Home Sales About To Surge? We May See a Winter Like Never Before.

Home Sales About To Surge? We May See a Winter Like Never Before. | MyKCM

Experts predict that with buyer demand being extremely strong, home sales are about to surge. It appears we may soon see a somewhat uncharacteristic increase in homes for sale. Like most industries, residential real estate has a seasonality to it. For example, toy stores sell more toys in October, November, and December than they do in any other three-month span throughout the year. More cars are sold in the U.S. during the second quarter (April, May, and June) than in any other quarter of the year.

Real estate is very similar. The number of homes sold in the spring is almost always much greater than at any other time of the year. It’s even labeled as the spring buying season. Historically, the number of buyers and listings for sale significantly increase in the spring and remains strong throughout the summer. Once fall sets in, the number of buyers and sellers typically drops off.

Last year, however, that seasonality didn’t happen. The outbreak of the virus and subsequent slowing of the economy limited sales during the spring market. These sales were pushed back later in the year, and last fall and winter saw a dramatic increase in home sales over previous years. The only thing that held the market back was the extremely limited supply of homes for sale.

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What About This Winter?

Some experts thought we’d return to the industry’s normal seasonality this winter with both the number of purchasers and houses available for sale falling off. However, data now shows that neither of those situations will likely occur. Buyer demand is still extremely strong, and it appears we may soon see a somewhat uncharacteristic increase in the number of homes coming to the market.

Buyer Demand Remains Strong
Home Sales About To Surge? We May See a Winter Like Never Before. | MyKCM

The latest Showing Index from ShowingTime, which tracks the average number of monthly showings on available homes, indicates buyer activity was slightly lower than at the same time last year but much higher than any of the three previous years (see chart below):A report from realtor.com confirms buying activity remains strong in the existing home sales market:

“New housing data shows 2021’s feverish home sales pace broke a yearly record in October, . . . with last month marking the eighth straight month of buyers snatching up homes more quickly than the fastest pace in previous years. . . .”

Buyer activity for newly constructed homes is also very strong. Ali Wolf, Chief Economist for Zondarecently reported that Stuart Miller, the Executive Chairman of Lennar, one of the nation’s largest home builders, said this about demand:

“There is still a great deal of demand at our sales centers with people lining up and not enough supply.”

The only question heading into this winter is whether the number of listings available could come close to meeting this buyer demand. We may have just received the answer to that question.

Sellers Are About To List – Right Now

Instead of waiting for the normal spring buying market, new research indicates that homeowners thinking about selling are about to put their homes on the market this winter.

Speaking to the release of a report on this recent research, George Ratiu, Manager of Economic Research for realtor.com, said:

“The pandemic has delayed plans for many Americans, and homeowners looking to move on to the next stage of life are no exception. Recent survey data suggests the majority of prospective sellers are actively preparing to enter the market this winter.

Here are some highlights in the report:

Of homeowners planning to enter the market in the next year:

  • 65% – Have just listed (19%) or plan to list this winter
  • 93% – Have already taken steps toward listing their home, including working with an agent (28%)
  • 36% – Have researched the value of their home and others in their neighborhood
  • 36% – Have started making repairs or decluttering

The report also discusses the reasons sellers want to move:

  • 33% – Have realized they want different home features
  • 37% – Say their home no longer meets their family’s needs
  • 32% – Want to move closer to friends and family
  • 23% – Are looking for a home office

Data shows buyer demand remains unusually strong going into this winter. Research indicates the supply of inventory is about to increase. This could be a winter real estate market like never before.

Bottom Line

If you’re thinking of buying or selling, now is the time to have a heart-to-heart conversation with a real estate professional in your market, as things are about to change in an unexpected way. Contact one of our experienced agents to get started today.

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Wondrous Views

If you’re a first time Home Buyer, the thought of buying a home may seem mind-boggling. It may feel like making the first step to climbing a mountain. At BST Realty LLC, we are here to help make your experience as smooth as possible. We get that our clients may need a bit of education when it comes to buying a home, especially your first home. We also understand that making the decision to buy a home is a big. It’s life-changing. And, we’re here to help you make the change you’ve been thinking about with your family. It doesn’t have to seem like trudging up a mountain, but my…you may have wondrous views once you reach your goal.

