Thinking of Selling Your House? Now May be the Right Time

Thinking of Selling Your House? Now May be the Right Time | MyKCM

Inventory is arguably the biggest challenge for buyers in today’s housing market. There are simply more buyers actively looking for homes to purchase than there are sellers selling them, so the scale is tipped in favor of the sellers.

According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), total housing inventory is down 18.8% from one year ago. Inventory is well below what was available last year, and the houses that do come to the market are selling very quickly.

Sam Khater, Chief Economist at Freddie Mac notes:

“Simply put, new housing supply is not keeping up with rising demand. We estimate that the housing market is undersupplied by 3.3 million units, and the shortage is rising by about 300,000 units a year. More than half of all states have a housing shortage.”

Why is inventory so low?

There are many reasons why it’s hard to find a home to buy today, stemming from an undersupply of newly constructed homes to sellers pressing pause on their moving plans due to the current health pandemic. One of the key factors making it even more challenging, however, is the amount of time current homeowners are staying in their homes. There has truly been a fundamental shift in the market that started about 10 years ago: people are staying put longer, and it’s contributing to the shortage of houses for sale.

In the 2019 Profile of Home Buyers and Sellers, NAR explained:

“In 2019, the median tenure for sellers was 10 years…After 2008, the median tenure in the home began to increase by one year each year. By 2011, the median tenure reached nine years, where it remained for three consecutive years, and jumped up again in 2014 to 10 years.”

Thinking of Selling Your House? Now May be the Right Time | MyKCM

As shown in the graph below, historical data indicates that staying in a home for 5-7 years used to be the norm, until the housing bubble burst. Since 2010, that length of time has trended upward, toward 9-10 years, largely due to homeowners aiming to recoup their equity:Thankfully, with the strength the market has gained over the last 10 years, today’s homeowners are in a much better equity position. Now is a fantastic time for homeowners who are ready to make a move to break the 10-year trend and sell their houses, especially while buyer demand is so high and inventory is so low. It’s a prime time to sell.

In addition, with today’s historically low interest rates, there’s an opportunity for sellers to maintain a low monthly payment while getting more house for their money. Think: move-up opportunity, more square footage, or finding the features they’re really looking for rather than doing costly renovations. With more new homes poised to enter the market this year, homeowners ready to make a move may have a golden opportunity to do so right now.

Bottom Line

There are simply not enough houses for sale today. If you’re ready to leverage your equity and sell your house, let’s connect today. It’s a great time to move while demand for homes to buy is extremely high.


Posted on July 31, 2020 at 6:46 pm
Cara Milgate | Posted in Market Trends, Seller Tips & Strategy, Uncategorized |

Three of the Latest Reports Show Housing Market Is Strong

Three of the Latest Reports Show Housing Market Is Strong | MyKCM

The residential real estate market is remaining resilient as the country still struggles to beat the COVID-19 pandemic. Three separate reports recently revealed how the housing market is still showing growth. Here’s a look at each one.

1. Ivy Zelman’s Real Estate Broker Survey

The survey explains that purchaser demand remains strong:

“This month’s overall homebuyer demand rating…was easily the strongest sequential gain in our survey history…Strength continues to be led by the entry-level…While high-end demand is less robust in an absolute sense, there has also been relative improvement, with contacts attributing incremental improvement to the stock market’s rebound, record low mortgage rates and luxury customers trading out of high-priced cities.”

2. The National Association of Home Builders Housing Market Index

The index reveals that builder confidence has returned to levels last seen prior to the pandemic:

“In a strong signal that the housing market is ready to lead a post-COVID economic recovery, builder confidence in the market for newly-built single-family homes jumped 14 points to 72 in July, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The HMI now stands at the solid pre-pandemic reading in March before the outbreak affected much of the nation.”

3. The realtor.com Housing Market Recovery Index

This index leverages a weighted average of four key components of the housing industry, tracking each of the following:

  1. Housing Demand – Growth in online search activity
  2. Home Price – Growth in asking prices
  3. Housing Supply – Growth of new listings
  4. Pace of Sales – Difference in time-on-market

It then compares the current status “to the last week of January 2020 market trend, as a baseline for pre-COVID market growth. The overall index is set to 100 in this baseline period. The higher a market’s index value, the higher its recovery and vice versa.”

The latest results came in at 101, with realtor.com explaining:

“The U.S. Housing Market has recovered from the immediate disruption caused by the COVID pandemic and returned to January 2020 growth levels.”

Bottom Line

Real estate brokers, home builders, and industry data all agree that the housing market has surged back to pre-COVID levels, showing growth, strength, and incredible resilience.


Posted on July 31, 2020 at 6:46 pm
Cara Milgate | Posted in Real Estate Market Stats and Info, Uncategorized |

A Remarkable Recovery for the Housing Market

A Remarkable Recovery for the Housing Market | MyKCM

For months now the vast majority of Americans have been asking the same question: When will the economy turn around? Many experts have been saying the housing market will lead the way to a recovery, and today we’re seeing signs of that coming to light. With record-low mortgage rates driving high demand from potential buyers, homes are being purchased at an accelerating pace, and it’s keeping the housing market and the economy moving.

Here’s a look at what a few of the experts have to say about today’s astonishing recovery. In more than one instance, it’s being noted as truly remarkable.

