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A Surprising Shift to the ‘Burbs May Be on the Rise

by Christie Cannon

A Surprising Shift to the ‘Burbs May Be on the Rise

A Surprising Shift to the ‘Burbs May Be on the Rise | MyKCM
 

While many people across the U.S. have traditionally enjoyed the perks of an urban lifestyle, some who live in more populated city limits today are beginning to rethink their current neighborhoods. Being in close proximity to everything from the grocery store to local entertainment is definitely a perk, especially if you can also walk to some of these hot spots and have a short commute to work. The trade-off, however, is that highly populated cities can lack access to open space, a yard, and other desirable features. These are the kinds of things you may miss when spending a lot of time at home. When it comes to social distancing, as we’ve experienced recently, the newest trend seems to be around re-evaluating a once-desired city lifestyle and trading it for suburban or rural living.

George Ratiu, Senior Economist at realtor.com notes:

“With the re-opening of the economy scheduled to be cautious, the impact on consumer preferences will likely shift buying behavior…consumers are already looking for larger homes, bigger yards, access to the outdoors and more separation from neighbors. As we move into the recovery stage, these preferences will play an important role in the type of homes consumers will want to buy. They will also play a role in the coming discussions on zoning and urban planning. While higher density has been a hallmark of urban development over the past decade, the pandemic may lead to a re-thinking of space allocation.”

The Harris Poll recently surveyed 2,000 Americans, and 39% of the respondents who live in urban areas indicated the COVID-19 crisis has caused them to consider moving to a less populated area.A Surprising Shift to the ‘Burbs May Be on the Rise | MyKCMToday, moving outside the city limits is also more feasible than ever, especially as Americans have quickly become more accustomed to – and more accepting of – remote work. According to the Pew Research Center, access to the Internet has increased significantly in rural and suburban areas, making working from home more accessible. The number of people working from home has also spiked considerably, even before the pandemic came into play this year.

Bottom Line

If you have a home in the suburbs or a rural area, you may see an increasing number of buyers looking for a property like yours. If you’re thinking of buying and don’t mind a commute to work for the well-being of your family, you may want to consider looking at homes for sale outside the city. Let’s connect today to discuss the options available in our area.

Why Home Equity Is a Bright Spark in the Housing Market

by Christie Cannon

Why Home Equity Is a Bright Spark in the Housing Market

Why Home Equity is a Bright Spark in the Housing Market | MyKCM
 

Given how we have seen more unemployment claims than ever before over the past several weeks, fear is spreading widely. Some good news, however, shows that more than 4 million initial unemployment filers have likely already found a new job, especially as industries such as health care, food and grocery stores, retail, delivery, and more increase their employment opportunities. Breaking down what unemployment means for homeownership, and understanding the significant equity Americans hold today, are important parts of seeing the picture clearly when sorting through this uncertainty.

One of the biggest questions right now is whether this historic unemployment rate will initiate a new surge of foreclosures in the market. It’s a very real fear. Despite the staggering number of claims, there are actually many reasons why we won’t see a significant number of foreclosures like we did during the housing crash twelve years ago. The amount of equity homeowners have today is a leading differentiator in the current market.

Today, according to John Burns Consulting58.7% of homes in the U.S. have at least 60% equity. That number is drastically different than it was in 2008 when the housing bubble burst. The last recession was painful, and when prices dipped, many found themselves owing more on their mortgage than what their homes were worth. Homeowners simply walked away at that point. Now, 42.1% of all homes in this country are mortgage-free, meaning they’re owned free and clear. Those homes are not at risk for foreclosure (see graph below):Why Home Equity is a Bright Spark in the Housing Market | MyKCMIn addition, CoreLogic notes the average equity mortgaged homes have today is $177,000. That’s a significant amount that homeowners won’t be stepping away from, even in today’s economy (see chart below):Why Home Equity is a Bright Spark in the Housing Market | MyKCMIn essence, the amount of equity homeowners have today positions them to be in a much better place than they were in 2008.

Bottom Line 

The fear and uncertainty we feel right now are very real, and this is not going to be easy. We can, however, see strength in our current market through homeowner equity that has not been there in the past. That may be a bright spark to help us make it through.

