Why 2021 Is Still the Year To Sell Your House

61151 Parrell Road, Bend, OR 97702
Presented by Cyndi Robertson | Offered at $997,500 | MLS# 220124791

From Keeping Current Matters

If you’re trying to decide whether or not to sell your house, this is the time to think seriously about making a move. Fannie Mae’s recent Home Purchase Sentiment Index (HPSI) reveals the number of respondents who say it’s a good time to sell is higher now than it was over the past few summers (see graph below). Today, the majority of consumers, 75 percent, say it’s a good time to sell a house.

Why is sellers sentiment up year-over-year?

The higher good time to sell sentiment has to do with today’s market conditions, specifically low housing supply and high buyer demand. In the simplest terms, we don’t have enough houses available for sale to meet buyer demand.

According to the latest data from the National Association of Realtors (NAR), we’re still firmly in a sellers’ market because housing supply is well below a balanced norm (shown in the graph below).

Clearly, the scales are tipped in a seller’s favor today. But while housing supply is undeniably low, the right side of the graph shows how the inventory situation is improving little by little each month as more sellers list their homes for sale.

As a seller, that means each month, buyers have more options to pick from. By extension, that means your house may get less buyer attention with time. Danielle Hale, Chief Economist for realtor.com, explains it like this:

“More homeowners continue to list homes for sale compared to a year ago… Notably, while new listings continue to lag behind a more ‘normal’ 2019 pace, the gap is shrinking. Even though homes continue to sell quickly thanks to high demand and limited supply, new listings are subtly shifting the balance of market conditions in favor of buyers.”

So, what’s that mean for you?

If you’ve been waiting for the perfect time to sell, there may not be a better chance than right now. Inventory is gradually increasing each month, so selling sooner rather than later will help you maximize your home’s potential.

Full article on Keeping Current Matters


Top 25 Places to Buy a Vacation Home

2169 Forest Dr, Seaside, OR 97138
Presented by Sally Conrad | Offered at $659,000 | MLS# 21687504

From REALTOR® Magazine

Vacation homes are in demand since the pandemic, but which hot spots are consumers targeting that offer some of the best investment potential?

Vacasa, a vacation rental management platform, released its 2021 Top 25 Best Places to Buy a Vacation Home report, identifying the top U.S. destinations for purchasing a vacation rental property. Among other factors, researchers factored in average cap rate or yearly rate of return in determining the rankings.

“Market conditions are always shifting, but the accelerated and lasting adoption of short-term rentals during the pandemic has had a clear impact on second-home sales,” said Shaun Greer, vice president of sales and marketing at Vacasa. “The spike in guest demand and preference for new, more remote destinations is changing where prospective buyers can find the best investment properties.”

Gatlinburg, Tenn., topped this year’s list, climbing four spots from 2020. Newcomer cities claimed more than half of the spots in 2021, including Deep Creek Lake, Md., Cle Elum, Wash., Litchfield Beach, S.C., and Twentynine Palms, Calif.

The following are the top 25 places to buy a vacation home in 2021, according to Vacasa’s rankings:

  1. Gatlinburg, Tenn.: $320,111 (median home sale price)
  2. St. Augustine, Fla.: $365,576
  3. Gulf Shores, Ala.: $402,905
  4. Dauphin Island, Ala.: $382,699
  5. Norris Lake, Tenn.: $343,907
  6. Blue Ridge, Ga.: $290,934
  7. Palm Springs, Calif.: $539,370
  8. Deep Creek Lake, Md.: $439,367
  9. Seaside, Ore.: $466,086
  10. Ludlow, Vt.: $346,950
  11. Big Bear, Calif.: $372,667
  12. Rockaway Beach, Ore.: $330,831
  13. Cle Elum, Wash.: $551,586
  14. Big Sky, Mont.: $850,000
  15. Twentynine Palms, Calif.: $263,897
  16. Killington, Vt.: $317,336
  17. Bear Lake, Utah: $383,734
  18. Litchfield Beach, S.C.: $499,259
  19. Pagosa Springs, Colo.: $361,320
  20. Banner Elk, N.C.: $331,290
  21. St. George Island, Fla.: $471,501
  22. Ellijay, Ga.: $281,402
  23. Florissant, Colo.: $367,000
  24. Corolla, N.C: $608,953
  25. Holden Beach, N.C.: $580,847

View more information on each place as well as the cap rates at vacasa.com.

Full article on REALTOR® Magazine


Weekly Mortgage Demand Hints at Return of the First-time Homebuyer

1306 E Vintage St, Newberg, OR 97132
Presented by Jennifer Nash | Offered at $925,000 | MLS# 21280163

From cnbc.com

After falling steadily for a month, demand for mortgages to purchase a home rose slightly last week.

Coupled with a continued increase in refinancing, total mortgage application volume rose 2.8% for the week, according to the Mortgage Bankers Association’s seasonally adjusted index.

