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What is Important to Boomers when Selling their House? | MyKCM

 

If you are a “baby boomer” (born between 1946 and 1964), you may be thinking about selling your current home. Your children may have finally moved out. Your large, four-bedroom house with three bathrooms no longer fits the bill. Taxes are too high. Utilities are too expensive. Cleaning and repair are too difficult. You may be ready to move into a home that better fits your current lifestyle. Many fellow boomers have already made the move you may be considering.

The National Association of Realtors recently released their 2019 Home Buyer and Seller Generational Report. The report revealed many interesting tidbits about both categories of baby boomers: younger boomers (ages 54 to 63) and older boomers (64 to72). Here are a few of the more interesting topics.

Percentage of Buyers who Looked Online First

  • All Buyers: 44%
  • Younger Boomers: 46%
  • Older Boomers: 44%

Where Boomers Found the Home They Purchased

The two major ways buyers found the home they purchased:

  • All buyers: 50% on the internet, 28% through a real estate agent
  • Younger Boomers: 46% on the internet, 33% through a real estate agent
  • Older Boomers: 36% on the internet, 35% through a real estate agent

Distance Seller Moved

The distance between the home they purchased and the home they recently sold was much greater for boomers than the average seller.

  • All sellers: 20 miles
  • Younger Boomers: 27 miles
  • Older Boomers: 50 miles

Tenure in Previous Home of Seller

The percentage of older boomers who lived in their previous home for more than 20 years was almost twice the amount of the average seller.

  • All sellers: 16%
  • Younger Boomers: 20%
  • Older Boomers: 31%

Primary Reason to Sell their Previous Home

  • Want to move closer to friends or family
  • Home too large
  • Retirement

View of Homeownership as a Financial Investment

  • 83% of Younger Boomers see homeownership as a good investment
  • 82% of Older Boomers see homeownership as a good investment

Bottom Line

If you are a boomer and thinking about selling, now might be the time to contact an us to help determine your options. Call The All-Star Team at 601-545-3900.

Happy Independence Day from The Team!

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5 Reasons to Sell Your House This Summer

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5 Reasons to Sell Your House This Summer | MyKCM

 

Here are 5 compelling reasons listing your home for sale this summer makes sense.

1. Demand Is Strong

The latest Buyer Traffic Index  from the National Association of Realtors (NAR) shows that buyer demand remains strong throughout the vast majority of the country. These buyers are ready, willing, and able to purchase… and are in the market right now! More often than not, multiple buyers are competing with each other for the same home.

Take advantage of the buyer activity currently in the market.

2. There Is Less Competition Now

Housing inventory is still under the 6-month supply needed for a normal housing market. This means that, in most of the country, there are not enough homes for sale to satisfy the number of buyers.

Historically, the average number of years a homeowner stayed in his or her home was six, but that number has hovered between nine and ten years since 2011. Many homeowners have a pent-up desire to move, as they were unable to sell over the last few years due to a negative equity situation. As home values continue to appreciate, more and more homeowners are granted the freedom to move.

Many homeowners were reluctant to list their home over the last couple of years for fear that they would not find a home to move in to. That is all changing now as more homes come to market at the higher end. The choices buyers have will continue to increase. Don’t wait until additional inventory comes to market before you to decide to sell.

3. The Process Will Be Quicker

Today’s competitive environment has forced buyers to do all they can to stand out from the crowd, including getting pre-approved for their mortgage financing. Buyers know exactly what they can afford before home shopping. This makes the entire selling process much faster and simpler. According to Ellie Mae’s latest Origination Insights Report, the time to close a loan has dropped to 43 days. (Last numbers available.)

4. There Will Never Be a Better Time to Move Up

If your next move will be into a premium or luxury home, now is the time to move up! The inventory of homes for sale at these higher price ranges has created a buyer’s market. This means that if you are planning on selling a starter or trade-up home, it will sell quickly, AND you’ll be able to find a premium home to call your own!

According to CoreLogic, prices are projected to appreciate by 4.8% over the next year. If you are moving to a higher-priced home, it will wind up costing you more in raw dollars (both in down payment and mortgage payment) if you wait.

