Video Blogs • March 15, 2022

March Statistics Video

by Sandi Tampa

When reviewing the stats, I kept saying ‘wow’ at every data point. While I’m not surprised, as the data validates what I was seeing in the trenches, but it’s still jaw-dropping to actually see the numbers. Median sold price $1.7M, wow; 94% of the homes selling in 2 weeks, wow; and 87% of the homes selling a median of 23% over asking, wow just wow. You read that right, a MEDIAN of 23% over asking! That means half the homes sold for higher than that. A component of the over-asking-price number is sellers underpricing their home, which makes home shopping confusing and frustrating, but mostly prices have gone up, as reflected in the 34% year-over-year appreciation. Wow!

Home Knowledge • Market Advice • March 8, 2022

Why It’s Critical to Price Your House Right

by Sandi Tampa

When you make a move, you want to sell your house for the highest price possible. That might be why many homeowners are eager to list in today’s sellers’ market. After all, with record-low inventory and high buyer demand, many homes are selling for more than asking price. Data from the National Association of Realtors (NAR) shows 46% of homes are selling above list price today.

But even in a market like we have now, working with an agent to set the right asking price is critical, as pricing it too high or too low could have a negative impact on your final sale. Here’s why.

Pricing Your House Right Is Crucial Even in a Sellers’ Market

The price you set for your house sends a message to potential buyers. Price it too low and you might raise questions about your home’s condition or lead buyers to assume something is wrong with the property. Not to mention, you could leave money on the table, which decreases your future buying power if you undervalue your house.

On the other hand, price it too high and you run the risk of deterring buyers. When that happens, you may have to do a price drop to try to re-ignite interest in your house when it sits on the market for a while. But be aware that a price drop can be seen as a red flag for some buyers who will wonder why the price was reduced and what that means about the home.

In other words, think of pricing your home as a target. Your goal is to aim directly for the center – not too high, not too low, but right at market value. Pricing your house fairly based on market conditions increases the chance you’ll have more buyers who are interested in purchasing it. That makes it more likely you’ll see a bidding war, too. And when a bidding war happens, you’ll likely get an even higher final sale price. Plus, when homes are priced right, they tend to sell quickly.

To get a look into the potential downsides of over or underpricing your house and the perks that come with pricing it at market value, see the chart below:

Lean on a Professional’s Expertise To Price Your House Right

There are several factors that go into pricing your house and balancing them is the key. That’s why it’s important to lean on an expert real estate advisor when you’re ready to move. A local real estate advisor is knowledgeable about:

The value of homes in your neighborhood
The current demand for houses in today’s market
The condition of your house and how it affects the value

A real estate professional will balance these factors to make sure the price of your house makes the best first impression and gives you the greatest return on your investment in the end.

Bottom Line

Even in a sellers’ market, pricing your house right is critical. Don’t rely on guesswork. Let’s connect to make sure your house is perfectly priced.

Market Advice • March 1, 2022

How Supply and Demand Can Impact Your Buying and Selling Goals

by Sandi Tampa

In today’s housing market, there are far more buyers looking for homes than sellers listing their houses. Based on the concept of supply and demand, this means home prices will naturally rise. Why is that? When there are more people trying to buy an item than there are making that item available for sale, that drives prices up. And that’s exactly the case in today’s housing market. So, knowing what’s happening with the inventory of homes for sale and the demand for housing is crucial for today’s buyers and sellers.

Nationally, Demand Is High and Supply Is Very Low

The latest buyer and seller activity data from the National Association of Realtors (NAR) indicates buyer traffic heavily outweighs seller traffic today, as shown in the maps below. There are far darker blues (strong buyer activity) on the left and much lighter blues (weak seller activity) on the right. In other words, this shows how the demand for homes is significantly greater than what’s available to purchase.

What Does This Mean if You’re a Seller?

Supply is struggling to keep pace with demand. In fact, the inventory of homes for sale recently hit an all-time low. That gives you an incredible advantage when you sell your house. With so few listings, it’s likely more potential buyers will view your house – especially if you work with an agent to price it right. That means there’s a high chance you’ll receive multiple offers or buyers will enter a bidding war for your house. And that dynamic can drive the sale price of your home up.

What Does This Mean if You’re a Buyer?

As a buyer with fewer options available, you’re likely to see more competition, so you need to be strategic to win. First, make sure you have a trusted professional on your side. Your real estate agent will help you understand your local market and work with you to act quickly when the time is right. Even when it’s challenging to find a home, you can still succeed as a buyer today if you have a trusted advisor on your side every step of the way.

Bottom Line

Whether you’re a homebuyer, seller, or both, knowledge truly is power. Let’s connect today so you can better understand what’s happening in our local market and achieve your homebuying and selling goals this year.

