Category: Retirement

The recent changes in home prices are top of mind for many as the housing market begins gearing up for spring. It can be hard to navigate misleading headlines and confusing data, so here’s what you should know about today’s home prices.

Local price trends still vary by market. But looking at national data, Nataliya Polkovnichenko, Ph.D., Supervisory Economist at the Federal Housing Finance Agency (FHFA), explains:

“U.S. house prices were largely unchanged in the last four months and remained near the peak levels reached over the summer of 2022. While higher mortgage rates have suppressed demand, low inventories of homes for sale have helped maintain relatively flat house prices.”

Month-over-month home price changes can be seen in the chart below. The data also shows that price depreciation peaked around August. Since then, any depreciation has been even milder. In other words, today’s home prices aren’t in a freefall.

Wondering What’s Going on with Home Prices? | Simplifying The Market

What Does This Mean for You?
If you currently own your house, you may be concerned about even the smallest decline in prices. But keep in mind how much home values grew over the last few years. Compared to that growth, any declines we’re seeing nationally are likely to be minimal. Selma Hepp, Chief Economist at CoreLogic, shares:

“. . . while prices continued to fall from November, the rate of decline was lower than that seen in the summer and still adds up to only a 3% cumulative drop in prices since last spring’s peak.”

It’s also important to remember that every local market is different. That’s why it’s essential to lean on an expert for the latest information on the home prices in your area if you’re planning to make a move this spring.

Bottom Line
To understand what’s going on with home prices in your market and how they could impact your goals, contact us today!

When you’re selling any item, you usually want to sell it for the greatest profit possible. That happens when there’s a strong demand and a limited supply for that item. In the real estate market, that time is right now. If you’re thinking of selling your house this year, here are two reasons why now’s the time to list.

1. Demand Is Very Strong This Winter
A recent article in Inman News explains:

“Spring, the hottest time of year for homebuyers and sellers, has started early, according to economists. . . . ‘Home shopping season appears to already be in full swing!’”

And they aren’t the only ones saying buyers are already out in full force. That claim is backed up with data released last week by ShowingTime. The ShowingTime Showing Index tracks the average number of monthly buyer showings on active residential properties, which is a highly reliable leading indicator of current and future trends for buyer demand. The latest index reveals this December was the most active December in five years.

As the data indicates, buyers are very active this winter. Last December saw even more showings than December of 2020, which was already a stronger-than-usual winter. And remember – you want to sell something when there’s a strong demand for that item. That time is now.

2. Housing Supply Is Extremely Low
Each month, realtor.com releases data on the number of active residential real estate listings (listings currently for sale). Their most recent report reveals the latest monthly number is the lowest we’ve seen in any January since 2017.

And don’t forget, the best time to sell an item is when there’s a limited supply of it available. This graph clearly shows how extremely low housing supply is today.

Even Though Supply Is at a Historic Low, Home Sales Are at a 15-Year High
According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), existing-home sales totaled 6.12 million in 2021 – the highest annual level since 2006. This means the market is hot and homeowners are in a great place to sell now while sales are so strong.

NAR also reports available listings by calculating the current months’ supply of inventory. They explain:

“Months’ supply refers to the number of months it would take for the current inventory of homes on the market to sell given the current sales pace.”

The current 1.8-months’ supply is the lowest ever reported.

The ratio of buyers to sellers favors homeowners right now to a greater degree than at any other time in history. Buyer demand is high, and supply is low. That gives sellers like you an incredible opportunity.

Bottom Line
If you agree the best time to sell anything is when demand is high and supply is low, contact to discuss listing your house today.

Intend to put your Naperville home up for sale soon? You probably want to sell it quickly and at a reasonable price. Alongside the incentives that drive homeowners to sell, we can’t ignore the marketing and financial benefits of home staging. First, staging your home allows you to showcase your home in the best possible light. The goal is to impress the buyers and show them what your home has to offer. Not to mention staged homes perform considerably better in terms of pricing and raising interest. So much so that around 50% of buyers’ real estate agents in the US note that staging has a massive impact on buyer’s perception of the home. Hence, we will put forward a few home staging tips for sellers in Naperville to help you out!

