In today’s housing market, it can be a big challenge for buyers to find homes to purchase, as the number of houses for sale is far below the current demand. Now, however, we’re seeing sellers slowly starting to come back into the market, a bright spark for potential buyers. Javier Vivas, Director of Economic Research at realtor.com, explains:
“Seller confidence has been improving gradually after reaching its bottom in mid-April, and now it appears to have reached an important recovery milestone…After five long months, sellers are back in the housing market; while encouraging, the improvement to new listings is only the first step in the long road to solving low inventory issues keeping many buyers at bay.”
Even with the number of homes coming into the market, the available inventory is well below where it needs to be to satisfy buyer interest. The National Association of Realtors (NAR) reports:
“Total housing inventory at the end of June totaled 1.57 million units, up 1.3% from May, but still down 18.2% from one year ago (1.92 million). Unsold inventory sits at a 4.0-month supply at the current sales pace, down from both 4.8 months in May and from the 4.3-month figure recorded in June 2019.”
Houses today are selling faster than they’re coming to market. That’s why we only have inventory for 4 months at the current sales pace when in reality we need inventory for 6 months to keep up. But, as mentioned above, sellers are starting to return to the game. Realtor.com explains:
“The ‘housing supply’ component – which tracks growth of new listings – reached 101.7, up 4.9 points over the prior week, finally reaching the January growth baseline. The big milestone in new listings growth comes as seller sentiment continues to build momentum…After constant gradual improvements since mid-April, seller confidence appears to be reaching an important milestone. The temporary boost in new listings comes as the summer season replaces the typical spring homebuying season. More homes are entering the market than typical for this time of the year.”
A good time to enter the housing market is when the competition in your area is low, meaning there are fewer sellers than interested buyers. You don’t want to wait for all of the other homeowners to list their houses before you do, providing more options for buyers to choose from. With sellers starting to get back into the market after five months of waiting, if you want to sell your house for the best possible price, now is a great time to do so.
It can be challenging to find a home in today’s low-inventory environment. If more sellers are starting to put their houses up for sale, there will be more homes for you to choose from, providing a better opportunity to find the home of your dreams while taking advantage of the affordability that comes with historically low mortgage rates.
While we still have a long way to go to catch up with the current demand, inventory is slowly starting to return to the market. If you’re thinking of moving this year, connect with a local real estate professional today to better understand what’s happening in your local market. You’ll want to be ready to make your move when the home of your dreams comes up for sale.
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With a worldwide health crisis that drove a pause in the economy this year, the housing market was greatly impacted. Many have been eagerly awaiting some bright signs of a recovery. Based on the latest Existing Home Sales Report from the National Association of Realtors (NAR), June hit a much-anticipated record-setting rebound to ignite that spark.
According to NAR, home sales jumped 20.7% from May to a seasonally-adjusted annual rate of 4.72 million in June:
“Existing-home sales rebounded at a record pace in June, showing strong signs of a market turnaround after three straight months of sales declines caused by the ongoing pandemic…Each of the four major regions achieved month-over-month growth.”
This significant rebound is a major boost for the housing market and the U.S. economy. According to Lawrence Yun, Chief Economist for NAR, the momentum has the potential to continue on, too:
“The sales recovery is strong, as buyers were eager to purchase homes and properties that they had been eyeing during the shutdown…This revitalization looks to be sustainable for many months ahead as long as mortgage rates remain low and job gains continue.”
With mortgage rates hitting an all-time low, dropping below 3% for the first time last week, potential homebuyers are poised to continue taking advantage of this historic opportunity to buy. This fierce competition among buyers is contributing to home price increases as well, as more buyers are finding themselves in bidding wars in this environment. The report also notes:
“The median existing-home price for all housing types in June was $295,300, up 3.5% from June 2019 ($285,400), as prices rose in every region. June’s national price increase marks 100 straight months of year-over-year gains.”
“Home prices rose during the lockdown and could rise even further due to heavy buyer competition and a significant shortage of supply.”
Buyers returning to the market is a great sign for the economy, as housing is still leading the way toward a recovery. If you’re ready to buy a home this year, let’s connect to make sure you have the best possible guide with you each step of the way.
One of the bright spots of the 2020 real estate market is the growth in equity homeowners are experiencing across the country. According to the recently released Homeowner Equity Insights Report from CoreLogic, in nearly every state there was a year-over-year first-quarter equity increase, averaging out to a 6.5% overall gain.
