Hope Leitner, DRE #01874321

Where Have All the Houses Disappeared To? If you’re following what’s happening in the current housing market, you’ve seen how the lack of newly constructed homes is a major reason there’s a shortage of housing inventory available to today’s buyers. Another reason is that the inventory of existing homes for sale is shrinking. According to the most recent Existing Home Sales Report from the National Association of Realtors (NAR), sales are up 10.8% from the same time last year. That exceeds expectations and is great news. The troubling news from the report is that the sold inventory is not being replaced. As NAR explained, “Total housing inventory at the end of December totaled 1.40 million units, down 14.6% from November and 8.5% from one year ago. Unsold inventory sits at a 3.0-month supply at the current sales pace, down from the 3.7-month figure recorded in both November and December 2018. Unsold inventory totals have dropped for seven consecutive mont

What do you think the motivating reason would be for the 5% of all homebuyers who chose not to work with an agent but instead conducted their own home search, contacted the seller, negotiated the contract, located their financing, arranged their inspections and all of the other services provided by REALTORS®?   Most people would probably guess the buyers were wanting to do the work themselves and earn the commission in the form a lower purchase price. Looking at it from the seller's perspective, what would be the reason for the 8% of all home sellers who chose not to work with an agent but instead did their own research to determine the value of their home, coordinated all of the marketing efforts necessary to have sufficient exposure to the market, negotiate directly with the buyer, and investigate all of the other steps necessary to close the sale?   Is it possible and even probable, that they too were trying to earn the commission and net more proceeds from the sale? If the

First-Time Buyers Are Searching for Existing Homes This Year In the latest  Housing Trends Report , the National Association of Home Builders (NAHB) measured the share of adults planning to buy a home over the next 12 months. The report indicates the percentage of all buyers that will be first-time buyers looking to purchase a home grew from 58% in Q4 2018 to 63% in Q4 2019. The results revealed , “Millennials are the most likely generation to be making plans to purchase a home within a year (19%), followed by Gen Z (13%) and Gen X (12%)…Prospective buyers in the youngest two generations are primarily first-time buyers:  88% of Gen Z buyers and 78% of Millennial buyers are reaching out to homeownership for the first time in their lives.” With a high demand from first-time homebuyers and a shortage of inventory in the current market, selling your existing home this year might be your best move. Why? Because when homebuyers begin their search, they’re n

Should I Sell My House This Year? If one of the questions you’re asking yourself today is, “Should I sell my house this year?” the current Housing Opportunities and Market Experience (HOME) Survey from the National Association of Realtors® (NAR) should boost your confidence as it relates to the current selling sentiment in the housing market. Even with all the information overload in the media circling around talk of a possible recession, the upcoming 2020 election, and more, Americans feel good about selling a house now. That’s some news to get excited about! As the graph below shows, as of Q4 2019, 75% of people surveyed indicate they believe now is a good time to sell a home: In the case of those with a yearly salary of $100,000 or more, the results jumped even higher, coming in at an 82% positive sentiment. When the study divided the outcomes by region, the results still consistently showed Americans feeling good about selling: Northeast: 71% positive

2020 Homebuying Checklist Some Highlights: If you’re thinking of buying a home, plan ahead and stay on the right track, starting with pre-approval . Being proactive about the homebuying process will help set you up for success in each step. Make sure to work with a trusted real estate professional along the way, to help guide you through the homebuying steps specific to your area.

