Homebuyers Willing to Sacrifice ‘Must-Haves’ in Favor of Good School Districts

It should come as no surprise that buying a home in a good school district is important to homebuyers. According to a report from Realtor.com, 86% of 18-34 year-olds and 84% of those aged 35-54 indicated that their home search areas were defined by school district boundaries.

What is surprising, however, is that 78% of recent homebuyers sacrificed features from their “must-have” lists in order to find homes within their dream school districts.

The top feature sacrificed was a garage at 19%, followed closely by a large backyard, an updated kitchen, the desired number of bedrooms, and an outdoor living area. The full results are shown in the graph below.

Buyers are attracted to schools with high test scores, accelerated academic programs, art and music programs, diversity, and before and after-school programs.

With a limited number of homes available to buy in today’s real estate market, competition is fierce for homes in good school districts. Danielle Hale, Chief Economist for Realtor.com, explained further:

“Most buyers understand that they may not be able to find a home that covers every single item on their wish list, but our survey shows that school districts are an area where many buyers aren’t willing to compromise.

For many buyers and not just buyers with children, ‘location, location, location,’ means ‘schools, schools, schools.’” 

Bottom Line

For buyers across the country, the quality of their children’s (or future children’s) education ranks highest on their must-have lists. So before you get ready to sell your home, call me so we can discuss the impact of your local market conditions, school district, and your home’s features to determine your property value.

About Carol Juntunen: I'm a Realtor® with Baird & Warner in the Chicago area. I make life easier for buyers, sellers and renters! Ready to sell? Contact me for a FREE market analysis of your property. Thinking about buying? Let's get started on your home-buying journey. Don't you want to feel the pride and security of owning your own home?

Ready to buy, sell or rent? Call or text me today:
Cell:    224-523-2217
Website: www.caroljuntunen.com
Email:   carol.juntunen@bairdwarner.com

Designations: 
Seller Representative Specialist (SRS)
Certified Probate Real Estate Expert (CPRES)
Seniors (50+) Real Estate Specialist (SRES)
Certified Negotiation Expert (CNE)
Pricing Strategy Advisor (PSA)
Certified Staging Consultant (CSC)
Internet Marketing Expert (e-PRO)
Military on the Move & First Responders Certified

 

Don’t Wait To Sell Your House! Buyers Are Out Now!

Recently released data from the National Association of Realtors (NAR) suggests that now is a great time to sell your home. The concept of ‘supply & demand’ reveals that the best price for an item is realized when the supply of that item is low and the demand for that item is high.

Let’s see how this applies to the current residential real estate market.

SUPPLY

It is no secret that the supply of homes for sale has been far below the number needed to sustain a normal market for over a year at this point. A normal market requires six months of housing inventory to meet the demand. The latest report from NAR revealed that there is currently only a 3.6-month supply of houses on the market.

Supply is currently very low!

DEMAND

A report that was just released tells us that demand is very strong. The most recent Foot Traffic Report (which sheds light on the number of buyers who are actually out looking at homes) disclosed that “foot traffic grew 10.5 points to 52.4 in March as the new season approaches.”

Demand is currently very high!

Bottom Line

Waiting to sell will only increase the competition between you and all of the other sellers putting their houses on the market later this summer. If you are debating whether or not to list your home, contact me now so I can explain the conditions in your market.

About Carol Juntunen: I'm a Realtor® with Baird & Warner in the Chicago area. I make life easier for buyers, sellers and renters! Ready to sell? Contact me for a FREE market analysis of your property. Thinking about buying? Let's get started on your home-buying journey. Don't you want to feel the pride and security of owning your own home?

Ready to buy, sell or rent? Call or text me today:
Cell:    224-523-2217
Website: www.caroljuntunen.com
Email:   carol.juntunen@bairdwarner.com

Designations: 
Certified Probate Real Estate Expert (CPRES)
Seniors (50+) Real Estate Specialist (SRES)
Certified Negotiation Expert (CNE)
Pricing Strategy Advisor (PSA)
Certified Staging Consultant (CSC)
Internet Marketing Expert (e-PRO)
Military on the Move Certified

Homeownership: “A Man Is Not A Complete Man, Unless He Owns A House”

The famous quote by Walt Whitman, “A man is not a whole and complete man, unless he owns a house and the ground it stands on,” can be used to describe homeownership in America today. The Census revealed that the percentage of homeowners in America has been steadily climbing back up since hitting a 50-year low in 2016. The homeownership rate in the first quarter of 2018 was 64.2%, higher than last year’s 63.6%.

