Liz MarshallYour Local Real Estate Broker Archives
April 2024
Categories |
Are you clamoring for extra rooms or a more functional floorplan in your house? Maybe it’s time to make a move. If you’ll be able to work remotely for the long-term or your overall needs have simply changed, it’s a great time to sell your house and move up. Why? With mortgage rates in their favor and higher-priced home sales powering more moves across the country, sellers in today’s market are finding the space they need (and have always dreamed of) by purchasing a home in the upper end of the housing market.
With so few homes available for sale and high demand from today’s homebuyers, sellers are profiting in major ways this season. Bidding wars are gaining traction, driving up the sale price of more and more homes throughout the country. This means sellers are able to leverage extra cash from higher-priced sales while also taking advantage of today’s low mortgage rates when they purchase their next home. It’s the perfect scenario to move up into a true dream home. According to the April Luxury Market Report from the Institute for Luxury Home Marketing: “The Institute’s recent analysis of sales in 2020 for homes over 5,000 square feet support the continuing preference for larger homes. The analysis determined that there was a 17% increase in the number of 5,000+ sq ft homes sold when compared to the number of sales in 2019. Luxury home prices continue to see record highs in the majority of affluent ex-urban communities, as the influence of being able to work from home is still driving buyers away from living in high density areas. Low interest rates also remain in play, allowing buyers to realize the affordability of owning a larger property, which further reinforces this trend.” Lawrence Yun, Chief Economist for the National Association of Realtors (NAR), also explains: “The market is hot pretty much everywhere and across all price points . . . The only area where there is sufficient inventory is in $1 million-plus homes . . . .” While this price range certainly doesn’t fit every budget, if it’s in your reach this summer, you may want to make your move sooner rather than later. Today, more homes are available in this segment of the market, but as the report mentions, more buyers are investing here too, so competition may heat up sooner rather than later.Bottom LineIf you’re planning to sell your current home to move into a larger one, let’s connect today. We’ll discuss your current situation and the opportunities in our local market.Bottom LineIf you’re planning to sell your current home to move into a larger one, let’s connect today. We’ll discuss your current situation and the opportunities in our local market.
0 Comments
When stay-at-home mandates were enforced last year, many households realized their homes didn’t really fulfill their new lifestyle needs. An office (in some cases two), a media room, space for children to learn, a gym, and a large yard are all examples of amenities that became highly desirable almost overnight.
Zelman & Associates recently reported that sales of primary residences grew by 9% in 2020. That increase in demand was met by the lowest supply of homes for sale in history. High demand and low supply caused prices to skyrocket over the past twelve months. Here are three home price indexes released most recently that show how home values have risen:
What does this mean to those who purchased a second home during the pandemic? Many people didn’t want to give up a home in the city or close to their office. Instead, they purchased a larger second home farther away and moved there to stay safe and have more space. According to the same Zelman report, sales for second homes rose an astonishing 27% in 2020. That large second-home retreat on a lake or in the mountains would demand a higher price than the average house. Let’s assume a buyer purchased such a home for $500,000. Assuming the middle 13.2% appreciation shown above, that home would now be worth about $566,000. Those who bought second homes to improve their lifestyle during the height of the pandemic, or those who just wanted to be in a safer environment, also made a great investment. What should these homeowners do now as the pandemic is receding, and the economy is reopening? The buyers of those second homes now have a decision to make. Many will move back to the original home they still own (the one that’s closer to work, friends, and family). Should they keep the second home? That could depend on answers to questions like these:
The allure of real estate investment lies in its potential for generating substantial wealth over time. However, venturing into this realm can be daunting, especially for those with limited experience. This blog aims to demystify the real estate investment process, providing a roadmap for beginners to navigate this exciting yet challenging field.
This blog is primarily geared toward individuals who are new to real estate investment and are seeking a comprehensive understanding of the fundamentals. The primary goals of this readership include: Gaining a basic understanding of real estate investment strategies Identifying potential investment opportunities Developing a sound financial plan for real estate investing Overcoming common challenges faced by novice investors. Common Challenges for Beginners Information Overload: The vast amount of information available on real estate investment can be overwhelming for newcomers, making it difficult to separate fact from fiction. Lack of Experience: Without prior experience, beginners may struggle to assess the risks and potential rewards of different investment opportunities. Financial Constraints: The initial capital requirement for real estate investment can be a significant hurdle for many individuals. Navigating Legal and Regulatory Complexities: Real estate transactions involve a myriad of legal and regulatory considerations, which can be daunting for those unfamiliar with the process. A common misconception among prospective real estate investors is that success is solely determined by large sums of capital. In reality, effective real estate investing hinges on a combination of factors, including: Thorough Research and Due Diligence: Carefully evaluate potential investment opportunities, conducting in-depth market research and property assessments. Financial Discipline and Planning: Develop a sound financial plan that aligns with your risk tolerance and investment goals. Seeking Expert Guidance: Consult with experienced real estate professionals to navigate legalities, market trends, and potential pitfalls. Patience and Long-Term Perspective: Real estate investment is a long-term endeavor, requiring patience and a commitment to staying informed and adapting to market shifts. Start Small and Scale Gradually: Begin with smaller, less risky investments to gain experience and confidence before venturing into larger projects. Consider Real Estate Investment Trusts (REITs): REITs offer exposure to the real estate market without the direct responsibilities of property ownership. Educate Yourself Continuously: Stay abreast of market trends, investment strategies, and legal updates through industry publications, seminars, and online resources. Seek Mentorship from Experienced Investors: Connect with experienced real estate investors who can provide valuable insights and guidance. Navigating the real estate investment landscape as a beginner requires a combination of education, strategic planning, and a willingness to seek expert guidance. By adopting a patient and disciplined approach, individuals can overcome the initial challenges and embark on a rewarding journey of wealth creation through real estate. By following the recommendations outlined in this blog, new real estate investors can: Make informed investment decisions that align with their risk tolerance and financial goals. Avoid common pitfalls and costly mistakes associated with inexperienced investing. Increase their chances of achieving long-term success in the real estate market. Embark on your real estate investment journey with confidence. Equipe yourself with knowledge, seek guidance from your local experienced professional Liz Marshall, and make informed decisions that pave the way towards achieving your financial aspirations. |