April 16, 2018

April 2018 National Housing Report

Rising Prices, Fewer Sales Driven by Record-Breaking Low Inventory

If you are looking for a new home, chances are you’re not finding many homes on the market. If you’re a seller, you have likely noticed the value of your home is rising — no matter what part of the country you live in.
 
According to the April 2018 RE/MAX National Housing Report, home prices continued to climb year-over-year for the 24th consecutive month in March, while home sales continued to decline for a fourth consecutive month, making it a seller’s market in most regions of the country. To access the housing report infographic, visit: https://rem.ax/2phKHWT.     
 
“Homebuyers shouldn’t be discouraged by the record-breaking numbers — even with higher prices and closed transactions, this March marks the second-highest in sales in the history of the RE/MAX National Housing Report,” said RE/MAX CEO Adam Contos. “It’s more important than ever to work with an experienced RE/MAX agent who is invested and involved in their community. They are dialed into the nuances of a neighborhood, making your home search or sale easier and quicker.”
 
When the Months Supply of Inventory falls below six months, it’s a seller’s market, and all 54 metro areas surveyed for the monthly housing reported under six months of inventory. 
 
“We also look at the Days on Market as another indicator of tight inventory and the national average stands at 60 days,” said Contos. “That’s four days less than a year ago and another March record-breaker.”

 

READ THE FULL RELEASE HERE

Posted in Market Reports
April 16, 2018

It’s Tax Time! 4 Great Apps for Tracking Expenses

Eliminate the stress and mess of organizing your receipts. It's easy to snap a quick photo of your receipts with your mobile device. Combine that with a snazzy app for managing expenses, and you just made your life a lot easier.

Whether you want something that scans and sorts receipts, exports data to Excel spreadsheets or automatically tracks your mileage, options abound. Here are four of the best expense-tracking apps.

Deductr Pro

  • Automatically sorts expenses into deductible categories
  • Keeps a real-time estimate of tax payments
  • If using a dedicated business credit card, Deductr can link to the account and track expenses
  • Uses your phone's GPS to track and sort mileage

Expensify

  • Captures and sorts expenses with very little user effort
  • Offers an option to integrate bank and credit card accounts automatically
  • Easily export docs and spreadsheets to Excel or Dropbox via the web portal
  • Monthly plans start at $5 per month

Hubdoc

  • Auto-files and sorts data into searchable and customizable folders
  • Extracts data from scanned and uploaded documents
  • Automatically collects recurring expenses and includes an invoicing process
  • Works with QuickBooks and Xero, minimizing data entry
  • Monthly cost varies according to your plan

Taxbot

  • GPS functionality for tracking mileage
  • Scans photo receipts and reconciles banking and checking accounts
  • Keeps a running tally of deductible expenses
  • Cost is only $100 annually

Don't forget: April 17 is tax day 2018!

 

Source: RE/MAX Blog

Posted in Homeowner Tips
April 11, 2018

RE/MAX vs The Industry 2018

The numbers prove it: RE/MAX agents continue to have leading productivity. RE/MAX associates once again outperformed agents with other real estate brands in the 2018 REAL Trends 500 survey. For the eighth consecutive year, RE/MAX agents in the survey on average outsold competing agents – averaging more than twice as many closed sales than agents at other participating brokerages.

Posted in Careers
April 11, 2018

House Prices: Simply a Matter of Supply & Demand

Why are home prices still rising? It is a simple answer. There are more purchasers in the market right now than there are available homes for them to buy. This is an example of the theory of “supply and demand” which is defined as:

“the amount of a commodity, product, or service available and the desire of buyers for it, considered as factors regulating its price.”

When demand exceeds supply, prices go up. This is currently happening in the residential real estate market.

Here are the numbers for supply and demand as compared to last year for the last three months (March numbers are not yet available):

House Prices: Simply a Matter of Supply & Demand | Simplifying The Market

In each of the last three months, demand (buyer traffic) has increased as compared to last year while supply (number of available listings) has decreased. If this situation persists, home values will continue to increase.

Bottom Line

The reason home prices are still rising is because there are many purchasers looking to buy, but very few homeowners ready to sell. This imbalance is the reason prices will remain on the uptick.