Chief Economist, Dr. Ralph McLaughlin, in his VUE Blog gave these new homeownership numbers some context:

“The trend is clear: the homeownership rate has been ticking up for five consecutive quarters, and the number of new renter households has fallen for four consecutive quarters. Owner-occupied households grew by 1.345 million from a year ago, while the number of renters actually fell by 286,000 households.

The fact that we now have four consecutive quarters where owner households increased while renter households fell is a strong sign households are making a switch from renting to buying. This is a trend that multifamily builders, investors, and landlords should take note of.”

In a separate article comparing the rental population in America to the homeowner population, Realtor.com also concluded that the gap is now shrinking:

“The U.S. added 1.3 million owner households over the last year and lost 286,000 renter households, the fourth consecutive quarter in which the number of renter households declined from the same quarter a year earlier. That could pose challenges for apartment landlords, who are bracing this year for one of the largest infusions of new rental supply in three decades.”

America’s belief in homeownership was also evidenced in a survey conducted by Pew Research. They asked consumers “How important is homeownership to achieving the American Dream?”

The results:

  • 43% said homeownership was essential to the American Dream
  • 48% said homeownership was important to the American Dream
  • Only 9% said it was not important

Bottom Line

Homeownership has been, is, and always will be a crucial part of the American Dream.

About Carol Juntunen: I'm a Realtor® with Baird & Warner in the Chicago area. I make life easier for buyers, sellers and renters! Ready to sell? Contact me for a FREE market analysis of your property. Thinking about buying? Let's get started on your home-buying journey. Don't you want to feel the pride and security of owning your own home?

Ready to buy, sell or rent? Call or text me today:
Cell:    224-523-2217
Website: www.caroljuntunen.com
Email:   carol.juntunen@bairdwarner.com

Designations: 
Certified Probate Real Estate Expert (CPRES)
Seniors (50+) Real Estate Specialist (SRES)
Certified Negotiation Expert (CNE)
Pricing Strategy Advisor (PSA)
Certified Staging Consultant (CSC)
Internet Marketing Expert (e-PRO)
Military on the Move Certified

 

5 Ways Tax Reform Has Impacted the 2018 Housing Market

Starting late last year, some predicted that the 2018 tax changes would cripple the housing market. Headlines warned of the potential for double-digit price depreciation and suggested that buyer demand could drop like a rock. There was even sentiment that homeownership could lose its coveted status as a major component of the American Dream.

Now that the first quarter numbers are in, we can begin to decipher the actual that impact tax reform has had on the real estate market.

1. Has tax reform killed off home buyer demand? The answer is “NO.”

According to the Showing Time Index which “tracks the average number of buyer showings on active residential properties on a monthly basis” and is a “highly reliable leading indicator of current and future demand trends,”buyer demand has increased each month over the last three months and is HIGHER than it was for the same months last year. Buyer demand is not down. It is up.

2. Have the tax changes affected America’s belief in real estate as a long-term investment? The answer is “NO.”

Two weeks ago, Gallup released its annual survey which asks Americans which asset they believed to be the best long-term investment. The survey revealed:

“More Americans name real estate over several other vehicles for growing wealth as the best long-term investment for the fifth year in a row. Just over a third cite real estate for this, while roughly a quarter name stocks or mutual funds.”

The survey also showed that the percentage of Americans who believe real estate is the best long-term investment was unchanged from a year ago.

3. Has the homeownership rate been negatively impacted by the tax changes? The answer is “NO.”

Not only did the homeownership rate not crash, it increased when compared to the first quarter of last year according to data released by the Census Bureau.

In her latest Z Report,” Ivy Zelman explains that tax reform didn’t hurt the homeownership rate, but instead, enhanced it:

“We have been of the opinion that homeownership is most highly correlated with income and the net effect of tax reform would be a positive, rather than negative catalyst for the homeownership rate. While still in the early innings of tax changes, this has proven to be the case.”

