Market Update


Today I’ve got two things to bring to your attention: First, an update on our market and then a recap of an interesting article I recently read entitled “Older Homeowners Are Preventing Millennials From Buying Houses.” 

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Let’s begin with an update on our year-to-date market conditions for 2019.
The average sales price for 2019 has gone up to $233,000; that’s a 16% increase from last year. Our absorption rate—the number of available homes—is the biggest challenge we have in our market right now. Active listings have gone up 10% since last year, which is a good thing to see, given that it’s only February. If that trend continues, homebuyers will have more options in the market this year than they did in 2018.
As I said before, our lack of inventory is the biggest challenge we’re facing in our market, and this is what The Washington Post article I recently read addresses—what’s the root cause of our dearth of inventory? Entitled “Older Homeowners Are Preventing Millennials From Buying Houses,” the article tacks some of the blame for this issue on the older generation. According to a study by Freddie Mac, senior homeowners (baby boomers and war babies) are staying in their homes longer. The reason cited for this is something called “the lock-in effect.” These homeowners are in love with their current mortgage interest rates and are loathe to give them up in search of a new home.
Perhaps there are some other factors at play here. Maybe senior homeowners are living longer because they’re more healthy and they don’t want to go to an assisted living center. This would allow them to stay in their homes longer.


 Senior homeowners are in love with their current mortgage interest rates and are loathe to give them up in search of a new home.

Other studies suggest that it’s not just the activities of older homeowners to blame for the housing shortage for millennials. Here are three I’ve come across in my research:

1. Student debt. There is $1.5 trillion in student loan debt in the US right now.

2. High rent. Increasing rents prevent millennials from saving up for a down payment on a home.

3. Millennials are having kids and getting married later. These life events are typical triggers for homebuyers, but since they’re happening later, it’s reflected in the market.

To learn more about this issue, you can read the full article here.


If you’re thinking of selling your home or would like more information about our current market conditions, you can always reach out to me. I’m here to help.


5 Home-Selling Myths to Stop Believing Immediately


There are five myths about real estate that home sellers NEED to stop believing. 

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If you’re thinking of putting your home up for sale this year, and you’re planning out how you’re going prepare your home for the market, pay attention—these myths can cause home sellers some trouble:

1. You can do it solo. I’ll say this: Yes, you can sell your home on your own. But I’d follow that up with this question: “At what cost?” There’s always a cost when you sell your home by yourself. This year, an agent I know placed an offer on a home that was For Sale By Owner. We figured out that the home in question was priced at least $15,000 to $20,000 under the market price. Of course, the agent put an offer on the home and got it for a great deal. The seller didn’t know what they were losing out on because they didn’t have access to the metrics that we, as agents, do—metrics that allow us to use data to properly price homes. Unless you’re actively involved with the industry, there’s a lot of critical information you’ll miss out on.

2. You know what your home is really worth. It’s really difficult to assess the value of your own home without a professional understanding of the market you’re in. The emotions a seller has for their own home can skew their perceptions of its worth.
3. It’s fine to sell a home as-is. There are things we can do to prepare a home for sale that allows us to make low-cost, high-impact improvements Before putting it on the market, there are low-cost, high-impact improvements we can make to prepare a home. Touching up paint, updating light fixtures, and cleaning up the landscaping are all examples of simple, little things homeowners can do that will boost your home’s value. Selling your home as-is is rarely a good idea. The time and relatively low amount of money you put into making these improvements will turn into a better price at the closing table.

 It’s really difficult to assess the value of your own home without a professional understanding of the market you’re in.


4. Spring is the only time to sell. This absolutely isn’t true—it’s just what most people think. With the exception of crazy, weather-related events, you can list your home at any point there are buyers out looking. Keep in mind the law of supply and demand: When there’s less of something in the market, then demand goes up. This same thing applies to real estate. Since most people wait until spring to list, that means that demand is lower than it would be when there are fewer homes on the market.

5. You can rely entirely on home evaluation sites. These sites are simply starting points, but it’s impossible for the algorithms they use to accurately determine your home’s value. They don’t take into account all the upgrades you’ve done (or haven’t done) when they compare your home to those they have in their database. The only way to get a truly accurate estimate of your home’s value is to contact an agent to have them do a comparative market analysis.


Hopefully, you found this list of myths valuable! If you’d like to read more about these myths (plus an additional one I didn’t discuss here), visit this article from Realtor.com.
If you have any questions or need any assistance selling your home or preparing it for the market, feel free to reach out. We’re here to help.