Posted in Buyers
April 2, 2018

House Hunting Can Offer Surprises


A couple of weeks ago the REALTOR website ran a 90-second video about How to Buy with a core message that could be helpful to anyone who has set about house hunting in Melbourne. The theme was about the value of compromise—not insisting on a rigid checklist of predetermined criteria to be the be-all/end-all for house hunting ventures. That’s practical advice to keep house hunting budgets in line with reality. The four requirements for which flexibility was advised were:
•    Location
•    Space (square footage)
•    Yard size
•    Architectural style
Although too much flexibility for all four would leave shoppers without a place to start, it’s a list that could be useful tool for Melbourne house hunting expeditions—once you decide on an order of importance you attach to each one.
In another way, too, it’s a valuable list to think about: We’d call it the basis for “dream house” searches. Real estate literature often speaks of “finding the house of your dreams” as if that’s how most buyers frame their search—but unless price is literally no object, that’s not actually what most people expect.
For the here and now, the majority of Melbourne house hunting ventures are a lot more reality-based. Today’s buyers are more likely to set out hoping to find what might better be thought of as a “surprise house.” That would be one that has everything they need, most of what they want, and something else: some feature or features that they hadn’t anticipated. It might be an outdoor hot tub or a two-faced fireplace. It could be a one-of-a-kind water feature in the backyard, or kids’ tree house. Sometimes that large or small unlooked-for extra feature turns out to define the property.
House hunting is simply unlike any other kind of shopping expedition—and one that remains an ever-fascinating activity. One of the best parts of our profession is accompanying our Brevard County clients as they make their own discoveries and arrive at their final decisions.

Call us whenever you decide to get started!

Posted in Buyers
March 29, 2018

Brevard County Housing Statistics - February 2018

A quick recap of the Brevard County Residential Report for February 2018:
  • Closed Sales are up 6.9% for February 2018 in which the number of units closed was 694 compared to 649 in February 2017, with a decrease in cash sales of -8.1% compared to February 2017.
  • New Pending Sales are up 2.7% and New Listings are up 9.1%.
  • The Median Sales Price for Brevard Single Family homes is up 12.2%to $230,000 compared to a year ago, which was $205,000.
  • Months Supply of Inventory is up 8% to 2.7 months, an increase from 2.5 months in 2017.
  • Traditional Sales are up 10.2%, with a median sales price of $232,000.
  • Foreclosure/REO Sales are down -38.7%, with a median sales price of $159,500.
  • Short Sale Closings are down -55.6%, with a median sales price of $203,500. 
A quick recap of the Brevard County Townhouses/Condos for February 2018:
  • Closed Sales are up 21.6% for February 2018 in which the number of units closed was 225 compared to 185 in February 2017, with an increase in cash sales of 26.6% compared to February 2017.
  • New Pending Sales are up 32.9% and New Listings are up 3.9%.
  • Median Sales Price for Townhomes/Condos is up 11.9% to $156,500 compared to a year ago, which was $139,900.
  • Months Supply of Inventory has decreased to 3.7 months in February 2018 from 3.9 months in February 2017.
  • Traditional Sales are up 24.4%, with a median sales price of $157,000.
  • Foreclosure/REO Sales are down -50% with a median sales price of $172,500. 
  • Short Sale Closing statistics are up 100%, with two sales in February 2018 with a median sales price of $146,000 and one sale in February 2017.
To see these and previous reports on Brevard MLS Statistics, please click here »
Posted in Market Reports
March 28, 2018

Be Thankful You Don’t Have to Pay Your Parents’ Interest Rate!

Interest rates hovered around 4% for the majority of 2017, which gave many buyers relief from rising home prices and helped with affordability. In the first quarter of 2018, rates have increased from 3.95% up to 4.45% and experts predict that rates will increase even more by the end of the year.

The rate you secure greatly impacts your monthly mortgage payment and the amount you will ultimately pay for your home. Don’t let the prediction that rates will increase stop you from purchasing your dream home this year.

Let’s take a look at a historical view of interest rates over the last 45 years.

Be Thankful You Don’t Have to Pay Your Parents’ Interest Rate! | Simplifying The Market

Bottom Line

Be thankful that you can still get a better interest rate than your older brother or sister did ten years ago, a lower rate than your parents did twenty years ago, and a better rate than your grandparents did forty years ago.

Posted in Buyers
March 19, 2018

March 2018 National Housing Report - RE/MAX

Inventory Limits February Home Sales While Pushing Up Prices

Inventory Limits February Home Sales While Pushing Up Prices One word sums up February home sales across the country – inventory. The lack of homes for sale continues to be the key factor as February marks the third consecutive month of year-over-year declines in home sales, coupled with quick sales and record prices. To access the housing report infographic, visit: https://rem.ax/2phKHWT.    
 
According to the March RE/MAX National Housing Report, home sales dropped 0.2% from February 2017, while the Days on Market average of 62 days was the lowest of any February in the report’s nine-year history.
 
