Category: Uncategorized

By Susanne Dwyer

Listing inventory is taking a critical hit, with 9 percent fewer for-sale homes on the market now than one year ago, a slump not seen in four years, according to the May Zillow® Real Estate Market Reports. The Columbus, Ohio, San Jose, Calif., and Minneapolis, Minn., markets have seen the steepest declines, at around 30 percent.

Supply continues to drag behind demand due to a convergence of several conditions, says Zillow Chief Economist Dr. Svenja Gudell.

“Inventory has been falling for years with supply no longer meeting demand, and there are multiple reasons for the worsening situation,” Gudell says. “On the demand side, simple demographic change is contributing to incredibly high demand as millennials reach their prime home-buying years and begin to enter the market in droves. This is coupled with relatively low levels of new-home construction on the supply side insufficient to keep pace with demand, and what is built is largely priced beyond the reach of many of the first-time and entry-level homebuyers in the market.

“Thousands of single-family homes that were once bought and sold every few years prior to the recession have now been converted into rental properties by investors, trading hands much less frequently and further contributing to inventory shortages,” says Gudell. “And finally, in some still hard-hit markets, negative equity is likely keeping many homeowners of lower-end homes from listing their home for sale because they can’t afford to profitably do so.”

Home values nationally have appreciated 7.4 percent from one year ago, with the median at $199,200, according to the Reports. Values are up 13 percent in Seattle, Wash., from one year ago and roughly 11 percent in Dallas, Texas, and Tampa, Fla.

With homes on-market a mere 77 days in May, buyers can expect to continue experiencing a scramble to snap up supply, Gudell says.

“There is no silver bullet that will clear the market of all of these issues, and buyers frustrated by the status quo will likely have to remain patient and be ready to pounce once that perfect home does become available,” says Gudell.

For more information, please visit www.zillow.com.

For the latest real estate news and trends, bookmark RISMedia.com.

The post Listing Inventory Takes Critical Hit appeared first on RISMedia.

…read more

From:: Finance and Economy

By Susanne Dwyer

Listing inventory is taking a critical hit, with 9 percent fewer for-sale homes on the market now than one year ago, a slump not seen in four years, according to the May Zillow® Real Estate Market Reports. The Columbus, Ohio, San Jose, Calif., and Minneapolis, Minn., markets have seen the steepest declines, at around 30 percent.

Supply continues to drag behind demand due to a convergence of several conditions, says Zillow Chief Economist Dr. Svenja Gudell.

“Inventory has been falling for years with supply no longer meeting demand, and there are multiple reasons for the worsening situation,” Gudell says. “On the demand side, simple demographic change is contributing to incredibly high demand as millennials reach their prime home-buying years and begin to enter the market in droves. This is coupled with relatively low levels of new-home construction on the supply side insufficient to keep pace with demand, and what is built is largely priced beyond the reach of many of the first-time and entry-level homebuyers in the market.

“Thousands of single-family homes that were once bought and sold every few years prior to the recession have now been converted into rental properties by investors, trading hands much less frequently and further contributing to inventory shortages,” says Gudell. “And finally, in some still hard-hit markets, negative equity is likely keeping many homeowners of lower-end homes from listing their home for sale because they can’t afford to profitably do so.”

Home values nationally have appreciated 7.4 percent from one year ago, with the median at $199,200, according to the Reports. Values are up 13 percent in Seattle, Wash., from one year ago and roughly 11 percent in Dallas, Texas, and Tampa, Fla.

With homes on-market a mere 77 days in May, buyers can expect to continue experiencing a scramble to snap up supply, Gudell says.

“There is no silver bullet that will clear the market of all of these issues, and buyers frustrated by the status quo will likely have to remain patient and be ready to pounce once that perfect home does become available,” says Gudell.

For more information, please visit www.zillow.com.

For the latest real estate news and trends, bookmark RISMedia.com.

The post Listing Inventory Takes Critical Hit appeared first on RISMedia.

…read more

From:: Real Estate News

By Susanne Dwyer

Editor’s Note: This was originally published on RISMedia’s blog, Housecall. See what else is cookin’ now at blog.rismedia.com:

• $1 Million a Week, Starting With Quality Leads
• Don’t Let Clogged Gutters Wreak Havoc on Your Home
• Easy Tips to Stage Your Home With Toddlers Around

Buying a luxury home isn’t as straightforward a process as one might think. This market has a lot more variables when it comes to each property, making it difficult to establish an exact market value on a home. That being the case, buyers may wonder if they’re getting a fair price on a luxury piece of property. If you’re in the expensive real estate market, here are some steps to take to ensure that the price for your home is fair.

Compare
It should be said that comparing two luxury homes isn’t the same as comparing other types of real estate. When you buy a “normal” home, your REALTOR® will look at similar homes in the area, keeping in mind the number of bedrooms, bathrooms, etc. Luxury homes aren’t built with that in mind. When you compare these types of homes, you may want to look at features like great views (if it’s a penthouse, for example), privacy, sports features, etc. This gives you an idea of what’s on the market.

Know What You’re Looking For
Once you’ve looked at a couple of properties and have had a chance to compare them, you should be able to develop a “must-have” list. Think about your financing options as well. All of these will become a factor once you’re ready to buy.

Hire an Expert
Like any other profession, the real estate market has professionals that specialize in high-end homes in certain areas. These REALTORS® know what properties in the area are going for and how to find good deals.

Additionally, real estate professionals can tell you what types of transportation amenities are in the area. This is especially important if you’re moving into an area that’s very different from your current location. Hiring someone who knows how the flow of a geographic area works will be better able to steer you toward a good location.

Timing and Motivation
Once you’ve done the first three steps, you’ll finally want to start narrowing down the properties you’re looking at. It’s at this time that you’ll be able to make an offer on a home and, more importantly, hopefully, get it at a fair price.

Luxury homebuyers should consider the timing of their purchase. They may be able to get a better deal on a home in the winter than in the summer. The same can be said for homes that go up for sale at the end of the year. These homeowners may want to get rid of the property by year’s end for tax purposes.

Additionally, you may also be able to secure a luxury home at a reasonable price if the seller is motivated to sell—but be warned. Homes priced to sell go fast, in sometimes as little as two weeks. If you find a luxury …read more

From:: Real Estate News

Home prices increased across the U.S. to a new all-time high, according to Black Knight’s Home Price Index. One state stands out above the rest as it contains five of the top six metros with the most home price acceleration in April. …read more

From:: Real Estate Wire