5. It’s Time to Move on with Your Life

Look at the reason you decided to sell in the first place and determine whether it is worth waiting. Is money more important than being with family? Is money more important than having the freedom to go on with your life the way you think you should?

Only you know the answers to these questions. You have the power to take control of the situation by putting your home on the market. Perhaps the time has come for you and your family to start living the life you desire.

That is what is truly important.

The Ultimate Truth about Housing Affordability | MyKCM

 

There have been many headlines decrying an “affordability crisis” in the residential real estate market. While it is true that buying a home is less affordable than it had been over the last ten years, we need to understand why and what that means.

On a monthly basis, the National Association of Realtors (NAR), produces a Housing Affordability Index. According to NAR, the index…

“…measures whether or not a typical family earns enough income to qualify for a mortgage loan on a typical home at the national and regional levels based on the most recent price and income data.”

Their methodology states:

“To interpret the indices, a value of 100 means that a family with the median income has exactly enough income to qualify for a mortgage on a median-priced home. An index above 100 signifies that family earning the median income has more than enough income to qualify for a mortgage loan on a median-priced home, assuming a 20 percent down payment.”

So, the higher the index, the more affordable it is to purchase a home. Here is a graph of the index going back to 1990:

The Ultimate Truth about Housing Affordability | MyKCM

It is true that the index is lower today than any year from 2009 to 2017. However, we must realize the main reason homes were more affordable. That period of time immediately followed a housing crash and there were large numbers of distressed properties (foreclosures and short sales). Those properties were sold at large discounts.

Today, the index is higher than any year from 1990 to 2008. Based on historic home affordability data, that means homes are more affordable right now than any other time besides the time following the housing crisis.

With mortgage rates remaining low and wages finally increasing, we can see that it is MORE AFFORDABLE to purchase a home today than it was last year!

Bottom Line

With wages increasing, price appreciation moderating, and mortgage rates remaining near all-time lows, purchasing a home is a great move based on historic affordability numbers.

5 Reasons Why Millennials Buy a Home [INFOGRAPHIC] | MyKCM

New Study Reveals One Surprising Reason for the Inventory Shortage | MyKCM

There has been a great amount written on millennials and their impact on the housing market. However, the headlines often contradict each other. Some claim this generation is becoming the largest share of first-time home buyers, while others claim millennials don’t want to own a home, blaming them for the dip in homeownership rate.

While it is true that millennials have achieved milestones like getting married, having kids, and buying homes later in life than their parents and grandparents did, they are not solely to blame for today’s housing market trends.

Freddie Mac’s Insight Report explored the impact of the Silent and Baby Boomer Generations on the housing market.

If millennials are unable to find a home to buy at a young age like their predecessors, then who is living in those homes?

The answer: Seniors born after 1931 are staying in their homes longer than previous generations, instead choosing to “age in place.”

Freddie Mac found that,

“this trend accounts for about 1.6 million houses held back from the market through 2018, representing about one year’s typical supply of new construction, or more than half of the current shortfall of 2.5 million housing units estimated in December’s Insight.

Older Americans prefer to age in place because they are satisfied with their communities, their homes, and their quality of life.”

According to the National Association of Realtors, inventory of homes for sale is currently at a 3.5-month supply, which means that nationally we are in a seller’s market. A ‘normal’ housing market requires 6-7 months inventory, a level we have not achieved since August 2012.

“The most important fundamental in today’s housing market is the lack of houses for sale. This shortage has been identified as an important barrier to young adults buying their first homes.”

Bottom Line

If you are one of the many seniors who desires to retire in the same area you’ve always lived, you’re not alone. Will your current house fit your needs throughout retirement? If you have any questions about demand for your house, let’s get together to discuss the opportunities available today!

Selling Your House: Here’s Why You Need A Pro In Your Corner! | MyKCM

 

With home prices on the rise and buyer demand still strong, some sellers may be tempted to try to sell their homes on their own rather than using the services of a real estate professional.

Real estate agents are trained and experienced in negotiation while, in most cases, the seller is not. Sellers must realize that their ability to negotiate will determine whether or not they get the best deal for themselves and their families.

