THE ADVANTAGES AND DRAWBACKS OF AN OPEN HOUSE

With MAY 1st being the official best day to list your home for sale – I thought I would share this great article…. 

THE ADVANTAGES AND DRAWBACKS OF AN OPEN HOUSE

Ahhh the open house.  Some clients love them some hate them.  I thought I would share this article and add my two cents in italics.  

Open houses are a long-standing tradition in the sale of residential real estate to expose more people to a home for sale. Open houses are normally held on weekends to capture more traffic because that is when most people are off from work. The real estate agents put out signs on boulevards or near street corners to draw drive-by traffic and usually list the homes in the real estate sections of newspapers to bring in more people.

Ultimately, you’re goal is to bring in a buyer. But is throwing open the doors to your home really going to clinch a sale? Let’s investigate the pros and cons of an open house.

Advantages

Buyers can examine the home freely
Because open houses last a few hours, potential buyers can investigate parts of the home and take photos without pressure to leave right away. This real-time research is something buyers cannot gain just by viewing pictures online. By physically walking through a space, it is possible to get a true sense of what the home feels like. A serious home buyer is going to want to see the house in person.

I suppose if you’re trying to buy and not working with a Realtor – an Open House would be important.  However, I prefer to show homes outside of the weekend.  It may inconvenience the seller – but my buyers get more time IN the home alone so we can chat about the pros and cons.  

Create buzz and possibly a bidding war
Open house viewings can increase competition among would-be buyers – which is excellent news for you as a seller. Certain buyers, eager to secure their dream home, will not want to be outbid by rival buyers – so they may look to act quickly, to push through a fast house sale. If buyers are chomping at the bit to make offers, this puts you in a strong negotiating position.

On the San Francisco Peninsula – you don’t need an Open House to create a bidding war.

Convenience is key
Hosting an open house can be a great way to limit the number of individual showings your house may get while on the market. Rather than arranging for four or five private showings, you can prep your home once to receive multiple visitors. A scheduled open house allows you to make arrangements ahead of time to be out of your home with children and/or pets.

I do think an open house is easier for sellers since it is a set time that they can prepare for.  However, just because a client sees the home during the Open House does’t mean they won’t want to come back for a second look with their Realtor.  So one way or the other, the seller will want to make their home available – even more so by private appointment.  The last buyer I worked with – I couldn’t get into the unit myself!  And it was very frustrating to have a seller so private.  I understand the intrusion – but sellers do need to make the home available for clients and agents to see so we can do our job properly!

Clean home, happy home
If you’re still living in the home, you have to go the extra mile to prepare your house to be shown, constantly focused on keeping things neat. Decluttering your home prior to an open house makes it easier for a buyer to visualize their personal items within the rooms and motivates you to keep your home tidy.

I tell my sellers – start packing.  Less is more.  Declutter – make it shine.  It’s more than just a sign out front that sells a home.  I’m happy to discus the Caton Team’s selling strategies privately – contact us for an appointment.  

Feedback: the good, bad and ugly
Open houses are a great way to get feedback from multiple sources about the positives and negatives of your home. And while some comments can sting, it’s good to know what potential problems your home has so you can fix the issues in a timely fashion. As in any situation, some comments will be valid (the sink is leaking in the guest bath) while other feedback will seem random and unhelpful (the bathroom is too yellow). Take the good and the bad with a grain of salt, you cannot please everyone.

This is so true – but don’t take ANYTHING personally!

Drawbacks

Little Chance of a Sale
Statistics prove that it’s rare to garner a sale or a bid from an open house. The percentage of homes that actually sell as a result of an open house is less than 3%. An open house may actually benefit a realtor more because it gives them professional exposure as well as an opportunity to sell other homes they are representing. An open house is about mingling and researching, not necessarily for closing a sale.

I am going to tell this to you straight.  When agents host open houses – yay sure it’s great IF we meet a buyer for THAT house.  But truly – when I spend my weekends holding open houses – I’m looking for buyers and sellers who need my services – and what better way to meet people in need for a Realtor than sitting at an open house!  So now you know.  As a seller – I’d bend over backwards for the private showing appointments – THOSE are your serious buyers because they are already working with a professional Realtor, have realistic expectations, are pre-approved to buy a home in YOUR price range.  Those are the important appointments.  Truthfully a seller is better off leaving the home for private showings than just open houses.  