The report notes:
“CoreLogic analysis shows U.S. homeowners with mortgages (roughly 63% of all properties) have seen their equity increase by a total of nearly $590 billion since the first quarter of 2019, an increase of 6.5%, year over year.” (See map below):
That’s a huge win for homeowners, especially for those looking to sell their houses and make a move this summer. Having equity to re-invest in your next home is a major force that can make moving a reality, especially while buyers are expressing such a high demand for homes to purchase.
Frank Martell, President and CEO of CoreLogic addresses the potential long-term outlook and how homeowners will likely fare much more positively through the current recession than many did during the last one:
“Many homeowners will experience a recession during their lifetime, and it is reasonable to compare the current recession to those in the past. But the comparison is not apples to apples — every recession is different. Primary drivers of the Great Recession were an overbuilt housing stock, risky mortgages and the collapse of home prices, creating a massive increase in negative equity that proved difficult to recover from. Today’s housing environment has low vacancy and delinquency rates and a large home equity cushion.”
Now is a great time to consider leveraging your equity and making a move, especially while buyer interest is high. Contact me today, so we can explore your equity position and make your next move a reality.
*Informational Source: Keeping Current Matters 2020
Last Friday, the Bureau of Labor Statistics (BLS) released its latest jobs report. It revealed that the economic shutdown made necessary by COVID-19 caused the unemployment rate to jump to 14.7%. Many anticipate that next month the percentage could be even higher. These numbers represent the extreme hardship so many families are experiencing right now. That pain should not be understated.
However, the long-term toll the pandemic will cause should not be overstated either. There have been numerous headlines claiming the current disruption in the economy is akin to the Great Depression, and many of those articles are calling for total Armageddon. Some experts are stepping up to refute those claims.
In a Wall Street Journal (WSJ) article this past weekend, Josh Zumbrun, a national economics correspondent for the Journal explained:
“News stories often describe the coronavirus-induced global economic downturn as the worst since the Great Depression…the comparison does more to terrify than clarify.”
Zumbrun goes on to explain:
“From 1929 to 1933, the economy shrank for 43 consecutive months, according to contemporaneous estimates. Unemployment climbed to nearly 25% before slowly beginning its descent, but it remained above 10% for an entire decade…This time, many economists believe a rebound could begin this year or early next year.”
This was not a structural collapse of the economy, but instead a planned shutdown to help mitigate the virus. Once the virus is contained, the economy will immediately begin to recover. This is nothing like what happened in the 1930s. In the same WSJ article mentioned above, former Federal Reserve Chairman Ben Bernanke, who has done extensive research on the depression in the 1930s, explained:
“The breakdown of the financial system was a major reason for both the Great Depression and the 2007-09 recession.” He went on to say that today – “the banks are stronger and much better capitalized.”
The nation’s collective heart goes out to all. The BLS report, however, showed that ninety percent of the job losses are temporary. In addition, many are getting help surviving this pause in their employment status. During the Great Depression, there were no government-sponsored unemployment insurance or large government subsidies as there are this time.
Today, many families are receiving unemployment benefits and an additional $600 a week. The stimulus package is helping many companies weather the storm. Is there still pain? Of course. The assistance, however, is providing much relief until most can go back to work.
We should look at the current situation for what it is – a predetermined pause placed on the economy. The country will recover as we work to continue to flatten the curve & see businesses & individuals get back to work. Barley a week into the official re-start up of Realtors getting back to work & we are already seeing the market heat up fast! Very encouraging news for anyone considering selling.
If you have any questions about the current real estate market here in Northern Michigan, feel free to give me a call or send me an email today!
*Informational Resource: Keeping Current Matters
In a recent survey by realtor.com, people thinking about selling their homes indicated they’re generally willing to allow their agent and some potential buyers inside if done under the right conditions, once local state law allows it. They’re less comfortable, however, hosting an open house. This is understandable, given the health concerns associated with social contact these days. The question is, if you need to sell your house now, what virtual practices should you use to make sure you, your family, and potential buyers stay safe in the process?
In today’s rapidly changing market, it’s more important than ever to make sure you have a digital game plan and an effective online marketing strategy when selling your house. One of the ways your agent can help with this is to make sure your listing photos and virtual tours stand out from the crowd, truly giving buyers a detailed and thorough view of your home.
So, if you’re ready to move forward, virtual practices may help you win big when you’re ready to sell. While abiding by state and local regulations is a top priority, a real estate agent can help make your sale happen. Agents know exactly what today’s buyers need, and how to put the necessary digital steps in place. For example, according to the same survey, when asked to select what technology would be most helpful when deciding on a new home, here’s what today’s homebuyers said, in order of preference:
After leveraging technology, if you have serious buyers who still want to see your house in person, keep in mind that according to the National Association of Realtors (NAR), there are ways to proceed safely. Here are a few of the guidelines, understanding that the top priority should always be to obey state and local restrictions first!
