What’s Happening in Our Local Market?

Here’s what’s been happening in our local real estate market in 2020.

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What will the real estate market remember about 2020? Will it be the fallout from the stay-at-home period that caused a stall in the market? Or will it be the recovery we’re now experiencing?

Real estate is hyperlocal, meaning what’s happening in our local market isn’t what you’re hearing from national news outlets. Despite home sales dropping 1.5% year over year in early 2020, prices have rebounded with an increase of 7.8%, which is a substantial leap. According to the MLS, the average price increased to $155,000 in Montgomery County, $207,000 in Greene County, and $275,000 in Warren County. The economy has come roaring back in many ways, and real estate is leading it all.

The only challenge is the extremely low supply of homes. Comparing 2020 to 2019, there have been 9.75% fewer houses for sale. Coronavirus apprehension has kept some sellers from entering the market because they don’t want crowds of strangers in their homes. Others have declined to move because they’re worried they wouldn’t be able to find a house to buy if their current home sold. .

"What’s happening in our local market
isn’t what you’re hearing from national news outlets."

Going forward, the low inventory will likely stifle the number of houses sold while keeping demand strong, causing prices to continue to increase. In these uncertain times, it’s helpful to sit down and discuss plans with someone experienced in the field.

Give us a call at (800) 722-2585 or send an email soon; let’s talk about your options or find out how much equity you have in your home. Having all the facts will help you decide whether now is the time to move ahead or wait a while longer. If you have any questions, reach out to us as well. We look forward to speaking with you.

Is Now the Perfect Time to List Your Home?

The market is hot right now for buyers and sellers.

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Are you eager to sell your home? The market is flooded with buyers eager to buy it.

According to the latest Freddie Mac quarterly forecast, mortgage interest rates fell to historically low levels during the spring and are projected to remain low. This means there is a huge incentive for well-prepared buyers to strike now. Homeowners looking for eager buyers can take advantage of this opportunity to sell as well.

Not only are mortgage rates low, but there’s also a very positive outlook on interest rates going forward, as a drop to 3.2% could be possible in 2021. Thanks to these low interest rates, buyers keep driving the housing market forward. The rebound in the economy has been uneven, but one segment that’s been exhibiting strength is the housing market.

Even though buyers are ready to purchase, it’s hard for many of them to find a home to buy. Mortgage rates aren’t the only thing hovering near all-time lows—available homes for sale have dropped off. With housing inventory as scarce as it is (down 20% year over year), keeping buyers in the mood to buy may be tough if they can’t find a home to buy.

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The rebound in the economy has been uneven,
but one segment that’s been exhibiting
strength is the housing market.

”

What does this mean for buyers? Competition is hot, so getting pre-approved now will help you gain a competitive advantage and accelerate the home buying process so that you’re ready to go when you find that perfect home. Furthermore, working quickly and efficiently with a trusted real estate professional (like The Tami Holmes Team) will help put you in a position to act quickly.

What does this mean for sellers? The motivation for buyers to purchase a house is as high as ever, so listing now before other sellers come onto the market in your area will put your home on the top of many buyers’ lists. With all of the safety guidelines and precautions in place regarding the showing of your home, confidence is also on your side.

The bottom line is that whether you’re looking to buy or sell, there is great motivation to enter the housing market. If you reach out to us today, one of our team’s experts will help you every step of the way.

If you have any other real estate questions, feel free to reach out to us as well. We’re here to help.

Will Home Values Be Affected by COVID-19?

Here’s a look at how home values could be impacted by the pandemic.

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Everyone wants to know what kind of effect the pandemic will have on home values. Buyers are hoping they drop, and sellers are hoping they rise. The present situation has been referred to as “uncharted waters” for a reason. Will record unemployment push many buyers out of the market? Will buyers or sellers stay put because of the crisis? The answer lies in the basic economic principle of supply and demand.

What the Coronavirus Means for Our Real Estate Market

How has the coronavirus impacted our real estate market?

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Let us first say we hope everyone is staying safe during this coronavirus pandemic. Our thoughts and prayers are with you.

Now, many buyers and sellers are wondering what effect the coronavirus is having on the real estate market. Prior to the pandemic, our market was already a bit challenging. In some areas, the housing supply had dropped to near-record lows.