U.S. Homeownership Rate Rises to Highest Point in 8 Years

by Christie Cannon

U.S. Homeownership Rate Rises to Highest Point in 8 Years

U.S. Homeownership Rate Rises to Highest Point in 8 Years | MyKCM
 

For nearly two months, most of us have been following strict stay-at-home orders from our state and local governments. It is a whole new way of life that has put our daily lives on pause. On the other hand, many of us have also found a sense of comfort by slowing down and spending time at home, highlighting the feeling of security that comes with having a much-needed safe place for our families to live.

The latest results of the Housing Vacancy Survey (HVS) provided by the U.S. Census Bureau shows how Americans place immense value in homeownership, and it is continuing to grow in the United States. The results indicate that the homeownership rate increased to 65.3% for the first quarter of 2020, a number that has been rising since 2016 and is the highest we’ve seen in eight years (see graph below):U.S. Homeownership Rate Rises to Highest Point in 8 Years | MyKCMWhy is the rate increasing? The National Association of Home Builders (NAHB) explained:

“Strong owner household formation with around 2.7 million homeowners added in the first quarter has driven up the homeownership rate, especially under the decreasing mortgage interest rates and strong new home sales and existing home sales in the first two months before the COVID-19 pandemic hit the economy.”

The NAHB also emphasizes the year-over-year increase in each generational group:

“The homeownership rates among all age groups increased in the first quarter 2020. Households under 35, mostly first-time homebuyers, registered the largest gains, with the homeownership rate up 1.9 percentage points from a year ago. Households ages 35-44 experienced a 1.2 percentage points gain, followed by the 55-64 age group (a 0.9 percentage point increase), the 45-54 age group (a 0.8 percentage point gain), and the 65+ group age (up by 0.2 percentage point).” (See chart below):

U.S. Homeownership Rate Rises to Highest Point in 8 Years | MyKCMHomeownership is an important part of the American dream, especially in moments like this when many are feeling incredibly grateful for the home they have to shelter in place with their families. COVID-19 may be slowing our lives down, but it is showing us the emotional value of homeownership too.

Bottom Line

If you’re considering buying a home this year, let’s connect to set a plan that will help you get one step closer to achieving your dream.

Housing Could Be A Leader In The Post-Pandemic Economy

by Christie Cannon
Home sales will be hard hit by the pandemic but could bounce back. (Steve Brown)

 

 
Housing could be a leader in the post-pandemic economy
By Steve Brown | Real Estate Editor
 
 
Heading into the pandemic, North Texas’ housing market was seeing record sales and rising prices.

And when the worst of the COVID-19 economic downturn is past, the home market could be one of the best parts of the Dallas-Fort Worth and statewide economy, a top real estate economist predicts.

"Housing could be well be the leader in bringing the rest of the economy up out of the doldrums," Dr. James Gaines, chief economist at the Real Estate Center at Texas A&M University said. "We are going to have historically low interest rates that could boost the market.

"Housing could well be one of the leading industry sectors that gets us out," he said. "Home construction will come back - I think it will be prime recovery activity."

Gaines on a conference call told members of the MetroTex Association of Realtors that the outlook for this year’s housing market was strong before the virus shut things down.

"We expected 2020 to be a good year but now all bets are off," he said. "March is probably going to be the last good month for housing for a while. April and May are probably going to be way down."

Home buying while significantly reduced hasn’t completely stopped, he said.

"There is going to be activity – it’s not going to go away altogether," Gaines said.
Gaines said with many homebuyers and sellers sitting out the pandemic, purchase activity could bounce back later this year.

"There is going to be some pent up demand," he said. "Typically, we would be right in the middle of the busy buying season here in April, May and June.

"It may be July, August and September will be our best months of the year," Gaines said.

Before the pandemic, there was already a shortage of housing in D-FW and other markets.

With fewer homes coming on the market, the lack of homes to buy is likely to get worse.

Of course, a rebound in home purchases is also dependent on if the millions of people who’ve been laid off and furloughed go back to work later this year.