Ali Wolf, Chief Economist, Meyers Research

“The housing recovery has been nothing short of remarkable…The expectation was that housing would be crushed. It was—for about two months—and then it came roaring back.”

Fannie Mae

“Recent home purchase measures have continued to show remarkable strength, leading us to revise upward our home sales forecast, particularly over the third quarter. Similarly, we bumped up our expectations for home price growth and purchase mortgage originations.”

Javier Vivas, Director of Economic Research for realtor.com

“All-time low mortgage rates and easing job losses have boosted buyer confidence back to pre-pandemic levels.”

James Knightley, Chief International Economist, ING

“At face value this is remarkable given the scale of joblessness in the economy and the ongoing uncertainty relating to the path of Covid-19…The outlook for housing transactions, construction activity and employment in the sector is looking much better than what looked possible just a couple of months ago.”

Bottom Line

The strength of the housing market is a bright spark in the economy and leading the way to what is truly being called a remarkable recovery throughout this country. If you’re thinking of buying or selling a home, maybe this is your year to make a move after all.


Posted on July 31, 2020 at 6:46 pm
Cara Milgate | Posted in Real Estate Market Stats and Info, Uncategorized |

California Moves to Let Next Wave of Retailers Reopen in Pandemic

Governor: Clothing, Sporting Goods, Flower Stores to Sell Items Starting Friday

Gov. Gavin Newsom said counties in California are being given more leeway to decide the pace of business openings based on local circumstances, provided they file contingency plans with the state. (Getty Images)Gov. Gavin Newsom said counties in California are being given more leeway to decide the pace of business openings based on local circumstances, provided they file contingency plans with the state. (Getty Images)

Gov. Gavin Newsom said California can begin moving into a second phase of business openings starting as early as Friday, allowing for stores that sell items such as clothing, sporting goods, toys, books, music, and flowers to begin to operate primarily through pickup services if modifications are made to their real estate.

The stores that permitted to reopen late this week will be required to modify their locations but details for low risk businesses, along with the manufacturing and logistics providers who serve those retailers, are expected be issued Thursday.

The announcement comes as the state is in its seventh week of a stay-at-home mandate, which is increasingly facing opposition and protests by some cities and residents as the economy sags and unemployment increases.

Newsom said Monday during his daily press briefing that the decision to move into the upcoming phase of new “low risk” retail openings was based on the criteria he laid out last month for his phased reopening plan, based on factors including the state’s and cities’ progress with medical preparedness, testing and contact tracing for the spread of the virus.

“This is a very positive sign and it’s happened only for one reason: The data says it can happen,” Newsom said.

The nation’s most populous state, California was among the first states to issue at stay-at-home order in response to the coronavirus in mid-March. Its economy, one of the largest in the world, has been hard hit by the ripple effects of the closing of nonessential businesses, increasing unemployment and people staying at home. In the past couple weeks, protesters have gathered in Sacramento and Orange County cities including Huntington Beach calling for the order to be lifted. A few cities have defied orders, lifting some restrictions and opening some public areas such as beaches.

Newsom has said he remains focused on stemming the spread of the virus and plans to reopen the state in phases based on “facts and data, not ideology.”

This week’s openings do not include business offices, sit-down dining establishments, or shopping malls, which have all been closed for the past several weeks by the coronavirus pandemic, the governor said. More types of businesses are expected to be included in a later part of Phase 2 openings, which are also expected to be decided based on the virus data and preparedness factors.

Sonia Angell, director of the California Department of Public Health, said the state plans to issue guidelines for allowing certain counties and other regions not hit hard by the coronavirus to speed up openings of other types of businesses, provided they submit contingency plans in advance to the state.

Newsom said those lesser-hit counties could get more leeway in opening certain hospitality-related businesses, such as hotels and restaurants, which have been among the hardest-hit businesses in terms of closings and job losses.

The governor said further openings depend on Calfornians feeling safe and confident enough to enter these businesses, even with the proper safeguards. Governments in hard-hit areas including the San Francisco Bay Area have been granted the right to maintain tougher standards apart from state relaxations where necessary.

Newsom did not provide a timetable for what would be a next wave of new statewide business openings during the current second phase, with an eventual statewide third phase to include more relaxed restrictions for places such as offices, gyms, bars, salons and other types of service businesses that have the most user interaction.

Ryan Patap, director of market analytics for CoStar Group in Los Angeles, said Monday’s announcement marked a “nice beginning” for opening up the state beyond the essential businesses currently in operation, but California remains a long way from seeing positive demand for retail real estate make a comeback.

“The environment for brick-and-mortar retail remains highly uncertain,” Patap said. “Even if allowed, how many consumers will be fearful of leaving their home to patronize retailers? Even if stores see customers come back, will retailers generate sufficient sales to justify staying open?”

Retailer confidence at this point appears to be as much an unknown as consumers’ attitudes toward returning to these businesses.

“Will we have another outbreak in which we need to shut down again?” Patap added. “These are only a few of the questions that must currently be going through retailers’ heads. What retailer is going to commit to a new lease?”


Posted on May 13, 2020 at 7:47 pm
Cara Milgate | Posted in Commercial, Uncategorized |