Here is a list of just some of the people with whom the seller must be prepared to negotiate if they decide to For Sale by Owner (FSBO):

  • The buyer, who wants the best deal possible
  • The buyer’s agent, who solely represents the best interests of the buyer
  • The buyer’s attorney (in some parts of the country)
  • The home inspection companies, which work for the buyer and will almost always find some problems with the house
  • The termite company, if there are challenges
  • The buyer’s lender, if the structure of the mortgage requires the sellers’ participation
  • The appraiser, if there is a question of value
  • The title company, if there are challenges with certificates of occupancy (CO) or other permits
  • The town or municipality, if you need to get the CO permits mentioned above
  • The buyer’s buyer, in case there are challenges with the house your buyer is selling

Bottom Line

The percentage of sellers who have hired real estate agents to sell their homes has increased steadily over the last 20 years. Let’s get together to discuss all that we can do to make the process of selling your house easier for you.

Are Low Interest Rates Here to Stay?

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Are Low Interest Rates Here to Stay? | MyKCM

 

Interest rates for a 30-year fixed rate mortgage have been on the decline since November, now reaching lows last seen in January 2018. According to Freddie Mac’s latest Primary Mortgage Market Survey, rates came in at 4.12% last week!

This is great news for anyone who is planning on buying a home this spring! Freddie Mac had this to say,

“Mortgage interest rates have been steadily declining since the start of 2019. These lower mortgage interest rates combined with a strong labor market should attract prospective homebuyers this spring and could help the housing sector regain its momentum later in the year.”

To put the low rates in perspective, the average for 2018 was 4.6%! The chart below shows the recent drop, and also shows where the experts at Freddie Mac believe rates will be by the end of 2019.

Are Low Interest Rates Here to Stay? | MyKCM

Bottom Line

If you plan on buying a home this year, let’s get together to start your home search to ensure you can lock in these historically low rates today! Call The All-Star Team, REALTORS at 601-545-3900.

Updates and Changes

by DeLois Smith

Dear Friends and Extended Family,

     The hope and reassurance of Easter has been a special blessing this past weekend! All day, on Monday after Easter, I was hearing from clients and friends similar comments “It was such a glorious Easter service at our church” or “It was our best-ever Easter with family and special celebrations at our church!” After so many serious storms and losses of lives and property, we were blessed also by refreshing sunshine and clear skies. Beautiful pop-out roses, Louisiana irises, English dogwood blossoms, red amaryllis, Easter lilies, and gorgeous multi-colored snapdragons have been showing their splendor throughout our community and beyond.

     We are glad to welcome the beautiful milestone month of May once again. For our team and families, there are special birthdays, anniversaries, Mother’s Day, new babies to be born, and significant graduations. Granddaughter Heather is expecting to add to our family on May 14th. Our final “grand” undergraduate from Mississippi State, Robert Lewis, will receive his B.A. on my birthday, May 3rd. What an achievement for the whole family, as he is the senior grandson and the 4th to march down the aisle. After exploring several departments, he finally decided to pursue his real talents of art and photography where he really excels. He makes us proud often when we are invited to events that showcase his work.

     Winds of Change- Emerging trends, challenges, and opportunities have been obvious every day of the first one-third of 2019!  As you review our Market Analysis, November-April 2019, it is obvious there is much competition for inventory $100,000- $299,900. Thankfully, our $300,000- $399,900 is relatively healthy, and the $400,000- $499,900 is healthier than a year ago. The over $500,000 is  8 transactions total closed. Christy McLemore, our team Listing Coordinator, does an outstanding job of always providing this market update as well as a wealth of well-researched information for each team listing appointment and responding to research requests from our buyer and seller clients on a day-to-day basis.  As a present or past client, feel free to call our office for current market data which interests you.

      The geographical size of our market has grown significantly with 386 agents currently serving our Hattiesburg Area Association of Realtors from Wiggins to Laurel and Columbia to Richton. Our jurisdiction extends to six counties- Forrest, Lamar, Marion, Covington, Perry, and Stone. To date, 468 properties, according to the executive officer of Hattiesburg, have closed this year.

       Local landmark changes… Preservation Crossing- Old Hattiesburg High School. This is a project we have hoped would happen for decades. This venture will transform this landmark on Main Street into apartments for seniors age 55 and older. There will be 74 apartments with 575-800 square feet per unit to provide affordable rental rates from $200-$600 per month.