Mortgage lenders have been raising their credit requirements because of concerns about the economy.

"The lenders are getting nervous," Gaines said. "They are making the loans tougher – a little tighter."

While almost 4 million Americans have sought forbearance from mortgage payments because of the pandemic, it’s still too early to tell how many of them could eventually lose their homes because of lost wages.

"Are we going to wind up with another wave of distressed properties?" Gaines said. "It’s all a function of the degree and speed people are rehired."
 
 
Article Provided by: Steve Brown with Dallas Morning News
 
Visit Cannonteamhomes.com for more!

Spring Home Buying Recovering From Coronavirus

by Christie Cannon

"We estimate that there are currently 29 states that have a housing deficit, and when we consider only these states, the housing shortage grows from 2.5 million units to 3.3 million units

Texas currently is experiencing a 4.81% deficit in housing supply

- from the Freddie Mac Report - The Housing Supply Shortage: State of the States ​

 

Contact one of our expert agents today if you are looking to buy or sell and want to know your options during the Coronavirus.  Our team is always here to help and educate!

972-215-7747 | cannonteamhomes.com

The novel coronavirus was unable to dampen the interest of homebuyers in the past week.

Even as people follow stay-at-home guidelines, the number of people filing home purchase applications rose 12 percent on a seasonally adjusted basis, according to the Mortgage Bankers Association.

That's the strongest level in almost a month.

"The ten largest states had increases in purchase activity, which is potentially a sign of the start of an upturn in the pandemic-delayed spring homebuying season, as coronavirus lockdown restrictions slowly ease in various markets,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting. “California and Washington continued to show increases in purchase activity, with New York seeing a significant gain after declines in five of the last six weeks.”

Helping to boost purchase interest was a decline in mortgage rates to 3.43 percent for a 30-year mortgage, a record low in MBA's survey.

"Refinance activity declined 7 percent, as rates for refinances likely remained higher than those for purchase loans, " said Kan. "Lenders are still working through pipelines at capacity, and observed changes in credit availability for refinance loans have also in turn impacted rates.”

Overall demand for mortgage applications fell 3.3 percent from the prior week.

The survey covers over 75 percent of all U.S. retail residential mortgage applications and has been conducted weekly since 1990.

Keys to Selling Your House Virtually

by Christie Cannon

Keys to Selling Your House Virtually

Keys to Selling Your House Virtually | MyKCM
 

In a recent survey by realtor.com, people thinking about selling their homes indicated they’re generally willing to allow their agent and some potential buyers inside if done under the right conditions. They’re less comfortable, however, hosting an open house. This is understandable, given the health concerns associated with social contact these days. The question is, if you need to sell your house now, what virtual practices should you use to make sure you, your family, and potential buyers stay safe in the process?

In today’s rapidly changing market, it’s more important than ever to make sure you have a digital game plan and an effective online marketing strategy when selling your house. One of the ways your agent can help with this is to make sure your listing photos and virtual tours stand out from the crowd, truly giving buyers a detailed and thorough view of your home.

So, if you’re ready to move forward, virtual practices may help you win big when you’re ready to sell. While abiding by state and local regulations is a top priority, a real estate agent can help make your sale happen. Agents know exactly what today’s buyers need, and how to put the necessary digital steps in place. For example, according to the same survey, when asked to select what technology would be most helpful when deciding on a new home, here’s what today’s homebuyers said, in order of preference:

  • Virtual tour of the home
  • Accurate and detailed listing information
  • Detailed neighborhood information
  • High-quality listing photos
  • Agent-led video chat

After leveraging technology, if you have serious buyers who still want to see your house in person, keep in mind that according to the National Association of Realtors (NAR), there are ways to proceed safely. Here are a few of the guidelines, understanding that the top priority should always be to obey state and local restrictions first:

  • Limit in-person activity
  • Require guests to wash their hands or use an alcohol-based sanitizer
  • Remove shoes or cover with booties
  • Follow CDC guidance on social distancing and wearing face coverings

Getting comfortable with your agent – a true trusted advisor – taking these steps under the new safety standards might be your best plan. This is especially important if you’re in a position where you need to sell your house sooner rather than later.