“ We shared our outlook of the real estate market in the new year and it seems that even two months into 2018 we’re already seeing records break,” said RE/MAX CEO Adam Contos. “The February 2018 median sales price of $228,700 marks the 22nd consecutive month of year-over-year price increases.”
 
The Months Supply of Inventory was 3.1 – also a RE/MAX National Housing Report February record – and underscored an average decline in inventory of 13.7% among the 52 markets reporting.

“While the hot markets like Denver and San Francisco continue to see low supplies of inventory, we’re also watching more homebuyers migrate into unexpected markets,” added Contos. “In one year, Billings, Montana, saw a 59 percent increase in home sales, along with Boise, Idaho, with a 25 percent increase in sales.”

READ THE FULL PRESS RELEASE HERE

Posted in Market Reports
March 19, 2018

Moving up Is MORE Affordable Now Than Almost Any Other Time in 40 Years

Moving up Is MORE Affordable Now Than Almost Any Other Time in 40 Years

If you are considering selling your current home, to either move up to a larger home or into a home in an area that better suits your current family needs, great news was just revealed.

Last week, Trulia posted a blog, Not Your Father’s Housing Market, which examined home affordability over the last 40+ years (1975-2016). Their research revealed that:

“Nationally, homes are just about the most affordable they’ve been in the last 40 years… the median household could afford a home 1.5 times more expensive than the median home price. In 1980, the median household could only afford about 3/4 of the median home price.

Despite relatively stagnant incomes, affordability has grown due to the sharp drop in mortgage rates over the last 30 years – from a high of over 16% in the 1980s to under 4% by 2016.

Of the nation’s 100 largest metros, only Miami became unaffordable between 1990 and 2016. Meanwhile, 22 metros have flipped from being unaffordable to becoming affordable in that same time frame.”

Here is a graph showing the Affordability Index compared to the 40-year average:

Moving up Is MORE Affordable Now Than Almost Any Other Time in 40 Years | Simplifying The Market

The graph shows that housing affordability is better now than at any other time in the last forty years, except during the housing crash last decade.

(Remember that during the crash you could purchase distressed properties – foreclosures and short sales – at 20-50% discounts.)

There is no doubt that with home prices and mortgage rates on the rise, the affordability index will continue to fall. That is why if you are thinking of moving up, you probably shouldn’t wait.

Bottom Line

If you have held off on moving up to your family’s dream home because you were hoping to time the market, that time has come.

Posted in Buyers
March 12, 2018

A New Housing Bubble Forming…Not Before 2024!

A recent report by CoreLogic revealed that U.S. home values appreciated by more than 37% over the last five years. Some are concerned that this is evidence we may be on the verge of another housing “boom & bust” like the one we experienced from 2006-2008.

Recently, several housing experts weighed in on the subject to alleviate these fears.

Sean Becketti, Freddie Mac Chief Economist

 “The evidence indicates there currently is no house price bubble in the U.S., despite the rapid increase of house prices over the last five years.”

Edward Golding, a Senior Fellow at the Urban Institute’s Housing Finance Policy Center

 “There is not likely to be a national bubble in the way that we saw the first decade of the century.”

Christopher Thornberg, Partner at Beacon Economics

 “There is no direct or indirect sign of any kind of bubble.”

Bill McBride, Calculated Risk

 “I wouldn’t call house prices a bubble.”

David M. Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices

 “Housing is not repeating the bubble period of 2000-2006.”

A recent article by Teo Nicolais, a real estate entrepreneur who teaches courses on real estate principles, markets, and finance at Harvard Extension School concluded that the next housing bubble may not occur until 2024.

The article, How to Use Real Estate Trends to Predict the Next Housing Bubble, looks at previous peaks in real estate values going all the way back to 1818. Nicolais uses the research of several economists. The article details the four phases of a real estate cycle and what defines each phase.

Nicolais concluded his article by saying:

“Those who study the financial crisis of 2008 will (we hope) always be weary of the next major crash. If George, Harrison, and Foldvary are right, however, that won’t happen until after the next peak around 2024. 

Between now and then, aside from the occasional slow down and inevitable market hiccups, the real estate industry is likely to enjoy a long period of expansion.”

Bottom Line

The reason for the price appreciation we are seeing is an imbalance between supply and demand for housing. This has created a natural increase in values, not a bubble in prices.

 

If you are thinking of buying or selling the the Brevard County area, use our search function on this website or call us anytime and one our our amazing agents would love to help you!