“It isn’t just hot spots like Seattle and Denver that are seeing scarce supplies of homes for sale but also sleepier locales like Minneapolis, Cleveland, Nashville, Tenn., Tampa, Fla., and Louisville, Ky. Nela Richardson, chief economist at real estate brokerage firm Redfin, tells the newspaper, “We think that 2017 will be the fastest market” since the peak of the last housing boom in 2006. So far this year, Richardson notes, homes are selling an average of eight days faster than last year”
With the inventory shortage and rates going up can it can only mean huge profits for homes sellers and investors. Anytime rates go up more lenders get into the real estate lending market. Lets face it FHA does over 90% of all the home loans most lenders have stayed on the sidelines. Rates need to go up to get more lenders in the game.
Rates going up does not always mean that that housing cost goes up. The terms in any mortgage can be better with higher rates. More competition better terms for buyers.
“Instead, according to the story, “inventory has gotten tighter as demand has increased rapidly and the pickup in construction has lagged behind. Sellers also have become hesitant to put their homes on the market because rising prices and mortgage rates have made it more expensive to trade up.””
Getting any home today can make your portfolio a lot healther. Most areas we are currently buying in are land locked and there is no land to build subdivisions without tearing down existing homes. The key is getting someone who looks at all new homes and older listings daily.
A lot of homes sellers are downsizing because they are empty nesters (No kids at home) and want to look at another property. Selling now can make them a great coin. There is always a need for housing and with no new builds for a decade we have a long way to go. Put all that together and it means the real estate uptick still has a ways to go.
“The lack of inventory is pushing up home prices, which grew at the fastest rate since mid-2014 in January, climbing 5.9% compared with a year earlier, according to the S&P CoreLogic Case-Shiller Indices.”
Prices will continue to increase with the economy in good shape. Consumer confidence is high and jobs are coming in. Thinking about buying a home for investment or to live in? Want to sell and save money on the sale of your home? Call Brett I have done 100’s of deals and understand the current real estate market and how to get great deals. Call 216-703-5740 Century 21 Premiere and 602-363-6551 EXP Realty
Went out with clients on Christmas Eve that wanted to purchase a place to call home. We are currently finishing a income property that he had purchased and he needed a home to live in. We had looked at almost 15 homes, they liked two of them. Unfortunately one of the homes went under contract, but there was one left and we got that under contract New Years eve. We got the price we wanted and we will be remodeling the home for my client. When he moves in the property it will look like new.
Having the resources and the professionals to rehab a home the way you want it, is what makes us unique. This client wanted certain detailed areas to be addressed in his home. Looking at a lot homes that were on the market either were to expensive or they needed work.
Having our rehab service allowed this client to get a fixer upper and rehab it to his specifications, while being able to afford the neighborhood that otherwise was too expensive.
Our real estate services assist our clients in being able to look at more properties for their needs. A lot of clients like to add bathrooms, new kitchens, finished basements, or even an extra garage. They may also get a property that is a fixer upper and have equity when they purchase and rehab it. Being in the flip real estate business I can help them find those type of properties.
With our services my clients can look a lot of other properties that they cannot with other Realtors. Buying a home is an investment and you need that investment to be in the best neighborhood available for you and your family, like my clients purchase on New Years Eve.
Here is a fresh article on the inventory problem in the real estate market today. This story comes from http://www.realtor.com/ by Jonathan Smoke that talks about buyers needing homes and sellers not selling until they find another property.
“This year is shaping up to be the best in a decade for home sales
(yay!), but that doesn’t mean that buying a home is easy (uh-oh). Houses
are flying off the market at the fastest rate since the housing bust in
2007, so we know that buyers must be working hard to find that perfect
home and get it under contract. Harder than ever, perhaps.”
Properties in the nicer areas and areas that buyers want to live in are flying off the shelf and selling for top prices. The properties we do for our clients are all remodeled and ready to go when they hit the market. This makes are homes are more desirable to buyers with the new upgrades already being done. That gives our clients the upper hand in this market.
“And it’s no wonder that more people are reporting that just finding
a home is a problem. We have about 13% more people looking to buy this
summer, yet there are 5% fewer homes for sale. No matter how you do the
math, it adds up to a shortage for buyers”
That’s a lot of people that need to buy a home and cannot. With new home builds being stagnate for the last 10 years inventory will continue to be an issue. The inventory issue will continue to be a problem until the feds back off on the red tape that is costing builders a lot more money in overhead . Most builders of the new homes are building higher end residents and not entry level housing because of the red tape. I was reading one report that calculated the extra red tape to add 30% on the cost of new builds.
“Then the next biggest issue for sellers is making necessary improvements
in order to sell. With remodeling and home improvement booming,
potential sellers are running into challenges getting their own
improvement projects completed—possibly because of competition for
top-notch contractor services”
That is another issue when your needing updating to sale your home. I have a complete staff of contractors I use that get the job done. I watch the improvements and help get the job finished. I am calling a contractor today to make sure a home is finished to list this weekend! Getting your property ready to sale is easier with the right people.
“If you are thinking of buying this year, get out there now! The clock is ticking louder than ever.”
Thinking about selling your home or you need help in rehab to sale your property? Maybe your rehabbing your home and need a seasoned Realtor to list your property? Call me today 216-703-5740 Century 21 Premiere and 602-363-6551 West USA Realty Arizona
I was working with a new client that was buying some homes with another company. He thought one of the properties had been finished on construction that I had listed. I got the property under contract only to find the property was not all the way done and needed some finishing. I stepped in and helped him there..
He also had two other properties that he had purchased with this company that needed to be rehabbed. One of the properties was already quoted by the company that did the first home. I met them at the home and looked at what they were going to do to the home rehab wise. I was there for an hour and decided that we could save him $12,000. Being in the business since 1985 I understand that the clients interest needs to be my main concern.
The home did not need all the upgrades that their company wanted to do. When your looking at rehabbing a home and selling it you need to do all this before you buy the home, unfortunately that was not done with the other company he was working with before they purchased the home. . This home would have made almost nothing for my new client and a lot of money for the construction company. We will get it done and make a profit for him.
The third home which I am currently working on was in a great location, but a horrible layout. We are adding a new bathroom and getting the home updated with a new 1st floor master bedroom and bathroom. That is the video below. This home should have a great net profit.
Anytime your buying real estate as an income or flip property make sure you hire a Realtor that has been in the business a while and can show some of the properties that they have finished and rented or sold. Getting the right team around you when your buying Income Real Estate makes all the difference in your pocket book.