4. Has the upper-end market been crushed by new State and Local Taxes (SALT) limitations? The answer is “NO.”

In the National Association of Realtors latest Existing Home Sales Report it was revealed that:

  • Sales between $500,000 and $750,000 were up 4.5% year-over-year
  • Sales between $750,000 and $1M were up 15.1% year-over-year
  • Sales over $1M were up 17.3% year-over-year

5. Will the reforms in the tax code cause home prices to tumble over the next twelve months? The answer is “NO”.

According to CoreLogic’s latest Home Price Insights Report, home prices will appreciate in each of the 50 states over the next twelve months. Appreciation is projected to be anywhere from 1.9% to 10.3% with the national average being 4.7%.

Bottom Line

The doomsday scenarios that some predicted based on tax reform fears seem to have already blown over based on the early housing industry numbers being reported.

About Carol Juntunen: I'm a Realtor® with Baird & Warner in the Chicago area. I make life easier for buyers, sellers and renters! Ready to sell? Contact me for a FREE market analysis of your property. Thinking about buying? Let's get started on your home-buying journey. Don't you want to feel the pride and security of owning your own home?

Ready to buy, sell or rent? Call or text me today:
Cell:    224-523-2217
Website: www.caroljuntunen.com
Email:   carol.juntunen@bairdwarner.com

Designations: 
Certified Probate Real Estate Expert (CPRES)
Seniors (50+) Real Estate Specialist (SRES)
Certified Negotiation Expert (CNE)
Pricing Strategy Advisor (PSA)
Certified Staging Consultant (CSC)
Internet Marketing Expert (e-PRO)

50% Of Homes Sold In 30 Days In March

Some Highlights:

  • The National Association of REALTORS® recently surveyed their members for their Confidence Index.
  • The REALTORS® Confidence Index is a key indicator of housing market strength based on a monthly survey sent to over 50,000 real estate practitioners. Practitioners are asked about their expectations for home sales, prices and market conditions.
  • Homes sold in less than 60 days in 35 out of 50 states and Washington D.C.
  • Homes typically went under contract in 30 days in March!

If you are planning to list your home for sale in today’s market, let’s get together to go over the market activity in your area and how fast houses are selling! Call or text me today!

  • About Carol Juntunen: I'm a Realtor® with Baird & Warner in the Chicago area. I make life easier for buyers, sellers and renters! Ready to sell? Contact me for a FREE market analysis of your property. Thinking about buying? Let's get started on your home-buying journey. Don't you want to feel the pride and security of owning your own home?
    
    Ready to buy, sell or rent? Call or text me today:
    Cell:    224-523-2217
    Website: www.caroljuntunen.com
    Email:   carol.juntunen@bairdwarner.com
    
    Designations: 
    Certified Probate Real Estate Expert (CPRES)
    Seniors (50+) Real Estate Specialist (SRES)
    Certified Negotiation Expert (CNE)
    Pricing Strategy Advisor (PSA)
    Certified Staging Consultant (CSC)
    Internet Marketing Expert (e-PRO)

How Much Has Your Home Increased in Value Over the Last Year?

Home values have risen dramatically over the last twelve months. In CoreLogic’s most recent Home Price Index Report, they revealed that national home prices have increased by 6.7% year-over-year.

CoreLogic broke down appreciation even further into four price ranges, giving us a more detailed view than if we had simply looked at the year-over-year increases in national median home price.

The chart below shows the four price ranges from the report, as well as each one’s year-over-year growth from February 2017 to February 2018 (the latest data available).

It is important to pay attention to how prices are changing in your local market. The location of your home is not the only factor that determines how much your home has appreciated over the course of the last year.

Lower-priced homes have appreciated at greater rates than homes at the upper ends of the spectrum due to demand from first-time home buyers and baby boomers looking to downsize.

Bottom Line

If you are planning to list your home for sale in today’s market, let’s get together to go over exactly what’s going on in your area and your price range. Call or text me today!

About Carol Juntunen: I'm a Realtor® with Baird & Warner in the Chicago area. I make life easier for buyers, sellers and renters! Ready to sell? Contact me for a FREE market analysis of your property. Thinking about buying? Let's get started on your home-buying journey. Don't you want to feel the pride and security of owning your own home?

