Buyers Grow More Confident About Housing

Buyers Grow More Confident About Housing

You may need to do less convincing to get home shoppers to make their move in the housing market. Fannie Mae’s Home Purchase Sentiment Index rose 2.2 percentage points in April, with five of six components rising that measure confidence in buying, employment, household incomes, financing, and more.

The share of Americans who say now is a good time to buy rose 5 percentage points in April. However, the net share of those saying now is a good time to sell fell 5 percentage points, the index showed.

“The Home Purchase Sentiment Index returned to its longer-term trend line after reclaiming ground last month,” says Doug Duncan, Fannie Mae’s chief economist. “This is aligned with our market forecast of about 3 percent sales growth in 2017. Historically strong inflation-adjusted house price gains are tempering consumer sentiment, whereas consumer optimism regarding the ease of getting a mortgage reached a survey high. On balance, housing continues on a gradual growth track.”

Here are more findings from Fannie Mae’s Home Purchase Sentiment Index reading from April, which is based on a survey of about 1,000 consumers.

•35%: the net share of Americans who say it’s a good time to buy a home, up 5 percentage points from March.

•26%: the net percentage of consumers who say it’s a good time to sell, dropping 5 percentage points from last month’s all-time survey high.

•45%: the net share of Americans who believe home prices will rise by 1 percentage point.

•77%: the net share of consumers who say they’re not concerned about losing their job, up 7 percentage points from March.

•13%: the net share of consumers who say their household income is significantly higher than it was 12 months ago, up 2 percentage points from March.

I read this article at: http://realtormag.realtor.org/daily-news/2017/05/09/buyers-grow-more-confident-about-housing?om_rid=AACmlZ&om_mid=_BZEibMB9boI5pJ&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

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Thanks for reading – Sabrina

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

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

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Real estate predictions for 2017

Brad Inman’s crystal ball: Real estate predictions for 2017

The year of the homeseller, a female CEO of NAR and more

Here were my predictions for 2016.

 

Here are my predicitons for 2017.

2017 will be the year of the homeseller

The most profound real estate technology innovations in the last two decades have benefited homebuyers finding homes and agents becoming more efficient.

This coming year, technologists and venture capitalists will zoom in on homesellers, with the $60 billion commission pie up for grabs.

Opendoor, Knock and to a degree transparent bidding features are examples. Using technology, more companies will figure out how to give sellers more certainty around their home sale.

Don’t miss out on the homeseller innovation parade — your livelihood is at stake.

The housing market will soar (temporarily)

Boosted by the Trump confidence pop, mortgage money will be plentiful.

IRAs (individual retirement accounts) are already increasing in value, and job creation efforts will take hold as unemployment has already reached new lows. Both of these trends will give consumers a boost in the market.

This could be short-lived as robots steal millions of service jobs, middle managers included. This trend will make overseas offshoring seem like a pimple on our butt.

Enjoy the sunlight, but stash away some of your profits for dark clouds later.

NAR will pick a woman to lead the trade group

Though the old-guard will lobby hard for anointing one of its own, the National Association of Realtors will do what the country could not — make a woman the CEO.

Remember, your hard work funds NAR, so speak up in one way or the other. If you hold an opinion, email the search committee and give them a piece of your mind.

Zillow will expand overseas by acquiring a European portal

Zillow will cross international borders through an acquisition of some type, somewhere.

Growth opportunity in the U.S. is still strong, but to fill its valuation expectations globe trotting will be necessary.

Still avoiding Zillow as a source of business?  Think twice before you continue to dismiss the giant portal.

Footnote: dotloop (a Zillow company) will come out of the closet and do some interesting things on the back end that make life easier for brokers and agents.

Opendoor becomes second-biggest broker in the country by year’s end

One year from now, Opendoor will be the second-largest broker in the U.S., second only to NRT.

By unit count — and, most importantly, by revenue — the exchange platform will give a segment of the selling market the certainty they generally cannot get when unloading their homes the traditional way.

Remember, Opendoor still works with buyers agents, so when the company comes to your market, consider how to make it work for you.

Redfin files to go public

The 10-year old online plodder will take its story to Wall Street and file to go public.

Redfin will use its new funds to capture more share in its current markets and continue to innovate and make gains on the recruiting front and with its technology.