Crater Lake, one of the many great views that Oregon has to offer.

Taking the First Step

Perhaps you have been renting for a while, and you realize you’d rather put your money in a mortgage rather than toward rent every month. Maybe you and your partner have been saving up a bit, so that way you have enough to make a down payment. Whatever the reason is, we’re here to support you. Anything that’s your first time can feel a bit intimidating at first. It’s because things seem a bit more uncertain because you don’t know what to expect. We are here to make the steps to buying a home have more clarity. We are here to make sure you aware of each step.

From making an offer to closing on a home, each step can be exciting. There are many ways to make the offer the best of the bunch. And, right now, we are experiencing lots of times where multiple offers are being made on homes. Don’t let that get you down though. We are experienced at making offers that will put yours at the top, and also keep your needs and wants at the top, too. If you’re thinking of buying your first home, we’d love to talk. We are here to support you at every point in the journey and get to those wondrous views you have been waiting for. After all, it’s a once in a lifetime experience, and we are honored to be a part of it.

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The Sky Is Not Falling Chicken Little

Why All the Chicken Littles Should Calm Down

Why All the Chicken Littles Should Calm Down | MyKCM
The Sky is not falling chicken little!

The U.S. Census Bureau recently released their 2019 Q2 Homeownership Report. Some began to see the sky falling, believing the report showed Americans may be stepping back from their belief in homeownership.

The national homeownership rate (Americans who owned vs. rented their primary residence) increased significantly during the housing boom, reaching its peak of 69.2% in 2004. The Census Bureau reported that the second quarter of 2019 ended with a homeownership rate of 64.1%, which is down from the 64.8% rate for the fourth quarter of 2018. Based on this news, some started to question the consumer’s belief in the idea of homeownership as a major part of the American Dream.

Everyone Calm Down…The sky is not falling

Why All the Chicken Littles Should Calm Down | MyKCM

It is true the homeownership rate did fall. However, if you look at the national rate over the last 35 years (1984-2019), you can see that the current homeownership rate has returned to historical norms. The 64.1% rate is equivalent to the rates in 1984 and 1994.

What Will the Future Bring?

Part of the reason the homeownership rate slipped is a lack of inventory available for purchase for first-time home buyers. The demand is there, but currently, the supply is not. It seems, however, that is about to change.

In a recent report, Ivy Zelman explained that builders have finally started to increase the number of homes they’re constructing at the lower-end price points:

“Robust growth in the entry-level price point of late should translate to a reacceleration in homeownership rates moving forward.”

Bottom Line

Today, the homeownership rate sits at historic norms. In all probability, it will increase as more inventory becomes available. There is no reason for concern.

The sky is not falling, it is blue and clear! Come in today and speak with one of our agents about starting your journey to homeownership! Ready to upgrade? Great, let’s find the perfect home for you! Click the link below to see what is on the market in your area! http://bledsoesantanateam.com/Search

Licensed Broker in The State of Oregon


Silverton Office 503-874-4666
Woodburn Branch Office 503-446-5411
Keizer Branch Office 971-339-5244

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The Surprising Real Estate Investor!

The Surprising Profile of the Real Estate Investor

The Surprising Profile of the Real Estate Investor | MyKCM

Over 10% of all residential homes are purchased by investors, and that number continues to rise. Who are these investors?

Many have speculated that the large institutional conglomerates such as Blackstone, American Homes 4 Rent, and Colony Starwood dominate investor purchases. However, a special report on investor home buying by CoreLogicDon’t Call it a Comeback: Housing Investors Have Been Here for Years, shows this is not the case.

Ralph McLaughlin, CoreLogic’s Deputy Chief Economist and author of the report, explained his findings at the recent National Association of Real Estate Editors conference in Austin:

“Investor buying activity in the U.S. is at record highs. And our records go back confidently, about 20 years…

What’s going on and why? Well, it turns out, it’s not the big institutional guys that are leading the increase in home buying. It’s actually the smaller guys. It’s those that have bought between one and ten properties over this 20-year period, they’re the ones that are really leading the increase in investor home buying.”