Mortgage applications to purchase a home rose 2% for the week but were still 18% lower than a year ago. Buyers are contending with high prices and limited supply, although more residences are slowly coming onto the market. The type of loan now seeing higher demand is telling.

“The higher level of purchase activity last week was driven by more government purchase applications, including a 3.3% increase in FHA loans,” said Joel Kan, an MBA economist. “With low for-sale inventory keeping home price appreciation in many markets at record highs, the jump in FHA purchase applications is potentially a sign that more first-time buyers are finding purchase options despite the high prices.”

A slight increase in mortgage rates did not deter borrowers, especially since rates are still historically low. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($548,250 or less) increased to 2.99% from 2.97%, with points decreasing to 0.30 from 0.33 (including the origination fee) for loans with a 20% down payment.

Applications to refinance a home loan increased 3% for the week but were 8% lower than one year ago. The refinance share of mortgage activity increased to 68% of total applications from 67.6% the previous week.

“Homeowners continue to respond to lower rates, with refinance activity climbing to the highest level since February 2021,” Kan said.

Full article at cnbc.com


Surprising Shift Favors Homeowners: Buyers Now Prefer Existing Homes

636 NW Portland Avenue, Bend, OR 97703
Presented by Sheila Balyeat | Offered at $1,200,000 | MLS# 220121987

From Keeping Current Matters

In April, the National Association of Home Builders (NAHB) posted an article, Home Buyers’ Preferences Shift Towards New Construction, which reported: “60% of people who were looking to buy a home in 2020 said they’d prefer new construction to an existing home.”

However, it seems buyers are now shifting their preferences back to existing homes.

The latest Consumer Confidence Survey reveals the percentage of Americans planning to buy a home in the next six months is virtually the same as it was back in March. However, the percentage that plan to buy a newly constructed home is lower for that same period.

NAHB confirms this sentiment in their latest Housing Trends Report. The organization explains that existing homes are now the top preference among today’s buyers. Here’s a breakdown of those findings:

Surprising Shift Favors Homeowners: Buyers Now Prefer Existing Homes | Keeping Current Matters

Why the shift?

There are several reasons why buyer preference is shifting. Here are two that impact purchasers looking to move in now:

• The process may move faster. Builders may not be able to guarantee when the house will be complete and ready for move-in due to supply chain challenges with materials like lumber and appliances. If you buy an existing home, not only is it ready, it also likely has a refrigerator, range, and other necessary home appliances already.

• There are no unexpected costs during the buying process. With the price of land, labor, and lumber being so volatile, many builders are including an escalation clause in the price negotiation to cover rising expenses. With an existing home, the final price you will pay is negotiated upfront.

If you’re a homeowner looking to sell, your house is more attractive to a greater number of buyers as compared to earlier in the year. This might be the time to contact a local real estate professional to discuss the possibility.

If you’re a homeowner looking to sell, your house is more attractive to a greater number of buyers as compared to earlier in the year. This might be the time to contact a local real estate professional to discuss the possibility.

Full article on Keeping Current Matters


15-Year Fixed-Rate Mortgages Reach Record Low

11422 S Breyman Ave, Portland, OR 97219
Presented by Kim Kelleher | Offered at $1,474,000| MLS# 21687117

From REALTOR® Magazine

Borrowers can still take advantage of some of the lowest mortgage rates of all time. For the fifth consecutive week, the 30-year fixed-rate mortgage has remained below 3%. Also, the 15-year fixed-rate mortgage averaged 2.10% this week, an all-time low, Freddie Mac reported.

“As the economy works to get back to its pre-pandemic self, the fight against COVID-19 variants unfolds, owners and buyers continue to benefit from some of the lowest mortgage rates of all-time,” said Sam Khater, Freddie Mac’s chief economist.

In 2019, mortgage rates averaged 3.94%, 4.54% in 2018, and more than 6% in 2008. That said, “expect mortgage rates to modestly rise in the following months as most of the economic indicators will start to stabilize,” Nadia Evangelou, senior economist and director of forecasting for the National Association of REALTORS®, said on the association’s Economists’ Outlook blog. Lawrence Yun, NAR’s chief economist, is predicting the 30-year fixed-rate mortgage to increase to 3.3% by the end of the year and average 3.6% in 2022.

Freddie Mac reports the following national averages with mortgage rates for the week ending July 29:

• 30-year fixed-rate mortgages: averaged 2.80%, with an average 0.7 point, rising from last week’s 2.78% average. Last year at this time, 30-year rates averaged 2.99%.

• 15-year fixed-rate mortgages: averaged 2.10%, with an average 0.7 point, dropping from last week’s 2.12% average. A year ago, 15-year rates averaged 2.51%.

• 5-year hybrid adjustable-rate mortgages: averaged 2.45%, with an average 0.3 point, falling from last week’s 2.49% average. A year ago, 5-year ARMs averaged 2.94%.

Freddie Mac reports average commitment rates along with average points to better reflect the total upfront cost of obtaining a mortgage.

Full article on REALTOR® Magazine