Waiting To Sell in the Spring? Waiting May Not Be Wise.....

Thinking of Selling Your Home? 

The Waiting Is The Hardest Part.

Tom Petty famously penned the words, “the waiting is the hardest part” in his early 80’s hit song The Waiting, and his thought process can surprisingly also be applied to individuals considering selling their homes today. Traditional thinking would suggest it may be best to wait until the spring to sell when there is a flood of buyers in the market, but right now may in fact be an even better time to list your home.

We can see the overall economy is good: wages are rising, there are near record-low unemployment rates, and mortgage interest rates are still very low too. Over the past 10+ years the housing market has stabilized, so what (if anything) is the biggest challenge in the housing market today?

The answer is simple: it’s inventory.

According to the Existing Home Sales Report by the National Association of Realtors,

“Total housing inventory at the end of September sat at 1.83 million, approximately equal to the amount of existing-homes available for sale in August, but a 2.7% decrease from 1.88 million one year ago. Unsold inventory is at a 4.1-month supply at the current sales pace, up from 4.0 months in August and down from the 4.4-month figure recorded in September 2018.”

What does this mean?

While homes are coming to the market, they aren’t coming fast enough! Right now, across the country there is less than 6 months of overall inventory of homes for sale, putting us in a seller’s market. The challenge is that there are not enough homes for sale to increase the supply needed for the number of people who want to buy, especially in the starter and middle-level markets.

To be in a balanced market (meaning we have enough inventory for the number of buyers in the market), we need to have 6 months of inventory available. Today we are nowhere near that number, and as a matter of fact, the last time we reached that height was August 2012 (as shown in the graph below):When we look at the inventory challenge today, we can see that now is a great time to sell your house. Truthfully, waiting may end up being the hardest part in the long run. This landscape is a great place for sellers who own homes in the starter and middle-level markets to take the opportunity to sell in a sellers’ market, before inventory catches up with demand. Serious buyers are actively in the market and ready to make a move at this time of year. When inventory is limited at the lower end, like it is today, selling before more homes are listed could mean a significant seller’s advantage to those who are ready to move up. The upper level of the market has much more inventory available to move into, so it’s a win across the board.

Bottom  Line

If you’re considering selling your home, don’t wait – now is the time to make your move! Take advantage of the high housing demand and the low inventory of homes for sale at the lower end of the market and use your purchasing power while mortgage rates are low to go after the move-up home of your dreams. Let’s get together to decide if now is the right time for you.

Realtor Continuing Education ~ The Pricing Strategy Advisor Certification

Seventeen + years as a Realtor and I'm always learning new things. You have to, there is so much to know to help my clients!

Yesterday I completed a course about home pricing. I've taken appraisal courses, I've been guiding Sellers with pricing of their homes for sale & Buyers with their possible purchases, for all those years.

But, again, I always want to learn more.

At the suggestion of one of our management peeps, I took a one day course, with sooo many sections, that the National Association of Realtors offered.  Once completed, I was also required to watch two lengthy webinars to learn even more about pricing strategies.

Quite honestly, I felt I knew 95% of it already. Really, truly! But, the 5% that I did learn after the hours of class & webinar time? Made it worth it to me. Means I can help my peeps just one teeny-weenie bit more when it comes to buying or selling a home.

It's not just about educating you, like my last post. 

Not just about keeping all of you informed.

 It's also about your favorite Realtor keeping themselves informed

.....so I can better serve you.

Santa Clarita Valley Home Sales Activity October 18, 2019

I see I hadn't done a blog post about sales numbers in a month, it was time!

Although most people think my only job is to help people Sell & Buy homes....it's so much more than that.

And, knowing what's happening in your marketplace is vital to decision making about buying or selling a home.

So, here I go again, keeping you informed!

Remember, Acton to the East, Stevenson Ranch to the West, Newhall to the South and, Castaic to the North is the perimeter I choose for our Santa Clarita Valley home sales info.

As of early this morning we had only 571 homes for sale. That's townhouses, condos, detached homes. 571.

In escrow we had a nice fat number of 484. Many are looking for replacement properties.

Sold in the last 30 days....and I just told another client a similar number.....was 322. Yup, we've been closing about 325 homes every 30 days for quite some time....regardless of the season.

So, if you're thinking about selling your home in the Spring, when everyone else is, read these numbers again. Note that we're still selling a nice number of homes in this Fall season. Big note is if you are under 600, that's the sweet spot....maybe up to 650, still quite sweet too. We've got buyers, good, solid buyers, looking in that price range. Every Single Day.

You may not get the multiple offer situation of 'yesterday', but price it right, market it right, 'stage' it right.....you'll get it sold in a nice timely manner.

Just ask me how ~ Lauren@KeepYourWitz.com ~ (661) 313-5470

Gen Z ~ The Upcoming Home Buyer!

Be on the Lookout for Gen Z: The Next Generation of Homebuyers

You’ve likely heard a ton about Millennials, but what about Gen Z? In the next 5 years, this generation will be between the ages of 23 and 28, and they’re eager to become homeowners faster than you may think.

According to realtor.com, “Nearly 80 percent of Generation Z members say they want to own a home before age 30,” and Concentrix Analytics said, “52% of prospective Gen Z buyers are already saving to buy a home.”