       Former Greentree Apartments are being transformed into Oak Grove Place Apartments at 2000 Oak Grove Road. This project is 65% completed and occupied. Rents begin at $570 for one bedroom and $690 for a two-bedroom unit.

      Three hundred Regions Bank employees recently moved from downtown Hattiesburg to a new mortgage center at the corner of Lincoln Road Extension and Lamar Boulevard. They moved from three buildings downtown- The Kress, Front Street, and Forrest Tower. The Kress and Forrest Tower will be converted to downtown mixed-use facilities and studio and one-bedroom apartments by Rob and Craig Tatum. A new Regions customer service will open on Front Street.

      Do not miss the upcoming 10th anniversary Festival South productions! Sister Act by the incredible Hub City Players is the beginning event June 7th-9th. Beethoven’s Fifth Symphony featuring the Festival South Orchestra with special guest violinist Matthew Hakkarainen will perform on June 13th. The King of Rock and Roll, a tribute featuring Victor Trevino, Jr., is June 14th. Finale is Linda Eder returning to the Saenger on June 22nd. All of this and much, much more you will want to enjoy during the #10 Festival South!

       The Power of the Team has never been more important to me and our team members than now. The complexity of the current market requires more creativity, flexibility, constant change, patience, and collaborative activities. Researchers at the University of Virginia have discovered that the proportion of an employee’s day spent communicating with colleagues and co-workers is a whopping 75%. Shawn Anchor’s new book Big Potential reaffirms the basic instinct that the “more you help people find their light, the brighter you both will shine.” Another conclusion worth considering: “the one thing that really predicts our long-term success and well-being is other people.” Almost every attribute of your potential- from intelligence to creativity to leadership to personality and engagement, is interconnected with others. The Power of the Team is best described as “the power of one made stronger by others.”

       As Christy McLemore, our attentive Listing Coordinator, continues to remind us with  market research, Our TEAM approach works! Among homes listed and sold up to $300,000 in our MLS in 2018, 78% of homes listed with The All-Star Team sold within 12 months! This is 16% higher on average than all competing brokerages. Our homes also sold in an average of 34 days, which is 32% faster than our competition!

Thank you for the privilege of serving as your Realtor Team! We are grateful for the opportunities you provide!

May the joy  and hope of Easter continue to bless you and your family!

DeLois and Team

 

No Worries… Home Prices Coming in for a SOFT Landing | MyKCM
 

Home prices have appreciated considerably over the last five years. This has some concerned that we may be in for another dramatic correction. However, recent statistics suggest home values will not crash as they did a decade ago. Instead, this time they will come in for a soft landing.

The previous housing market was fueled by an artificial demand created by mortgage standards that were far too lenient. When this demand was shut off, a flood of inventory came to market. This included heavily discounted distressed properties (foreclosures and short sales).

Today’s market is totally different. Mortgage standards are tighter than they were prior to the last boom and bust. There is no fear that a rush of foreclosures will come to market. The Mortgage Bankers’ Association just announced that foreclosures are lower today than at any time since 1996.

Case Shiller looks at the percentage of appreciation as compared to the same month the year prior. Here is a graph of their findings over the last ten months:

No Worries… Home Prices Coming in for a SOFT Landing | MyKCM

 

As we can see, home price appreciation is softening as more inventory comes to market. This shows that real estate prices are not crashing, but merely returning toward historic appreciation numbers of 3.6% annually.

Bottom Line

Home prices are leveling off. Long term, that is a good thing for the housing market.

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The All-Star Team, REALTORS®
Bringing you home...again and again!
4 Willow Bend, Suite 2A
Hattiesburg MS 39402
601.545.3900
800.335.6477

The All-Star Team, REALTORS brings you over 200 years of accumulated experience along with the most innovative marketing strategies in the real estate industry. We specialize in the real estate properties located in Hattiesburg, Oak Grove, Petal, Sumrall, Purvis, Columbia, and the entire Pine Belt region. Put The All-Star Team, REALTORS® to work for you as you consider your next home sale or purchase. Experience the team approach to real estate and make us your REALTOR® for life! See how The All-Star Team, REALTORS® really is bringing the Pine Belt home again and again.