Nate Johnson, CMO at realtor.com ® notes:
“As real estate agents and consumers seek out ways to safely complete these transactions, we believe that technology will become an even more imperative part of how we search for, buy and sell homes moving forward.”
It sounds like some of these new practices might be here to stay.
In this new era of life, things are shifting quickly, and virtual strategies for sellers may be a great option. Opening your doors up to digital approaches may be game-changing when it comes to selling your house. Let’s connect so you have a trusted real estate professional to help you safely and effectively navigate through all that’s new when it comes to making your next move.
Let’s face it, we are all going stir crazy & have been living on the ragged edge of uncertainty for weeks now. I am not sure how everyone is coping throughout their day, but I wanted to share with you a method that I use to try and keep myself balanced in a world that sometimes feels upside down. One method I use is, Meditation!
If relaxation is not the goal of meditation, it is often a result. In addition to many health benefits that I will outline below, meditation is thought to be a wonderful exercise for strengthening your mental health & well-being.
Practicing meditation is thought to help in many different ways. It is said that it helps us to clear our mind, stay calmer, have better focus, have a greater sense of self-awareness.. Plus it helps inspires empathy, compassion & can help maintain a positive emotional balance.
Studies on the medical benefits of meditation have documented the following short-term benefits to the nervous system:
This meditation exercise is an excellent introduction to meditation techniques.
Maintain this meditation practice for two to three minutes to start, and then try it for longer periods.
It is really as simple as that!
It is my hope that in these trying times, that although we may be apart, that we may help encourage each other and lean on one another (virtually). We are stronger together & safer apart. But I do miss you all & would like to send all my clients, fellow brokers/agents, family/friends & community members a virtual HUG & many blessings! May we all get back to “NORMAL” soon!
“Amid escalating concerns about the spread of COVID-19, Century 21 Northland, would like to take this time to speak directly to our clients, prospective clients & community members!
In real estate, like many other industries, despite the serious nature of our current events, the show must go on. Especially considering the latest drop, in prime interest rates! Home affordability may never be better.
That being said, we firmly believe that our Agents can still carry out their duties responsibly under these conditions, & are encouraged to continue to do so on behalf of buyers who believe they may have opportunity now, or sellers who are planning to list their homes.
Thus, we will be deep cleaning our offices, and continuing to do so on a regular basis, per the CDC recommendations. Our agents who tour properties with buyers or sellers will be practicing safety precautions for each showing. Alcohol/Sanitizing Wipes for doorknobs & light switches, as well as the use of hand sanitizer and/or hand washing at both the beginning and the end of the showing. To minimize the exposure to germs in general, we will be foregoing the traditional handshake at this time. Of course, we do not wish to offend anyone by politely declining a handshake but feel it necessary to take every precaution for both the safety of our clients and ourselves.
At Century 21, we already offer our clients an online experience that outshines the competition & will be ramping up our efforts to increase those areas of communications during this time! We encourage those that are currently selling your home, to share your listing online. The dramatic increase in the numbers of folks online, will leave open the possibility for possible buyers to find the home of their dreams, while they at home avoiding the public! If you are in the market for a home, please do not hesitate to reach out to us personally via our website, social media or simply give us a call. Our agents will be able to work with you remotely and share with you many of the same tools we already use in the business that can help you narrow down your search without subjecting yourself to the public until absolutely necessary!
No epidemic lasts forever, and everyone will still need a place to live when this one passes. Please stay safe, remember a panicked public often breeds more problems. We encourage you to be safe, smart and practical. But discourage any hysteria and mass assumptions. The internet can be a fantastic resource for information. But not source is credible, so be mindful of misinformation.
We are confident that like most everything else, this too shall pass! We thank you in advance for your cooperation and partnership in helping to protect the health of our communities. We are dedicated to providing a stress free, and healthy environment.
Stay Healthy Friends”
If any of my clients have any concerns or questions that you would like to discuss. Please feel free to give me a call or shoot me an email. I would be happy to talk things through!
CALL: (517) 643-1834
I have exciting news to share: I have decided to make some exciting changes with my business and I have joined a new real estate firm! This was not a decision that I have taken lightly, as I have thoroughly enjoyed my years with Midge & Co Realtors & truly value the time I spent with Midge and the team.
My new brokerage is CENTURY 21 NORTHLAND and I am ready to continue growing my business here.