Home staging isn’t decorating

A common misconception that sellers make is to assume that home staging is essentially the same as redecorating. There are a few reasons why this line of thinking is detrimental. First of all, good staging can be done with a lot less than what you would need to redecorate the home. The point is to highlight the advantages of the house and obscure the flaws. It is not necessary to invest too much money into home staging. After all, you are probably more eager to update the home you are moving into rather than your old home.

Fix the home first, then embellish

It is better to focus your budget and energy on fixing structural flaws and other maintenance projects. Rather than invest money into pure aesthetic updates, it makes more sense to improve or eliminate anything that the buyer might have to fix on their own. They will undoubtedly deduce the cost of the repairs from the asking price. So, it makes sense to think ahead and spruce up the property before the showings.

You don’t need to stage the entire home

According to some estimates, the room staged most frequently is the living room, followed by the kitchen, and then the bedroom. And this makes perfect sense. These rooms comprise the area where the buyer is likely to spend most of the time. If your staging budget is limited, you should invest in fixing these rooms.

One of the important home staging tips for sellers in Naperville is to start in the living room and kitchen.

As for the rest of the property, you can organize a thorough cleaning spree to make up for the fact they are not staged. Likewise, if you don’t have enough money to purchase new appliances, make sure they are squeaky clean and, thus, presentable, if not new.

Home staging should be depersonalized

As much as it might seem counterintuitive, observing home staging as akin to decorating might lead to another mistake – making decorative choices guided by your preferences. On the contrary – you should aim to appeal to the broadest possible number of people. And that is achieved most easily if you stick to universally attractive, tasteful decorative choices. So, as much as you like quirky artwork or something like hunting memorabilia, your buyers might find it tacky or even insulting.

Remember – the point of home staging is to give the buyer an idea about what living in the home is like. So, the buyer needs to visualize themselves and what their life may look like in that home. As many as 82% of buyers report that staging promotes this kind of visualization.

The purpose of staging is to help the buyers visualize themselves in the home.

Hence, it would be best to avoid staging that involves colors, decoration, or furniture that is too distinctive or creative. Unfortunately, the buyer might associate negative feelings with your home only because they didn’t like something irrelevant such as a painting or a carpet. That is why you use neutral colors, minimalist furniture pieces, and interesting but still universally appealing decoration.

A thorough declutter can be very helpful for sellers in Naperville

Decluttering and selling off your old belongings can be a step towards a well-staged home. Having too many things on your property can obscure your home’s good assets and features. Instead, the sheer number of things might even create a chaotic, messy vibe. Not to mention the rooms might appear to be much smaller than they actually are. All of this definitely does not work in your favor when selling.

Fewer items make the home appear more spacious.

Decluttering is also a great way to downsize your belongings to an amount that you can easily move. Managing a long-distance relocation in a state such as Illinois after you finally sell your home should go very smoothly if you have fewer things to pack and move. Of course, an experienced moving crew is more than enough to transfer household items quickly. Still, a thorough declutter is undoubtedly an excellent way to reduce the workload that awaits when you start planning your relocation.

Home staging tips for sellers in Naperville – delivered

Even if your home fits into the lower price range category, home staging has the power to ensure more exposure. It can even give your home a head start if it lacks some of the qualities that buyers look for in a home. Sometimes, sellers are reluctant to invest the money necessary to stage the home despite this fact. The reason is that inexperienced sellers sometimes fail to observe the home’s potential.

As much as organizing home updates and furniture necessary to stage the home might seem like a waste of time and money, the benefits you will reap from it will make that effort worthwhile. That is why it makes sense to apply some of these home staging tips for sellers in Naperville!

There’s a lot to consider when you’re looking for your new home. You should probably decide in advance how many bedrooms or bathrooms you’re looking for. However, that doesn’t have to be a dealbreaker because you can always remodel a home or add more rooms. What you can’t change about your new home, though, is the neighborhood. The neighborhood in which you buy a house affects not just your capacity to enjoy it but also your potential to watch its value increase over time. Whether your property is in the most desirable neighborhood in the region or one that is expected to improve in the coming years, it’s critical to keep an eye on the features of the area that indicate you’ll have interested buyers when the time comes to sell. So, in this article, we will go over some of the neighborhood amenities you need to look for when buying a home.

