Meet Izzy and Blake! Izzy, Blake, and their mom, Jesi, worked tirelessly to find the perfect house in the perfect location. Over a 4 month period we wrote no less than 6 contracts. This market is tough! All offers were multiple and our bid was never accepted until Jesi drove by a home for rent. By just asking if the owner would be willing to sell, Jesi now had an opportunity to purchase a home and have a chance at actually winning the bid. And she DID! The transaction wasn’t without challenges but we sailed through them with patience and grace. Lots of folks helped in that process – Jerry Summers with Farmers Bank and Dolly Peay with Venture Title. We couldn’t have done it without them and I’m thankful for a great TEAM of folks to work with. You never will know the answer until you ask the question! So thankful you drove by there Jesi! Sometimes the answer is YES!
Many real estate economists have called on new home builders to ramp up production to help relieve the shortage of inventory of homes for sale throughout the United States. The added inventory would no doubt aid buyers in their search to secure their dream home, while also helping to ease price increases throughout the country.
Unfortunately for builders, there are many forces that are making it difficult for them to do just that!
Last week at the National Association of Real Estate Editors 51st Annual Conference, CoreLogic’s Chief Economist Frank Nothaft broke down the 4 ‘L’s of New Home Construction: Lots, Labor, Lumber, and Lending.
The concept of supply and demand is ripe in the new home construction industry. The four ‘L’s of new home construction are each suffering a supply problem, and with that comes added costs. Let’s break it down!
Lots – There is a shortage of land near metros at an affordable price, causing builders to move farther and farther away from cities to keep costs down. This isn’t always an attractive option for those who want to stay close to work.
Labor – The Great Recession forced many skilled construction and trade workers to find other sources of income once their jobs were lost at the time of the crash. Even though the overall housing market has recovered, these workers have not returned. Those who remain are starting to age out and retire, causing even more of a shortage and additional costs.
Lumber – The cost to build a new home is directly tied to the cost of the lot and the cost of the supplies needed to build the home. Lumber costs continue to escalate due to policies restricting the importation of Canadian lumber, making larger luxury homes an attractive option to recoup costs when selling, rather than building smaller single-family homes and making less profit.
Below is a graph showing the increase in cost of 1,000 board feet of framing lumber.
Year-over-year, lumber costs are up 13% after reaching a high of $433 in the second week of April.
Lending – During the Great Recession, many small community banks were forced to close their doors. These banks were a great source of capital and lending for builders looking to borrow money at a low interest rate in the community in which they were building. Tougher lending standards have made borrowing funds more expensive and more difficult for builders.
Additional costs across all 4 ‘L’s have made building luxury properties more attractive to builders as they are able to make a larger margin with the higher sales price. The move to scale down to starter and trade up homes to help with supply will mean any additional costs are absorbed by the builders unless the supply of the 4 ‘L’s can increase!
Text newconstruction to 615-374-7747 for a current list of new construction homes in Hendersonville TN.
Closed transactions for homes closed in Hendersonville for the month of May were 149. The median sales price was $290,000 with 37 days on the market. That is a sales price per square ft of $125. Inventory is still low! If you are on the fence about selling, now is the time!
Samantha has had some recent challenges, roadblocks, loss, grief, and just down right bad luck. Through all that, life has thrown her blessings beyond what she could ever imagine. Although she isn’t a first time home buyer, (a condo purchase a couple of years ago) she now has a home to call her very own, a lawn to mow, flowers to plant, a place to entertain friends, neighbors to meet, a safe environment, great schools, and a fabulous location to raise her 5 year old granddaughter. Congratulations Samantha! Well done! You have a fabulous place and I can’t wait to visit again to see what you have done with the place.
Open House Sunday May 7, 2-4 pm
FABULOUS home located in the popular subdivision of Winston Hills in Hendersonville TN! 3 bedrooms, 3.5 baths, spacious floor plan, granite, stainless appliances, gas cook top, maple cabinets, large master, bonus room is great for entertaining.
Located in Sumner County, 18 miles NE of Nashville & 20 miles from Nashville’s International Airport, Hendersonville has become one of Tennessee’s fastest growing communities. Movoto Real Estate ranked Hendersonville as #5 in their 10 best suburbs in the country. Click here for current listings in Hendersonville TN. Hendersonville has also become a popular travel destination with area shopping, local restaurants, golf course, walking trails, and many more amenities. Come see what Hendersonville has to offer!
Listed with Gayle Halvorson, EXIT Real Estate Solutions
Contact Tina Redding or Brenda Neely regarding details of the open house.
Tina Redding, (615)268-5985, Brenda Neely, (615)417-2836
Today, more and more sellers are stepping back, taking a look at the advice real estate professionals give them, and asking themselves whether they can trust that advice. And that is exactly what they should do.