Nate Johnson, CMO at realtor.com ® notes:

"As real estate agents and consumers seek out ways to safely complete these transactions, we believe that technology will become an even more imperative part of how we search for, buy and sell homes moving forward."

It sounds like some of these new practices might be here to stay.

Bottom Line

In a new era of life, things are shifting quickly, and virtual strategies for sellers may be a great option. Opening your doors up to digital approaches may be game-changing when it comes to selling your house. Let’s connect so you have a trusted real estate professional to help you safely and effectively navigate through all that’s new when it comes to making your next move.

The Pain of Unemployment: It Will Be Deep, But Not for Long

by Christie Cannon

The Pain of Unemployment: It Will Be Deep, But Not for Long

The Pain of Unemployment: It Will Be Deep, But Not for Long | MyKCM
 

There are two crises in this country right now: a health crisis that has forced everyone into their homes and a financial crisis caused by our inability to move around as we normally would. Over 20 million people in the U.S. became instantly unemployed when it was determined that the only way to defeat this horrific virus was to shut down businesses across the nation. One second a person was gainfully employed, a switch was turned, and then the room went dark on their livelihood.

The financial pain so many families are facing right now is deep.

How deep will the pain cut?

Major institutions are forecasting unemployment rates last seen during the Great Depression. Here are a few projections:

  • Goldman Sachs - 15%
  • Merrill Lynch - 10.6%
  • JP Morgan - 8.5%
  • Wells Fargo - 7.3%

How long will the pain last?

As horrific as those numbers are, there is some good news. The pain will be deep, but it won’t last as long as it did after previous crises. Taking the direst projection from Goldman Sachs, we can see that 15% unemployment quickly drops to 6-8% as we head into next year, continues to drop, and then returns to about 4% in 2023.

When we compare that to the length of time it took to get back to work during both the Great Recession (9 years long) and the Great Depression (12 years long), we can see how the current timetable is much more favorable.The Pain of Unemployment: It Will Be Deep, But Not for Long | MyKCM

Bottom Line

It’s devastating to think about how the financial heartache families are going through right now is adding to the uncertainty surrounding their health as well. Hopefully, we will soon have the virus contained and then we will, slowly and safely, return to work.

How Technology is Helping Buyers Navigate the Home Search Process

by Christie Cannon

How Technology is Helping Buyers Navigate the Home Search Process 

How Technology is Helping Buyers Navigate the Home Search Process [INFOGRAPHIC] | MyKCM
 

Some Highlights:

  • A recent realtor.com survey revealed that buyers are still considering moving forward with the homebuying process, even if they can’t see the home in-person.
  • While they still prefer to physically see a home, virtual home tours and accurate listing information top the list of tech specs buyers find most helpful in today’s process.
  • Let’s connect today to determine how technology can help power your home search.

How to Stay Entertained During Home Lockdown

by Christie Cannon

How to Stay Entertained During Home Lockdown

 

 

For those of you looking to add some new ideas to your daily home quarantine schedule, check out these options:

 

-Home Organization

Choose one category at a time to be organized, like clothes, shoes, books, games, toiletries, food items, tools, toys, etc.  Remove all of the items from that category from their spaces, review each item piece by piece, and decide what will be kept, donated or thrown away.  Then, place the items you’ve decided to keep back into their designated homes in a neat, organized manner.  Likewise, store your donations in one place, ready to be given away as soon as the opportunity arises.

 

-Outdoor Landscaping

Pull weeds from the lawn and flowerbeds, trim hedges and trees, dispose of any dead plants or leaves, mow and edge lawn, re-soil in areas where needed, add fresh mulch and flowers from local growers to beds and pots, and sweep porches and pathways

 

-Exercise

Designate a specific time in your day to get your body moving, as this is good for your mind and soul, too.  If your kids are with you, incorporate a workout that involves them too.  Walks with the dog, bicycle rides, online yoga or aerobic classes, jogs around the block, games of family tag- anything is good!  Just get moving!