Here is the breakdown of the percentage of purchasers by type of investor over the last six years according to the report:The Surprising Profile of the Real Estate Investor | MyKCMAs the graph shows, the percentage of “Mom & Pop” investors is currently dominating the number of homes purchased by investors, as the percentage of homes purchased by both professional and institutional investors is falling.

Bottom Line

Most houses purchased by an investor are bought by small investors looking to diversify their financial portfolio by adding a real estate component. If you are investing in real estate as either a landlord or someone who fixes-up and flips the house, let’s chat about the ways you can build or liquidate your current portfolio of properties.

We have agents who specialize in representing private real estate investors. Give us a call or click the link below and speak with one of our fantastic agents today!

BST Agents!

Licensed Broker in The State of Oregon
Silverton Office 503-874-4666
Woodburn Branch Office 503-446-5411
Keizer Branch Office 971-339-5244

 

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Welcome Nicole Rodriguez To The BST Team!

Bledsoe Santana Team Realty, LLC is happy to welcome Nicole Rodriguez as the newest member of our team!

We are excited to have Nicole as a part of our Woodburn office and look forward to all she is going to bring to our team! Nicole is multilingual, in Spanish, Tagalog, as well as English! Welcome Nicole!!

Here is Nocole’s “About Me”

“I am born and raised in Juneau, Alaska. I grew up dancing and competing since the age of four. During high school, I was a member of the JDHS dance team, National Honor Society, Interact Club, and recipient of the Rotary Youth Leadership awards. After high school, I received a UA Scholar Award and attended the University of Alaska Southeast. I enrolled in the business program while working as a manager for a bank and dance assistant.

Before Real Estate, I was a Branch Manager for a local Credit Union, a member of Rotaract Club, and Chamber of Commerce, and very active in the dance community.

My husband Hugo Rodriguez, was raised in Woodburn, OR and graduated Woodburn High in 2007. After high school he worked for a bank and transferred to Alaska where we met. We got married in 2014 and raised our two children Azaleigha and Nathan. After a few years of convincing, my husband was happy to call Oregon home again.

I’m excited to be part of the Woodburn community.  When I am not helping the community buy and sell homes, I serve the community on behalf of Rotary, teach dance lessons for Woodburn Parks and Recreation, and raise my two children.”

Nicole Rodriguez, Licensed Oregon Broker

(907) 957-0299

NicoleRodriguezHomes.Com

Licensed Broker in The State of Oregon
Silverton Office 503-874-4666
Woodburn Branch Office 503-446-5411
Keizer Branch Office 971-339-5244

 

 

 

 

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Move on up!

Now’s the Time to Move -Up and Upgrade Your Current Home!

Now’s the Time to Move-Up and Upgrade Your Current Home! | MyKCM

Homes priced at the top 25% of the price range for a particular area of the country are considered “premium homes.” In today’s real estate market, there are deals to be had at the higher end! This is great news for homeowners wanting to make a move and upgrade from their current house.

Much of the demand for housing over the past couple of years has come from first-time buyers looking for their starter home. Many of the more expensive homes listed for sale have not seen as much interest.

According to ILHM’s Luxury Reportthis mismatch in demand and inventory of luxury and premium homes has created a Buyer’s Market. For the purpose of the report, a luxury home was defined as one that costs $1 million or more.

“A Buyer’s Market indicates that buyers have greater control over the price point. This market type is demonstrated by a substantial number of homes on the market and few sales, suggesting demand for residential properties is slow for that market and/or price point.”

The authors of the report were quick to point out that current conditions at the higher end of the market are no cause for concern.

“While luxury homes may take longer to sell than in previous years, the slower pace, increased inventory levels and larger differences between list and sold prices, represent a normalization of the market, not a downturn.”

Luxury can mean different things to different people. To one person, luxury is a secluded home with plenty of property and privacy. To another, it could be a penthouse at the center of a bustling city. Knowing what characteristics mean luxury to you will help your agent find you the home of your dreams.

Bottom Line

If you are debating upgrading your current house to a premium or luxury home, now is the time! We can get you started right away with a free Home Value Report and start shopping for your next home! Click the link below!

