How To Stay Motivated As a Buyer for Mt. Hood Properties
Thursday, July 8, 2021
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Price it Right
Thursday, July 8, 2021
Selling Your House? Make Sure You Price It Right.
There’s no denying we’re in a sellers’ market. With low inventory and high buyer demand, homes today are selling above the asking price at a record rate. According to the latest Realtors Confidence Index Survey from the National Association of Realtors (NAR):
- Homes typically sell within 17 days (compared to 26 days one year ago).
- The average home sold has five offers to pick from.
- 54% of offers are over the asking price.
Because so many buyers are competing for so few homes, bidding wars are driving up home prices. According to an average of leading expert projections, existing home prices are expected to increase by 8.9% this year.
Yet even in today’s red-hot sellers’ market, it’s important to price your house right. While it may be tempting to price your house on the high side to capitalize on this trend, doing so could limit your house’s potential.
Why Pricing Your House Right Matters
Here’s the thing – a high price tag doesn’t mean you’re going to cash in big on the sale. While you may be trying to maximize your return, the tradeoff may be steep. A high list price is more likely to deter buyers, sit on the market longer, or require a price drop that can raise questions among prospective buyers.
Instead, focus on setting a price that’s fair. Real estate professionals know the value of your home. By pricing your house based on its current condition and similar homes that have recently sold in your area, your agent can help you set a price that’s realistic and obtainable – and that’s good news for you and for buyers.
When you price your house right, you increase your home’s visibility, which drives more buyers to your front door. The more buyers that tour your home, the more likely you’ll have a multi-offer scenario to create a bidding war. When multiple buyers compete for your house, that sets you up for a bigger win.
Bottom Line
When it comes to pricing your house, working with a local real estate professional is essential. Let’s connect so we can optimize your exposure, your timeline, and the return on your investment, too.
Plan Accordingly Mt. Hood Paving Will Delay Your Travel
Tuesday, July 6, 2021
U.S. 26 Paving: Weber Rd. to East Cherryville Dr.
Expect delays with two-lane closures on U.S. 26 with both directions of traffic sharing one side of highway
For the next several weeks, there will be two-lane closures for paving work on U.S. 26 between Weber Road and East Cherryville Drive from Tuesday mornings to Friday mornings.
During this work, both directions of U.S. 26 traffic will travel on the same side of the median.
Expect delays while traffic is crossed over the median
From midnight Tuesday mornings to Friday mornings for the next several weeks, crews will close two lanes of U.S. 26 for paving. During these lane closures, traffic will share one side of the highway, meaning both eastbound and westbound traffic will travel on the same side of the cable median.
During this time travelers can expect regular delays. Flaggers will be stationed at each of the intersections within the project area and will stop traffic to allow people to turn in or out of these intersections when necessary.
About the project
This section of U.S. 26 is part of a widely used corridor and a significant route for freight, recreation and nearby communities. The pavement in the project area is in need of resurfacing and other upgrades to maintain smooth, safe travel through the area before further deterioration requires full reconstruction.
This project will repave 2.1 miles of U.S. 26 in both directions between Weber Road and East Cherryville Drive and replace approximately 10,000 feet of guardrail, upgrade 8,000 feet of median cable barrier and replace signs, striping and rumble strips in the area to maintain safe travel.
Typical traffic impacts
Traffic impacts throughout the project will include single lane, double lane and shoulder closures on U.S. 26 both day and night. Travelers should expect up to 20 minute delays at times. There will generally be no lane closures during daytime hours from Friday morning to Sunday afternoon to accommodate weekend traffic. People biking, walking or rolling on U.S. 26 will use a signed detour on Cherryville Drive and Baty Lane through the project area.
Project schedule
Work began on this project in June and we expect to complete the work by the end of 2021.
Home Price Appreciation Through 2025
Tuesday, July 6, 2021
A Look at Home Price Appreciation Through 2025
Heres what it looks like nationally. Undoubtedly, the Mt. Hood area will go over the 8.66% average for the US. Our numbers are off the chart! This makes appraisals difficult and challenging for lenders as we are constantly seeing buyers willing to make up the difference in offer price and sales prices.
Home prices have increased significantly over the last year, which in turn has grown the net worth of homeowners. Appreciation and home equity are directly linked – as the value of a home increases, so does a homeowner’s equity. And with these recent gains, homeowners are witnessing their financial stability and well-being grow to record levels.
In more good news for homeowners, the most recent Home Price Expectations Survey – a survey of a national panel of over one hundred economists, real estate experts, and investment and market strategists – forecasts home prices will continue appreciating over the next five years, adding to the record amount of equity homeowners have already gained over the past year. Below are the expected year-over-year rates of home price appreciation from the report:
What Does This Mean for Homeowners?
Home prices are climbing today, and the data in the survey indicates they’ll continue to increase, but at rates that approach a more normal pace. Even still, the amount of household wealth a homeowner stands to earn going forward is substantial. This truly becomes clear when we consider a scenario using a median-priced home purchased in January of 2021 and the projected rate of appreciation on that home over the next five years. As the graph below illustrates, a homeowner could increase their net worth by a significant amount – over $93,000 dollars by 2026.