Many of my clients know me for providing service above and beyond that of my peers. Now with Century 21 Northland, I will be able to elevate my business in new & exciting ways, so that I can continue to provide my clients with the legendary customer service and real estate knowledge they have grown accustomed too!
I greatly value the business and personal relationships I have established along my journey in real estate & it is my hope that you will consider contacting me for any of your future real estate needs. My updated contact information is below.
Please be sure to save this new email address-
email@example.com and delete my old Midge & Co email.
I will no longer be receiving emails through that account.
I look forward to and am excited for the future, feel free to contact me with any questions. 517.643.1834
Morgan Robinson, Century 21 Northland Realtor
SELL WITH SUCCESS – BUY WITH CONFIDENCE
For many Americans, a common goal is owning a home: a piece of land, a roof over our heads, and a place where our families can grow and flourish.
If you’re dreaming of buying a home this year, the best way to start the process is to reach out to me, so I can help you to better understand what goes into buying a home. Once you have that covered, then you can answer the questions below to make the best decision for you and your family.
The process of buying a home is not one to enter into lightly. You need to decide on key things like how long you plan on living in an area, school districts you prefer, what kind of commute works for you, and how much you can afford to spend.
Keep in mind, before you start the process to purchase a home, you’ll also need to apply for a mortgage. Lenders will evaluate several factors connected to your financial track record, one of which is your credit history. They’ll want to see how well you’ve been able to minimize past debts, so make sure you’ve been paying your student loans, credit cards, and car loans on time.
In addition to knowing how much you can afford on a monthly mortgage payment, understanding how much you’ll need for a down payment is another critical step. Thankfully, there are many different options and resources in the market to potentially reduce the amount you may think you need to put down up front.
If you’re concerned about saving for a down payment, start small and be consistent. A little bit each month goes a long way. Jumpstart your savings by automatically adding a portion of your monthly paycheck into a separate savings account or house fund. AmericaSaves.org says,
“Over time, these automatic deposits add up. For example, $50 a month accumulates to $600 a year and $3,000 after five years, plus interest that has compounded.”
Before you know it, you’ll have enough for a down payment if you’re disciplined and thoughtful about your process.
As tempting as it is to settle in each morning with a fancy cup of coffee from your favorite local shop, putting that daily spend toward your down payment will help accelerate your path to homeownership. It’s the little things that count, so start trying to live on a slightly tighter budget if you aren’t doing so already. A budget will allow you to save more for your down payment and help you pay down other debts to improve your credit score. A survey of Millennial spending shows,
“70 percent of would-be first-time homebuyers will cut spending on spa days, shopping and going to the movies in exchange for purchasing a home within the next year.”
While you don’t need to cut all of the fun out of your current lifestyle, making smarter choices and limiting your spending in areas where you can slim down will make a big difference.
If homeownership is on your dream list this year, take a good look at what you can prioritize to help you get there. To determine the steps you should take to start the process, simply reach out to me today.
Looking back over this year, I am so very grateful for the amazing support this community has shown me. I feel incredibly privileged to have worked with so many awesome folks this year on their real estate needs!
2019 has truly been an amazing experience for me. I set goals for 2019 to advance my local reach & generate even more innovative marketing solutions, to better help my clients on both sides of the sale! Those goals were achieved with gusto this year & I’m proud to announce that I took the #1 spot in total sales at Midge & Co generating a whopping $5.4 Million. Which makes me the TOP PRODUCER of 2019!
In addition to earning the top spot among my Midge & Co team of realtors, I also rank among the Top 10 in the Houghton Lake Area & Top 11 in all our MLS district! Thus, I would like to take a moment to express my gratitude for the opportunity to serve this fantastic northern Michigan community…
To all my amazing clients, thank you for allowing me to assist you with your real estate endeavors throughout 2019.
To my many friends/family who have referred to me your friends/family/clients, thank you for trusting me and supporting my business!
To this beautiful community that has embraced me, supported me – thank you! Your support continues to serve as the foundation that allows me to grow & thrive as one of this areas Top Performing Agents!
I wish you and your families a very happy, healthy and prosperous New Year & look forward to serving you in this new year ahead.
Stay tuned this month for many exciting announcements, to be featured on the Midge & Co Website, our various social media outlets, as well as here on my own website & Facebook Page!!
As always, if you need anything at all, please reach out by email at firstname.lastname@example.org -or- by phone at 517.643.1834
Happy New Year Everyone! God Bless 2020!!
Many Thanks –
Morgan Robinson, Expert Real Estate Professional