Home Value Report

Licensed Broker in The State of Oregon
Silverton Office 503-874-4666
Woodburn Branch Office 503-446-5411
Keizer Branch Office 971-339-5244

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What is Private Mortgage Insurance?

What You Need to Know About Private Mortgage Insurance (PMI)

What You Need to Know About Private Mortgage Insurance (PMI) | MyKCM

Whether it is your first time or your fifth, it is always important to know all the facts when it comes to buying a home. With the large number of mortgage programs available that allow buyers to purchase homes with down payments below 20%, you can never have too much information about Private Mortgage Insurance (PMI).

What is PMI?

Freddie Mac defines PMI as:

“An insurance policy that protects the lender if you are unable to pay your mortgage. It’s a monthly fee, rolled into your mortgage payment, that is required for all conforming, conventional loans that have down payments less than 20%.

Once you’ve built equity of 20% in your home, you can cancel your PMI and remove that expense from your mortgage payment.”

As the borrower, you pay the monthly premiums for the insurance policy, and the lender is the beneficiary. Freddie Mac goes on to explain that:

“The cost of PMI varies based on your loan-to-value ratio – the amount you owe on your mortgage compared to its value – and credit score, but you can expect to pay between $30 and $70 per month for every $100,000 borrowed.” 

According to the National Association of Realtors, the average down payment for all buyers last year was 13%. For first-time buyers, that number dropped to 7%, while repeat buyers put down 16% (no doubt aided by the sale of their homes). This just goes to show that for a large number of buyers last year, PMI did not stop them from buying their dream homes.

Here’s an example of the cost of a mortgage on a $200,000 home with a 5% down payment & PMI, compared to a 20% down payment without PMI:What You Need to Know About Private Mortgage Insurance (PMI) | MyKCMThe larger the down payment you can make, the lower your monthly housing cost will be, but Freddie Mac urges you to remember:

“It’s no doubt an added cost, but it’s enabling you to buy now and begin building equity versus waiting 5 to 10 years to build enough savings for a 20% down payment.”

Bottom Line

If you have questions about whether you should buy now or wait until you’ve saved a larger down payment, let’s get together to discuss our market’s conditions and help you make the best decision for you and your family.

We have worked with some amazing a trustworthy Mortgage Lenders and have a link with their info so you can get your questions answered. Just click below to get started!

Mortgage-Center

Licensed Broker in The State of Oregon
Silverton Office 503-874-4666
Woodburn Branch Office 503-446-5411
Keizer Branch Office 971-339-5244

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Buying A Vacation Property?

Buying A Vacation Property? Now Is A Good Time!

Buying A Vacation Property? Now Is A Good Time! | MyKCM

Every year around this time, many homeowners begin the process of preparing their homes in case of extreme winter weather. Some others skip winter all together by escaping to their vacation homes in a warmer climate.

For those homeowners staying at their first residence, AccuWeather warns:

“The late-week cold shot should fade next week, but this is a warning shot for winter’s return late in the month and early February.”

Given this, it’s time to go and stock up on winter weather supplies! However, if you’re tired of shoveling snow and dealing with the cold weather, maybe it’s time to consider obtaining a vacation home!

According to the Investment & Vacation Home Buyers 2018 Report by NAR:

72% of vacation property owners and 71% of investment property owners believe now is a good time to buy.”

It’s time to take advantage of the equity in your home. As the latest Equity Report from ATTOM Data Solutions stated:

“Nearly 14.5 million U.S. properties (are) equity rich — where the combined estimated amount of loans secured by the property was 50 percent or less of the property’s estimated market value — up by more than 433,000 from a year ago to a new high as far back as data is available, Q4 2013.

The 14.5 million equity rich properties in Q3 2018 represented 25.7 percent of all properties with a mortgage.”

This means that over a quarter of Americans who have a mortgage would be able to use some of their home equity to make a significant down payment toward a vacation home, and many are doing just that! According to the same report by NAR:

“33% of vacation buyers purchased in a beach area, 21% purchased on a lakefront, and 15% purchased a vacation home in the country.”

Many homeowners who are close to retirement will use some of their equity to purchase vacation homes, which may eventually become their permanent homes post-retirement!

Bottom Line

If you are a homeowner looking to take advantage of your home equity by investing in a vacation home, let’s get together to discuss your options!