How To Find A Good Neighborhood

It’s easy to get caught up in the excitement of finding a home that fulfills all of your desires. However, real estate experts say it’s more vital to pay attention to the neighborhood. After all, you can remodel and repair a house, but you can’t change its location. That means you also can’t change your neighbors or the community’s feel. So, it all comes down to one thing when determining which neighborhood to pick: research. You can rely on your real estate agent to point out essential features and learn about homeowners’ association laws, but you can’t rely on them for everything. To get the best information, you’ll need to put in the work yourself.

Shops

First of the many neighborhood amenities to look for when buying a home is the proximity of grocery stores and other markets. Unless you get your groceries delivered regularly, you’ll undoubtedly go to the market at least once a week. Having access to good food is a desirable bonus for most homeowners, and it may impact the value of your property. Moreover, a neighborhood’s accessibility to retail businesses might be an indicator of future growth.

Schools

Even if you don’t have children, purchasing a home in a neighborhood with excellent schools might be a wise investment. This is because schools have a significant impact on a home’s resale value. Moreover, just because you don’t have kids right now doesn’t mean you never will. If you’re a first-time buyer, it might be wise to think a few years into the future and plan ahead. An easy way to research school quality is to go to the local school district’s site and download the report cards for all nearby schools.

Parks & Green Spaces

Parks and green areas are another amenity to search for in a neighborhood. These are wonderful areas for kids to play, exercise, and learn about nature. Since the start of the pandemic, they’ve become even more crucial, allowing individuals to safely leave the house and get some fresh air.

Fitness Centers

Are there any fitness facilities near the house you wish to buy? If you care about your fitness, you should look into local gyms, especially if you don’t want to work out outside. When it comes time to sell, being close to a state-of-the-art gym might be quite appealing to many purchasers. Furthermore, being close to great local gyms might inspire you to start working out more.

Entertainment & Leisure Facilities

Is there a movie theater, a bar, a museum, a sports field, or a swimming pool near your potential future home? Entertainment facilities, particularly for young people, bring a community to life. However, this isn’t only important to the younger crowd. Everyone needs time away from their hectic activities to unwind and enjoy themselves with their family and friends. So, if you’re thinking of buying a retirement home, this is also something you should look into. Living near facilities such as these will keep you active over the years.

Healthcare Facilities

Access to a hospital is crucial when choosing a house to buy. All people, but especially children and seniors, require quick access to medical care. In the event of an emergency, you need to know that you can get medical help swiftly.

Public Transportation

Most people commute from one location to another every day. That’s why access to public transportation is very important to some buyers. Public transportation is a crucial enhancement for every community, from commuting students to employees who wish to get from home to work. Furthermore, as more individuals choose sustainable lives, demand for nearby public transportation has increased in the past few years. This is because, in order to save money and reduce pollution, more individuals are leaving their own cars in favor of trains and buses.

Renovating A House In A Good Neighborhood

Like we said before, while the location is very important, the house itself can be changed over time to better suit your needs. Many people prefer buying a fixer-upper in a good neighborhood and renovating it after their wishes. This can be a better, more profitable solution. However, it can also be a challenge if you live in the house while you’re renovating. All your stuff can get in the way, and you might have to move it around the house to finish all the work. Luckily for you, there is a solution for items in your way. You can always rent out a storage unit to store your excess items during the renovation.

In Conclusion

When you buy a home, you are purchasing more than just the structure of a house. You’re also picking the neighborhood in which you’ll spend the next few years of your life. Your neighborhood has a significant influence on both your quality of life and the value of your house. That’s why it’s crucial to know what neighborhood amenities to look for when buying a home. Even if you don’t plan on using all those amenities, it’s good to have them in mind.

The housing market keeps sailing along. The only headwind that could take it off course is the lack of inventory for sale. The National Association of Realtors (NAR) reports that there were 410,000 fewer single-family homes for sale this March than in March of 2020. The key to continued success in the residential housing market is for more listings to come on the market. However, many homeowners are concerned that selling their homes could be challenging for several reasons.

