What Does 2021 Have in Store for Home Values?

According to the latest CoreLogic, Home Price Insights Report, nationwide home values increased by 8.2% over the past twelve months. The dramatic rise was brought about as the inventory of homes for sale reached historic lows at the same time buyer demand was buoyed by record low mortgage rates. As CoreLogic explained:

“Home price growth remained consistently elevated throughout 2020. Home sales for the year are expected to register about 2019 levels. Meanwhile, the availability of for-sale homes has dwindled as demand increased and coronavirus outbreaks continued across the country, which delayed some sellers from putting their house on the market.

While the pandemic left many in positions of financial insecurity, those who maintained employment and income stability are also incentivized to buy given the record low mortgage rates available; this is increasing buyer demand whole for-sale inventory is in short supply. “

Where will home values go in 2021?

Home price appreciation in 2021 will continue to be determined by this imbalance of supply and demand. If supply remains low and demand is high, prices will continue to increase.

Housing Supply:

According to the National Association of Realtors, the current number of single- family homes for sale is 1,080,000. At the same time last year, that number stood at 1.450,000. We are entering 2021 with approximately 370,000 fewer homes for sale than there were one year ago.

However, there is some speculation that they inventory crush will ease somewhat as we move through the new year for two reasons:

  1. As the health crisis eases, more homeowners will be comfortable putting their houses on the market.
  2. Some households impacted financially by the pandemic will be forced to sell.

Housing Demand:

Low Mortgage rates have driven buyer demand over the past twelve months. According to Freddie Mac, rates stood at 3.72% at the beginning of 2020. Today, we are starting 2021 with rates one full percent lower than that. Low rates create a great opportunity for homebuyers, which is one reason why demand is expecting to remain high throughout the new year.

Taking into consideration these projections on housing supply and demand, real estate analytics forecast homes will continue to appreciate in 2021, but that appreciation may be at a steadier pace than last year. Here are the forecasts:

Bottom Line:

There’s still a very limited number of homes for sale for the great number of purchasers looking to buy them. As a result, the concept of supply and demand mandates that home values in the country will continue to appreciate.

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Considering Selling your Home this Year? Here are 3 must do’s!

It is exciting to put a house on the market and to think about making new memories in new spaces. However, despite the anticipation of what’s to come, we can still have deep sentimental attachments to the home we are leaving behind. Growing emotions can help or hinder a sale depending on how we manage them.

When it comes to the bottom line, homeowners need to know what it takes to avoid costly mistakes when its time to move. Being mindful and prepared for the process can help you stay on the right track when selling your house this year.

1. Price Your Home Right

When inventory is low, like it is in the current market, its common to think buyers will pay whatever we ask when setting a listing price. Believe it or not, that’s not always true. Don’t forget that the buyer’s bank will send an appraiser to determine the fair value for your house. The bank will not lend more than what the house is worth, so be aware that you might need to renegotiate the price after the appraisal. A real estate professional will help you to set the true value of your home.

2. Keep Your Emotions in Check

Today, homeowners are living in their houses for a longer period of time. Since 1985, the average tenure, or the time a homeowner has owned their home, has increased from 5 to 10 years as seen in the graphic below.

This is several years longer than what used to be the historical norm. The side effect, however is when you stay in one place for so long, you may get even more emotionally attached to your space. If its the first home you bought or the house where your child grew up, it very likely means something extra special to you. Every room has memories, and its hard to detach from the sentimental value.

For some homeowners, that makes it even harder to negotiate and separate the emotional value of the house from the fair market price. Thats why you need a real estate professional to help you with the negotiations along the way.

3. Stage your home properly.

We are generally quite proud of our decor and how we’ve customized our houses to make them our own unique homes, but not all buyers will feel the same way about your design. That’s why it’s so important to make sure you stage your house with the buyer in mind.

Buyers want to envision themselves in the space so it truly feels like it could be their own. They need to see themselves inside with their furniture and keepsakes- not your pictures and decorations. Stage and declutter so they can visualize their own dreams as they walk down the hall. A real estate professional can help you with tips to get your home ready to stage and sell.

Bottom Line

Today’s sellers’ market might be your best chance to make a move. If you’re considering selling your house, lets connect so you have the help needed to navigate through the process while prioritizing these must-do’s.

Looking Ahead… 2021 Home Market

Experts have forecasted an optimistic year for the 2021 housing market!

While 2020 came with many unknowns, the housing market continued to stay strong. Experts have weighed in on what is to come with 2021, and they believe the market will continue to be a strong force.

Mortgage Interest Rates are projected to remain at or near 3% in 2021, fueling strong buyer activity.

Home sales are forecasted to increase in 2021 while interest rates continue to remain low.

Home Prices are also expected to continue appreciating as more people buy in the coming year.

