computer, you won’t get any showings.  The second way the market responds is they buyers come see us but then they buy another house. That means the competition beat us. The third way the market responds is they come see us and they stop and buy us. That means we won, we beat the competition.

 A Recovering Market

One of the best things we are seeing in the recovering market is our selling time is coming down, buyers are more active and if you price competitively, stage well and market aggressively, you will sell.

We’re Here To Help

If you need any additional data or general information about the market, don’t hesitate to contact us to determine what is best for you. We are here to educate and communicate so you can make the best decisions for yourself and your family.

Frankly, it’s hard not to feel encouraged and optimistic about the real estate market these days.

Everywhere you look, positive real estate trends are popping up, further emphasizing that the worst days of the economic recession are in the rear view mirror now.

And here’s another recent nugget of good news: Home prices all across the country increased 11.1 percent in March 2014 when compared to the same time last year. And that’s including distressed sales.

More Relevant Data for US Home Sellers

According to the latest published data, the 11 percent home price increase in March represents 25 months of consecutive year-over-year increases in national home prices.

That’s incredible. That means that the housing market has been in the process of recovering for more than two years.

Here’s what else you should know about recent activity on the real estate market:

• Between February and March, national home prices (including distressed sales) increased 1.4 percent.
• When you exclude distressed sales, national home prices increased 9.5 percent from March 2013 to March 2014.
• And month-to-month (from February to March), home prices increased 0.9 percent when you excluded distressed sales.
• Experts say that when they included distressed sales, home prices were still 16 percent below peak levels. When you exclude distressed sales, prices were down 11.6 percent from the peak.

Experts say that there continues to be an imbalance of home buyers and sellers. Specifically, there are more interested home buyers than there are available homes.

This will continue to drive up home prices, they say.

Those States with Best, Worst Real Estate Trends

Experts also identified those states that saw the greatest home price increases when they included distressed sales:

• California: Up 17.2 percent from March 2013
• Nevada: Up 15.5 percent during that same period

Meanwhile, when it came to home price changes from February to March, 42 states and the District of Columbia showed increases. In that instance, Mississippi saw the largest month-over-month gains with 3.2 percent, followed by Alaska with a 2.3 percent month-over-month home price increase.

Experts also reported that Colorado, the District of Columbia, North Dakota, South Dakota, Texas and Wyoming all climbed to new peaks in home prices. And Louisiana is approaching peak index levels also.

On the other hand, the state that remained farthest away from its peak values was Nevada, which remained at 39.9 percent below its 2006 peak despite recent gains. Florida followed at 36.3 percent below peak values.

Providing You With All the Real Estate Updates You Need

Check back here soon for further updates on the current state of the national housing market, which will help you determine how recent activity may affect you as a home seller.

We are happy to provide this useful data to help make navigating the market as easy as possible for you and your family!

The numbers don’t lie: Americans are growing increasingly confident about the overall health of the national real estate market, according to a recent report.

Evidently, a recent Gallup poll showed that 56 percent of Americans expect average home prices in their area to increase, which is up 33 percent from just two years ago.

And it’s markedly increased from the low point of 21 percent in January 2011.

How The Recent Poll Was Conducted

Gallup conducted interviews between April 3 and 6 with a random sample of 1,026 adults, ages 18 and older.

These respondents lived in all fifty states as well as the District of Columbia.

These telephone interviews were conducted on cell phones and landlines and were conducted in English and Spanish.

What Do The Numbers Show About American Perceptions of the Market?

The latest poll numbers from Gallup’s annual Economy and Personal Finance poll indicate that Americans are feeling increasingly confident about the market.

Here are some of the highlights of the poll results:

• Between 2008 and 2011, Americans were more likely to expect local home values to decrease rather than increase.
• Then, in April 2012, optimism about home values started to outweigh pessimism 33 percent to 23 percent.
• Now, more than five times as many citizens believe home values will increase compared to decrease (56 percent to 10 percent).
• People living out west are most likely to think home values will increase, with 72 percent of respondents.
• Comparatively, about 44 percent of Americans living in the East expect home prices to increase.
• These figures are compared to 54 percent of Southerners and 53 percent of Midwestern residents believing that home prices will increase.
• The poll also showed that 64 percent of Americans are homeowners, with 74 of those people saying that their home is now worth more than when they bought it.
• Still, these numbers aren’t as high as they were during the real estate peak in 2006 and 2007, when 90 percent of home owners said their home value exceeded purchase price.
• 74 percent of Americans say it’s a good time to purchase a home, compared with 24 percent who say it’s a bad time.
• The poll also showed that homeowners are more likely than renters to say it’s a good time to buy a house, with 81 percent of home owners and 60 percent of renters saying that.

Experts are encouraged by the recent data because it suggests that fewer home owners are underwater and more people are interested in entering the market and investing in property. This has long-term benefits to the overall health of the market.

Your Epicenter for National Real Estate News

We believe that providing up-to-date information to buyers and sellers is paramount to ensuring them a successful outcome on the real estate market.

Check back here in a couple of weeks for more relevant updates on the current state of the national housing market and to learn what kind of effects that activity is likely to have on buyers and sellers.

Corelogic just released some exciting news from the national housing market: Home prices are back on the rise!

The real estate data provider reported that home prices increased 0.9 percent in January after falling 0.1 percent in December.

And this is indicative of a larger trend, Corelogic reported. After all, over the last 12 months, prices have actually risen a total of 12 percent, which is the biggest year-over-year gain in over eight years!