According to Zillow economist Jeff Tucker, “The housing supply was low, but on the demand side, there is and will be a lot of buyers in the market, based on key indicators of traffic on Zillow and Redfin.”

Why is the demand for housing so high? Low unemployment, solid wage growth, and low mortgage rates. A stock market correction, as concerning as it may be, doesn’t change these circumstances. The housing market is very durable, even in full-blown recessions. In some previous recessions, home prices increased.

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Experts predict equity growth to slow down compared to what it’s been the past few years,
but it’s still a great time to buy or sell a home.

”

Another thing to consider is that, as the stock market drops, investors look for safer places to park their wealth, whether that means the bond market or actual real estate. Roofstock, a platform investors use to buy and sell single-family rentals, has seen huge spikes in web traffic since the coronavirus outbreak. This supports the idea that global investors look for less volatile investment options. If investors think it’s a good time to put money into real estate, maybe we should follow suit.

The coronavirus is the wildcard in our real estate market, and if its impact is prolonged and produces a minor recession, it could put a damper on demand. The bright side is that buyers in competitive markets would have a better chance of getting a home.

We don’t want to induce fear or panic. Based on everything we’ve read, we seriously doubt there will be a drop in home values. Experts predict equity growth to slow down compared to what it’s been the past few years, but it’s still a great time to buy or sell a home.

If you have questions about our market, don’t hesitate to reach out to us. We’re here to calm your fears and assist you in buying your dream home or selling a home that’s no longer a good fit for you. We’re here to help.

Will Our Spring Market Be Stronger Than Anticipated?

Buyer demand has increased dramatically over the past few months, and our spring market will be much stronger than originally anticipated.

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If you’re a seller, are there buyers out there willing to buy your home?

If you’re a buyer, is there a lot of competition out there vying for all available properties?

Let’s answer these questions. Last fall, some predicted that the 2019 residential real estate market would be a disaster. There was even some belief that we’d experience a housing crash similar to the one we saw during the previous decade.

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Whether you’re a buyer or a seller, the advice
and guidance of a real estate expert are invaluable
in terms of getting the best deal possible.

”

However, according to recent reports, buyer demand increased dramatically in the months leading up to our spring market. This increase in demand was caused by an increase in buying power. According to a recent blog post from the NAR, purchasing a home has become more affordable, which has increased demand. Falling home prices and falling mortgage rates also contributed to buyers’ increased buying power.

The bottom line is this: Our spring market will be much stronger than originally anticipated. Whether you’re a buyer or a seller, the advice and guidance of a real estate expert are invaluable in terms of getting the best deal possible, and we’d be happy to give you a free consultation and strategize how you can navigate this market with ease. Just give us a call and we’ll pencil you in.

As always, if you have any other real estate questions, feel free to reach out to us as well. We’d love to help you.

How You Can Take Advantage of Our Inventory Crunch

Our current inventory crunch and the high demand we’re seeing from buyers make now the time to sell quickly and for top dollar.

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Our current market is in the middle of an inventory crunch.

Every winter, families across the country decide if it will be the year they sell their current house and move into their dream home. Mortgage rates hovered right around 4% for all of 2017, which forced many buyers off the fence and into the market, resulting in incredibly strong demand right now.

At the same time, however, inventory has dropped dramatically compared to this time last year. Trulia reported that in the fourth quarter of 2017, inventory decreased by 10.5%. This was the biggest drop we’ve seen since the second quarter of 2013.

If we look at the percentage of change in inventory by category from the fourth quarter of 2016 to the fourth quarter of 2017, we find the following:

- Total homes decreased by 10.5%.
- Starter homes decreased by 19%.
- Trade-up homes decreased by 11.4%.
- Premium homes decreased by 5.9%.

These are very significant numbers. What does this mean for you, though?

Demand for your home was very high and competition has never been lower.

If you’re a seller, this means demand for your home will be very high and competition has never been lower. This is a winning combination, but things will change once the spring market hits and conventional thinking will move many people to list their homes, so get the jump on them now.

We know this is a big decision, so we invite you to sit down with one of the neighborhood experts on our team so they can take a close look at the market in your local area, advise you on repairs you should or should not undertake, calculate your home’s value, and show you how big your check will be at the closing table.

If you have any other questions about our market or any other real estate needs, don’t hesitate to reach out to us. We’d love to help you.