People with No Intention of Buying
Some of the people who show up to an open house may have bad intentions. Nosy people and thieves disguised as buyers often come with no intention of bidding or buying the house. Some people may innocently browse with no purpose, but thieves are there to scope the place out for valuables. Consider the security issue before scheduling an open house; and take inventory of any items within the home that could be easily removed in a flurry of visitors.

This is where packing up is most important.  We do not want your jewelry box out in the bedroom during the open house.  Though I aways have a co-host, criminals are going to get away with their crimes no matter how many hosts there are.  So just pack everything that means sometimes to you – after all you are selling and going to move.  

Don’t give your home a bad reputation
If a house does not sell after the first, two or three open houses, it means buyers are probably not interested for various reasons. Continued open houses can give the impression that there is something wrong with your home. Be careful of realtors who only focus on open houses as their key selling tool. A better realtor will use various resources to sell the home for maximum results.

 If your home does’t sell in the first two weeks – then you have some major back pedaling to do.  Instead of discussing this here – I invite any seller that is frustrated to a free, no obligation consultation where The Caton Team review the pros and cons and develop a strategy to achieve your financial goal of selling your home.  

Virtual tours
Today’s technology allows you to get great results using online photos or a video tour of your home. Prospective buyers don’t have to change out of their pajamas on a Saturday morning to take a virtual look-see of any home on the market. Plus, you don’t have to invite strangers into your home.

Call my old fashioned – it’s ok – I’m getting used to it – haha.  Virtual tours are wonderful internet tools BUT NOT SUBSTITUTE for actually walking through the home, looking at the neighbors house from a real street view, not a online map street view.  They can be fun to watch – but again – real, serious buyers are going to need to walk through your home for real. So make it available to them.  

Ultimately, it is the seller’s decision to schedule an open house. They are not required. Consider the pros and cons carefully before opening your doors to potential buyers, lookie loos and the like.

And let’s chat.  Perhaps one weekend is good, perhaps an evening is good.  Working with a professional Realtor will help guide you ever step of the way.  Looking for a pro?  Give The Caton Team an opportunity to sit down and talk to you.  Face to face, no virtual  goggles needed.  We’ll be happy to help you!

I read this article at: http://teresacowart.com/advantages-drawbacks-open-house/

Remember to follow our Blog for the local real estate beat, a pulse on the San Francisco Peninsula at: https://therealestatebeat.wordpress.com

Got Questions? – The Caton Team is here to help.  

Email Sabrina & Susan at:  Info@TheCatonTeam.com

Call us at: 650-568-5522  Office: 650-365-9200

Want Real Estate Info on the Go?  Download our FREE Real Estate App:  http://thecatonteam.com/mobileapp

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Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com

Thanks for reading – Sabrina

The Caton Team – Susan & Sabrina – A Family of Realtors

Effective. Efficient. Responsive.  What Can The Caton Team Do For You?

Berkshire Hathaway HomeServices – Drysdale Properties

Sabrina BRE# 01413526 / Susan BRE #01238225 / Team BRE# 70000218/ Office BRE #01499008

The best month and day to put a home on the market – well my birthday of course!

The best month and day to put a home on the market, according to Zillow

A study points to a Saturday in May as a seller’s peak opportunity

Key Takeaways

Homes listed between May 1 through 15 tend to sell nine days faster and sell 1 percent above the asking price, a new Zillow study says.

You may want to hide during the ides of March, but the ides of May are the perfect time to put a home on the market, says a new study by Zillow.

In 20 of the 25 metro areas studied, homes listed anywhere between May 1 and May 15 sold nine days faster and for up to 1 percent more than the asking price.

“With 3 percent fewer homes on the market than last year, 2017 is shaping up to be another competitive buying season,” said Zillow Chief Economist Dr. Svenja Gudell in a statement.

“Many [homebuyers] who started looking for homes in the early spring will still be searching for their dream home months later. By May, some buyers may be anxious to get settled into a new home — and will be more willing to pay a premium to close the deal.”

Mark your calendar for a Saturday in May

Moreover, Zillow’s research revealed the best day to place a home on the market is Saturday — listings that appear on Zillow’s site on this day garner 20 percent more views than early-in-the-week listings.

