Opening Doors in the 2020 Real Estate Market

“Just The Facts, Ma’am”

FACT #1: We are living in extraordinary times. Never before in history have we experienced such a sustained cycle of economic growth and prosperity. There is a direct correlation between the confidence this brings and favorable housing market conditions.

FACT #2: Interest Rates remain at historic lows.

FACT #3: People in your market are trying to find homes to buy!

FACT #4: Homeowners may not even realize the value of their current home.

FACT #5: The housing market is constrained mainly by the lack of available homes to sell.

This is all very exciting news. We need only look back at 2008 to know it hasn’t always been this way and will likely not remain this way forever.

According to Sam Khater, Chief Economist, Freddie Mac:

“While the economy is in a sweet spot, improvements in housing market sales volumes will be modest heading into next year simply due to the lack of available inventory. The demand is clearly not being met for entry-level millennials and trade-up Generation X homebuyers. If there was more inventory of unsold homes for buyers to choose from, home sales would be rising at a faster rate.”

One of the best pieces of advice my dad gave to me when I was a little kid was “make hay while the sun shines”. By the way, he wasn’t a farmer. He was a first generation Italian immigrant who grew up in Newark, NJ. Nevertheless, his advice was sound!

Okay, so now that you have the facts, let me give you some stats.

In 2019, our Weichert Realtors® Open House Visitor Count increased by 40% over 2018. Let me say that again – 40%!!! On a daily basis, between our customer call center interactions and regularly working open houses for our sellers, we are meeting more and more buyers who are out looking for homes.

Who are These Buyers and What are They Looking For?

For starters, 39% percent of them are first-time homebuyers who believe in the dream of home ownership.

Of this 39% pool of first time homebuyers:

• 49% are millennials;
• 26% are GenX/GenY;
• and the remaining 25% represent Younger Boomers, Older Boomers and The Silent Generation.

The remaining 61% who are not first-time homebuyers represent different levels of previous home-ownership and are in the growth or downsizing phase of their lives.

So, there is clearly a ton of activity going on!

Aspiring Buyers

The average age of today’s first time buyer is around 38. In contrast, 2 generations ago it was around 28.

• Markets which offer the moderately priced homes are seeing lots of action. (Conversely, those homes which are higher in price are taking a bit longer to sell.)
• These prospective buyers want moderately priced, new or newly updated homes (thank you HGTV!).
• They want to avoid renovations, problems with plumbing, HVAC, aging windows and roofs, older electrical.
• They prefer to spend their time on activities other than projects around the house.
• Most homebuyers want detached, reasonably sized single-family homes. i.e., 3-4 bedrooms, 1.5+ baths, well maintained and preferably updated, conveniently located. School system rankings can influence the decision, especially for new families with young children.

Many of the first time homebuyers that I meet on a daily basis would love to own a home. They begin by saying “I probably cannot afford to buy what I want…”, or they don’t quite know where to begin.

So, here’s an easy piece of advice – begin your process with a trusted mortgage advisor who will help you understand the options and opportunities available to you. Ask your Realtor® for a help. Every homebuyer has a dream. No one ever said it was easy, but what worthwhile dream is?

Okay, Now a Few Words for those with Homes to Sell

If you are considering a move – there is truly no better time than now! I have worked with so many who are reluctant to start the process because they can’t find the home to buy (for all my clients reading this – you know who you are!). This becomes a catch-22 – unless you take action, you will find yourself losing bids and you will never break the cycle.

The best position you can put yourself in is to be a well-qualified buyer with a “no strings attached” offer. When you have the resources and the flexibility to close on your next dream-home, you will find yourself winning bids. And, if you worry about being homeless, don’t! You can make the sale of your current home contingent on your reasonable efforts to find your next one. So, it all magically works out!

While it’s an exciting time for all the home sellers out there, try to resist the temptation to price yourself right out of the competition. Homebuyers are eager, but they are also savvy. They know what they want, and they are sensitive to pricing, condition, location and even home style.

My best advice to you is to learn the details about the housing market in your area, and how your home is positioned in today’s market. Find a Realtor® with whom you will forge a relationship based on knowledge and trust.

In a world where everything is becoming commoditized, we can easily lose sight of the meaning of true SERVICE. Whether you are prospective homebuyer or home seller, you owe it to yourself to work with professionals who provide a true SERVICE and EARN your business every single day.

There’s so much that goes into the excitement of today’s real estate market, that this article only begins to scratch the surface

I invite you to learn more by registering for our FREE 90-MINUTE workshop at AVE in Florham Park on Saturday, Feb 8th.

Visit this link to learn more https://lisamolinari.com/realestate-series

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