Lots to learn from Redfin — copying their best features is one strategy to compete with them.

Equity-sharing mortgages will spread

Wall Street will provide the funds, and homebuyers in pricey markets with a sparse down payment will be the beneficiaries, as equity sharing becomes widespread because of support by Freddie Mac, Fannie Mae and the big lenders.

Learn everything you can about this new loan so you can help your buyers who are scrambling to save their down payment.

Luxury housing market recovers, but tastes change

With a U.S. President who earned his billions in luxury real estate, the high-end market will have a revival as rich people who have been hoarding their cash and hiding out from the redistributionists will tiptoe back into the market.

But tastes will change. Walkable neighborhoods will become the Cartier wrist bands of real estate, guard dogs in tow.

Docusign IPO bigger than Zillow

The paperless cruasader, San Francisco-based Docusign will  go public, shining light on the real estate efficiency race. The company’s finances will look sterling and get the attention of Wall Street technology skeptics.  The IPO could be huge.

 Mars will be subdivided

A first step in creating a new civilized world on Mars will be a plan to subdivide the far-off planet. It could pay for space exploration. That is how we pay for infrastructure on planet earth.

Some of the smartest minds in the real estate industry will get involved. But don’t be bamboozled into investing in Mars property — yet.

The present and future will merge

Bots on your phone and on everything you own or drive will help you manage many functions of your life and will be automatically updated, taking you into the future every second, whether you like it or not.

Installation artist Douglas Coupland calls this phenomenon “accelerated acceleration.” Your challenge will no longer be keeping up with technology, because it has already kidnapped a big part of your life.

Instead figure out how to hold onto, restore and grow your humanness.

Bottom line: Enjoy 2017 — it will be a fun and exciting year.

What do you think 2017 will bring????

I read this article at: https://www.inman.com/2016/12/13/brad-inmans-crystal-ball-real-estate-predictions-for-2017/

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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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

The Numbers Are In: Yup, 2016 Is Off to a Good Start in Home Sales

My two cents – As the 1st quarter comes to an end – we sit on bated breath on what the future will bring in our Bay Area Real Estate Market.  I have to say – the drop in the stock market has had a huge impact on buyer confidence and cash flow.  I’ve even noticed a few price reductions on a select properties that haven’t sold in the first two weeks as expected.  Could it be the market is shifting?  Are sellers going to have to be a bit more realistic when pricing their homes?  Are buyers going to anti-up there offers as they did last year?  My biggest surprise has come from the rental market.  I’ve been tracking several properties and many have rented for UNDER their original asking price.  Which I have to say – is nice to see since our rental prices have skyrocketed and the word “affordability” is the forefront on concern.  

What will this mean for our market?  We’ll have to see.

I’d love to know your thoughts too!  Enjoy this article by Realtor.com

 

The Numbers Are In: Yup, 2016 Is Off to a Good Start in Home Sales

 

We may be on the verge of spring, but housing and economic reports work on a bit of a lag time. We’ve only just gotten the major data reports for January, and it’s giving us a clear-eyed view of how the real estate market is measuring up this year.

And yeah, things are looking good.

Job creation—arguably the most important factor in housing demand—is moving apace. January saw 151,000 jobs created. That level of employment growth is below 2015’s monthly average, but unemployment is now near 10-year lows and is in line with the current macro forecast from the National Association of Realtors® (NAR). This level of employment growth should translate into the 3% growth in housing sales we are expecting for the year.

Speaking of sales, January’s existing home sales report did not disappoint. Even though sales are taking longer to close, due to the implementation of new disclosure and closing forms and procedures, the pace grew 0.4% in January from December. Granted, that’s not a lot, but analysts had been expecting a decline. And from January 2015 to January 2016, existing hom The increase in sales is resulting in continued tighter-than-tight supply—measured by NAR to be four months in January.  For you non-economists out there, that metric measures the number of months it would take to sell the current inventory of available homes, at the current pace. Got it? Six to seven months’ worth of homes on the market is considered normal; four months is cray-cray.

This is driving prices higher and encouraging consumers who hope to buy this year to get started as soon as possible.