Market Advice • February 22, 2022

How To Win as a Buyer in a Sellers’ Market

by Sandi Tampa

Some Highlights

Even in today’s sellers’ market, there are still ways for buyers to win big.
Build a team of trusted professionals and make strategic plays as you budget and pick your desired neighborhoods. Then, be ready for the competition by getting a pre-approval letter and leaning on your expert advisors to draft a winning offer.
In a sellers’ market, you can still be the champion if you have the right team and strategy. Let’s connect today to make your game-winning play.

Video Blogs • February 15, 2022

February Stats Update

by Sandi Tampa

We continue to remain in a very strong sellers’ market. That said, months of inventory jumped up 50%, but that is from an extremely low 0.2 months to a still-very-low 0.3 months—just having a little fun with creating what the media might use as a shocking, and misleading, headline. The jaw-dropping number for this month is the 71% of homes sold for a median of 19% above asking price! That means half of these homes sold for more than 19% above asking price. I expect this number to be about the same or even higher for this month, as I consistently see homes going 40% over asking price. While this does represent a surge in appreciation, 32% year-over-year, which the first quarter of the year is known for, it also reflects homes being underpriced. Underpricing homes is a common practice and makes it tricky for buyers to know how to shop.

Home Knowledge • February 8, 2022

Decorating Ideas for Your Hallway

by Sandi Tampa

Used with permission of Blackband Design

The hallway is one of the most underutilized spaces in a house, but just because it is not a room on its own doesn’t mean that it should be ignored. It provides transitional space from the living room or outdoors to the inside, but it may be big enough to fit some furniture or different decor accessories. The design of your hallway sets the tone for the rest of your home, especially if it is the first area people see or step into when they enter your home.

Here are some ideas on how to create a pretty hallway:

Get Organized
First and foremost, get organized. You don’t have to toss everything from the winter coats to shoes on your hallway. You can bring in a front hall closet or go with a wall-mounted organization since you want the hallway to be as functional as possible. Also, a piece of artwork in your hallway will wow everyone.

Bring Out Your Personality with a Gallery of Pictures
One of the easiest ways to decorate an entryway is to create a gallery with your family pictures, favorite artwork, or photos to create a personal touch. A blank hallway wall is just waiting for a gallery to happen. Ensure you select coordinating color frames to bring out a cohesive look.

Used with permission of Marianne Simon Design

Wow Your Guests with Wallpaper
Another idea is to wow your visitors with hallway wallpaper. Wallpaper is the ultimate solution to decorating any wall whenever you doubt. Depending on your hallway and personal style, you can go with a bold, neutral, subtle, or barely-there wallpaper design. A black and white hallway wallpaper is a classic, or you can play with a fun color combination for that colorful pop. The good thing with wallpapers is that you can always change the design.

Rethink Your Light Fixtures
Light fixtures come in handy for decoration, but you need to choose them with care. Go with ambient lighting that provides more warmth in the hallway or a unique chandelier that wows every visitor who comes in. Ensure it is the right size and do not hang it too high or too low.

Make a Statement with Mirrors
Do you have a narrow hallway? In such a case, you can create the illusion of space with mirrors. Introduce a mirror at the end of a narrow entryway to make the space feel larger and lighter. You can also bring in a small circular mirror on the side to make a sculptural statement in the area.

Used with permission of Leo Designs CHICAGO

Another way to style your hallway is to hang accessories such as unique hats, bags, or souvenirs from your trips. Even if you are likely to wear the hats on your way out, they add some texture to your walls.

There is so much design potential for your hallway. Ideally, you want to make the space welcoming and style it to your advantage by making it functional.

Thanks to scenolia.com and Decorology for content and pictures.

Home Knowledge • Market Advice • January 25, 2022

Buyers Want To Know: Why Is Housing Supply Still So Low?

by Sandi Tampa

One key question that’s top of mind for homebuyers this year is: why is it so hard to find a house to buy? The truth is, we’re in the ultimate sellers’ market, so real estate is ultra-competitive for buyers right now. The number of buyers searching for a home greatly outweighs how many homes are available for sale.

While low inventory in the housing market isn’t new, it’s a challenge that continues to grow over time. Here’s a look at two reasons why today’s housing supply is low and what that means for you.

1. New Home Construction Fell Behind for Several Years

The graph below shows new home construction for single-family homes over the past five decades, including the long-term average for housing units completed. Builders exceeded that average during the housing bubble (shown in red on the graph). The result was an oversupply of homes on the market, so home values declined. That was one of the factors that led to the housing crash back in 2008.

Since then, the level of new home construction has fallen off. For the last 13 straight years, builders haven’t been able to construct enough homes to meet the historical average (as illustrated in green on the graph). That underbuilding left us with a multi-year inventory deficit going into the pandemic.