The #1 Reason It Is Difficult to Find Your Dream Home The headlines in real estate today all revolve around one major point: there is a shortage of homes available for sale . Price appreciation is accelerating again because there is a shortage of homes available for sale . First-time buyers are taking longer to purchase a home because there is a shortage of homes available for sale in the lower price points. Boomers are staying in their current homes longer because there is a shortage of homes available for sale to which they would move. In certain markets, affordability is becoming more challenging because there is a shortage of homes available for sale. What’s the major reason for this lack of housing inventory? The issue was examined in a recent article by the National Home Builders Association (NAHB). In the article, Robert Dietz, Chief Economist for NAHB, explained: “Home building in the 2010s was a story of the Long Recovery. After the Great Recession,

Make the Dream of Homeownership a Reality in 2020 In 1963, Martin Luther King, Jr. led and inspired a powerful movement with his famous “ I Have a Dream ” speech. Through his passion and determination, he sparked interest, ambition, and courage in his audience. Today, reflecting on his message encourages many of us to think about our own dreams, goals, beliefs, and aspirations. For many Americans, one of those common goals 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 connect with a Real Estate professional to 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. 1. How Can I Better Understand the Process, and How Much Can I Afford? The process of buying a home is not one to enter into lightly. You

All homeowners have a preconceived notion of what their home is worth, but can be shocked to learn the actual value based on the market and other factors. There is no replacement for a professional’s calculation, but it can be helpful to understand some of the factors they may consider. Location There is perhaps no greater factor in determining your home’s value than location. The area surrounding your home can significantly increase or decrease your asking price, but so can factors like living in a flood plain or in close proximity to a highway. Structural concerns The leaky roof you’ve been worried about? That’s a concern for potential buyers, too. Major structural problems, both internal and external, can play a large role in your home’s perceived value. Quality of schools Believe it or not, the quality of local schools is a huge factor in determining home value. A beautiful home with incredible features may sell for significantly less if the school di

Housing Inventory Vanishing: What Is the Impact on You? The real estate market is expected to do very well this year as mortgage rates remain at historic lows. One challenge to the housing industry is the lack of homes available for sale. Last week, move.com released a report showing that 2020 is beginning with the lowest available housing inventory in two years. The report explains: “Last month saw the largest year-over-year decline of housing inventory in almost three years with a dramatic 12 percent decline, pushing the number of homes for sale in the U.S. to the lowest level since January 2018.” The report also revealed that the decline in inventory stretches across all price points, as shown in the following graph: George Ratiu, Senior Economist at realtor.com , explains how this drop in available homes for sale comes at a time when more buyers are expected to enter the market: “The market is struggling with a large housing undersupply just as 4.8 mi

Now that the standard deduction is increased to $12,200 for single taxpayers and $24,400 for married ones, many homeowners are better off with the standard deduction than itemizing their deductions to write off their mortgage interest and property taxes.  There was some speculation that without the tax advantages, homeownership is not the investment it once was. By looking at the other benefits, you can see that homeownership is still one of the best investments people can make. A $275,000 home financed with a 4.5%, 30-year FHA loan would have an approximate total payment of $2,075.  The difference in the value of the home and the amount owed on the mortgage is called equity.  Two things cause equity to increase: the home appreciating in value and the principal loan balance being reduced with each payment made on an amortizing loan. In this example, if the home were appreciating at 2% annually, the value would increase by $5,500 the first year which would be $458.33 per month.  A

3 Mistakes to Avoid When Selling a Home in 2020 It’s exciting to put a house on the market and to think about making new memories in new spaces, but we can have deep sentimental attachments to the homes we’re leaving behind, too. Growing emotions can help or hinder a sale, depending on how we manage them. When it comes to the bottom line, homeowners need to know what it takes to avoid costly mistakes. Being mindful of these things and prepared for the process can help you avoid some of the most common mishaps when selling your house. 1. Overpricing Your Home When inventory is low, like it is in the current market, it’s common to think buyers will pay whatever we ask for when we price our homes. Believe it or not, that’s far from the truth. Don’t forget that the buyer’s bank will send an appraisal to determine the fair value for your home. The bank will not lend more than what the house is worth, so be mindful that you might need to renegotiate the pric

