What's More Affordable?! Renting vs Buying

Hi Again Friends!

I recently had a conversation with a young lady who shared with me that she had made the move to Salem from Portland.  One of the primary reasons she shared was the ever climbing cost to rent in the Portland Metro area.

It might be hard to believe - but rents, even here in Salem, are seeing increases pretty much across the board.  And more often than not  folks, like my earlier conversation, believe that renting is more affordable than purchasing.  Or that they can't make ownership work within their monthly budget.  

Here's a quick graphic that might help dispel that worry.

Of course, you always want to run your household's income/expenses to verify these percentages - but at the very least this might be a catalyst to have a more in depth conversation with a mortgage professional to see what you really can afford!

As always, please let me know if you have any questions or if I can be of any help.

~Amy

Source: KCMBlog.com

Where's All The Inventory?!

Hi Friends!

Here we are again - on the cusp of what's expected to be another gorgeous Oregon summer!  And typically, that also means one of the busiest seasons for real estate.  We're definitely busy for sure - but there's a challenge we're seeing across the Salem-Keizer market (and is being felt across the nation too!)...and that's a lack of inventory!

Take a look at this quick article that offers some additional insight:

Housing Inventory Disappearing

"The price of any item is determined by the supply of that item, and the market demand. The National Association of Realtors (NAR) recently released their latest Existing Home Sales Report which gives insight into today’s market conditions.

Inventory Levels & Demand

Sales of existing homes rose 5.1% month-over-month in March and are 1.5% higher than this time last year. Sales rose in all four major regions in March.

Total unsold housing inventory is 1.5% lower than March 2015 at a 4.5-month supply and remains well below the six months that is needed for a historically normal market.

Consumer confidence is at the highest level in over a decade. Pair that with interest rates still below 4%, programs available for down payments as low as 3%, and you have an attractive market for buyers.

Homes sold in March were on the market for an average of 47 days and 42% of properties sold in less than a month.

Prices Rising

March marked the 49th consecutive month of year-over-year price gains as the median price of existing homes sold rose to $210,700 (up 5.7% from 2015).

So What Does This Mean?

The chart below shows the impact that inventory levels have on home prices.

NAR’s Chief Economist, Lawrence Yun gave some insight into the correlation:

"Buyer demand remains sturdy in most areas this spring and the mid-priced market is doing quite well. However, sales are softer both at the very low and very high ends of the market because of supply limitations and affordability pressures."

Bottom Line

If you are debating putting your home on the market in 2016, now may be the time. The number of buyers ready and willing to make a purchase is at the highest level in years. Let's meet up so we can get the process started."

If you're thinking of selling your home - now is likely one of the best times to take advantage of the current conditions: less competition & ever growing pent up demand!

As always, please let me know if you have any questions or if I can be of any help!

~Amy

Source: KCMBlog.com

Future Home Values - Where Are They Headed?

Hi Friends!

Happy March!  From where I'm at today - March has definitely come "in like a lion" in terms of our weather!  

During my daily reading I made my way to this article and wanted to pass it along to you as well.

Future Home Values: Where Do Experts Think They Are Headed? 

While our market has definitely made a shift to a favorable Sellers market, experts (as you'll see in the article) are expecting the property values to stabilize in the coming years.

What might that mean for you (or someone you know)?  That now might just be the right time to list your home & take advantage of these current values - not to mention high demand from Buyers!

As always, please let me know if you have any questions! And if you, or someone you know, are considering selling your home - our team would love to help you make that move!

~Amy

Should You Sell Before Spring?!

Hi Friends!

Last week a ground hog (aka "Punxsutawney Phil") didn't see his shadow & foretold of an early spring! Which is great news for all our gardens!

But it got me thinking -- would it be best for Sellers to continue to wait until Spring has sprung to list their homes? Take a look at this short article that offers some great points on why listing your home now might actually be in your favor:

"No Matter Which Groundhog You Listen To, You Should Sell Before Spring!

Is spring closer than we think? Depending on which Groundhog you witnessed today, you may have less time than you think to get your home on the market before the busy spring season.

Many sellers feel that the spring is the best time to place their home on the market as buyer demand traditionally increases at that time of year. However, the next six weeks before spring hits also have their own advantages.

Here are five reasons to sell now.

1. Demand is Strong

Foot traffic refers to the number of people out actually physically looking at homes right now. The latest foot traffic numbers show that buyers are still out in force looking for their dream home. These buyers are ready, willing and able to buy…and are in the market right now!

Take advantage of the strong buyer activity currently in the market. 

2. There Is Less Competition Now

Housing supply just dropped to 3.9 months, which is well under the 6 months’ supply that is needed for a normal housing market. This means, in many areas, there are not enough homes for sale to satisfy the number of buyers in that market. This is good news for home prices. However, additional inventory is about to come to market.

There is a pent-up desire for many homeowners to move, as they were unable to sell over the last few years because of a negative equity situation. Homeowners are now seeing a return to positive equity as real estate values have increased over the last three years. Many of these homes will be coming to the market in the near future.

Also, new construction of single-family homes is again beginning to increase. A study by Harris Poll revealed that 41% of buyers would prefer to buy a new home while only 21% prefer an existing home (38% had no preference).

The choices buyers have will increase in the spring. Don’t wait until all this other inventory of homes comes to market before you sell.

3. The Process Will Be Quicker

One of the biggest challenges of the housing market has been the length of time it takes from contract to closing. Banks are requiring more and more paperwork before approving a mortgage. There is less overall business done in the winter. Therefore, the process will be less onerous than it will be in the spring. Getting your house sold and closed before the spring delays begin will lend itself to a smoother transaction.

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

If you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by 5.4% over the next 12 months according to CoreLogic. 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. You can also lock-in your 30-year housing expense with an interest rate below 4% right now. Rates are projected to rise by three-quarters of a percent by the end of 2016.

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 your health? 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 the questions above. You have the power to take back control of the situation by putting your home on the market. Perhaps, the time has come for you and your family to move on and start living the life you desire.

That is what is truly important."

Demand is high my friends -- and our inventory is lagging to meet that demand, which creates a desirable environment for Sellers!  If you, or someone you know, are considering selling their home - we are here to help!

As always, please let me know if you have any questions at all!

~Amy

Source: KCMBlog.com