November 2021
The housing crisis will continue if we fail to address the root cause
The nation faces a dramatic housing shortage, sending home prices and rents through the roof all over the country. The spike in housing costs is making it harder for some to buy their first home and for others to afford their rent, increasing demand for subsidized housing and widening the wealth gap between renters and homeowners. It is also forcing more families to live farther from jobs, increasing commute times, undermining labor force participation, and slowing economic growth.
Since the days following the financial crisis more than a decade ago, the nation has built far too few homes to meet demand. The shortfall is currently close to 1.8 million homes (180,000 in California) -- or roughly the number of homes built in an entire year -- leading to a record low vacancy rate for homes for sale and close to a record for homes for rent.
While the imbalance between supply and demand is unfortunately not new, the opportunity to do something about it is. For the first time in decades, Congress is discussing a dramatic increase in domestic spending to address the wide range of social and economic needs facing the nation. If there were ever a moment to balance the increasingly burdensome shortfall in housing supply, this is it. That way, fewer families need a subsidy to pay their rent, and more can buy their first home.
Housing inventory reaches a new high
According to Realtor.com, buyers have more options than ever with inventory rising. Their Housing Report for the month of September 2021 revealed active listings climbed to 646,053. While national inventory outside of their site is still down overall, the previous figure (a high for 2021) still represents a great time to buy. What this means in Q4 and into 2022 is still unknown. However, we may look back and realize this was the start of things cooling down.
Another reason that a cooling trend may be here could be home prices. While inventory has perked up, so have housing (and rent) prices over the last year. As a result, we are seeing many homes are pricier now compared to a couple of years ago-17% higher on average, according to Zillow. With all this in mind, coupled with interest rates for a 30-year fixed also reaching a new high since June (today above 3%) means one thing: Now is a better time than ever in the last year or so to buy a home or invest in a second home.
Bidding wars hit lowest level of 2021
Homes are still selling at a quick pace, but the number of bidding wars for individual listings is on the decline this fall. And as mortgage rates rise further, bidding wars are expected to continue to slow down. Only 58.9% of home offers faced competition in September, the lowest level for 2021 so far, according to a market index produced by Redfin based on offers written by its agents. That's down from a peak of 74.3% in April. September also marked the fifth consecutive month of declines in bidding wars. Source: Redfin
Poor landscaping can decrease property values by up to 30%
According to a new Trees.com survey of 1,250 licensed U.S. real estate agents, there is one way to decrease a home's value-neglect your home's landscaping and hardscaping. There is no question that landscaping elements like trees, grass, and flowers add a lot of visual appeal to a home, but just how much does their absence affect what a home is worth? According to 43% of real estate agents, poor landscaping has a "very" negative impact on a home's value. Another 35% say it will "somewhat" impact how much a home is worth.
Landscaping provides potential buyers with a first impression of a home. When a buyer observes a neglected lawn, or a home without any additional curb appeal, they immediately get the idea that the home was not well-maintained. They set a value of the home in their mind based on that, and it is usually not a competitive price. On the other hand, a neat, clean lawn puts the buyer's mind at ease.
Hardscaping, which refers to all the non-living aspects of an outdoor design, such as structural or decorative elements, is also important. Forty percent of real estate agents say poor hardscaping has an extremely negative impact on a home's value, while 38% say it has a somewhat negative impact. A well-designed outdoor space is even more important now due to how much time families are spending at home.
Benefits of Marketing Your House During the Holidays
When you market a home during the holidays, the inventory of competing houses decreases significantly. Many sellers remove or delay their listings during the holiday season. This means homes remaining on the market are shown to the most serious buyers who make home shopping a priority at this time. During the holidays, a home may not be viewed by as many prospective buyers, but these will be serious buyers with serious money. Serious buyers making serious purchase offers.
You may just attract a buyer wanting to make a present of a new home to their family this holiday season. Or they might want to move quickly to have extended family and friends over for Thanksgiving, Christmas, or New Year in their new home. Couples also become engaged for a spring wedding during the winter holidays. Some will be in the market for a home before the year is over.
If you have been considering listing your house or already have it listed for the holidays, there are many reasons to follow through with the listing or take advantage of the season to best market your home when there is less competition. Even if you would rather wait until after the rush of the holidays, it makes sense to meet with an agent now, so that you are prepared to be first to market when the holiday season ends. Rarely does a house go on the market without some important preparations, so that makes it better to know what to expect now rather than waiting and missing an early opportunity.
Trivia: Are veggie chips better? NO!
It sounds too good to be true: bags of crispy chips that are really vegetables in disguise. Some brands are made from sliced-up sweet potatoes, yucca, and parsnips. But the truth is, aside from a few brands containing a little more potassium, veggie chips are pretty much a nutritional equivalent to their fried potato cousins.
Some brands of veggie chips might have slightly fewer calories and less saturated fat than traditional potato chips, but not by enough to make a substantial difference. You are not getting a huge bang for your buck, states a Harvard women's medical study. Don't fool yourself that veggie sticks are healthier.
I know, I know what has this got to do with real estate you ask... nothing, just thought it would be fun!!
September vs October Stats for Santa Cruz, Monterey & the Bay Area
Comments: All 3 counties showed a steady decline in new listings month over month. Santa Cruz and Monterey counties showed stability in sales while Santa Clara continued to decline. Median prices slightly declined in Santa Cruz and Monterey while increasing month to month in Santa Clara. The days on the market ticked up a bit and list to sale price ratio ticked down. Display of MLS data is deemed reliable but is not guaranteed accurate by the MLS.