Wikipedia defines Generation Z (Gen Z) as “the demographic cohort after the Millennials. Demographers and researchers typically use the mid-1990s to mid-2000s as starting birth years.”

The report from Concentrix goes a little deeper on Gen Z, identifying the main reasons this cohort wants to own homes:

• 55% want to own a home because they want to start a family
• 47% want to build wealth over time
• 33% want to make their family proud

Although they’re eager to buy, this generation also perceives a few challenges ahead:

• 66% believe saving for a down payment and closing costs will be challenging
• 58% feel covering the monthly costs of owning may be difficult
• 52% perceive a lack of knowledge about where to start

It is also interesting to note that 21% of Gen Zers think their parents will provide financial help, 17% will use a down payment assistance program, and 15% believe other family members will help them. One of the highlights of the report mentioned,

“More than half of Gen Zers who think they’ll receive help also think they will need to pay their parents back, compared to 40 percent of millennials.”

Bottom Line

It is never too early to start saving for your own home, whether you are part of Gen Z or a different generation. If you would like to know where to start and how much you need to save to reach your goal of buying a home, let’s get together so you can better understand the process.

PSA If You're In Escrow And There Are Fires Nearby.....

I did a YouTube video about this when we had the horrible SandFire, today it's the SaddleridgeFire!

This is just a reminder to anyone that is in escrow anywhere near any fire.....you must double check with your insurance company to see if they are throwing up a moratorium for new policies due to the fires. Are they still going to give you a policy, you need to find out.

There is always a company that will insure you to close escrow, albeit expensive, and then you can  switch to your preferred carrier once the moratorium is lifted. Check with your Realtor and/or Lender for their suggestions.

Almost two decades helping people in and out of homes, this has come up a few times. It is what it is. There are always natural disasters in many parts of our country.

Fire, Earthquake, Tornados, Floods, you name it, we got it....right?

At any rate, call your insurance company that was scheduled to insure your new home to make sure they still are willing to do so.

And, be safe out there people. 

Only go where you need to go. 

Keep emergency supplies. 

Stay out of the way of firefighters. 

And, be kind.

I Can't Buy A Home ~ I Have Too Much Debt!

I belong to a moms' group online and I saw a post the other day about the high cost of rent and this one gal was looking to move to a cheaper rental.

Needless to say it was mentioned to her to consider buying a home. Her answer was 'we have too much debt'.

So, how much debt is too much? 

Another, 'needless to say', it's mostly dependent upon how much income you have.

I presume that you realize that, but who knows, maybe not.

Let's say you have 20k in debt, but make 100k a year and are paying your debt as agreed. You may be okay.

On the other hand, a 100k in debt and your income is only 20k, plus you're not making payments as scheduled......that's too much debt.

But, if you're somewhere in the middle, you really should talk to a mortgage lender and ask them to help your formulate a plan to get that debt under control so that...if this is your goal.....you can ultimately buy a home.

Owning a home is a money maker, no doubt about it. Renting is a money maker too, but it's the landlord that makes the money.

Without having an expert guiding you, 

the home ownership goal for your family may truly be just a dream.

Happy to help turn a dream into a reality.

Lauren@KeepYourWitz.com

Information About Home Inspections/Inspectors When You Are Buying A Home

What to Expect from Your Home Inspection

You made an offer and it was accepted. Your next task is to have the home inspected prior to closing. Agents often recommend you make your offer contingent upon a clean home inspection.

This contingency allows you to renegotiate the price you offered for the home, ask the sellers to cover repairs, or in some cases, walk away if challenges arise. Your agent can advise you on the best course of action once the report is filed.

How to Choose an Inspector

Your agent will most likely have a short list of inspectors they’ve worked with in the past to recommend to you. HGTV suggests you consider the following five areas when choosing the right home inspector for you:

1. Qualifications – Find out what’s included in your inspection and if the age or location of your home may warrant specific certifications or specialties.

2. Sample Reports – Ask for a sample inspection report so you can review how thoroughly they will be inspecting your dream home. In most cases, the more detailed the report,
the better.

3. References – Do your homework. Ask for phone numbers and names of past clients who you can call to discuss their experiences.

4. Memberships – Not all inspectors belong to a national or state association of home inspectors, and membership in one of these groups should not be the only way to evaluate your choice. Membership in one of these organizations does, however, often mean continued training and education are required.

5. Errors and Omission Insurance – Find out what the liability of the inspector or inspection company is once the inspection is over. The inspector is only human, after all, and it is possible they might miss something they should see.

Ask your inspector if it’s okay for you to tag along during the inspection, so they can point out anything that should be addressed or fixed.

Don’t be surprised to see your inspector climbing on the roof or crawling around in the attic and on the floors. The job of the inspector is to protect your investment and find any issues with the home, including but not limited to: the roof, plumbing, electrical components, appliances, heating and air conditioning systems, ventilation, windows, fireplace and chimney, foundation, and so much more.

Bottom Line

They say, ‘ignorance is bliss,’ but not when investing your hard-earned money into a home of your own. Work with a professional you can trust to give you the most information possible, so you can make the most educated decision about your purchase.