Home Prices Up 6.64{12ca24a05342dbb53daaf6ac9e83dcd1d4a135542302ef678e31135aa120b5f7} Across the Country! [INFOGRAPHIC]

Home Prices Up 6.64{12ca24a05342dbb53daaf6ac9e83dcd1d4a135542302ef678e31135aa120b5f7} Across the Country! [INFOGRAPHIC] | Simplifying The Market

Home Prices Up 6.64{12ca24a05342dbb53daaf6ac9e83dcd1d4a135542302ef678e31135aa120b5f7} Across the Country! [INFOGRAPHIC] | Simplifying The Market

Some Highlights:

  • The Federal Housing Finance Agency (FHFA) recently released their latest Quarterly Home Price Index report.
  • In the report, home prices are compared both regionally and by state.
  • Based on the latest numbers, if you plan on relocating to another state, waiting to move may end up costing you more!
  • Alaska & West Virginia were the only states where home prices are lower than they were last year.

Source: Simplifying The Market

Study: FSBOs Don’t Save Real Estate Commission

Study: FSBOs Don’t Save Real Estate Commission | Simplifying The Market

One of the main reasons why For Sale By Owners (FSBOs) don’t use a real estate agent is because they believe they will save the commission an agent charges for getting their house on the market and selling it. A new study by Collateral Analytics, however, reveals that FSBOs don’t actually save anything, and in some cases may be costing themselves more, by not listing with an agent.

In the study, they analyzed home sales in a variety of markets in 2016 and the first half of 2017. The data showed that:

“FSBOs tend to sell for lower prices than comparable home sales, and in many cases below the average differential represented by the prevailing commission rate.” (emphasis added)

Why would FSBOs net less money than if they used an agent?

The study makes several suggestions:

  • “There could be systematic bias on the buyer side as well. FSBO sales might attract more strategic buyers than MLS sales, particularly buyers who rationalize lower-priced bids on with the logic that the seller is “saving” a traditional commission. Such buyers might specifically search for and target sellers who are not getting representational assistance from agents.” In other words, ‘bargain lookers’ might shop FSBOs more often.
  • “Experienced agents are experts at ‘staging’ homes for sale” which could bring more money for the home.
  • “Properties listed with a broker that is a member of the local MLS will be listed online with all other participating broker websites, marketing the home to a much larger buyer population. And those MLS properties generally offer compensation to agents who represent buyers, incentivizing them to show and sell the property and again potentially enlarging the buyer pool.” If more buyers see a home, the greater the chances are that there could be a bidding war for the property.

Three conclusions from the study:

  1. FSBOs achieve prices significantly lower than those from similar properties sold by Realtors using the MLS.
  2. The differential in selling prices for FSBOs when compared to MLS sales of similar properties is about 5.5{12ca24a05342dbb53daaf6ac9e83dcd1d4a135542302ef678e31135aa120b5f7}.
  3. The sales in 2017 suggest the average price was near 6{12ca24a05342dbb53daaf6ac9e83dcd1d4a135542302ef678e31135aa120b5f7} lower for FSBO sales of similar properties.

Bottom Line

If you are thinking of selling, FSBOing may end up costing you money instead of saving you money.

Source: Simplifying The Market

Want to Keep up with the Joneses? Now’s the Time

Want to Keep Up with the Joneses? Now’s the Time | Simplifying The Market

Does your current house fit your needs? Does it seem like everyone else is moving up and moving on to more luxurious surroundings? Are you wondering what it would take to start living your dream life?

Market conditions around the country have presented an opportunity like no other for those who are looking to make the jump to a premium or luxury home.

The National Association of Realtors reports that national inventory levels are now at a 4.3-month supply. A normal market, where prices appreciate with inflation, has 6-7-months inventory. The national market has echoed the conditions felt in the starter and trade-up markets as inventory has declined year-over-year for 25 consecutive months.

The chart below shows the relationship between the inventory of homes for sale and prices.

Want to Keep Up with the Joneses? Now’s the Time | Simplifying The Market

According to Trulia’s latest Inventory Report, the inventory of homes for sale in the two lower priced markets has dropped by double digit percentages over the last 12 months (16{12ca24a05342dbb53daaf6ac9e83dcd1d4a135542302ef678e31135aa120b5f7} for starter and 13{12ca24a05342dbb53daaf6ac9e83dcd1d4a135542302ef678e31135aa120b5f7} for trade-up homes). While the inventory of homes in the premium home category has dropped by only 4{12ca24a05342dbb53daaf6ac9e83dcd1d4a135542302ef678e31135aa120b5f7}.

This has created a seller’s market in the lower-priced markets, as 54{12ca24a05342dbb53daaf6ac9e83dcd1d4a135542302ef678e31135aa120b5f7} of homes were on the market for less than a month in the last Realtors Confidence Index, and a buyer’s market in the luxury market, where homes were on the market for an average of 160 days according to the Institute for Luxury Home Marketing.

Bottom Line

If you are even thinking of listing your home and moving up to a luxury home, let’s get together to evaluate your ability to do so. Homeowners across the country are upgrading their homes, why can’t you? Your dream home is waiting!

Source: Simplifying The Market