Home Price Appreciation and Home Equity
CoreLogic recently released their quarterly Homeowner Equity Insights Report, which tracks the year-over-year increases in equity. It shows an average annual gain of $33,400 per borrower over the past 12 months. In the report, Dr. Frank Nothaft, Chief Economist for CoreLogic, further explains:
"Double-digit home price growth in the past year has bolstered home equity to a record amount. The national CoreLogic Home Price Index recorded an 11.4% rise in the year through March 2021, leading to a $216,000 increase in the average amount of equity held by homeowners with a mortgage.”
The expected, sustained growth of home prices means homeowners can continue to build on the past year’s record levels of home equity – and their financial prosperity. It also presents today’s homeowners with a unique opportunity: using their growing equity for a home upgrade. With so few homes available to purchase and strong buyer demand, there may not be a better time to sell your current house and move into one that better meets your needs.
Bottom Line
Home prices are expected to continue appreciating over the next five years, and the associated equity gains are the quickest way homeowners can build household wealth. If you're a current homeowner who’s ready to take advantage of your built-up equity, let’s connect today to discuss your options.
Happy Independence Day!
Friday, July 2, 2021
Happy Independence Day!
Wishing you a happy and safe Independence Day.
Are We in a Housing Bubble on Mt. Hood?
Thursday, July 1, 2021
Are We in a Housing Bubble On Mt. Hood?
Experts Say No.
The question of whether the real estate market is a bubble ready to pop seems to be dominating a lot of conversations – and everyone has an opinion. Yet, when it comes down to it, the opinions that carry the most weight are the ones based on experience and expertise.
Here are four expert opinions from professionals and organizations that have devoted their careers to giving great advice to the housing industry.
The Joint Center for Housing Studies in their The State of the Nation’s Housing 2021 report:
“… conditions today are quite different than in the early 2000s, particularly in terms of credit availability. The current climb in house prices instead reflects strong demand amid tight supply, helped along by record-low interest rates.”
Nathaniel Karp, Chief U.S. Economist at BBVA:
“The housing market is in line with fundamentals as interest rates are attractive and incomes are high due to fiscal stimulus, making debt servicing relatively affordable and allowing buyers to qualify for larger mortgages. Underwriting standards are still strong, so there is little risk of a bubble developing.”
Bill McBride of Calculated Risk:
“It’s not clear at all to me that things are going to slow down significantly in the near future. In 2005, I had a strong sense that the hot market would turn and that, when it turned, things would get very ugly. Today, I don’t have that sense at all, because all of the fundamentals are there. Demand will be high for a while, because Millennials need houses. Prices will keep rising for a while, because inventory is so low.”
Mark Fleming, Chief Economist at First American:
“Looking back at the bubble years, house prices exceeded house-buying power in 2006 nationally, but today house-buying power is nearly twice as high as the median sale price nationally…
Many find it hard to believe, but housing is actually undervalued in most markets and the gap between house-buying power and sale prices indicates there’s room for further house price growth in the months to come.”
Bottom Line
All four strongly believe that we’re not in a bubble and won’t see crashing home values as we did in 2008. And they’re not alone – Goldman Sachs, JP Morgan, Morgan Stanley, and Merrill Lynch share the same opinion.
High Court Says CDC Lacks Authority For Nationwide Eviction Moratorium
Wednesday, June 30, 2021
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Appraisal Gaps Grow on Mt. Hood Purchases
Tuesday, June 29, 2021
What To Expect as Appraisal Gaps Grow
In today’s real estate market, low inventory and high demand are driving up home prices. As many as 54% of homes are getting offers over the listing price, based on the latest Realtors Confidence Index from the National Association of Realtors (NAR). Shawn Telford, Chief Appraiser at CoreLogic, elaborates:
“The frequency of buyers being willing to pay more than the market data supports is increasing.”
While this is great news for today’s sellers, it can be tricky to navigate if the price of your contract doesn’t match up with the appraisal for the house. It’s called an appraisal gap, and it’s happening more in today’s market than the norm.
According to recent data from CoreLogic, 19% of homes had their appraised value come in below the contract price in April of this year. That’s more than double the percentage in each of the two previous Aprils.
The chart below uses the latest insights from NAR’s Realtors Confidence Index to showcase how often an issue with an appraisal slowed or stalled the momentum of a house sale in May of this year compared to May of last year.
If an appraisal comes in below the contract price, the buyer’s lender won’t loan them more than the house’s appraised value. That means there’s going to be a gap between the amount of loan the buyer can secure and the contract price on the house.
In this situation, both the buyer and seller have a vested interest in making sure the sale moves forward with little to no delay. The seller will want to make sure the deal closes, and the buyer won’t want to risk losing the home. That’s why it’s common for sellers to ask the buyer to make up the difference themselves in today’s competitive market.
Bottom Line
Whether you’re buying or selling, let’s connect so you have an ally throughout the process to help you navigate the unexpected, including appraisal gaps.
Homebuyers for Mt. Hood: Hang In There
Friday, June 25, 2021
Homebuyers For Mt. Hood: Hang in There
![Homebuyers: Hang in There [INFOGRAPHIC] | MyKCM](https://files.mykcm.com/2021/06/24105823/20210625-MEM-1046x2093.png)
Some Highlights
- Today’s sellers’ market provides unique challenges—and benefits—for buyers.
- Current low interest rates won’t last forever, and home prices are forecast to rise.
- If you’re a homebuyer, hang in there. Homeownership improves your quality of life, and the long-term benefits outweigh the short-term challenges.
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