 

-Hone Your Talents

If you like to read, read books that you find uplifting.  If you have children at home or that you can connect with virtually, schedule a daily story time with them.  If you like to write, start journaling or author your own short story.  Encourage children to write land mail letters to grandparents or friends that they haven’t seen in a while- especially those who are living alone.  If you prefer drawing, use this time to sketch a pet, a scene from nature, or even another family member.  Kids can even attempt portraits of family members, too!

 

-Cook & Bake

Now is the perfect time to try some new recipes.  Have each family member choose a meal or treat they’d like to cook or bake and take turns creating and enjoying everyones’ efforts.  Sharing in the clean-up afterwards is equally important!  Consider making extra dishes to share with neighbors, too.

 

-Play

Some daily downtime does your mind and body good so be sure schedule time for this too!  Dance parties are great for this.  Turn up your favorite music and dance virtually, with family members, or alone- anyway works great!  Play board games, cards or a game outside with your family.  Play with your pets.  Play dress up or dolls or robots with your kids.  Use your imagination and play creatively!

 

 

Hopefully, some of these ideas will work their way into your daily routine at home.  Share with us how you’re spending your time, too!

What If I Need to Sell My Home Now? What Can I Do?

by Christie Cannon

What If I Need to Sell My Home Now? What Can I Do?

What If I Need to Sell My Home Now? What Can I Do? | MyKCM
 

Every day that passes, people have a need to buy and sell homes. That doesn’t stop during the current pandemic. If you’ve had a major life change recently, whether with your job or your family situation, you may be in a position where you need to sell your home – and fast. While you probably feel like timing with the current pandemic isn’t on your side, making a move is still possible. Rest assured, with technology at your side and fewer sellers on the market in most areas, you can list your house and make it happen safely and effectively, especially when following the current COVID-19 guidelines set forth by the National Association of Realtors (NAR) and the Centers for Disease Control and Prevention (CDC).

You may have a new baby, a new employment situation, a parent who moved in with you, you just built a home that’s finally ready to move into, or some other major part of your life that has changed in recent weeks. Buyers have those needs too, so rest assured that someone is likely looking for a home just like yours.

According to the NAR Flash Survey: Economic Pulse taken April 5 – 6, real estate agents indicate, not surprisingly, that there’s a noticeable decline in current homebuyer interest. That said, 10% of agents said in the same survey that they saw no change or even an increase in buyer activity. So, while buyer interest is low compared to normal spring markets, there are still buyers in the market. Don’t forget, you only need one buyer – the right one for your home.

Here’s the other thing – people are spending a lot of time on the Internet right now, given the stay-at-home orders implemented across the country. Buyers are actively looking at homes for sale online. Some of them are reaching out to real estate professionals for virtual tours and getting ready to make offers too. Homes are being sold in many markets.

There Is Less Competition Right Now

The same survey indicates that 56% of NAR members said sellers are removing their homes from the market right now. This can definitely work in your favor. If other sellers are removing their listings, your home has a better chance of rising to the top of a buyer’s search list and being seen. Keep in mind, listings will pick up again soon, as 57% of the respondents note that sellers are only planning to delay the process by a couple of months. If you need to sell right now, don’t wait for the competition to get back into the market again.

This year, delayed listings from the typically busy spring season will push into the summer months, so more competition will be coming to the market as the pandemic passes. Getting ahead of that wave now might be your biggest opportunity.

Your Trusted Real Estate Advisor Can Help

Real estate agents are working hard every single day under untraditional circumstances, utilizing technology to help both buyers and sellers who need to continue with their plans. We’re using virtual tours to show homes currently on the market, staying connected with the buyers and sellers through video chats, and leveraging resources to complete transactions electronically. We’re making sure the families we support remain safe and can keep their real estate needs on track, especially as life is changing so rapidly.

Bottom Line

Homes are still being bought and sold in the midst of this pandemic. If you need to sell your house and would like to know the current status in our local market, let’s work together to create a safe and effective plan that works for you and your family.

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Christie Cannon
Keller Williams Realty
5933 Preston Road #300
Frisco TX 75034
972-215-7747
Fax: 972-215-7748
Keller Williams Frisco - The Christie Cannon Team - http://www.christiecannon.com