3 Things to Consider about the 2020 Luxury Market

By the end of last year many of the owners of luxury homes found themselves with more equity than they thought and at the same time their earnings had increased.  Many times, when we find these two factors come together it can often increase interest for homeowners to think about making a move up to a larger or more expensive home.  You may find yourself asking if now is a perfect time to take a closer look at the housing market and how the rest 2020 year will turn out.

Here are 3 Things to Think About in the 2020 Luxury Housing Market

1. Prices

The U.S. economy continues to be strong and there are many buying opportunities throughout the luxury end of the housing market.  There has always been strong correlation between luxury real estate prices and positive economic growth.

The level of inventory has always been a key element that influences home prices. Right now, there are a lot more homes on the market in the upper price ranges than in the entry-level market home prices.  Being that there is a great selection of homes on the market in the higher priced homes it makes moving up to a luxury home right now a growing reality for many buyers.

2. Increases in the Activity of Home Buying in the Market

With a larger selection of homes on the market right now at the higher end the buying opportunities are seeing an increase active of Buyers. 

Many affluent homebuyers will be starting to search for that perfect home as they find rising rents on less appealing homes and that sellers are getting even more willing to negotiable on price.

Because there are more choices Buyers are taking the opportunity to negotiate on price in a segment where the inventory numbers of available homes is greater. 

With the current low interest rates Buyers are they have greater purchasing power.

3. Buyers Are Coming Back

Keep in mind if you are looking to move up by selling your entry level home you can take advantage of the inventory shortage at the lower priced homes, thus driving up the sales prices for your current home. With the growing equity in your home you will be selling it’s a great time to make the move up.

By using your extra equity and greater purchasing power your will be able to move off the sidelines and back into the market.

Bottom Line

If you’re considering entering the luxury market in 2020 it will be a great year to make that move.

Are You Ready?

Which month do you think most people who are considering buying a home actually start their search? If you’re like most of us, you probably think the surge happens in the spring, likely in April. Not anymore. According to new research, January 2019 was only 1% behind February for the most monthly views per listing on parkcityhomes.biz.

So, what does that mean? The busiest season in real estate has just begun.

The same research indicates,

“Historically, April launched the kickoff of the home shopping season as buyers would come out of their winter hibernation looking for their new home. However, the spring shopping season now starts in January for many of the nation’s largest markets.”

With the reality of fewer homes on the market in the winter, and that supply naturally increases as we head to the spring market, waiting for more competition to list in your neighborhood this year might put you behind the curve. Perhaps now is the time to jump into the market.

George Ratiu, Senior Economist at realtor.com says,

“As shoppers modify their strategies for navigating a housing market that has become more competitive due to rising prices and low inventory, the search for a home is beginning earlier and earlier.”

There is a lot of speculation in the market about why the search for a home is shifting to an earlier start. The one thing we do know is if you’re thinking about buying or selling a home this year, the earlier you get started, the better.

Reminder: When should you sell something? When there is less of that item for sale and the greatest number of buyers are in the market. That’s exactly what is happening in real estate right now.

Bottom Line

The new spring market for real estate is underway. If you’re considering buying or selling, let’s connect, so you have the advantage in this competitive market.

Why Young Renters are Choosing to Buy a Home or Condo

According to a poll of young buyers the top 5 reasons to own a home are:

Many young buyers who rent a home or apartment prior to buying their own homes, dream of the day that they will be able to paint the walls whatever color they'd like, or renovate an outdated part of their living space.

Many others who have waited to add a pet to their families daydream about the day that they’ll be able to go pick out their ‘furever’ friend. Owning your own home gives you the freedom to make those choices.

To Have a Sense of Privacy & Security - 90%

It is no surprise that having a place to call home, with all that means, in comfort and security, is the #2 reason. As a homeowner, you have control over who has access to your home, and you are able to secure it how you see fit.

To Live in a Nicer Home - 81%

Similar to the #1 reason, when you purchase a home, you can choose to live in a nicer home or choose to renovate a home & restore its glory. Owning also allows you to accommodate your growing family or a family member who may need to move in.

To Feel Engaged in Their Community - 75%

Owning a home in a community is one of the major reasons why residents become more civically involved. The stakes are raised once your home value is directly tied to the neighborhood and community in which you live.

To Have Flexibility in Future Decisions - 53%

As we mentioned earlier, owning a home allows you to use your monthly housing cost as a savings account that can be borrowed against in the future. Having this option available during uncertain times is just one of many reasons why homeowners feel more secure in their homes.

“The majority of young buyers said they consider owning a home more sensible than renting for both financial and lifestyle reasons — including control of living space, flexibility in future decisions, privacy and security, and living in a nice home.”

NAR’s Generational Study found that 86% of young buyers believe homeownership is a good financial investment, with 45% believing it is a better investment than the stock market.