January’s new home sales and new home construction remained consistent with the pace of activity of the last several months. Still, the level of new construction still represents solid year-over-year growth, especially in single-family homes. The most encouraging sign: The median price of new homes is finally declining, as a result of the fact that builders are offering more affordable homes.

Finally, the most timely readings we can pass on come from our own observations at realtor.com that confirm that demand is growing rapidly at the start of the year, resulting in an acceleration in inventory movement that we typically do not see until March or April.

OK, not everything is rainbows and unicorns. The biggest negative trend impacting potential demand relates to the January and February declines in stock values, which have taken a toll on consumer confidence. But, even that negative trend has a silver lining: Mortgage rates are now substantially lower. The average 30-year conforming rate has stabilized at under 3.7%, giving buyers almost 5% more buying power than they had at the end of 2015, and strengthening their ability to meet the debt-to-income ratio requirement for a loan.

Net-net, pent-up demand appears stronger than any weakness caused by the financial markets. And the lower rates are encouraging would-be buyers to act sooner rather than later. With this strong start, 2016 should indeed see growth, but the biggest constraint will be the tight supply.

 

I read this article at: http://www.realtor.com/news/trends/2016-off-to-good-start-home-sales/

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

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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

 

Housing on Track for Best Year Since 2006

For those currently active in the real estate market – this is no big surprise. Demand is hot, low supply is only fueling this market.  Today, August 1, the rules change – we are curious how it will effect the market.  Enjoy this article from the Daily Real Estate News.

Housing on Track for Best Year Since 2006

The residential real estate market, now at its midpoint in 2015, is on track for its best year since the peak of the housing bubble in 2006, notes realtor.com® chief economist Jonathan Smoke. But as Smoke is quick to point out, this time it’s not a housing bubble.

That’s because job growth is fueling the most recent climb in demand for homes. More than 3 million jobs have been created in the past 12 months.

As job growth increases, demand has followed. Homes are selling more quickly. The median age of inventory from homes on the market nationwide in May was 66 days – eight days faster than last year. Some markets are even seeing inventory move in just 18 to 45 days too, realtor.com® notes.

“A rapidly declining age of inventory signals that demand is growing more rapidly than supply,” Smoke writes in commentary at realtor.com®. “Indeed, we’ve had 32 months in a row of existing-home inventory at less than a six months’ supply. That’s why we’re also seeing above-normal price appreciation.”

Median home prices rose 9 percent in April year-over-year. Home owners are seeing strong gains in equity lately.

At the real estate’s market current level of growth, total home sales this year could near 6 million, which is near the peak seen in 2006, Smoke notes.

Source: “Midyear Report: The Housing Market Is on Track for Its Best Year Since 2006 (and it Ain’t a Bubble),” realtor.com® (June 10, 2015)

 

I read this article at: http://realtormag.realtor.org/daily-news/2015/06/11/housing-track-for-best-year-2006?om_rid=AACmlZ&om_mid=_BVeejGB9CnYC8V&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

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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

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

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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

 

3 Ways to Make Your Home Worth More

3 Ways to Make Your Home Worth More

 

I truly enjoy sharing articles I find interesting – this one is in time for the Spring Real Estate Market. Enjoy – Sabrina

 

In its 10 years of existence, online real estate database Zillow (Z) has collected an unfathomable amount of information on housing prices. In the new book “Zillow Talk: The New Rules of Real Estate,” CEO Spencer Rascoff and chief economist Stan Humphries put that data to use by sharing ways to get the most value out of a home. “We’re interested in converting real estate from an area of folklore into fact,” Humphries told Yahoo Finance. He joined Jeff Macke to share some of his favorite tips for navigating today’s real estate market.

Redo the bathroom, not the kitchen

“It’s always been conventional wisdom that the best remodel you could do was the kitchen,” says Humphries. “We actually crunched an enormous amount of data…what we found is actually it’s the bathroom remodel that adds the most value to a house.”

According to Humphries it makes the most logical sense because with a bathroom remodel functionality is being added to the house whereas kitchen upgrades are often more about fashion.

According to Zillow’s data a mid-range $3,000 bathroom remodel results in a $1.71 increase in home value for every $1.00 spend on renovation.