The Bright Star On Sacramento Street

Take a sneak peak at a Condo Listing Coming Soon- The Bright Star on Sacramento Street

3240 Sacramento Street is a luxury 3 bedroom 2.5 bath condo filled with natural light, warm tones, and beautiful custom finishes, perfect for luxurious city living. 

This unit is located in the heart of Sacramento Street, in Pacific Heights with boutique shops, famous restaurants, and shopping centers all within walking distance.

Reach out to schedule a showing today! ⭐️ 

Serene 1-BR Historic Loft in South Beach

Perfect for a flexible live and work environment, this Condo could be yours today!

Characterized by its soaring ceilings and enormous windows, this ground floor 1-BR/2-BA corner loft condo offers an inspirational and flexible live/work environment, great for sheltering in place or working from home. The main “great room” space has impressive double high ceilings, phenomenal natural light, warm wood floors, built in shelves, and an open stairway which leads to the bedroom on the second floor. The completely remodeled eat-in kitchen has beautiful tile floors, recessed lighting, and comes with quality stainless steel appliances, handsome caesarstone countertops, and ample white cabinetry. There is a cozy upper level bedroom with a large closet, recessed lighting, and ensuite tile bathroom with washer/dryer hookups. A full bath on the lower level and one car parking make the home that much more comfortable. The building has a shared courtyard and is located in an area of the Mission known for its tech start ups. The home is across from Franklin Square Park and close to many wonderful restaurants and shops. Easy access to freeways, BART/MUNI, and corporate shuttles.

Why Is It so Important to Be Pre-Approved in the Homebuying Process?

Why Is It so Important to Be Pre-Approved in the Homebuying Process? | MyKCM

You may have heard that pre-approval is a great first step in the homebuying process. But why is it so important? When looking for a home, the temptation to fall in love with a house that’s outside your budget is very real. So, before you start shopping around, it’s helpful to know your price range, what you’re comfortable within a monthly mortgage payment, and ultimately how much money you can borrow for your loan. Pre-approval from a lender is the only way to do this.

According to a recent survey from realtor.com, many buyers are making the mistake of skipping the pre-approval step in the homebuying process:

“Of over 2,000 active home shoppers who plan to purchase a home in the next 12 months, only 52% obtained a pre-approval letter before beginning their home search, which means nearly half of home buyers are missing this crucial piece of paperwork.

This paperwork (the pre-approval letter) shows sellers you’re a qualified buyer, something that can really help you stand out from the crowd in the current ultra-competitive market.

How competitive is today’s market? Extremely – especially among buyers.

With limited inventory, there are many more buyers than sellers right now, and that’s fueling the competition. According to the National Association of Realtors (NAR), homes are receiving an average of 2.9 offers for sellers to negotiate, so bidding wars are heating up.

Pre-approval shows homeowners you’re a serious buyer. It helps you stand out from the crowd if you get into a multiple-offer scenario, and these days, it’s likely. When a seller knows you’re qualified to buy the home, you’re in a better position to potentially win the bidding war and land the home of your dreams.

Danielle Hale, Chief Economist for realtor.com notes:

“For ‘a buyer in a competitive market, it’s typically essential to have pre-approval done in order to submit an offer, so getting it done before you even look at homes is a smart move that will enable a buyer to move fast to put an offer in on the right home.’”

In addition, today’s housing market is also changing from moment to moment. Interest rates are low, prices are going up, and lending institutions are regularly updating their standards. You’re going to need guidance to navigate these waters, so it’s important to have a team of professionals (a loan officer and a real estate agent) making sure you take the right steps along the way and can show your qualifications as a buyer at the time you find a home to purchase.

Bottom Line

In a competitive market with low inventory, a pre-approval letter is a game-changing piece of the homebuying process. If you’re ready to buy this year, let’s connect before you start searching for a home.

Ask a Pro about Buying a Home

Lots of people have questions about buying a home, and other topics related to the process. Working with a trusted real estate professional will help you create the most personalized and helpful experience when buying a new home. Let’s connect so you have the guidance you need along the way.

Ask a Pro About Buying a Home [INFOGRAPHIC] | MykCM

 

Today’s Low Interest Rates

Today’s low rates mean it’s less expensive to borrow money, so the savings over the life of your loan is significant. Sometimes it helps to see the dollars and cents you’ll save when you purchase a home while mortgage rates are low. Let’s connect to determine the best way to position yourself for a financially-savvy move in today’s market.

Mortgage Rates & Payments by Decade [INFOGRAPHIC] | MyKCM

Record Breaking Sale at The Palms!

 

Just sold 555 4th Street #825 in San Francisco, a sweet, sunny condo at The Palms in South Beach for $780,000 – or $1,300 per square foot – the highest price per square foot for a one-bedroom in the building ever!

Whether you are looking to buy or sell a property, I always support my clients to get the best price possible!