There are a lot of reasons why it makes financial sense to buy a home. One other top reasons is the emotional fulfillment you get out of owning your own home.

There are so many sizes, shape and styles of a living spaces. There are so many feelings attached to buying a home and it means different things to different people. We all enjoy different scents or styles of chairs or spaces.  Who knows where or why we will get that feel-good connections to our own home, which are typically more important to us than the financial benefits that come along with home ownership.

Here are 4 of the reasons why owning a home makes sense. 

1. Owning your home can provide stability and comfort to start and raise a family

Finding the best neighborhoods to the top schools even without children at the time you buy your home will enhance the process and reasons for selecting an area or location of the home you buy.

2. There’s nothing like owning your own home or condo

Owning your own Park City home or condo will not only offer you safety and security, it will provide you a comfortable place where you can simply relax and kick-back after a long day.  Owning your own place is can offer a place to feel re-charged and truly content.

3. Get Rid of that Storage unit and get more space for you and your family

Is your family is expanding or your high schooler is moving out to go to college? Don’t forget you can have the backyard you have always wanted for your pets. Take all this into consideration when buying your Park City dream home so you will have the space you always wanted.

4. Control what renovations, updates, and style you are going to make

Are you thinking about trying one of those complicated wall finished you saw on Pinterest in your Park City home?  Maybe you are tired of paying someone else’s rent or dishing out additional deposits for your pet in your apartment building or rental home? Maybe you want to finally adopt that puppy or kitten you’ve been dreaming of. Who’s to say you can’t do all of these things in your one of the many Park City homes on the market.

Here Is What Matters

Whether you’re just starting to look for a home or a first-time homeowner or just looking for that next home to buy.  Now is a great time to start a new chapter in your life and now is a great time to contemplate on all the things that you can do to turn your house into a happy home.

Here are 4 tips to Selling Your Home Quickly

1. Make Buyers Feel at Home

Declutter your home! Pack away all personal items like pictures, awards, and sentimental belongings. Make buyers feel like they belong in the house. According to the 2019 Profile of Home Staging by the National Association of Realtors, “83% of buyers’ agents said staging a home made it easier for a buyer to visualize the property as a future home.”

Not only will your house spend less time on the market, but the same report mentioned that, “One-quarter of buyers’ agents said that staging a home increased the dollar value offered between 1 – 5%, compared to other similar homes on the market that were not staged.”

2. Keep It Organized

Since you took the time to declutter, keep it organized. Before buyers arrive, pick up toys, make the bed, and put away clean dishes. According to the same report, the kitchen is one of the most important rooms to stage in order to attract more buyers. Put out a scented candle or some cookies fresh from the oven. Buyers will remember the smell of your home.

3. Price It Right

When the competition in your neighborhood heats up, you’ll want to make sure your home is noticed. A key to selling your house quickly is ensuring it is Priced to Sell Immediately (PTSI). This means you’ll be driving more traffic to your property, and ultimately creating more interest in your home.

4. Give Buyers Full Access

One of the top four elements when selling your home is access. If your home is available anytime, that opens up more opportunity to find a buyer right away. Some buyers, especially those relocating, don’t have much time available. If they cannot get into the house, they will move on to the next one.

Bottom Line

If you want to sell your Park City Home or Condo in the least amount of time at the best price with as little hassle as possible, a local real estate professional is a useful guide. Let’s connect today to identify what you need to do to sell your home as quickly as possible.

December 2019

How is the Luxury Real Estate Market in Park City Utah

In many markets across the country, the number of buyers searching for their dream homes 

greatly exceeds the number of homes for sale. This has led to a competitive marketplace where buyers often need to stand out. One way to show you’re serious about buying your dream

home is to get pre-qualified or pre-approved for a mortgage before you start your search. Even if you're in a market that's not as competitive, understanding your budget will help you know if your dream home is within your reach.

Freddie Mac lays out the advantages of pre-approval in the 'My Home' section of their website.

“It’s highly recommended that you work with your lender to get pre-approved before you begin house hunting. Pre-approval will tell you how much home you can afford and can help you move faster, and with greater confidence, in competitive markets.”

One of the advantages of working with a local real estate professional is that many have relationships with lenders who will be able to help you with this process. Once you’ve selected a lender, you'll need to fill out their loan application and provide them with important information regarding “your credit, debt, work history, down payment and residential history.”

Freddie Mac describes the '4 Cs' that help determine the amount you’ll be qualified to borrow:

1. Capacity: Your current and future ability to make your payments

2. Capital or Cash Reserves: The money, savings, and investments you have that can be sold quickly for cash

3. Collateral: The home, or type of home, that you would like to purchase

4. Credit: Your history of paying bills and other debts on time

Getting pre-approved is one of many steps that will show home sellers you’re serious

about buying, and it often helps accelerate the process once your offer has been accepted.

