Goodbye 2017

Will we continue to see a strong Real Estate Market in 2018?

The signs are good that our local Real Estate market in Oroville will continue to be vigorous.  The “signs” being the Multiple Listing Service that I look at daily and the various reports and media blurbs that point to a pretty strong economy as well as the growth in infrastructure that I see happening around town.  It is unclear what impact the new tax laws will have on our local market, but from what I have read and heard, I don’t see a huge change in the buyer and seller motivations.  It will be interesting to see if the “disasters” of 2017  (Spillway and Dam problem and horrendous wild fires) will have any sustaining impact on our housing market.  We saw a MAJOR jump in rental demand as the workers were hired on 2 year contracts to do Dam repairs as well as the housing demand from families displaced in the fires.  The interesting thing to note from the spillway incident was the lack of demand from homeowners living in the potential dam failure areas to relocate to properties that were above the dam.  There really was not the large influx of listings in the “lowlands” that I expected.  The Oroville Real Estate market continues to surprise and fascinate me just as it has for over 15 years now.  I am honored to be a part of this towns growth and a witness to the spirit and determination of its residents.  Bring it on 2018, we are ready!


2016 Will Bring Good News for Potential Homebuyers

Redfin: 5 housing predictions for next year

Next year isn’t predicted to bring any giant hoopla to set off the market. However, moderate growth is more sustainable, and better for buyers.

According to Redfin’s forecast for 2016, “Most economists agree that housing prices and sales will continue to grow in 2016, just at a slower pace. Call it a slowdown, but not bad news.”

The New Year doesn’t bring all good news, with some bad tossed in the mixed. Overall, Redfin said, “All things considered, we see a fairly uneventful housing market next year.”

Here are Redfin’s five housing market predictions for 2016:

1. Prices and sales will grow half as fast

As price growth ebbs and mortgage rates rise, more homeowners will stay put. Sales will grow about half as fast as they did this year and prices will rise at a more normal 3.5% to 4.5%, down from almost 6% this year.

According to a recent report from RealtyTrac, for more than a third of the nation’s major metro areas, home prices have reached all-time highs in 2015.

2. Easier Credit

Americans for whom a mortgage has been just out of reach will have a better shot at qualifying for one in 2016.

Lenders will embrace new ways to measure creditworthiness and mortgages will evolve to serve a changing American household. For example, credit scores will better evaluate a person’s rental history and utility bill payments. More loans will allow buyers to include income from room rentals, live-in parents and extended-family members.

In a significant move for housing regulation, last week a bill was introduced in the House of Representatives that would allow Fannie Mae and Freddie Mac to consider alternative credit-scoring models beyond the FICO credit score the government-sponsored enterprises currently use when determining what loans to purchase.

3. More (and older) first-time buyers

We expect first-timers to make up a bigger portion of the market than they did this year. The reason is simple: The market will be more welcoming to them thanks to the aforementioned slowing price growth and easier access to loans. This year’s market dropouts have saved for bigger down payments and will be ready to give the market another shot early next year. And more of those millennials who had been holding off on buying for various reasons will finally be ready and able to in 2016.

In the Mortgage Bankers Association’s housing report that looks at the future decade, Lynn Fisher, MBA’s vice president of Research and Economics, said, “Improving employment markets will build on major demographic trends – including maturing of Baby Boomers, Hispanics and Millennials – to create strong growth in both owner and rental housing markets over the next decade.”

4. Slower market, slowing closings

The 2015 housing market was the fastest we’ve seen at Redfin. From January to October, the typical home was on the market for 36 days, four days faster than the same period in 2014. We expect the market to slow in 2016 as government-backed loans become more common and cash sales become less so. Because of low inventory, bidding wars will still be in force next year, but there will be a lower ceiling on price escalation as 2016 buyers won’t be willing or able to go as high as buyers have in recent years.

To help, here are a few tips from Minnesota Realtor Craig Kamman to help win a bidding war. On example he listed is to offer full price or more. Money is a major factor in a seller’s decision, but not the only one.

5. Continuing inventory shortage

The biggest risk to the 2016 market will be the continuation of inventory shortage, especially in the affordable segment of the market. The number of homes for sale shrank from 2014 to 2015 in 45 of the 60 metro tracked by Redfin. Inventory across all 60 metros is down 4 percent from a year ago.

The most recent pending home sales report from the National Association of Realtors said that sales have plateaued this fall as buyers struggle to overcome a scant number of available homes for sale and prices that are rising too fast in some markets.

Brena Swanson December 14, 2015

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4 Buyer Beliefs that are Hard to Break

The vast amount of online home buying “education” can have its drawbacks. Yes, the Internet is chock-full of all sorts of information that can help homebuyers learn about the process. The down side is the online search experience can cause many homebuyers to develop all sorts of dangerous pre-conceived notions about the home buying process.

Here are 4 of the most common buyer beliefs you’re up against and ideas for how to go about handling these untrue hypotheses.

1. “Agents don’t do much… just open the doors and write a contract.”
The general perception may be that the real estate agent simply sets appointments, opens lockboxes, and shows homes. Clearly, that is just a tip of the iceberg. San Diego County Realtor® Jovani Ruiz has a handy list of 199 things that exclusive buyer’s agents do for their clients. “At our first meeting,” Ruiz states, “I provide them with some information about the buying process, and I include my list. I spend a few minutes reviewing the items in my buyer’s packet. I even joke about how some people don’t think I do much, and then I point out the list.” By addressing the elephant in the room, Ruiz is able to combat that inaccurate buyer belief.

2. “I need to see everything on the market at my price before I can make a decision.”
Buyer’s agents definitely don’t like to hear this because it means that an offer may not be forthcoming soon. One of the best ways to manage buyers who want to see everything on the market is to identify and address this notion from the start. It’s easy to understand why cautious buyers like to see everything on the market before making a decision. After all, this is a pretty significant purchase, and it’s important to make the right decision. You can help mitigate this feeling by providing lots of market data about what their dollar will buy.

3. “Someone will accept my lowball offer.”
We’ve all been in the position where the buyer makes lowball offer after lowball offer and continues to lose out on homes as a result. It’s tough for agents to continually write offers for buyers that aren’t willing to be competitive in the current market. Agents may want to show these buyers properties with deferred maintenance that have been on the market for awhile. Or, if a good conversation and market education doesn’t work, it may be time to cut bait.

4. “I know what I can afford. I’ll speak with a lender when I found the house I want.”
It’s not uncommon to hear these two sentences from your prospective buyer. The good news is that the current market is moving very quickly, and buyers need to be able to present a package complete with pre-approval if they want to compete with other buyers. “I use information about the average market time of homes in my area to show my clients the importance of being pre-qualified,” Ruiz states. “In my area, homes are receiving multiple offers in just a few days. If my clients want me to negotiate a good deal, then I need to have all the tools necessary to do that.”

Being prepared to handle tough objections is the key to getting deals closed. In addition to being prepared, it’s a good idea to set expectations accordingly and provide market education at your first meeting. In this way, you can successfully address those buyer beliefs that are hard to break.


Article Featured on Trulia by Melissa Zavala

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