How We’ll Help You Succeed in the 2017 SW Ohio Market

Last year was a great year in the southwest Ohio market and 2017 is shaping up to be even better. Here’s how we can help you take advantage of the market this year.

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As you probably know, 2016 was a strong year for the southwest Ohio real estate market, especially here in our office. We continue to lead the local market, and we’re privileged to have helped more than 300 families with their real estate needs.

This year is off to a fast start as well. As of January 27th, we’ve already sold 46 houses; one every 14 hours. As we look at the broader market in all of southwest Ohio, we find great news for everyone thinking about selling their house. Inventory levels are very low, meaning demand is higher for everyone. We see listed homes get lots of showings from day one and multiple offers are common.

When inventory is below six months of supply, it’s considered favorable for home sellers. Our MLS shows that there’s now less than four months of inventory currently available in our market. If you're selling your house, my advice is not to wait for the spring, when you’ll have to face more competition.

This situation might seem like a problem for home buyers, right? Not necessarily, but it requires a different strategy, along with expert advice and guidance. That’s where our team of experts can help.

Don’t wait for spring to sell when you’ll have to face much more competition.

For example, when homes are in high demand and sell within days of being listed, how should that affect the way you make your offer? We have little-known strategies not used by other agents that we can write into your offer that will give you an advantage over other buyers. This kind of expert advice can be the difference between success and losing out on the home you want to buy. We also give our VIP buyers access to proprietary software for immediate access to all the newest, hottest listings—you’ll hear about them before anyone else.

We can also let you know about great deals coming soon. Since we sell so many homes, we have the inside track on a lot of listed homes. This allows you to be the first to see them when they become available.

We’re really excited about 2017 because it’s going to be a stellar year in the southwest Ohio market. If you have any questions or you’re thinking about buying or selling a home here, give me a call or send me an email. I’m here to help!

What Will Happen If Interest Rates Go Up?

The Fed is expected to increase interest rates in mid-December. How will this decision affect our local real estate market?

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Over the past few months, there has been a lot of buzz about a possible interest rate increase from the Federal Reserve.

First, experts said that the Fed would raise rates in September, but that didn’t happen. Now, everyone expects that rates will increase in mid-December. However, no one knows how much rates will go up.

Rates recently went up as a result of post-election moves made by investors, which gave the banks a chance to bump rates prior to the Fed doing so.  

Even if rates go up, they will still be historically low.

Personally, I think the moves by the Fed are nothing to worry about. This is just another case of people getting nervous while waiting for the test results. If the Fed increases rates, our market will not be affected in a major way. There are three reasons why:

1. Mortgage rates often move independently of the Fed’s rate. An increase in the Fed rate might actually lead to a decrease in mortgage rates. In fact, that’s what happened back when the Fed raised rates in December of 2015.
2. Any increase in rates will probably be small. If the Fed raises rates by a quarter of a percent and mortgage rates increase by the same amount, interest rates will still be historically low.
3. The Fed is concerned with the current shortage in housing inventory. As a result, they will keep the health of the real estate market in mind before taking action.

In short, the real estate market is doing great right now, and it is likely to stay that way regardless of what the Fed decides in December. If you have any other questions about interest rates or about the real estate market in general, give me a call or send me an email. I would be happy to help you!

Strike While the Market Is Hot in Cincinnati and Dayton

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The real estate market data for Dayton and Cincinnati from 2015 is in, so we wanted to take a look at the current status of the market and what we think could happen moving forward this year.

We saw that 2015 was a great rebound year for real estate, and all indications show that spring 2016 is going to our busiest spring in a decade. That’s great news for you and the market.

So what can we expect to affect our market in 2016?

All indications show that interest rates will rise this year. As a buyer, this will greatly affect your buying power. As a seller, it will greatly affect the number of buyers in the market who can afford your home. A recent Zillow study found that 70% of buyers said this rise in interest rates would not affect their decision to buy a home at this time.

That’s good news, but it also means that 30% of buyers would delay their decision to buy a home, or they would greatly downscale the price they’re willing to pay for a home.

If I was a buyer, I would buy a home immediately before the prices go up and the interest rates go up. If I was a seller, I would get my home on the market right away while there’s still a large number of buyers on the market.

There’s going to be a lot going on in 2016 and it’s going to be a great year for real estate. For most buyers and sellers, now is the perfect time to act.

Thanks for watching. For a free real estate consultation, please call or email and we’d be happy to work with you.