Plus “when people come to stay with you, you’re going to be a lot happier that you have a nicer bathroom than kitchen.” Kitchen renovations offer among the lowest returns on investment. Both mid range and upscale work on the kitchen recover only about half of their investment.

Just don’t invest too much money in the bathroom, upscale $12,000 bathroom upgrades result only in an $0.87 increase in home value for every $1.00 spent.

Selling season

Home sales reach their peak in June, during the last week of that month residential real estate transactions are 40% higher than average. But when is the right time to list your home?

The home season starts to crank up in January and February, says Humphries. But to get the most bang for your buck you might want to list your house during the last two weeks of March. There’s a sharp spike in visitors making contact with real estate agents on Zillow beginning in mid-April and continuing into July.

Selling in the last weeks of March, before the peak in agent contacts and after the peak of newly listed homes in February puts your home in the sweet-spot where it’s likely to be seen quickly and not get lost within a flood of new listings.

Humphries writes to “put your home on the market after you fill out your NCAA March Madness basketball brackets, but before someone slips on an ivy-green jacket at the Masters Golf Tournament.”

Psychologically price your home

Ending your home price in a ‘9’ is incredibly beneficial, says Humphries. “If you were going to sell your house for $150,000, just pricing it down by $1000 and selling it for $149,000 ends up in you making $2175 more than you would if you priced it at $150,000.” The ‘9’ dynamic works for houses at all price-points.

In the majority of cases, home prices that end in a ‘9’ sell for more for a home of the same relative value that ends in a ‘0.’ The risk that the seller takes on by cutting their home price by $1,000 usually results in gaining more than $1,000 over asking.

psychological pricing also sold home faster– Zillow found that homes using ‘9’ in the thousands digit sold four days to one-week faster than those that didn’t.

 

I read this article at:

http://finance.yahoo.com/news/3-tips-for-saving-money-on-your-home-125820548.html

 

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

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

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

 

Don’t Ignore Boomerang Buyers

I have to say – when the real estate market crashed it was heart breaking for me to watch and live through.  Now that we’ve recovered and our market on the San Francisco Peninsula is booming – I am happy to see people getting back into homeownership.  What can The Caton Team do for you?

Enjoy this article from the Daily Real Estate News …

 

Don’t Ignore Boomerang Buyers

DAILY REAL ESTATE NEWS

The housing market is ignoring the largest pool of prospects: Boomerang buyers, according to Daren Blomquist, vice president of RealtyTrac.

Boomerang buyers are former home owners who lost their home to a foreclosure or short sale. After sitting out of the market for several years to rebuild their credit, these buyers may be inching back to the market looking for a second chance at home ownership.

There are an estimated 7.3 million potential boomerang buyers, Blomquist says. “If we magically had 7.3 million more home owners, the home owner rate would be back to historic norms,” he notes.

Boomerang buyers mostly consist of Generation Xers and Baby Boomers. “They are the ones who are likely to come back and become home owners again than the millennials,” Blomquist says.

In a report earlier this year, RealtyTrac noted that Generation X and Baby Boomer “boomerang buyers” could “represent a massive wave of potential pent-up demand that could shape the housing market in the short term even more dramatically” than the millennials’ entrance into home ownership.

“The markets most likely to see the boomerang buyers materialize are those where there are a high percentage of housing units lost to foreclosure but where current home prices are still affordable for median income earners and where the population of Gen Xers and Baby Boomers … have held stead or increased during the Great Recession,” RealtyTrac notes in its report.

The metros expected to potentially see the most boomerang buyers over the next eight years are: Phoenix-Mesa-Scottsdale, Ariz.; Miami-Fort Lauderdale-Pompano Beach, Fla.; Detroit-Warren-Livonia, Mich.; Chicago-Naperville-Joliet, Ill.-Wis.; and Atlanta-Sandy Springs-Marietta, Ga.

Source: “Housing Market Recovering in 2015,” RealtyTrac (March 25, 2015) and “Get Ready for the Return of 7.3M Ex-Owners,” REALTOR® Magazine Daily News (Jan. 27, 2015)

 

I read this article at: http://realtormag.realtor.org/daily-news/2015/03/31/dont-ignore-boomerang-buyers?om_rid=AACmlZ&om_mid=_BVGuesB9AWZZa1&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

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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