June 2018 Newsletter
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Will rising interest rates effect the housing market?
Throughout the country and certainly in the Charlottesville/ Central Virginia area, the housing market continues to trend upward. Over the last several years, the number of homes sold and the average sales price has increased moderately. This trend will continue in 2018 and in fact, I predict that home values will appreciate even more given the lack of existing home inventory particularly in the lower price ranges.
For the first time since 2012, the question is being asked are home prices once again reaching their peak? How much higher can Prices go? The price increases are not happening everywhere. There are geographic areas and price ranges that are somewhat static right now. This is especially true for existing homes competing in areas where there are new homes being built. Because of these factors, purchasers really need to do their homework to make sure they pay the right price for a home.
This leads me back to the topic of this article. In 2010, there was 10 months of listing inventory. This is defined as how many months it would take to sell every home if another one did not come on the market). Currently, there is only 3 ½ months of supply. This will continue to create demand which will naturally result in higher home values. Add the fact that 30 year mortgages are at a 7 year high and you find a recipe for the purchasers buying power becoming significantly diminished. A very loose estimate shows us that a buyer may lose up to $70,000 of buying power if they wait a year. Why? If a $300000 home increases to $330,000 and the interest rate goes up by 1% (meaning $10,000 less loan per ¼ % increase) it could mean a $30,000 price increase and a $40,000 difference in loan amount equaling the before mentioned $70,000 loss in buying power effectively causing some to not be able to purchase a home. Mortgage Banker Association CEO, Dave Stevens projects the interest rates to be as high as 5.5% in 2019. He remains optimistic about the real estate market given the number of millennials that will be entering the housing market over these next few years. You can hear his full conversation by clicking on this link: http://wina.com/podcasts/a-view-from-the-mortgagebankers- association/
There is still a lot of energy in the housing recovery however, there are some (see below links) that are predicting 2020 is the year to watch not as much because of what might happen with the economy but more because of what rising interest rates could mean to potential buyers.
Because of your business we have been able to financially support the following organizations as well as others:
Changing perspectives. Changing lives.
Big Brothers Big Sisters of the Central Blue Ridge operates under the belief that inherent in every child is the ability to succeed and thrive in life. As the area’s leading provider of evidence-based mentoring, our agency makes meaningful, monitored matches between adult volunteer mentors (“Bigs”) and children (“Littles”), ages 6 through 16, in the Charlottesville and Albemarle communities.
Our vision: All children achieve success in life.
Mission: To provide children facing adversity with strong and enduring, professionally supported 1-to-1 relationships that change their lives for the
We are accountable for each child in our program achieving:
Higher aspirations, greater confidence, and better relationships | Avoidance of risky behaviors | Educational success
Our Programs Start Something
Here’s the proof. National research has shown that positive relationships between Littles and their Bigs have a direct and measurable impact on
children’s lives. Not only did this study, deemed foundational to the mentoring field, provide the evidence to support our mentoring model, but it
also heightened the demand for Big Brothers and Big Sisters. Learn more about mentoring a child in your community.
Effective Staging Ideas Can Transform Your Home
Appearance is crucial when selling your home. Making your home look sensational will go a long way in being able to get what you want out of the property. It’s here that staging comes into play. But many homeowners aren’t able to afford the cost of a professional stager. Thankfully, you don’t have to turn to a professional. There are a number of things that you can do on your own to transform the look of your home.
#1 Pack up your personal items.
Packing up all of your personal effects is one of the cheapest and simplest ways to prep your condo or home for sale. Removing your personal touches will help a potential buyer to see the home as their own. Sometimes your personal items can make that difficult. Pictures, artwork and other decor are more distracting than you realize. Hide them in the basement or a storage space while conducting tours.
#2 Get rid of the clutter.
Getting rid of any excess clutter is a great way to get potential buyers to look at your home. Sometimes emotional attachments can make throwing out clutter difficult. It’s easy to gather clutter if you have lived in the same home for years. Excess items can have a negative impact on how your potential buyers view your property. De-clutter your home as much as you can to attract more buyers.
#3 Rearrange and neutralize your rooms.
Even though you might enjoy the blue walls in your bedroom, that doesn’t mean a potential buyer will. Loud or eclectic design elements might make a potential buyer think about all of the work that they have to put into the home. The best thing you can do is to repaint your rooms a neutral color, like white, tan or cream. This will appeal to more buyers and allow them to visualize their own decor in the home.
Consider rearranging the furniture in your rooms to increase their functionality. Think about how to show potential buyers how much they could do with a room. Maximizing space is crucial when selling a home.
#4 Eliminate smells and stains by deodorizing and scrubbing your home. No buyer wants to walk into a home that is dirty and smelly. The best thing you can do is scrub everything from floor to ceiling before having an open house. You don’t want any dirt, dust or odors lurking around the home. You want to make sure your property shines as much as you can. Greet buyers with a clean, fresh smell in every room. If you’re short on time, hire a cleaning service. A pro will save you time and ensure a spotless home.
#5 Replace the hardware around your home.
Most homeowners can afford to replace the hardware around their home. Focus on your doors and kitchen first. Next, make your way through the rest of the home. Swapping out your old hardware with new hardware can make a big difference in how your cabinets and doors look.
In going through the tips above, you can quickly transform the appearance of your home. Even making these small changes can make a major difference in how potential buyers view your home. You don’t need to spend a fortune staging your home. Instead, invest some time and effort in making a difference in the way your home looks.
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