Bottom Line

If you're ready and willing to buy, getting pre-approved will help you feel more informed, and may even give you the competitive edge you need in today’s homebuying process.

To confidently point you in the right direction, here is a list of some of the most common terms used in the homebuying process.

Appraisal – A professional analysis used to estimate the value of the home. A necessary step in validating the home’s worth to you and your lender to secure financing.

Closing Costs – The fees required to complete the real estate transaction. Paid at closing, they include: points, taxes, title insurance, financing costs, and items that must be prepaid or escrowed. Ask your lender for a complete list of closing cost items.

Credit Score – A number ranging from 300-850 that is based on an analysis of your credit history. Helps lenders determine the likelihood that you’ll repay future debts.

Down Payment – Down payments are typically 3-20% of the purchase price of the home. Some 0% down programs are also available. Ask your lender for more information.

Mortgage Rate – The interest rate you pay to borrow money to buy your home. The lower the rate, the better.

Pre-Approval Letter – A letter from a lender indicating you qualify for a mortgage of a specific amount.

Real Estate Professional – An individual who provides services in buying and selling homes. Real estate professionals are there to help you through the confusing paperwork, find your dream home, negotiate any of the details that come up, and to help you know exactly what’s going on in the housing market.

The best way to ensure your homebuying process is a confident one is to find a proven professional real estate pro who will guide you through every aspect of the transaction with ‘the heart of a teacher’ by putting your family’s needs first.

If you’re searching for a home online, you’re not alone; lots of people are doing it. The question is, are you using all of your available resources, and are you using them wisely? Here’s why the Internet is a great place to start the homebuying process, and the truth on why it should never be your only go-to source of information and support when it comes to making such an important decision.

According to the National Association of Realtors (NAR), the three most popular information sources homebuyers use in the home search are:

• Online Website (93%)

• Real Estate Agent (86%)

• Mobile/Tablet Website or App (73%)

Clearly, you’re not alone if you’re starting your search online; 93% of homebuyers are right there with you. The even better news: 86% of buyers are also getting information from a real estate agent at the same time.

Here are three reasons why working with a real estate pro in addition to a digital search is key:

1. There’s More to Real Estate Than Finding a Home Online. It’s a lonely and complicated trek around the web if you don’t have a real estate professional to also help you through the 230 possible steps you’ll face as you navigate through a real estate transaction. That’s a pretty staggering number! Determining your price, submitting an offer, and successful negotiation are just a few of these key steps in the sequence. You’ll definitely want someone who has been there before to help you through it.

2. You Need a Skilled Negotiator. In today’s market, hiring a talented negotiator could save you thousands, maybe even tens of thousands of dollars. From the original offer to the appraisal and the inspection, many of the intricate steps can get complicated and confusing. You need someone who can keep the deal together until it closes.

3. It’s Crucial to Make a Competitive and Compelling Offer. There’s so much information out there in the news and on the Internet about home sales, prices, and mortgage rates. How do you know what’s specifically going on in your area? How do you know what to offer on your dream home without paying too much or offending the seller with a lowball offer?

Dave Ramsey, the financial guru, advises:

“When getting help with money, whether it’s insurance, real estate or investments, you should always look for someone with the heart of a teacher, not the heart of a salesman.”

Hiring a real estate professional who has his or her finger on the pulse of the market will make your buying experience an informed and educated one. You need someone who is going to tell you the truth, not just what they think you want to hear.

Bottom Line

If you’re ready to start your search online, don’t skip over the support of an educated and informed real estate professional. You need someone at your side who can answer your questions and guide you through a process that can be complex and confusing if you go at it with the Internet alone.

There are great advantages to owning a home, yet many people continue to rent. The financial benefits are just some of the reasons why homeownership has been a part of the long-standing American dream.

realtor.com reported that:

“Buying remains the more attractive option in the long term – that remains the American dream, and it’s true in many markets where renting has become really the shortsighted option…as people get more savings in their pockets, buying becomes the better option.”

Why is owning a home financially better than renting?

Here are the top five financial benefits of homeownership:

1. Homeownership is a form of forced savings.

2. Homeownership provides a tax savings.

3. Homeownership allows you to lock in your monthly housing cost.

4. Buying a home is less expensive than renting.

5. No other investment lets you live inside of it.

Studies have shown that a homeowner’s net worth is 44x greater than that of a renter.

A family that purchased a median-priced home at the start of 2019 would build more than

$37,750 in family wealth over the next five years with projected price appreciation alone.

Some argue that renting eliminates the cost of taxes and home repairs, but every potential renter must realize that all the expenses the landlord incurs are already baked into the rent payment – along with a profit margin!

Bottom Line

Owning a home has many financial benefits that cannot be achieved by renting.