Recently, Homes.com released the findings of a survey that identified these concerns, as well as what it will take for homeowners to feel comfortable selling their houses. Here are the four major homeowner concerns and a quick explanation of what’s actually happening in the housing market today.

1. Homeowners don’t know if they’ll be able to secure their next home before selling.
In negotiations, leverage is the power that one side may have to influence the other side while moving closer to their negotiating position. A party’s leverage is based on the ability to award benefits or eliminate costs on the other side.

In today’s market, buyers have compelling reasons to purchase a home now:

To own a home of their own
To buy before prices continue to appreciate
To secure a mortgage at a historically low rate, while they last
These buyer needs give the seller tremendous leverage. Most already realize this leverage enables the homeowner to sell at a good price. However, this leverage may also be used to negotiate time to find their next home. The homeowner could sell their home to the buyer at today’s price, which will enable the purchaser to take advantage of current mortgage rates. In return, the buyer might lease the house back to the seller for a pre-determined length of time while the seller finds a new home or has one built.

This gives the buyer what they want while also giving the seller what they need. It’s a true win-win negotiation.

2. Homeowners don’t know if their current home will sell for the asking price or top market price.
This is the perfect time to maximize profits while selling a house. NAR just released a study showing that bidding wars are at an all-time high. The study reveals that when comparing the first quarter of last year to the first quarter of this year, the number of offers on homes for sale doubled from an average of 2.4 to 4.8 offers.

Whenever there’s a bidding war, the price of the item for sale escalates. Bloomberg recently reported:

“For the first time ever, the average U.S. home is selling for above its list price.”

If a seller is looking for a top-dollar sale, there’s no better time to sell than right now.

3. Homeowners don’t know if they will get an offer without their home requiring work or updates.
Again, leverage is the greatest strength a seller has in this market. Due to the lack of homes for sale, many buyers are more willing to take on home improvement projects themselves in order to get the home they’re after.

A recent post on whether or not to renovate before selling notes:

“It may be wise to let future homeowners remodel the bathroom or the kitchen to make design decisions that are best for their specific taste and lifestyle. As a seller, your dollars and time might be better spent working on small cosmetic updates, like refreshing some paint and power washing the exterior. Instead of over-investing in your home with upgrades that the buyers may change anyway, work with a real estate professional to determine the key projects that will maximize your listing, without overdoing it.”

If a seller is worried about doing work or updates on their home, they must realize that today’s historically low inventory likely renders these projects less critical to the sale of the house.

4. Homeowners don’t know if they can have a quick closing process.
When speed is important, there are two points sellers should look at:

The time it takes to find a buyer for the home
The time it takes to close the transaction
In the latest Existing Home Sales Report, NAR explains:

“Properties typically remained on the market for 18 days in March, down from 20 days in February and from 29 days in March 2020. Eighty-three percent of the homes sold in March 2021 were on the market for less than a month.”

Eighteen days is fast, and it’s a new record. Here are the days the average house is on the market in each state:
4 Big Incentives for Homeowners to Sell Now | Keeping Current Matters
Regarding the time it will take to close the transaction, all-cash sales accounted for 23% of all home purchase transactions in March. All-cash sales can usually be closed in thirty days.

If a mortgage is necessary, the most recent Origination Insight Report from Ellie Mae shows:

“Time to close all loans decreased in March. The average time to close a purchase fell to 51 days, down from 53 the month prior.”

If you’re looking for a quick closing process, there’s never been a market in which the two-step process (finding a buyer and closing the deal) has taken less time.

Bottom Line
Selling your house can be daunting, especially in a fast-paced market. However, the fact that we’re in such a strong sellers’ market clearly eliminates many common concerns. Contact a real estate professional today to learn more about the opportunities for homeowners who are ready to sell.

The housing market recovery coming into the new year has been nothing short of remarkable. Many experts agree the turnaround from the nation’s economic pause is playing out extremely well for real estate, and the current market conditions are truly making this winter an ideal time to make a move. Here’s a dive into some of the biggest wins for homebuyers this season.

1. Mortgage Rates Are Historically Low
In 2020, mortgage rates hit all-time lows 16 times. Continued low rates have set buyers up for significant long-term gains. In fact, realtor.com notes:

“Given this means homes could cost potentially tens of thousands less over the lifetime of the loan.”