The second best day to list is Friday, when properties receive 14 percent more views.

Lastly, Gudell says sellers have to be cognizant of other factors, such as weather.

Sellers in Texas, California and Florida have more leeway in when to list their home due to warmer weather patterns. Also, sellers who live in areas without distinct seasonal weather tend to have little variation in sales price based on the month.

Are you thinking of selling?  Call the Caton Team – it is what we do best!  We’re available for a free consultation.  

I read this article at: http://www.inman.com/2017/03/02/the-best-month-and-day-to-put-a-home-on-the-market-according-to-zillow/?utm_source=weeklyheadlines&utm_medium=email&utm_campaign=sundaysend&utm_content=20170310_readmore

Remember to follow our Blog for the local real estate beat, a pulse on the San Francisco Peninsula at: https://therealestatebeat.wordpress.com

Got Questions? – The Caton Team is here to help.  

Email Sabrina & Susan at: Info@TheCatonTeam.com

Call us at: 650-568-5522 Office: 650-365-9200

Want Real Estate Info on the Go? Download our FREE Real Estate App:  http://thecatonteam.com/mobileapp

HomeSnaphttp://www.homesnap.com/Sabrina-Caton

Visit our Website at:   http://thecatonteam.com/

Visit our INSTAGRAM page: http://instagram.com/thecatonteam

PINTREST: https://www.pinterest.com/thecatonteam/

Visit us on FACEBOOK:   http://www.facebook.com/pages/Sabrina-Susan-The-Caton-Team-Realtors/294970377834

YELP us at: http://www.yelp.com/biz/the-caton-team-realtors-sabrina-caton-and-susan-caton-redwood-city

Or YELP me: http://www.yelp.com/user_details_thanx?userid=gpbsls-_RLpPiE9bv3Zygw

Twitterhttps://twitter.com/TheCatonTeam

Connect with us professionally at LinkedIn: https://www.linkedin.com/in/sabrinawendtcaton

https://www.linkedin.com/in/susancatonrealtor

Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com

Thanks for reading – Sabrina

The Caton Team – Susan & Sabrina – A Family of Realtors

Effective. Efficient. Responsive.  What Can The Caton Team Do For You?

 

Berkshire Hathaway HomeServices – Drysdale Properties

Sabrina BRE# 01413526 / Susan BRE #01238225 / Team BRE# 70000218/ Office BRE #01499008

 

Spring housing already overheating—think 60 offers on one house

Spring housing already overheating—think 60 offers on one house

The spring housing market started early this year, not because of higher-than-average temperatures but because of hotter-than-average demand and overheating home prices.

This year may be the starkest example of a post-recession reality that is redefining housing as we know it.

“This spring housing market is shaping up to be another doozy for homebuyers,” said Ralph McLaughlin, chief economist for home-listing website Trulia. “Housing affordability is the key to helping break yet another year of gridlocked inventory, but all signs are showing that homes this spring will be much less affordable than last year.”

Affordability is being hit on several fronts: The foreclosure crisis is over, but it left behind an entirely new landscape for potential buyers. Entry-level homes are scarce because investors bought tens of thousands of them during the crisis and turned them into rentals. The number of single-family rentals jumped to more than 15 million, up from about 11 million in 2009, according to the U.S. Census.

Homebuilders continue to operate well below normal levels because of higher costs and a lack of labor, and thousands of construction workers left the business during the recession, never to return. Builders don’t focus on entry-level homes because the margins are simply too tight, and prices for new construction are also rising at a fast clip.

What’s more, credit is still tight, and the youngest cohort of buyers, the millennials, are delaying marriage and parenthood, the two biggest drivers of home ownership. The shortage of homes for sale has now pushed prices to a 30-year high, according to S&P CoreLogic Case-Shiller. Rising mortgage rates only add to the pressure.

“Home prices continue to advance, with the national average rising faster than at any time in the last two-and-a-half years,” said David M. Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices. “With all 20 cities [in the S&P/Case-Shiller Index] seeing prices rise over the last year, questions about whether this is a normal housing market or if prices could be heading for a fall are natural.”

