Predicting trends during volatile economic times in American is no easy task. However, we are going to give it our best shot. We strongly believe these are the five real estate items we should keep an eye on in 2013:
Demand for Housing Will Continue to Surge
The housing market has turned the corner and there is no reason to believe that buyer demand will not maintain momentum throughout 2013. Household formations shot up to boom-time levels in 2012 and are projected to increase at even a faster rate over the next twelve months. A lack of inventory will be more of a challenge to sales increases than will a lack of demand.
Generations X and Y Will Prove They Believe in Homeownership
Contrary to what many have hypothesized over the last few years, young adults (18-35 year olds) are just as committed to homeownership as previous generations. Recent studies have shown:
- 43% already own a home
- 72% see homeownership as part of their personal American Dream
- 93% of those currently renting plan to buy a home
This, along with the increase in household formations mentioned above, makes us believe that 2013 will be the year that many of these young adults will jump into homeownership.
Prices Will Continue to Increase
Pricing of any item is determined by supply and demand. Demand for housing will remain strong throughout 2013. At the same time, the supply of homes ready for is shrinking in many parts of the country. Outside of a few states that still have challenges with large inventories of distressed properties (NY, NJ, CT, IL for example), prices will appreciate nicely.
Even in the areas that are still dealing with high percentages of foreclosures and short sales, prices will not tumble dramatically. The increase in demand will absorb much of this inventory. In these areas, prices will either flatten or perhaps soften to a small degree.
Move-Up Sellers Will Return in Great Numbers
Perhaps what many will find as the biggest surprise of 2013 will be the return of the ‘move-up’ seller. Over the last several years negative equity has prevented many of these sellers from moving up to the house of their dreams. However, with prices recovering, more and more of these sellers will realize that now may be their greatest opportunity to make the move to a lifestyle they always wanted.
With home prices expected to increase and more stringent mortgage qualifications (QR and QRM) scheduled to be announced this year, we believe that the first half of the year will bring many of these sellers/buyers to the market.
The Consumer Will Demand That Their Agent Be an Expert
Real Estate professionals who have invested the money, time and energy to truly understand what is happening and why it is happening will separate themselves from their competition and do very well this year.
Those who take that next step of learning how to simply and effectively communicate the market to their clients will be seen as experts. These industry leaders will dominate their markets.
If you are thinking of buying a home in or around Bristol County MA or RI, please visit www.DistinctiveHomes-NE.comfor a free list of homes for sale in Westport MA and surrounding towns.
Would you like to receive a current market update of your specific area? Contact me with your request.
If you are thinking of selling your home contact me for a FREE Current Market Analysis and to learn about our Market Plan to get your home SOLD!
We work with one going in mind, YOURS!
Noemi Cardoso
Local Office. Local Agents. Local Knowledge.
William Raveis Real Estate
911 Main Rd - Westport MA 02790
Cell: 508-558-1945
www.DistinctiveHomes-NE.com
noemi@DistinctiveHomes-NE.com
I’ve put together nine tips I think make all the difference for a positive outcome. These are tips I’ve gathered through experience working with both buyers and sellers and from witnessing the processes that make deals happen.
- Hire an awesome real estate agent. You make think this is a
shameless plug for the profession, but I believe your odds of success greatly
increase when working with a pro. Notice I said AWESOME, not just any
agent. When buying a home in seller’s market, you will need to act quickly, be
well educated, and have professionally written offers. An agent who knows the
area and the local agents will help you find a home and advise you on the right
offer.
- Learn the process. Don’t wait until the day you find a home you want
to learn the process of writing an offer and buying a home. It can be a steep
learning curve. Know what you will need to do and how much it will all cost
ahead of time. If you follow step one, your awesome agent should provide a
thorough education.
- Get pre-approved. I don’t want to hear why you haven’t done this
yet. If your agent is nagging you about this, good! The mortgage process is
more elaborate than a few years ago, so get your ducks lined up and marching.
In a multiple offer situation you will likely need to present a pre-approval
letter and not having it ready can make the difference between acceptance and
rejection. Regardless of how strong you know your finances are, the seller will
not know and a pre-approval is the only way to communicate it.
- Prepare for some disappointments. When buying a home in a sellers’
market, it is likely you will have a rejected offer along the way. I met a
couple who gave up on searching for a home when their first offer on the first
property was rejected. This is a mistake. Don’t fall into the emotional
pitfall of turning a disappointment into a defining moment and base decisions on
it. Move on, keep going, expand your horizons and know it was not the right
property for you. But if you continue
to lose to better offers, it’s time to change strategies.
- Start the process early. Want to move in September? Start looking
in March….you should have started weeks earlier. With low inventory and more
competition, the search takes a while. Furthermore, a long closing may be
highly valued by a seller who still needs to buy a new home. Let’s go!
- Find flexibility. Find your strengths as a buyer. Do you have a
great knowledge about construction and plan to fix things? Then don’t be picky
after inspection. Do you have lots of cash? Maybe waive the appraisal
contingency or offer a larger down payment. Are you flexible to move anytime?
Make it known. A flexible closing can make a big difference for some home
sellers who need to move in a particular time frame.
- Know your weak spots. If you have a 3-5% down payment, you may have
a tough time competing against some of the investors paying cash for
properties. The questions is: how to overcome those weaknesses? You can offer
more money, tight mortgage contingency timeline, etc. An offer to purchase real
estate has many elements to it, and you need to know your strengths and
weaknesses, and how to work with them.
- Brush up on your writing skills. A short note goes a long way. I
often advise buying clients to write a personal note addressed to sellers
telling them a bit about themselves and why they like the house. You’d be
amazed how a personal connection means more than a couple thousand dollars in
some situations. And it can make a big difference when two offers are very
similar.
- Ask your agent to present the offer. I admit to overlooking this
detail sometimes, but having a buyer agent present the offer is another great
way to make the connection more personal. It also ensures the sellers receive
your perspective when the offer is presented rather than the listing agent’s
editorial remarks.
Was this helpful? Find more helpful tips to strengthening your negotiation power when buying a home in a seller’s market in my blog.If you are thinking of buying a home in Westport or surrounding areas please visit www.DistinctiveHomes-NE.com for a free list of homes for sale in Westport and Bristol County MA and RI.
If you are thinking of selling your home contact me for a FREE Current Market Analysis and to learn about our Market Plan to get your home SOLD!
We work with one going in mind, YOURS!
Local Office. Local Agents. Local Knowledge.
911 Main Rd - Westport MA 02790
Cell: 508-558-1945
www.DistinctiveHomes-NE.com
noemi@DistinctiveHomes-NE.com
(*) Ruth Lerner is a Brookline Realtor specializing in Brookline, Mass., Chestnut Hill, Mass., Brighton, Mass. and West Roxbury, Mass. real estate. Since 2002 she’s represented both buyers and sellers with a post-transaction satisfaction rate of 97%. You can contact her on her website, and find her on Google+, Facebook, LinkedIn and Twitter.