Ready to buy, sell or rent? Call or text me today:
Cell:    224-523-2217
Website: www.caroljuntunen.com
Email:   carol.juntunen@bairdwarner.com

Designations: 
Certified Probate Real Estate Expert (CPRES)
Seniors (50+) Real Estate Specialist (SRES)
Certified Negotiation Expert (CNE)
Pricing Strategy Advisor (PSA)
Certified Staging Consultant (CSC)
Internet Marketing Expert (e-PRO)

This Just In: Data Says May is the Best Month to Sell Your Home

According to a newly released study by ATTOM Data Solutions, selling your home in the month of May will net you an average of 5.9% above estimated market value for your home.

For the study, ATTOM performed an “analysis of 14.7 million home sales from 2011 to 2017” and found the average seller premium achieved for each month of the year. Below is a breakdown by month:

ATTOM even went a step further and broke their results down by day.

Top 5 Days to Sell:

  • June 28th – 9.1% above market
  • February 15th – 9.0% above market
  • May 31st – 8.3% above market
  • May 29th – 8.2% above market
  • June 21st – 8.1% above market

It should come as no surprise that May and June dominate as the top months to sell and that 4 of the top 5 days to sell fall in those two months. The second quarter of the year (April, May, June) is referred to as the Spring Buyers Season when competition is fierce to find a dream home, which often leads to bidding wars.

One caveat to mention though is that when broken down by metroATTOM noticed that while warmer climates share in the overall trend, it turns out that they have different top months for sales. The best month to get the highest price in Miami, FL, for instance, was January, and Phoenix, AZ came in with November leading the charge.

If you’re thinking of selling your home this year, the time to list is NOW! According to the National Association of Realtors, homes sold in an average of just 30 days last month! If you list now, you’ll have a really good chance to sell in May or June, setting yourself up for getting the best price!

Bottom Line

Contact me NOW! I can show you the market conditions in your area and get the most exposure to the buyers who are ready and willing to buy!

About Carol Juntunen: I'm a Realtor® with Baird & Warner in the Chicago area. I make life easier for buyers, sellers and renters! Ready to sell? Contact me for a FREE market analysis of your property. Thinking about buying? Let's get started on your home-buying journey. Don't you want to feel the pride and security of owning your own home?

Ready to buy, sell or rent? Call or text me today:
Cell:    224-523-2217
Website: www.caroljuntunen.com
Email:   carol.juntunen@bairdwarner.com

Designations: 
Certified Probate Real Estate Expert (CPRES)
Seniors (50+) Real Estate Specialist (SRES)
Certified Negotiation Expert (CNE)
Pricing Strategy Advisor (PSA)
Certified Staging Consultant (CSC)
Internet Marketing Expert (e-PRO)

Why Home Prices Are Rising

There are many unsubstantiated theories as to why home values are continuing to increase. From those who are worried that lending standards are again becoming too lenient (data shows this is untrue), to those who are concerned that prices are again approaching boom peaks because of “irrational exuberance” (this is also untrue as prices are not at peak levels when they are adjusted for inflation), there seems to be no shortage of opinion.

However, the increase in prices is easily explained by the theory of supply & demand. Whenever there is a limited supply of an item that is in high demand, prices increase.

It is that simple. In real estate, it takes a six-month supply of existing salable inventory to maintain pricing stability. In most housing markets, anything less than six months will cause home values to appreciate and anything more than seven months will cause prices to depreciate (see chart below).

According to the Existing Home Sales Report from the National Association of Realtors (NAR), the monthly inventory of homes for sale has been below six months for the last five years (see chart below).

Bottom Line

If buyer demand continues to outpace the current supply of existing homes for sale, prices will continue to appreciate. Nothing nefarious is taking place. It is simply the theory of supply & demand working as it should.

About Carol Juntunen: I'm a Realtor® with Baird & Warner in the Chicago area. My intention is to provide insights and advice to empower you to make confident, informed real estate choices and decisions, and guide you through the home buying and selling process.