At a Sunday open house in Los Angeles this weekend, nearly a dozen house hunters showed up before the scheduled start. The three-bedroom, two-bathroom home was reasonably priced, in a desirable neighborhood and move-in ready.

“Typically for a home like this we would expect to see upwards of 15 to 20 offers,” said Fabrizzia Perri, the Redfin agent showing the property. “Recently, I was at a similar listing that had 66 offers on it, of course only one person wins, so 65 homebuyers have to restart their home search.”

Emily Leach, 35, knows that story all too well. She has been looking for a few months, hoping that by getting in before spring she might have a better chance at an affordable home. So far, that has not been the case.

“We actually had a house that we saw that we really liked in South-Central Los Angeles, and we tried to make a move on that and we got outbid. South-Central!” she laughed.

Michelle and Derrick Jacob have been trolling the market for six months. They have a strict budget with little leeway, making it difficult for them to compete.

“The ones we want seem to be purchased in a snap, over asking price most of the time, well over asking price,” Derrick Jacob said.

Housing demand climbed considerably this year, even compared with last year, as the leading edge of the largest generation finally moves into homebuying and a stronger job market supports them. A monthly demand index from Redfin jumped to the highest level since January 2013, when the index began. Compared to January 2016, homebuyer demand was up 23 percent, led by a 26 percent annual increase in homebuyers requesting tours and an 18 percent increase in buyers making offers.

“Soaring stock markets, still-low mortgage rates, and a steady economy bolstered homebuyers at the start of 2017,” said Nela Richardson, Redfin chief economist. “Homebuyers were not just window shopping. They were serious about making offers and getting to the closing table. However, this uptick in homebuyer enthusiasm won’t guarantee strong sales in the coming months. With pending home sales down across the country in January despite strong demand, the lack of supply is a formidable foe for buyers this year.”

Higher home prices in some areas are supported by improving local economies and employment, but in other markets, too much demand pitted against too little supply is resulting in overheated housing. Dallas, Las Vegas, Phoenix, and Portland, Oregon, are overpriced by 10 to 14 percent, according to a recent report from Fitch Ratings, which considers markets overheated when they exceed the areas’ supporting economic fundamentals. Los Angeles, Miami and Tampa, Florida, are close to 10 percent overvalued.

Analysts at Fitch don’t predict when any of these bubbles will burst, but they do point to certain warning signs.

“For Dallas, the current unemployment rate in the Fort Worth [Texas] region is 3 percent. You’d have to go back 30 years to go that low. We think it’s not sustainable. The business cycle will turn. Eventually, when it does, home prices will come down,” said Samuel So, director of research at Fitch.

Potential buyers today are facing tough new realities. Some houses are clearly overpriced, and renting is still a better financial option in some markets. Competition is fierce for the best homes, and buyers have to be ready to pull out all the tricks.

“You have to make an introductory letter, little story about yourself and you just hope that the home that you’re buying is not being sold by a flipper because they are much more neutral,” Leach advised. “If you have a home that’s being sold by the previous owners, you might be able to get that emotional human connection.”

Curious about our local Silicon Valley Real Estate Market – Contact The Caton Team for a one on one consultation.  

I read this article at: http://www.cnbc.com/2017/02/28/spring-housing-already-overheating-think-60-offers-on-one-house.html

Remember to follow our Blog for the local real estate beat, a pulse on the San Francisco Peninsula at: https://therealestatebeat.wordpress.com

Got Questions? – The Caton Team is here to help.  

Email Sabrina & Susan at: Info@TheCatonTeam.com

Call us at: 650-568-5522 Office: 650-365-9200

Want Real Estate Info on the Go? Download our FREE Real Estate App:  http://thecatonteam.com/mobileapp

HomeSnaphttp://www.homesnap.com/Sabrina-Caton

Visit our Website at:   http://thecatonteam.com/

Visit our INSTAGRAM page: http://instagram.com/thecatonteam

PINTREST: https://www.pinterest.com/thecatonteam/

Visit us on FACEBOOK:   http://www.facebook.com/pages/Sabrina-Susan-The-Caton-Team-Realtors/294970377834

YELP us at: http://www.yelp.com/biz/the-caton-team-realtors-sabrina-caton-and-susan-caton-redwood-city

Or YELP me: http://www.yelp.com/user_details_thanx?userid=gpbsls-_RLpPiE9bv3Zygw

Twitterhttps://twitter.com/TheCatonTeam

Connect with us professionally at LinkedIn: https://www.linkedin.com/in/sabrinawendtcaton

https://www.linkedin.com/in/susancatonrealtor

Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com

Thanks for reading – Sabrina

The Caton Team – Susan & Sabrina – A Family of Realtors

Effective. Efficient. Responsive.  What Can The Caton Team Do For You?

