JANUARY 2019
Fedl shutdown making some buyers nervous
Roughly one-tenth of more than 2,000 respondents to a National Association of REALTORS survey conducted 1/13/19 reported an impact on potential and current clients.
Among REALTORS who reported a business impact since the shutdown began three weeks ago, 25% said that they had a buyer who decided to hold off on purchasing a home even though they were not government employees. In addition, 17% of respondents who reported an impact said they have been affected by delayed loans from the U.S.
How Long Can the Housing Boom Last?
But it is time to take notice? How long this will last and where it is heading next are impossible to know now. But it is time to take notice: this is the United States' third biggest housing boom in the modern era.
Since February 2012, when the price declines associated with the last financial crisis ended, prices for existing homes in the United States have been rising steadily and enormously.
According to the S&P/CoreLogic/Case-Shiller National Home Price Index (which Schiller helped create), as of September, the prices were 53% higher than they were at the bottom of the market in 2012.
That means, on average, a house that sold for $200,000 in 2012 would bring over $300,000 in September 2018. Even after factoring in Consumer Price Index inflation, real existing home prices were up almost 40 percent during that period. That is a substantial increase in less than seven years.
The economist Robert Shiller says the rise in housing prices is the third biggest since 1913. The biggest boom ended disastrously in 2006.
Sellers: Stage Your Home for Prospective Buyers
The first thing to do is to get rid of clutter and too much furniture. Take a hard look at what you have and remember, you are moving, so let go of the attachment.
Living Rooms: Make sure the living room has just enough furniture and that it is clean and in good condition. Remove very large pieces in order for the buyer to visualize the room with their things and not yours.
Kitchens: Are the appliances in good working order, clean and new? If not, you may consider replacing or giving a credit. This is the number one area buyers look at.
Baths: The bathroom (s) are the second most important area of the home. Make sure the fixtures are up-to-date and low flow. Check for leaks, caulking issues and worn flooring.
Exterior and Landscaping: Contrary to popular opinion, first impressions can make or break a sale. Some buyers will not even preview a home just by driving to or by. Make sure debris is removed, paint is fresh, lawn is mowed, shrubs & trees are pruned, and add color wherever possible.
Essential Tips for First-Time Homebuyers
The home buying process is full of potential pitfalls and most of those result from making poor decisions, including: choosing the wrong type of home, wrong lender, failing to get a thorough inspection and problems with the title. The last two potential problems can cost you a lot of money and grief!
1. Not Planning Before Purchasing. Like buying a car, don't let one aspect of the home be the sole factor in your buying decision. Sit down with your Realtor & map out a strategy.
2. Not Identifying Opportunities. Before you buy a home at or above market value, find out where the "deals" are.
3. Not Finding the Right Lender. Getting the right type of loan for your situation is critical. The difference truly is the person you work with during the lending process.
4. Failing to Get A Good Title. Nothing can be more draining than buying a home with a "clouded" title.
5. Failing to Get A Good Inspector. Like any profession, there are good inspectors & those who overlook a lot of problems. Make sure you do not buy a house that has structural or other defects. This can cost you!