The most important question you can ask when you are choosing a real estate agent is whether you feel you can trust them. You must know that they’re giving you great advice, and that they’re going to be able to help you accomplish your family’s goals. You must trust your listing agent enough to allow them to:
- Handle the liquidation of possibly the largest asset your family has
- Help set the market value of that asset (get the price right)
- Set the timetable for the liquidation of that asset
- Set a fair fee for the services required to liquidate that asset
All four of these require a tremendous amount of trust. They’re going to sell your prized possession, set its value, set a time schedule as to when your family will be able to move, and determine the fee that you’re going to pay to get those three things accomplished.
You have to trust your agent enough to allow them to help you and your family reach your dreams.
Whether you’re a grandfather up North looking to move to Florida to spend your later years with your grandkids, or a young person who wants to take that job in San Francisco but first has to get your house sold in Chicago, you need an agent you can trust to help you move on with what’s important.
Home values have risen dramatically over the last twelve months. The latest Existing Home Sales Report from the National Association of Realtors puts the annual increase in the median existing-home price at 7.1%. CoreLogic, in their most recent Home Price Insights Report, reveals that national home prices have increased by 6.9% year-over-year.
The CoreLogic report broke down appreciation even further into four different price categories:
- Lower Priced Homes: priced at 75% or less of the median
- Low-to-Middle Priced Homes: priced between 75-100% of the median
- Middle-to-Moderate Priced Homes: priced between 100-125% of the median
- High Price Homes: priced greater than 125% of the median
Here is how each category did in 2016:
The lower priced homes (which are more in demand) appreciated at greater rates than the homes at the upper ends of the spectrum.
The inventory of existing homes for sale in today’s market was recently reported to be at a 3.6-month supply according to the National Association of RealtorslatestExisting Home Sales Report. Inventory is now 7.1% lower than this time last year, marking the 20th consecutive month of year-over-year drops.
Historically, inventory must reach a 6-month supply for a normal market where home prices appreciate with inflation. Anything less than a 6-month supply is a sellers’ market, where the demand for houses outpaces supply and prices go up.
As you can see from the chart below, the United States has been in a sellers’ market since August 2012, but last month’s numbers reached a new low.
Recently Truliarevealed that not only is there a shortage of homes on the market in general, but the homes that are available for sale are not meeting the needs of the buyers that are searching.
Homes are generally bucketed into three groups by price range: starter, trade-up, and premium.
Trulia’s market mismatch score measures the search interest of buyers against the category of homes that are available on the market. For example: “if 60% of buyers are searching for starter homes but only 40% of listings are starter homes, [the] market mismatch score for starter homes would be 20.”
The results of their latest analysis are detailed in the chart below.
Nationally, buyers are searching for starter and trade-up homes and are coming up short with the listings available, leading to a highly competitive seller’s market in these categories. Ninety-two of the top 100 metros have a shortage in trade-up inventory.
Premium homebuyers have the best chance of less competition and a surplus of listings in their price range with an 11-point surplus, leading to more of a buyer’s market.
“It leaves Americans who are in the market for a home increasingly chasing too fewer options in lower price ranges, and sellers of premium homes more likely to be left waiting longer for a buyer.”
Lawrence Yun, NAR’s Chief Economist doesn’t see an end to this coming any time soon:
“Competition is likely to heat up even more heading into the spring for house hunters looking for homes in the lower- and mid-market price range.”
Real estate is local. If you are thinking about buying OR selling this spring, let’s get together to discuss the exact market conditions in your area.
The National Association of Realtors recently released a study titled ‘Social Benefits of Homeownership and Stable Housing.’ The study confirmed a long-standing belief of most Americans:
“Owning a home embodies the promise of individual autonomy and is the aspiration of most American households. Homeownership allows households to accumulate wealth and social status, and is the basis for a number of positive social, economic, family and civic outcomes.”
Today, we want to cover the section of the report that quoted several studies concentrating on the impact homeownership has on the health of family members. Here are some of the major findings on this issue revealed in the report:
- There is a strong positive relationship between living in poor housing and a range of health problems, including respiratory conditions such as asthma, exposure to toxic substances, injuries and mental health. Homes of owners are generally in better condition than those of renters.
- Findings reveal that increases in housing wealth were associated with better health outcomes for homeowners.
- Low-income people who recently became homeowners reported higher life satisfaction, higher self-esteem, and higher perceived control over their lives.
- Homeowners report higher self-esteem and happiness than renters. For example, homeowners are more likely to believe that they can do things as well as anyone else, and they report higher self-ratings on their physical health even after controlling for age and socioeconomic factors.
- Renters who become homeowners not only experience a significant increase in housing satisfaction but also obtain a higher satisfaction even in the same home in which they resided as renters.
- Social mobility variables, such as the family financial situation and housing tenure during childhood and adulthood, impacted one’s self-rated health.
- Homeowners have a significant health advantage over renters, on average. Homeowners are 2.5 percent more likely to have good health. When adjusting for an array of demographic, socioeconomic, and housing–related characteristics, the homeowner advantage is even larger at 3.1 percent.
People often talk about the financial benefits of homeownership. As we can see, there are also social benefits of owning your own home.