 

Berkshire Hathaway HomeServices – Drysdale Properties

Sabrina BRE# 01413526 / Susan BRE #01238225 / Team BRE# 70000218/ Office BRE #01499008

 

Help Clients Avoid House-Hunting Drama

Help Clients Avoid House-Hunting Drama

The Caton Team’s two cents is added in italics.

“Moving is one of the most stressful situations that a person can go through,” says Frank Schofield, an associate broker with Summit REALTORS® in Northern Virginia. “It’s one of the most rewarding, but also one of the most stressful.”

To make the house-hunt a little less stressful, real estate pros offer the following tips:

  1. Determine what you want upfront, and stick to that criteria.

What are your non-negotiables? What location do you desire? What educational opportunities are important? What do you want your daily commute to be? And what price are you willing to pay? “The first step to avoid house hunting drama is to really sit back and think about what is most important to you,” advises Jason Mitchell, founder and president of Jason Mitchell Real Estate. “This will narrow down your scope so you are not looking at hundreds of homes, just the ones that fit in your criteria. … Looking in an area that’s not going to provide the home type that you want is going to cause frustration.”

Being focused is most important. It is also easier said than done, especially if this is your first purchase. The Caton Team suggests you start with a broad scope when you first start off. We like to cover as many options for the start and work our way down quickly to a manageable list.

  1. Get preapproved for a mortgage.

Avoid delays once you do find a home by getting your loan preapproved. “If there is any issue, it is identified early on in the process and not the moment that you’re trying to submit a contract on the property,” says Schofield. Also, you’ll know your numbers and how much to expect on a monthly payment to make sure you’re house-shopping within your price range.

THIS IS THE MOST IMPORTANT STEP. So important – The Caton Team suggests you get pre-approved even before we meet. Knowing how much mortgage you qualify for, knowing any defects on the credit report before the hunt even starts ensures a smooth experience. And it helps us bring into focus what is most important, where that is and what it looks like in a home. 

  1. Communicate.

Share with your real estate agent the biggest stressors and fears you have in the home-buying process. “The more open the client is with the agent, the less drama is going to present itself in the transaction,” says Schofield. “You have to trust your agent and relate to them as a confidant, as an ally.”

We couldn’t agree more. Being comfortable with your Realtors takes some of the stress off the situation. It helps us too! If we feel we have open communication and trust – truly we (The Caton Team and you) can move mountains.

  1. Don’t linger too long.

“Believe me, procrastination causes drama,” Schofield says. For home buyers on a deadline, Schofield recommends beginning four to six months ahead of time to start learning more about the market. Plus, with mortgage rates forecasted to move higher this year, buyers who wait too long may find what they can afford lessen. “Have the right expectations, or else you’re setting yourself up for frustration,” Schofield says.

I always tell my clients – we are shopping now – with today’s rates, prices and market AND IT WILL CHANGE. Therefore together we plan accordingly.

 The Caton Team knows how much patience and work it takes for our clients to buy a home. We are happy to sit down, answer you questions and prepare a plan to turn your dreams into reality. How can The Caton Team help you?

I read this article at: http://realtormag.realtor.org/daily-news/2017/01/03/help-clients-avoid-house-hunting-drama?om_rid=AACmlZ&om_mid=_BYa-g2B9W3LGkZ&om_ntype=RMODaily

Remember to follow our Blog for the local real estate beat, a pulse on the San Francisco Peninsula at: https://therealestatebeat.wordpress.com

Got Questions? – The Caton Team is here to help.  

