What Do Second-Wave Baby Boomers Want in a Home?

According to a recent study, second-wave baby boomers have varied reasons for wanting to purchase a new home, and they feel that that new home should be able to adjust to their changing needs in the future.

Looking to sell your Home? Get a FREE home value report

Looking to buy a Home? Search all homes for sale

Did you know that there are approximately 76.4 million baby boomers living in the U.S. today?

Contrary to what many people think, there are many different segments within this generation, and one of the things that sets them apart is their housing needs. John McManus, editorial director of the Hanley Wood Residential Group, says his company is focusing on the preferences of the younger half, or second-wave baby boomers, as they exhibit different needs than the older segment of this generation.

“

Second-wave baby boomers want homes that can adjust to their changing needs.

”

What are second-wave baby boomers looking for? They are seeking a fun, dynamic lifestyle with a home that can also adjust to their changing needs in the future. Second-wave baby boomers say living space should either include accessibility features such as doorway space, lower shelves, and nonslip surfaces, or be easily adjustable when the time comes.

In a home buyer study performed by the Farnsworth Group, second-wave participants revealed their reasons for purchasing a new home. In the video above, I’ve provided a graph that lists the top three factors that influence their purchasing decisions.

• 50.2% cited area or location, wanting their new homes to be near shopping, dining, medical services, and entertainment. 
• 37.4% focused on price or affordability. 
• 19% focused on the layout of the home. 

The report also found that when buying a new home, they had other concerns too. 8.4% wanted a safer neighborhood, and 8.25% were looking for better floor plans, with the most important rooms or areas being the kitchen, the master bedroom, and the family room.

Technology also plays an important role. Second-wave baby boomers prefer wireless security systems and integrated home technology, including smart thermostats and lighting controlled by a smartphone.

The bottom line? If you are one of the many second-wave baby boomers who is starting to feel like your current home no longer fits your needs, take advantage of the low inventory of existing homes in today’s market by selling your current home and moving on to one that truly fits your new lifestyle.

If you or anyone you know is thinking about buying or selling a home, call or email me today for a free real estate consultation. I look forward to talking with you!

What Do Post-Election Mortgage Rates Look Like?

What sort of impact did the election have on the market? I’ve got some good news and bad news to share with you today.

Looking to sell your Home? Get a FREE home value report

Looking to buy a Home? Search all homes for sale

With the election over, it’s time to talk about what’s happening and going to happen with mortgage rates.

There’s some good news, and there’s some bad news.

Let’s get the bad news out of the way. Mortgage rates have shot up since the election. From a low of 3.4% on November 7th, the average 30-year mortgage rate increased to over 4% by the end of November. Economists say this kind of volatility is likely to continue, with day to day changes driven by the moves and statements of the incoming administration.

The good news is that there are still plenty of reasons to stay optimistic. Promised tax breaks could reinvigorate sales of luxury homes, which have been in a rut lately. This could potentially have a ripple effect throughout the rest of the real estate market, spurring sales and new construction of mid-level, lower price housing.

“

The election is finally over.

”

Looser regulation could also make it easier to further stimulate construction and make it easier for buyers to obtain mortgages.

Although those are long-term effects that we can look forward to, there’s something to be thankful for right now. The election is finally over.

You might have seen that the stock market has been surging in the past few weeks. This might be a vote of confidence for the President-elect and his anticipated business-friendly policies. One thing is for sure; it seems like things are getting back to normal as people realize the world isn’t ending. In fact, people who might have been waiting on the sidelines during the election are now entering the real estate market.

If you are a seller, you should take advantage of the influx of buyers. Prices are near record highs.

If you are a buyer, there are two things you should know. First, even though interest rates have gone up, they are still historically low and worth taking advantage of. Second, many new homes have entered the market since the election, giving you more properties to choose from.

If you or anyone you know is thinking of buying or selling a home, please call me or send me an email. I would be happy to answer all of your questions!

How U-Haul Stats Reflect Real Estate Trends

Looking to sell your Home? Get a FREE home value report

Looking to buy a Home? Search all homes for sale

Where are people moving? Which cities are they leaving? What locations are popular these days?

A great way to get answers to these questions is to look to U-Haul. Their pricing model gives us the statistics on where people are going. For instance, it’s more expensive to rent a truck in cities that have a low inventory of trucks. In cities with more trucks, they are less expensive to rent.

In Los Angeles, it costs 63% more to rent a U-Haul truck because there aren’t many trucks available. The reason for that low inventory? People aren’t dropping off trucks in that area—they’re leaving and then dropping them off at their destination.

Cities with a higher inventory tend to have more people moving there. For example, in the Northwest, it is less expensive to rent trucks in cities like Seattle and Portland because people are moving there and dropping off trucks. We see the same trend happening in the Southwest in cities like Phoenix, Austin, and Dallas.

“

Cities with a higher inventory of trucks have more people moving there.

”

As far as the Temecula Valley area goes, the stats aren’t quite as dismal. We have approximately a 1.6% migration rate, which means we don’t have as many people moving out of our area as other areas, such as Los Angeles. I think the more populated areas across the U.S. are losing residents due to diminishing employment opportunities. According to Newsweek, many business firms have left California for places like Mexico, Nevada, Texas, and Arizona.