Homes Are More Affordable Today, Not Less Affordable There’s a current narrative that owning a home today is less affordable than it has been in the past. The reason some are making this claim is because house prices have substantially increased over the last several years. It’s not, however, just the price of a home that matters. Homes, in most cases, are purchased with a mortgage. The current mortgage rate is a major component of the affordability equation. Mortgage rates have fallen by over a full percentage point since December 2018. Another major piece of the affordability equation is a buyer’s income. The median family income has risen by approximately 3% over the last year. The National Association of Realtors (NAR) releases a monthly Housing Affordability Index . The latest index shows that home affordability is better today than at almost any point over the last 30 years . The index determines how affordable homes are based on the following: “

2020 Luxury Market Forecast By the end of last year, many homeowners found themselves with more equity than they realized, and at the same time their wages were increasing. When those two factors unite, it can spark homeowners to think about making a move to a larger or more expensive home in the luxury space. That said, now is a perfect opportunity to take a look at the forecast for the 2020 luxury market. Three Things to Think About in the 2020 Luxury Housing Market 1. Prices The U.S. economy is strong today, with buying opportunities throughout the luxury end of the market. Thomas Veraguth, Strategist at UBS Global Wealth Management, says in Barrons.com , “There’s a good link between luxury real estate prices and [economic] growth.” Available inventory is a key element that can impact home prices. At the upper range, the inventory is greater in comparison to the entry-level market, making moving up to a luxury home a growing reality for many buy

Reverse mortgage loans are like traditional mortgages that permits homeowners to borrow money using their home as collateral while retaining title to the property.   Reverse mortgage loans don't require monthly payments. The loan is due and payable when the borrower no longer lives in the home or dies, whichever comes first.   Since no payments are made, interest and fees earned are added to the loan balance each month causing an increasing unpaid balance.   Homeowners are required to pay property taxes, insurance and maintain the home, as their principal residence, in good condition. Reverse mortgages provide older Americans including Baby Boomers access to their home's equity. Borrowers can use their equity to renovate their homes, eliminate personal debt, pay medical expenses or supplement their income with reverse mortgage funds. Homeowners are required to be 62 years and older and meet the following requirements: Own the home free and clear or owe very

Buying a Home Early Can Significantly Increase Future Wealth According to an  Urban Institute  study, homeowners who purchase a house before age 35 are better prepared for retirement at age 60. The good news is, our younger generations are strong believers in homeownership. According to a Freddie Mac survey, “The dream of homeownership is alive and well within “Generation Z,” the demographic cohort following Millennials. Our survey…finds that Gen Z views homeownership as an important goal. They estimate that they will attain this goal by the time they turn 30 years old, three years younger than the current median homebuying age (33).” If these aspiring homeowners purchase at an early age, the Urban Institute study shows the impact it can have. Based on this data, those who purchased their first homes when they were younger than 25 had an average of $10,000 left on their mortgage at age 60. The 50% of buyers who purchased in their mid-20s and early-30s

National Cut Your Energy Costs Day [INFOGRAPHIC] Some Highlights: On January 10 th of each year, “ National Cut Your Energy Costs Day ” encourages consumers to reduce their overall energy costs by improving home efficiency. According to Freddie Mac , a typical U.S. family spends $2,200 per year on energy bills. By making energy efficient upgrades, you could reduce your energy bills by up to 30%. To assess the energy efficiency of your home and see how it measures up, take a moment to check out Home Energy Yardstick to calculate your estimated opportunity. Don’t forget to have your energy bills nearby!

There’s a Long Line of Buyers Waiting for Your House If you’re following what’s happening in the housing market right now , you know that many people believe the winter months aren’t a good time to sell a home. As realtor.com Senior Economist George Ratiu recently noted, “Sellers tend to be more reluctant to list during the colder time of year when the market typically makes a seasonal slowdown.” However, a recent report by ShowingTime reveals how this year is different. Buyer activity is way up compared to the same time last year. The report explains, “The nation’s 12.6% growth in home showings compared to 2018 was the most significant jump in buyer traffic during the current four-month streak of year-over-year increases. The West Region saw the greatest growth in activity, with a 23.1% jump – the region’s greatest in the history of the Showing Index.” The increase has spread across all four regions of the country, as the graph below shows: Bottom Lin

