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      Blog :: 01-2020

      Should I Sell My House This Year?

      Should I Sell My House This Year? | MyKCM

      If one of the questions you’re asking yourself today is, “Should I sell my house this year?” the current Housing Opportunities and Market Experience (HOME) Survey from the National Association of Realtors® (NAR) should boost your confidence as it relates to the current selling sentiment in the housing market. Even with all the information overload in the media circling around talk of a possible recession, the upcoming 2020 election, and more, Americans feel good about selling a house now. That’s some news to get excited about!

      As the graph below shows, as of Q4 2019, 75% of people surveyed indicate they believe now is a good time to sell a home:Should I Sell My House This Year? | MyKCM 

      In the case of those with a yearly salary of $100,000 or more, the results jumped even higher, coming in at an 82% positive sentiment.

      When the study divided the outcomes by region, the results still consistently showed Americans feeling good about selling:

      • Northeast: 71% positive
      • Midwest: 76% positive
      • South: 72% positive
      • West: 81% positive

      In addition to looking at income and region, the report also divided the results by generation, as shown in the graph below:Should I Sell My House This Year? | MyKCM 

      As you can see, many believe that, despite everything going on in the world, it is still a good time to sell a home.

      According to NAR, the unsold inventory available today “sits at a 3.0-month supply at the current sales pace,” which is down from a 3.7-month supply in November. The current inventory is half of what we need for a normal or neutral housing market, which should have a 6.0-month supply of unsold inventory. This is good news for sellers, as Lawrence Yun, Chief Economist at NAR, says:

      “Home sellers are positioned well, but prospective buyers aren’t as fortunate. Low inventory remains a problem, with first-time buyers affected the most.”

      Bottom Line

      If you’re ready to list your home, you can feel good about the current sentiment in the market. Let’s get together today to determine the best next step when it comes to selling your house this year.

       

       

      2020 Home Buying Checklist

      2020 Homebuying Checklist | MyKCM

      Some Highlights:

      • If you’re thinking of buying a home, plan ahead and stay on the right track, starting with pre-approval.
      • Being proactive about the homebuying process will help set you up for success in each step.
      • Make sure to work with a trusted real estate professional along the way, to help guide you through the homebuying steps specific to your area.

       

      Compass Contemplations for Wednesday

      DID YOU KNOW? Metro areas with populations of 100,000 or more represent 85% of the U.S. population.

       

      DID YOU KNOW? An additional 371,000 new rental units are expected to hit the U.S. market in 2020, a 50% percent increase over the number of new units completed in 2019. Developers want you to rent instead of buying. If rentals are supposed to combat the unaffordability of the housing market one has to wonder why 80% of these rentals are LUXURY rentals. (WSJ)

       

      DID YOU KNOW? A new bill is circulating in Washington would ease some new restrictions on the EB-5 program, which governs visas that grant permanent U.S. residency to foreigners who invest in qualifying real-estate projects and other businesses that create jobs in the U.S. (WSJ)

      DID YOU KNOW? Package theft is at an all-time high, with 1.7 million packages stolen or lost every day in the U.S., according to researchers at Rensselaer Polytechnic Institute. Maybe the best building/home amenity is secured package drop-off? Amazon has installed secure locker locations in 900 U.S. cities and now offers Amazon Key, which allows customers to give remote access to delivery drivers so they can leave packages inside the home, garage or car trunk. 

      DID YOU KNOW? Greenwich, Connecticut, one of the wealthiest areas of the USA, 50 minutes from Midtown Manhattan, saw an 11% sales volume decline in 2019. Only 13% of all sales were above $4 million. The average sales price was $2.4 million, dispelling the myth that all homes in Greenwich are for billionaires alone! Off-market sales accounted for 9% of all transactions.

      DID YOU KNOW?  New York, Miami, Houston, and Chicago have the highest percentage of mortgages 30 days past due for the ten largest metro areas. (Corelogic)

      DID YOU KNOW? A new report from Experian found that the average FICO Score in the U.S. reached an all-time high in 2019 of 703, up from 701 a year earlier and 14 points higher than back in 2010. Altogether, 59% of Americans have a FICO Score of 700 or higher, the largest percentage ever at that threshold.

      DID YOU KNOW? New York was identified as the 8th most affordable large city in the USA in a report evaluating the TOP 20 largest city economies in the USA: Miami, Detroit, Phoenix, Los Angeles, and Atlanta were the TOP 5. While New Yorkers spend a significant portion of their incomes on housing and transportation, the city’s low transportation costs help offset high housing costs. Transportation costs in New York City are the least expensive among the peer cities analyzed, with the median household spending $832 a month, or 14.4% of total income on transportation. (Citizens Budget Commission)

      2020 Luxury Market Forecast

      2020 Luxury Market Forecast | MyKCM

      By the end of last year, many homeowners found themselves with more equity than they realized, and at the same time, their wages were increasing. When those two factors unite, it can spark homeowners to think about making a move to a larger or more expensive home in the luxury space. That said, now is a perfect opportunity to take a look at the forecast for the 2020 luxury market.

      Three Things to Think About in the 2020 Luxury Housing Market

      1. Prices

      The U.S. economy is strong today, with buying opportunities throughout the luxury end of the market. Thomas Veraguth, Strategist at UBS Global Wealth Management, says in Barrons.com,

      “There’s a good link between luxury real estate prices and [economic] growth.”

      Available inventory is a key element that can impact home prices. In the upper range, the inventory is greater in comparison to the entry-level market, making moving up to a luxury home a growing reality for many buyers right now.

      2. Activity in the Market

      With more buying opportunities at the higher end, we should start to see an increase in activity. The same article states,

      “Affluent homebuyers will start to come out of the woodwork as they find rising luxury rents less appealing and sellers get even more negotiable on price.”

      Buyers looking in the luxury market are taking the opportunity to negotiate on price in a segment where there are more choices, too. According to the Luxury Market Report, homes sold for an average of 96.94% of the list price in December.

      Buyers are also getting more for their money with greater purchasing power due to the current low-interest rates.

      3. Buyers Are Coming Back

      Keep in mind, buyers are often sellers too, especially those looking to move up. Homeowners with an entry-level home can take advantage of the inventory shortage at the lower end of the market, thus driving higher sales prices for their current homes. Combined with growing equity in the homes they’re listing, it’s a great time for those who are ready to make a luxury move.

      The extra equity and greater purchasing power are bringing many buyers back to the market. The same article mentioned that,

      “We’ve already seen buyers who’ve been on the sidelines for two years tread back into the market.”

      Bottom Line

      If you’re considering entering the luxury market, 2020 is shaping up to be a great year for those who are ready to make that move. Let’s get together to set your real estate plan for the year.

       

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