2. The Pandemic’s Impact on the Housing Market

Then, when the pandemic hit, it fueled a renewed appreciation and focus on the meaning of home. Having a safe space to live, work, school, and exercise became even more important for Americans throughout the country. So, as mortgage rates dropped to at or below 3%, buyers eagerly entered the market looking to capitalize on those low rates to secure a home that would fulfill their changing needs. At the same time, sellers hesitated to put their houses on the market as concerns about the pandemic mounted.

The result? The number of homes available for sale dropped even further. A recent article from realtor.com explains:

“Last month, the number of home listings dropped 26.8% compared with the same time a year earlier. This meant there were about 177,000 fewer homes listed in what’s already typically a slower month due to the holidays and colder weather. . . .”

What Does All of This Mean for You?

For a buyer, low inventory can be a challenge. You want to find the home of your dreams, and you don’t want to settle. But what if there just aren’t that many homes to choose from?

There is some good news. Experts are projecting more homes will soon become available thanks to sellers re-entering the market. Danielle Hale, Chief Economist at realtor.com, shares this hope, but offers perspective:

“We expect that we’ll start to see a turnaround and inventory will stabilize and start to go up a little bit in 2022. . . . But that means we’re looking at inventory levels of roughly half of what we saw before the pandemic. For buyers, the market is likely to continue to move fast. If you see a home you like, you want to jump on it right away.”

Basically, inventory is still low, even though more homes are coming. But you shouldn’t put your plans on hold because you’re waiting for those additional houses to hit the market. Instead, stick with your search and persevere through today’s low inventory. You can find your next home if you’re patient and focused.

Remember your goals and why finding a home is so important. Those things should be the driving force behind your search. Share them with your agent and be clear about your priorities. Your trusted advisor is your greatest support as you navigate today’s low housing supply to find the home of your dreams.

Bottom Line

If you’re planning to buy this year, the key to success will be patience given today’s low inventory. Let’s connect to discuss what’s happening in our area, what homes are available, and why it’s still worthwhile to prioritize your home search today.

Home Knowledge • Market Advice • January 18, 2022

Sellers: Don’t Wait Until Spring To Make Your Move

by Sandi Tampa

As you plan out your goals for the year, moving up to your dream home may top the list. But, how do you know when to make your move? You want to time it just right so you can get the most out of the sale of your current house. You also want to know you’re making a good investment when you buy your new home. What you may not realize is, that opportunity to get the best of both worlds is already here.

You don’t want to wait until spring to spring into action. The current market conditions make this winter an ideal time to move. Here’s why.

1. The Number of Homes on the Market Is Still Low

Today’s limited supply of houses for sale is putting sellers in the driver’s seat. There are far more buyers in the market than there are homes available, and that means buyers are eagerly waiting for your house. Listing your house now makes it the center of attention. As a seller, that means when it’s priced correctly, you can expect it to sell quickly and get multiple strong offers this season. Just remember, experts project more inventory will come to market as we move through the winter months. The realtor.com 2022 forecast says this:

“After years of declining, the inventory of homes for sale is finally expected to rebound from all-time lows.”

Selling now may help you maximize the return on your investment before your house has to face more competition from other sellers.

2. Your Equity Is Growing in Record Amounts

Current homeowners are sitting on record amounts of equity thanks to today’s home price appreciation. According to the latest report from CoreLogic, the average homeowner gained $56,700 in equity over the past 12 months.

That much equity can open doors for you to make a move. If you’ve been holding off on selling because you’re worried about how rising prices will impact your own home search, rest assured your equity can help fuel your next move. It may be just what you need to cover a large portion – if not all – of the down payment on your next purchase.

3. While Rising, Mortgage Rates Are Still Historically Low

In January of last year, mortgage rates hit the lowest point ever recorded. Today, rates are starting to rise, but that doesn’t mean you’ve missed out on locking in a low rate. Current mortgage rates are still far below what they’ve been in recent decades:

In the 2000s, the average mortgage rate was 6.27%
In the 1990s, the average rate was 8.12%

Even with mortgage rates rising above 3%, they’re still worth taking advantage of. You just want to do so sooner rather than later. Experts are projecting rates will continue to rise throughout this year, and when they do, it’ll cost you more to purchase your next home.

4. Home Prices Are Going To Keep Rising with Time

According to industry leaders, home prices will also continue appreciating this year. While experts are forecasting more moderate home price growth than last year, it’s important to note prices will still be moving in an upward direction throughout 2022.

What does that mean for you? If you’re selling so you can move into a bigger home or downsize to the home of your dreams, you want to consider moving now before rates and prices rise further. If you’re ready, you have an opportunity to get ahead of the curve by purchasing your next home before rates and prices climb higher.