Last year, United Van Lines ranked California in its high outbound category, which means 55% or more of all the firm California shipments were outbound rather than inbound. What does this mean for our housing market?  So far, the Temecula valley has maintained its values, although sales have slowed a bit due to the election year.

If you have any questions about our current market or about real estate in general, give me a call or send me an email. I look forward to hearing from you!

Reviewing the Foreclosure Market

Looking to sell your Home? Get a FREE home value report

Looking to buy a Home? Search all homes for sale

Recently there has been a lot of talk about the size of the foreclosure inventory nationwide. There has been some speculation that distressed property inventory (or “shadow inventory”) is about to skyrocket. Today I’d like to reveal what’s actually taking place in this segment of the housing market.

In their most recent national foreclosure report, CoreLogic reported that foreclosure inventory has decreased by 23.2% since this time last year. Foreclosure inventory has also decreased in 49 of the 50 states, and 45 states have posted a year over year double-digit decline. It appears, therefore, that there is no shadow inventory or threat of a high foreclosure market in the near future.

The worst of the foreclosure market crisis is in our rear view mirror.

The report also shows that the seriously delinquent rate, which refers to homeowners more than 90 days behind on their mortgage payment, is 3.1% - the lowest level since November of 2007. The foreclosure rate is 1.1%, which is also the lowest level since Nov. 2007. This was the 53rd consecutive month that showed a decline in the foreclosure rate.

The bottom line is that though foreclosures do remain in the market, the number is dramatically decreasing. The fact that mortgage delinquency rates are also decreasing means the worst of the foreclosure market crisis is in our rear view mirror.

If you or anyone you know is thinking of buying or selling a home, have them call or email me for a free real estate consultation. Thanks again, and make it a great day.

How Can You Stage Your Home to Sell for More Money?

Looking to sell your Home? Get a FREE home value report

Looking to buy a Home? Search all homes for sale

I’m sure most of you have heard of the term “home staging.” If you’re looking for top dollar, it’s important to understand that the way we live in our home and the way we should sell our home are two different things.

Think of it like speed dating - buyers look at several homes before they make a decision. Statistics show that it takes the average buyer six seconds to determine whether they’ll stay and look around or leave when viewing a home. Just six seconds! Wouldn’t you want a buyer to “date” your home? If so, I want to share some basic staging tips.

• All rooms should be clean and organized. Make sure to put things away in an organized manner, as many buyers will check out closets and cupboards. A good trick is to keep an empty bin close by as a last-minute catch-all for a laundry pile or the kids’ toys. 
• Open your blinds. The home shows better with natural light. Make sure your windows are clean, though. 
• Remove any personal photos. Buyers want to visualize themselves in the home, not you. 
• Clear off your countertops. Leave only the necessary items like the coffee maker and the paper towel holder and add a colorful bowl of fruit or a vase of flowers to brighten the area.
• Placement of furniture is critical. Buyers must see the space of the home. Create a spacious traffic flow throughout each room and make sure the hallway is clear. 
• Place artwork at or below eye-level. 
• Paint should be neutral color, or pleasing to the eye. 
• Bedrooms should be inviting. Making the beds with strategically-placed accent pillows and colorful throws, and setting out a tray with coffee cups and a bread rolls are great ways to show off a bedroom. 
• Laundry rooms should be clean. All cleaners should be put away in the cabinets or neatly placed on shelves. Don’t leave wet clothes in the washer, as this can give the room a musty odor. 
• The landscape should be manicured. Put some color spots on your front porch to greet your guests. Make sure the welcome mat is clean of debris. Clean off all backyard patio furniture and stage your table with some colorful placemats, napkins, and tables. 
• Make sure the interior temperature is comfortable.
• Put on some soft, low-volume music. 

“

It takes the average buyer six seconds to decide if they’ll stay or go during a viewing.

”

These are just a few of the many things that can enhance a home’s presentation and bring a seller top dollar. I have a team of stagers that do amazing things by adding the perfect blend of color and texture to captivate the attention of buyers. I offer this service to my clients. I hope this information has been helpful. If you have any questions, please call or send me an email. Go out there and make it a great day!

Are We in a Buyer’s or Seller’s Market?

Looking to sell your Home? Get a FREE home value report

Looking to buy a Home? Search all homes for sale

Due to our currently low inventory, most sellers are receiving multiple offers on their homes. Many times these offers are coming within a few days of the home coming on the market. We’re currently in a seller’s market, but a note to sellers: If your home doesn’t show well or is overpriced, it will be a much tougher sell.

What does our current inventory look like? It’s consistently gone down over the last five years. Right now, we have a 2.7 month supply with no indication of an increase, so we should continue to see this seller’s market for the time being.

“

Both buyers and sellers can benefit from today’s market.

”

Low inventory does have an impact on home values. Home prices have increased by an average of 5.7% from this time last year and have gone up a whopping 26.3% from 2012. It’s not all bad for buyers, however. Interest rates are still under 4%, making it a great time to buy. Thirty-year fixed-rate mortgages are sitting at about 3.6%, but it won’t last. Rates are projected to increase over the next nine months as much as 1.2%.

In a nutshell, both buyers and sellers can benefit from today’s market. Sellers have equity and buyers have low interest rates to go along with plenty of low down payment options.

If you have any questions for us, don’t hesitate to give us a call or send us an email. We would love to hear from you.