Contact Us!

 

Licensed Broker in The State of Oregon

Silverton Office 503-874-4666

Woodburn Branch Office 503-446-5411

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Softening Prices Are Not Falling Prices!

Are Home Prices Softening or Are They Falling?

Are Home Prices Softening or Are They Falling? | MyKCM

We are beginning to see reports that more housing inventory is coming to the market and that buyer demand may not be increasing at the same pace it did earlier this year. The result will be many headlines written to address the impact that these two situations will have on home values.

Many of these headline writers will confuse “softening home prices” with “falling home prices,” but there is a major difference between the two.

The data will begin to show that home values are not appreciating at the same levels as they had over the last several years (softening prices). This does NOT mean that prices are depreciating (falling prices).

Here is an example: Over the last several years, national home values increased by more than 6% annually. If you had a home worth $300,000 at the beginning of the year, it would be worth $318,000 by year’s end. If the appreciation rate “falls” to 4%, that $300,000 house would be worth $312,000 at the end of next year – a $6,000 difference.

The price of the home did not fall. It just didn’t increase at the level it had the previous year.

Appreciation rates are projected to end this year at approximately 5%, and then drop to somewhere between 4-5% next year. This drop in appreciation rate will cause home price increases to soften.

Again, this does not mean that home prices will depreciate, but instead that they will appreciate more slowly.

Bottom Line

Be careful when reading headlines that discuss home values. Some headline writers will be legitimately confused and will use the word falling in place of softening. Others will realize that the headline “Home Prices are Falling!” will get more clicks than “Home Prices are Softening” and will intentionally write the more compelling headline. Read the article. If the word depreciation is not mentioned, home values are not falling.


We can help you get an accurate idea of what your home is currently worth! We offer free  home valuations with no strings attached. Just click the link below to register your address or stop in any time at one of our two location.

206 Oak St. Silverton             1310 Meridian Dr. Unit 2B Woodburn.

Free Home Value Report!

Licensed Broker in The State of Oregon

Silverton Office 503-874-4666

Woodburn Branch Office 503-446-5411

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The Un- Reality Real Estate TV

5 Real Estate Reality TV Myths Explained

5 Real Estate Reality TV Myths Explained | MyKCM

Have you ever been flipping through the channels, only to find yourself glued to the couch in an reality HGTV binge session? We’ve all been there, watching entire seasons of “Love it or List it,” “Million Dollar Listing,” “House Hunters,” “Property Brothers,” and so many more all in one sitting.

When you’re in the middle of your real estate themed show marathon, you might start to think that everything you see on reality TV must be how it works in real life, but you may need a reality check.

Reality TV Show Myths vs. Real Life:

Myth #1: Buyers look at 3 homes and decide to purchase one of them.
Truth: There may be buyers who fall in love and buy the first home they see, but according to the National Association of Realtors the average homebuyer tours 10 homes as a part of their search.  

Myth #2: The houses the buyers are touring are still for sale.
Truth: Everything is staged for TV. Many of the homes being shown are already sold and are off the market. 

Myth #3: The buyers haven’t made a purchase decision yet.
Truth: Since there is no way to show the entire buying process in a 30-minute show, TV producers often choose buyers who are further along in the process and have already chosen a home to buy. 

Myth #4: If you list your home for sale, it will ALWAYS sell at the open house.
Truth: Of course, this would be great! Open houses are important to guarantee the most exposure to buyers in your area but are only a PIECE of the overall marketing of your home. Keep in mind that many homes are sold during regular showing appointments as well. 

Myth #5: Homeowners decide to sell their homes after a 5-minute conversation.
Truth: Similar to the buyers portrayed on the shows, many of the sellers have already spent hours deliberating the decision to list their homes and move on with their lives/goals.

Bottom Line

Having an experienced professional on your side while navigating the real estate market is the best way to guarantee that you can make the home of your dreams a reality!


 

Let us help you navigate the Real Estate waters! We have outstanding agents ready to go the distance with you in your home buying/selling journey. Click the link below to meet our team!

BST Agents!

Licensed Broker in The State of Oregon

Silverton Office 503-874-4666

Woodburn Branch Office 503-446-5411

 

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