Home sellers are sure to be encouraged by this recent development because it means that they have a better chance of getting the price they want for their property.

Housing Market Gaining Strength, According to Recent Data

Here’s an overview of recent activity on the national housing market:

• Although home prices increased, total home sales actually dropped in January. The National Association of Realtors reported that sales dropped to their lowest level in 18 months.
• However, the total number of available homes for sale remained low, which is why experts believe prices increased, at least in part.
• The average rate on a 30-year mortgage showed a 1 percent year-over-year increase, which means that home buying costs are a little higher.
• Meanwhile, builders started working on 16 percent fewer homes in January when compared to December. That marks the second straight month for decline.
• Despite recent increases, national home prices are still 17 percent lower than when they were at the peak of the housing market bubble in April 2006.
• In three states (Louisiana, Nebraska and Texas), prices have set highs. Meanwhile, in 19 additional states, prices are within 10 percent of their peaks.
• Those states with the largest year-over-year price gains in January were: Nevada (up 22.2 percent), California (up 20.3 percent), Oregon (up 14.3 percent), Michigan (up 13.7 percent) and Georgia (up 13.4 percent).
• Mississippi was the only state to show declines in home prices.

Homes With Negative Equity are Decreasing

Also recently, Core Logic reported that a total of 4 million U.S. homes returned to positive equity in 2013.

This means that the total number of mortgaged residential properties in the country is now at 42.7 million!

Meanwhile, roughly 6.5 million homes (or about 13.3 percent of all mortgaged homes in the country), still had negative equity by the end of 2013.

The decrease in homes with negative equity is another piece of good news for home sellers because it means that home prices throughout the community will be on the rise!  And that is sure to affect the price they can get for their own property.

Your One-Stop Shop for National Real Estate News

Check back to our website on April 1 for more pertinent national real estate news that affects you.

After all, one of the keys to ensuring a successful outcome on the local housing market is to enter it as an informed and prepared buyer or seller.

I can’t believe it is already 2014. You know what they say, “Time flies when you’re having fun.” And we had a lot of fun in 2013. Our market is seeing strong signs of recovery, just like the overall economy. The number of sales in the Tulsa area were up 8.9% and our inventory is coming down. It dropped a total of 17% from the end of 2012. Prices are slowly recovering as well and should continue for the near and distant future. As I have mentioned before, Real Estate cycles are generally 8 to 12 years in length. We bottomed out in 2011 and started to recover in 2012 and should continue appreciating at a steady rate for the next decade or so unless the sky falls. Most analysts are saying this will be a fantastic year for the Real Estate experts that understand the market and for both buyers and sellers.

Year of the Millennial Buyers

2014 is also being labeled the move up buyer year and the millennial year. For the last 5-6 years, we have had many sellers that could not sell without bringing money to the closing table. There is a lot of pent up demand and the recovery should stimulate lots of moving. The millennial, those born after approximately 1980 are reported to be 90 million strong. They have also been waiting for the economy and Real Estate market to recover. They are ready to buy.

Ready for a Seller’s Market?

As inventory continues to shrink and buyer demand continues to rise, we will move into a strong seller’s market. Rents will increase as well because of the decline in our normal new construction starts during the bust.

Effect of Interest Rates

Interest rates are predicted to go above 5% this year but that should not affect the recovery. In the past 30 years, we had 4 major interest rate spikes and every single time, values continued to climb. The downside is that it will affect affordability for all of our buyers.

We’re Here To Help

If you need any additional data or general information about the market, don’t hesitate to contact us to determine what is best for you. We are here to educate and communicate so you can make the best decisions for yourself and your family.

Related News

Paul Wheeler discusses outlook for 2014 in Tulsa World online newspaper.

The economic recovery is not just confined to one region of the United States, according to a recent news article.

Evidently, a recent report from the U.S. Conference of Mayors noted that almost every city in the country is expected to see economic growth in the New Year!

This is great news for everyone because it shows that our economy continues to strengthen after the recent recession.

Why You Can Expect Great Things in 2014

According to the recent report from the U.S. Conference of Mayors, most cities in the US are expected to see economic growth and job gains in 2014.

Here are the cities that are expected to lead the pack:

• Naples, Florida
• Raleigh, North Carolina
• Atlanta, Georgia
• Austin, Texas

What’s more, those cities who were severely affected by drops in manufacturing or by the housing market crash are also expected to see gains in the new year:

• Youngstown, Ohio is expected to see economic growth of 1.6 percent
• Buffalo, New York is expected to see economic gains of 1.5 percent
• Shreveport, Louisiana is expected to grow by 1.6 percent, after the community saw a 5.2 percent decrease last year.

Experts say that part of the key to economic growth has been the stabilization of housing. Job growth has also helped to encourage spending.

They noted that college towns (such as Lawrence, Kansas or Austin, Texas) are expected to make strong gains while the larger cities (like New York and Chicago) are expected to see more modest growth.

Here are some more highlights of the recent report:

• 340 of 363 metro areas will see economic growth by at least 1 percent.
• Last year, only 183 metro areas saw such growth.
• In addition, experts predict that 69 of those 363 metro areas will see growth exceeding 3 percent.
• And only seven of the 363 metro areas will probably not see economic growth, according to the report.
• While that’s unfortunate, it’s still exceptionally better than last year when 97 metro areas didn’t see growth.

A New Year, A New Economy

With a New Year comes new opportunity. We’re thrilled to know that the local economy in almost all major US cities is expected to grow in the coming year.

Check back here soon to learn about more about national trends that may affect your efforts as a home buyer or seller.