Essentially, it’s less expensive to borrow money for a home loan today than it has been in years past. Although mortgage rates are expected to remain relatively low in 2021, even the slightest increase can make a big difference in your payments over the lifetime of a home loan. So, this is a huge opportunity to capitalize on right now before mortgage rates start to rise.

2. Equity Is Growing
According to John Burns Consulting, 58.7% of homes in the U.S. have at least 60% equity, and 42.1% of all homes in this country are mortgage-free, meaning they’re owned free and clear.

In addition, CoreLogic notes the average equity homeowners gained since last year is $17,000. That’s a tremendous amount of forced savings for homeowners, and an opportunity to use this increasing equity to make a move into a home that fits your changing needs this season.

3. Home Prices Are Appreciating
According to leading experts, home prices are forecasted to continue appreciating. Today, many experts are projecting more moderate home price growth than last year, but still moving in an upward direction through 2021.

Knowing home values are increasing while mortgage rates are so low should help you feel confident that buying a home before prices rise even higher is a strong long-term investment.

4. There Are Not Enough Homes for Sale
With today’s low inventory of homes on the market, which is contributing to this home price appreciation, sellers are in the driver’s seat. The competition is high among buyers, so homes are selling quickly.

Making a move while so many buyers are looking for homes to purchase may mean your house rises to the top of the buyer pool. Selling your house before more listings come to the market in the traditionally busy spring market might be your best chance to shine.

Bottom Line
If you’re considering making a move, this may be your moment, especially with today’s low mortgage rates and limited inventory. Reach out to us today to get set up for homebuying success in the new year.

Every day in the U.S., roughly 10,000 people turn 65. Prior to the health crisis that swept the nation in 2020, most people had to wait until they retired to make a move to the beach, the golf course, or the senior living community they were looking to settle into for their later years in life. This year, however, the game changed.

Many of today’s workers who are nearing the end of their professional careers, but maybe aren’t quite ready to retire, have a new choice to make: should I move before I retire? If the sand and sun are calling your name and you have the opportunity to work remotely for the foreseeable future, now may be a great time to purchase that beach bungalow you’ve always dreamed of or the single-story home in the sprawling countryside that might be a little further out of town. Whether it’s a second home or a future retirement home, spending the next few years in a place that truly makes you smile every day might be the best way to round out a long and meaningful career.

Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains:

“The pandemic was unexpected, working from home was unexpected, but nonetheless many companies realized that workers can be just as productive working from home…We may begin to see a boost in people buying retirement homes before their retirement.”

According to the 20th Annual Transamerica Retirement Survey, 3 out of 4 retirees (75%) own their homes, and only 23% have mortgage debt (including any equity loans or lines of credit). Since entering retirement, almost 4 in 10 retirees (38%) have moved into a new home. They’re making a profit by selling their current homes in today’s low inventory market and using their equity to purchase their future retirement homes. It’s a win-win.

Why These Homeowners Are Making Moves Now
The health crisis this year made us all more aware of the importance of our family and friends, and many of us have not seen our extended families since the pandemic started. It’s no surprise, therefore, to see in the same report that 32% of those surveyed cited the top reason they’re making a move is that they want to be closer to family and friends (See graph below):
Should You Buy a Retirement Home Sooner Rather than Later? | Keeping Current Matters
The survey also revealed that 73% percent of retirees currently live in single-family homes. With the overall number of homes for sale today hitting a historic low, and with the buyer demand for single-family homes skyrocketing, there’s never been a more ideal time to sell a single-family home and make a move toward retirement. Today’s market has the perfect combination of driving forces to make selling optimal, especially while buyers are looking to take advantage of low interest rates.

If you’re one of the 73% of retirees with a single-family home and want to move closer to your family, now is the time to put your house on the market. With the pace homes are selling today, you could essentially wrap up your move – start to finish – before the holidays.

Bottom Line
Whether you’re looking to fully retire or to buy a second home with the intent to use it as your retirement home in the future, the 2020 fall housing market may very well work in your favor. Reach out to a local real estate professional today to learn more about the options in your local market.