Email Sabrina & Susan at: Info@TheCatonTeam.com

Call us at: 650-568-5522 Office: 650-365-9200

Want Real Estate Info on the Go? Download our FREE Real Estate App:  http://thecatonteam.com/mobileapp

HomeSnaphttp://www.homesnap.com/Sabrina-Caton

Visit our Website at:   http://thecatonteam.com/

Visit our INSTAGRAM page: http://instagram.com/thecatonteam

PINTREST: https://www.pinterest.com/thecatonteam/

Visit us on FACEBOOK:   http://www.facebook.com/pages/Sabrina-Susan-The-Caton-Team-Realtors/294970377834

YELP us at: http://www.yelp.com/biz/the-caton-team-realtors-sabrina-caton-and-susan-caton-redwood-city

Or YELP me: http://www.yelp.com/user_details_thanx?userid=gpbsls-_RLpPiE9bv3Zygw

Twitterhttps://twitter.com/TheCatonTeam

Connect with us professionally at LinkedIn: https://www.linkedin.com/in/sabrinawendtcaton

https://www.linkedin.com/in/susancatonrealtor

Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com

Thanks for reading – Sabrina

The Caton Team – Susan & Sabrina – A Family of Realtors

Effective. Efficient. Responsive.  What Can The Caton Team Do For You?

 

Berkshire Hathaway HomeServices – Drysdale Properties

Sabrina BRE# 01413526 / Susan BRE #01238225 / Team BRE# 70000218/ Office BRE #01499008

Will 2017 be a buyer’s market or a seller’s market?

Can you tell I have one thing on my mind this January?  Where is this real estate marketing going?  Enjoy this article from Inman News.

Will 2017 be a buyer’s market or a seller’s market?

Four economists weigh in on what the next year has in store for each group

Key Takeaways

  • Next year will likely remain a seller’s market in most markets, but buyers might have their day in 2018 or 2019.
  • Future buyers will be “less white and a little younger.”

In some years and some markets, the answer is obvious — in 2016, Denver was a seller’s market, and San Francisco’s been one for quite a stretch.

But sometimes, it’s not so clear, and with mortgage rates on the up-and-up and robust plans for the economy ahead, all the plans for 2017 seem to be out the window.

Here’s what four economists had to say about whether 2017 is leaning toward buyers or sellers.

The consensus is?

Most economists we talked to said that overall, they thought 2017 was going to continue to be a strong market for sellers — for now.

“While I expect inventory levels to rise in 2017, it will likely remain a seller’s market,” said Matthew Gardner, chief economist at Windermere. “New construction will pick up steam in 2017, but not to levels that will provide sufficient support to a stretched housing market. Sellers will likely find that it will take a little longer to sell, but demand will still outstrip supply on the back of a job market that continues to tighten.”

Svenja Gudell, chief economist at Zillow, opined that “2017 is probably going to skew more toward the seller’s market — most markets will skew more toward seller’s markets, and even in the Midwest there are probably more seller’s markets than buyer’s markets compared to their own history.”

Geography does play a role, however, said Jonathan Smoke, chief economist at realtor.com.

“Ultimately, I do think it depends on where you are in the country — and not even at a market level,” Smoke said. “We’re seeing some clear patterns emerge within markets — one might be slowing down and cooling off where another part is really heating up. Real estate is so local that I would argue that a neighborhood view is really where you can see the differences and disparities and changes that are occurring around the country.”

Smoke noted that first-time buyers have been most successful in the Midwest this year, whereas markets in the West have seen the most significant price appreciation, making it difficult for first-time buyers to find success.

“We tend to have markets that are either above average in price expectation or sales expectation, and there aren’t many markets that have above-average expectations in both — supply constraint is driving the price movement in the strongest price markets, seller’s markets, but the buyer’s markets where buyers are getting a really affordable home, as a result, those markets are seeing a greater growth in sales,” Smoke explained.

“Either one is good for real estate,” he concluded.

Will we see a shift?

Gudell said that Zillow had just asked a panel of experts — more than 100 economists — “what they thought was going to happen to the tradeoff between buyers versus sellers.”

She said that among the economists surveyed, the most popular belief was that in 2018 or 2019, the bulk of markets will begin to shift from seller’s markets to buyer’s markets.

“In some markets, it’ll start to turn already in 2017, where demand isn’t quite so high and you get a little more inventory in and you have buyers better able to negotiate,” Gudell added.

What does the future buyer look like?