Ready to buy, sell or rent? Call or text me today:
Cell:    224-523-2217
Website: www.caroljuntunen.com
Email:   carol.juntunen@bairdwarner.com

Designations: 
Certified Probate Real Estate Expert (CPRES)
Seniors (50+) Real Estate Specialist (SRES)
Certified Negotiation Expert (CNE)
Pricing Strategy Advisor (PSA)
Certified Staging Consultant (CSC)
Internet Marketing Expert (e-PRO)

A Tale of Two Real Estate Markets

Some Highlights:

  • A trend that has been emerging for some time now is the contrast between inventory & demand in the Premium & Luxury Markets vs. the Starter & Trade-Up Home Markets and what that in turn, is doing to prices!
  • Inventory continues to rise in the luxury & premium home markets which is causing prices to cool.
  • Demand continues to rise with low inventory in the starter & trade-up home markets, causing prices to rise!
About Carol Juntunen: I'm a Realtor® with Baird & Warner in the Chicago area. My intention is to provide insights and advice to empower you to make confident, informed real estate choices and decisions, and guide you through the home buying and selling process.

Ready to buy or sell? Call or text me today:
Cell:    224-523-2217
Website: www.caroljuntunen.com
Email:   carol.juntunen@bairdwarner.com

Designations: 
Certified Probate Real Estate Expert (CPRES)
Seniors (50+) Real Estate Specialist (SRES)
Certified Negotiation Expert (CNE)
Pricing Strategy Advisor (PSA)
Certified Staging Consultant (CSC)
Internet Marketing Expert (e-PRO)

Do You Know How Much Equity You Have in Your Home? You May Be Surprised!

CoreLogic’s latest Equity Report revealed that 675,000 US homeowners regained positive equity in their homes in 2017. This is great news for the country, as 95.1% of all mortgaged properties are now in a positive equity situation.

U.S homeowners with mortgages (roughly 63% of all the properties) have seen their equity increase by a total of $908.4 billion since the fourth quarter 2016, an increase of 12.2%, year over year.”

Price Appreciation = Good News for Homeowners

Frank Nothaft, CoreLogic’s Chief Economist, explains:

Home-price growth has been the primary driver of home-equity wealth creation. The CoreLogic Home Price Index grew 6.2 percent during 2017. The largest calendar-year increase since 2013. Likewise, the average growth in home equity was more than $15,000 during 2017, the most in four years.”

He also believes this is a great sign for the market in 2018, saying:

“Because wealth gains spur additional consumer purchases, the rise in home-equity wealth during 2017 should add more than $50 billion to U.S. consumption spending over the next two to three years.”  

This is great news for homeowners! But, do they realize that their equity position has changed?

A study by Fannie Mae suggests that many homeowners are not aware that they have regained equity in their homes as their investment has increased in value. For example, their study showed that 23% of Americans still believe their home is in a negative equity position when, in actuality, CoreLogic’s report shows that only 4.9% of homes are in that position (down from 6.3% in Q4 2016).

The study also revealed that only 37% of Americans believe that they have “significant equity” (greater than 20%) when in actuality, 83% do!

This means that 46% of Americans with a mortgage fail to realize the opportune situation they are in. With a sizeable equity position, many homeowners could easily move into a house (either larger or smaller) that better meets their current needs.

Fannie Mae spoke out on this issue in their report:

“Homeowners who underestimate their homes’ values not only underestimate their home equity, they also likely underestimate 1) how large a down payment they could make with their home equity, 2) their chances of qualifying for mortgages, and, therefore, 3) their opportunities for selling their current homes and for buying different homes.”

Bottom Line

If you are one of the many Americans who are unsure of how much equity you have built in your home, don’t let that be the reason you fail to move on to your dream home in 2018! Let’s get together to evaluate your situation!

About Carol Juntunen: I'm a Realtor® with Baird & Warner in the Chicago area. My intention is to provide insights and information to empower you to make confident, informed real estate choices and decisions, and guide you through the home buying and selling process.

Ready to buy or sell? Call or text me today:
Cell:    224-523-2217
Website: www.caroljuntunen.com
Email:   carol.juntunen@bairdwarner.com

Designations: 
Certified Probate Real Estate Expert (CPRES)
Seniors (50+) Real Estate Specialist (SRES)
Certified Negotiation Expert (CNE)
Pricing Strategy Advisor (PSA)
Certified Staging Consultant (CSC)
Internet Marketing Expert (e-PRO)