The New Spring Real Estate Market is Here. Are You Ready? Which month do you think most people who are considering buying a home actually start their search? If you’re like most of us, you probably think the surge happens in the spring, likely in April. Not anymore. According to new research , January 2019 was only 1% behind February for the most monthly views per listing on realtor.com . So, what does that mean? The busiest season in real estate has just begun. The same research indicates, “Historically, April launched the kickoff of the home shopping season as buyers would come out of their winter hibernation looking for their new home. However, the spring shopping season now starts in January for many of the nation's largest markets.” With the reality of fewer homes on the market in the winter, and that supply naturally increases as we head to the spring market, waiting for more competition to list in your neighborhood this year might put you b

Big Demand for Small Homes Movies, tv shows, and celebrities often have us dreaming of owning large homes, but the reality for most people is quite different. Since 2015, the square footage of newly built houses has been shrinking, according to Yahoo Finances . This is not projected to change as we continue into the beginning of the year. “We expect this downsizing trend to continue in 2020, driven by a confluence of economic and demographic trends.” Why are smaller homes trending now ? As noted in the article, there are a few main reasons for this demand: “Many of today's younger, millennial home buyers have expressed a preference for denser, more urban homes that are more walkable to shared amenities.” “Today's older homeowners are expressing a desire for smaller, less maintenance-heavy and more accessible (read: less stairs) homes as they age and move into newer homes.” With these two demographic groups surging through the market, the deman

3 Benefits to Buying Your Dream Home This Year Outside of a strong economy, low unemployment, and higher wages, there are three more great reasons why you may want to consider buying your dream home this year instead of waiting. 1. Buying a Home is a Great Investment Several reports indicate that real estate is a good investment , topping other options such as gold, stocks, bonds, and savings. Why? Real estate helps build equity, a form of investing for you and your family. According to CoreLogic’s Equity Report , “U.S. homeowners with mortgages (roughly 64% of all properties) have seen their equity increase by a total of nearly $457 billion since the third quarter 2018, an increase of 5.1%, year over year.” This means the average homeowner gained approximately $5,300 in equity over the past year. If you want to start building your equity, put your housing costs to work for you through homeownership this year. 2. Mortgage Interest Rates Are Low The

Approximately 52 million or 16% of Americans are age 65 and over.   It is easy to understand that some of them are thinking of downsizing their home because they don't need the same space they did in the past. It can be liberating to divest yourself of "things" that have been accumulated over the years but are no longer needed.   Moving to a less expensive home, could provide savings for unanticipated expenditures or cash that could be invested for additional income. Savings can be realized in the lower premiums for insurance and lower property taxes, as well as,  the lower utility costs associated with a smaller home. Typically, owners downsize to a home to 2/3 to 50% of their current home's size.   In some situations, it is not only economically beneficial, but their interests may have changed so that a different style of home, area or city might fit their lifestyle better. The sale of a home with a lot of profit will not necessarily trigger a tax liability.

Why You Shouldn’t “For Sale By Owner” Rising home prices coupled with the current inventory in today's market may cause some homeowners to consider selling their homes on their own (known in the industry as a For Sale By Owner ). However, a FSBO might be hard to execute well for the vast majority of sellers. Here are the top 5 reasons not to FSBO: 1. Online Strategy for Prospective Purchasers Studies have shown that 93% of buyers search online for a home. That’s a pretty staggering number! Most real estate agents have an Internet strategy to promote the sale of your home. Do you? 2. Results Come from the Internet According to NAR , here’s where buyers found the homes they actually purchased: 55% on the Internet 28% from a Real Estate Agent 10% Other 6% from a Yard Sign 1% from Newspapers The days of selling your house by putting up a sign in your yard or placing an ad in the paper are long gone. Having a strong Internet strategy is crucial.

Here’s to a Wonderful 2020! We hope 2020 is a great year for you, both personally and professionally!