Mark Fleming, chief economist at First American, said that, “assuming an environment with modestly and predictably rising mortgage rates, it becomes a first-time homebuyer purchase-oriented marketplace.

“The question as a real estate agent is, how do you find and market to that first-time homebuyer?” asked Fleming. “Because that first-time homebuyer is going to be a young, technologically savvy millennial — and even more importantly, ethnically diverse. The demand for first-time housing is going to come from a different kind of individual than we’ve traditionally seen: Young, diverse, technologically savvy and much more likely to be college-educated.”

“The homeownership rate will grow, and they’ll be less white and a little younger,” said Gudell.

“Unfortunately, I think all of us will be spending more time in the car as more people have to look for more housing outside the city center as homes become much more expensive in the urban area,” she added. “During the recovery, it’s really picked up and the urban centers have appreciated much faster than the outerlying areas.”

“The potential is there for the market to have the most first-time buyers — certainly on an absolute volume basis, but also on a shared transactions perspective,” said Smoke.

“For the industry, this is the biggest shift we need to be able to contend with because it likely means elongated length of time that people are spending in that journey, especially the first-time buyer, but it potentially also means higher cancellation rates and lower conversion rates. You’re going to have more challenges with people contending with needing to qualify for and buy a home in the environment we’re in now than in the environment we were in the last two years.

“Highly qualified pent-up demand has been driving the market — now, it’s more organic activity at a time when interest rates are on the move-up,” he added. “The potential is there for an even bigger year than we’re forecasting, but it comes with challenges and that’s why we’re expecting only moderate growth instead of huge growth.”

“The thing about housing is that everybody needs it and you can’t outsource it,” said Fleming.

 

I read this article at: http://www.inman.com/2016/12/13/will-2017-be-a-buyers-market-or-a-sellers-market/?utm_source=weeklyheadlines&utm_medium=email&utm_campaign=sundaysend&utm_content=20161216_readmore

Remember to follow our Blog for the local real estate beat, a pulse on the San Francisco Peninsula at: https://therealestatebeat.wordpress.com

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This Isn’t a Housing Bubble: Here’s Why

There has been a lot of talk whether or not the San Francisco Bay Area Real Estate is in a bubble.  One by one I have spoken with clients, friends and colleagues about this concern.  Below is a great, quick article about the market.  And here is my 2 cents.  Not long ago we were in the gloom of a crashed market.  Back in 2009 – 2011 no one wanted to buy real estate for fear it would never recover.  Boy has it!  In the Bay Area we have far exceeded anyones expectation of recovery.  We are booming right now.  What fuels our growth is a strong job economy in the tech world, ample cash, low supply and over demand.  Much of the home sales are going cash – no worry of crashing lenders here.  These homes are selling with multiple offers and for cold hard cash.  There is a huge influx of foreign money too.  And I know there is talk that the foreign markets are wavering – but we all need a place to live and well – why not here!  The most gorgeous place on the planet!  (In my humble opinion as a California native).  Enjoy the article below – call or email me if you have questions.  And if you are thinking of buying or selling your home – The Caton Team is but a call or click away. 

Info@TheCatonTeam.com  /  650-568-5522

Happy Reading,

Sabrina

This Isn’t a Housing Bubble: Here’s Why

DAILY REAL ESTATE NEWS

Home prices are rising rapidly, but economists are deflating concerns that another “housing bubble” is brewing.

A recent report from CoreLogic shows that twice as many metro markets are considered “overvalued” – prices are inflated relative to incomes — in the second quarter of this year compared to the first three months of the year. But economists say it’s not a housing bubble because bubbles eventually burst and home prices this time around aren’t likely to fall.

“Just because you’re overvalued doesn’t mean that you’re in a bubble or there is an impending crash,” says Sam Khater, CoreLogic’s deputy chief economist. “Some markets are overvalued because of strong fundamentals.”

The National Association of REALTORS® reported that the national median sales price is now above its 2006 peak. The median existing-home price for all housing types reached $236,400 in June – 6.5 percent above year ago levels and surpassing the peak median sales price set in July 2016 at $230,400, according to NAR.

CoreLogic’s recent report shows that home prices in 14 of the largest 100 markets have now risen above its long-term fundamental values – with six of these markets in Texas alone. Housing demand is strong and supply has been near record lows, which has paved the way for price increases among the state’s strong economy.