Bottom Line

If you’re considering selling to move up or downsize, this may be your moment, especially with today’s low mortgage rates and limited inventory. Let’s connect today to get set up for homebuying success this year.

Video Blogs • January 11, 2022

January Stats Video

by Sandi Tampa

Inventory remains at the same, jaw-droppingly-low level as last month—0.2 months/6 days of inventory. The back-to-back months of record-low inventory resulted in 75% of the homes selling a whopping 15% above asking price (based on median). Usually December is a sleepy month, not this year. It will be interesting to see what the 1^st quarter holds. Typically, pre-pandemic, first quarter is where we experience the bulk of our appreciation. I don’t expect that for this year. We are, per usual, starting the year with low inventory, but affordability is dipping with both prices and interest rates rising—interest rates crept up to the high 3’s the first week of January. Given our strong housing demand, especially on the Eastside, I don’t think the market will dramatically shift, but I do expect prices to level off. Speaking of prices, year-over-year appreciation was 37% (based on median prices). That is also a jaw-dropping number, which I think is higher than actual—appreciation is very tricky to measure—but appreciation is definitely over 20%, which makes me think of capital gains, but that is a talk for another day…

Home Knowledge • January 4, 2022

Why Selling Your House with a Real Estate Professional Is Essential

by Sandi Tampa

Selling your house is no simple task. And when you sell on your own – known as a FSBO (or For Sale by Owner) – you’re responsible for handling some of the more difficult aspects of the process without the expert guidance you need.

The 2021 Profile of Home Buyers and Sellers from the National Association of Realtors (NAR) surveys homeowners who recently sold their house on their own and asks what difficulties they faced. Those sellers say some of the biggest headaches are prepping their house for sale, pricing it right, and handling the required paperwork.

Working with an agent is the best way to ensure you have an expert on your side to guide you at every turn. Agents have the skills and knowledge that are essential to navigating each step with ease, efficiency, and accuracy. Here are just a few things a real estate agent will do to make sure you get the most out of your sale.

1. Make the Best First Impression

Selling your house requires a significant amount of time and effort. Doing it right takes expertise and an understanding of today’s buyers. Your agent knows the answers to common questions, such as:

Do I need to take down my personal art?
How much landscaping does my house need?
What colors should I paint my walls?

Your time and money are important, and you don’t want to waste either one focusing on the wrong things. A real estate advisor relies on their experience to answer these questions and more, allowing you to make the right investments to prep your house before you list.

2. Maximize Your Buyer Pool – and Your Sale

Today, the average home is getting 3.6 offers per sale according to recent data from NAR. That’s great news if you’re planning to sell, since the more offers you receive, the more likely you are to sell your house in a bidding war, and for a higher price.

Real estate agents have an assortment of tools at their disposal, like social media followers and agency resources, that will ensure your house is viewed by the most buyers. Without access to these tools and your agent’s marketing expertise, your buyer pool – and your home’s selling potential – is limited.

3. Understand the Documentation, Including the Fine Print

Today, when a house is sold, more disclosures and regulations are mandatory, meaning the number of legal documents to juggle is growing. It’s hard to understand all the requirements and fine print (especially if you’re not an expert). That’s why your advisor is an invaluable guide.

Your agent knows exactly what needs to happen, what all the paperwork means, and can work through it efficiently. They’ll help you review the documentation and avoid any costly missteps that could happen if you tackle it on your own.

4. Act as Your Expert Negotiator

If you sell without an agent, you’ll also be solely responsible for all negotiations. That means you have to coordinate with:

The buyer, who wants the best deal possible
The buyer’s agent, who will use their expertise to advocate for the buyer
The inspection company, which works for the buyer and will almost always find concerns with the house
The appraiser, who assesses the property’s value to protect the lender

Instead of going toe-to-toe with all these parties alone, lean on an expert. Your agent relies on experience and training to make the right moves throughout the negotiation. They’ll know what levers to pull, how to address each individual concern, and when you may want to get a second opinion. When you sell your house yourself, you’ll need to be prepared to have these conversations on your own.

5. Price It Right

Real estate professionals have the expertise to price your house accurately and competitively. To do so, they compare your house to recently sold homes in your area and factor in the current condition of your house. These factors are key to making sure your house is priced to move quickly and get you the maximum return on your investment.

When you sell as a FSBO, you’re operating without this advantage. That could cost you in the long run if you price your house too high or too low.

Bottom Line

There’s a lot that goes into selling your house, and it takes time, effort, and expertise to truly maximize your sale. Instead of tackling it alone, let’s connect to make sure you have an expert on your side.