About 10 years ago, a housing bubble was being fueled by free and easy mortgage credit – not the case today, CNBC reports. Today, strong demand and weak supply is driving the rise in prices.

“Agents continue to highlight buyers’ growing frustration with rising prices, but see current levels largely supported by tight inventory conditions,” according to a monthly survey of real estate professionals by Credit Suisse.

Source: “Frothy, Yes, But Don’t Call it a Housing Bubble,” CNBC (Sept. 15, 2015)

I read this article at:  http://realtormag.realtor.org/daily-news/2015/09/17/isn-t-housing-bubble-here-s-why?om_rid=AACmlZ&om_mid=_BV$vieB9FsN65L&om_ntype=RMODaily

Remember to follow our Blog at: https://therealestatebeat.wordpress.com/

Got Questions? – The Caton Team is here to help.  

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Please enjoy my personal journey through homeownership at:

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Thanks for reading – Sabrina

The Caton Team – Susan & Sabrina – A Family of Realtors

Berkshire Hathaway HomeServices – Drysdale Properties

Sabrina BRE# 01413526 / Susan BRE #01238225 / Team BRE# 70000218/ Office BRE #01499008

Top Reasons People Want to Move

Top Reasons People Want to Move

DAILY REAL ESTATE NEWS |

One in three U.S. households say they plan to move in the next five years, according to a survey conducted by the Demand Institute of 10,000 households’ current living situations. And it’s the location of the home that will be driving most of those moving decisions — more so than the physical home itself.

Seventy-five percent of the households surveyed cited one or more location-related reasons for why they were moving. The top reasons were the desire for a safer neighborhood (30%); being closer to family (27%); a change of climate (26%); being closer to work (25%), and moving for a new job (23%).

More than half — 59 percent — of households say they don’t plan to go too far, with most indicating a move within 30 miles of their current home.

For those seeking a location for climate reasons, the Western and Southern U.S. continue to be the top destinations.

The following were the top location characteristics identified as “very important” by those surveyed:

  • Amenities/services in walking distance (39%)
  • Good school district (34%)
  • Close to work (32%)
  • Diverse neighborhood (26%)
  • Near public transit (25%)

Many movers say they’re eyeing more walkable communities. Indeed, walkable communities have been reporting stronger home-price growth compared to less walkable communities, according to the Demand Institute’s report. Those who reside in walkable communities also are more likely to report that their quality of life has improved in the past few years due to their change in residence.

As such, Americans are desiring more amenities near them. Of those surveyed, the following places were identified as what home buyers would most like to have near their future home:

  • Grocery stores (63% say short drive OK; 22% want it within walking distance)
  • Restaurants and cafes (56% short drive; 20% walking distance)
  • Parks and green space (40% short drive; 35% walking distance)
  • Healthcare services (62% short drive; 10% walking distance)

Retail (57% short drive; 12% walking distance)

 

I read this article at: http://realtormag.realtor.org/daily-news/2015/02/25/top-reasons-people-want-move?om_rid=AACmlZ&om_mid=_BU7kXlB8-nKOr6&om_ntype=RMODaily

Remember to follow our Blog at: https://therealestatebeat.wordpress.com/

Got Questions? – The Caton Team is here to help.  

Email Sabrina & Susan at: Info@TheCatonTeam.com

Call us at: 650-568-5522

Want Real Estate Info on the Go? Download our FREE Real Estate App:  http://thecatonteam.com/mobileapp

Visit our Website at:   http://thecatonteam.com/

VISIT OUR NEW INSTAGRAM PAGE: http://instagram.com/thecatonteam

Visit us on Facebook:   http://www.facebook.com/pages/Sabrina-Susan-The-Caton-Team-Realtors/294970377834

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Connect with us professionally at LinkedIn: http://www.linkedin.com/profile/view?id=6588013&trk=tab_pro

Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com

Thanks for reading – Sabrina

The Caton Team – Susan & Sabrina – A Family of Realtors

Berkshire Hathaway HomeServices – Drysdale Properties

Sabrina BRE# 01413526 / Susan BRE #01238225 / Team BRE# 70000218/ Office BRE #01499008