U.S. home sales returned to near seasonal levels, despite lack of supply.

With “home” being the unofficial word of the year, could home-buying activity rebound in Q3 and Q4? The data from the RE/MAX National Housing Report for June 2020 suggests it might. Despite a report-record low in Months Supply of Inventory, June home sales posted a massive month-to-month gain of 37% – a far cry from the results in May and April, when many states had stay-at-home mandates in place.

“June home sales snapped back in a major way,” said Adam Contos, RE/MAX Holdings CEO. “With historically low interest rates, stabilizing unemployment and increased mobility tied to working remotely, buyer demand remains high in most areas of the country. We’re seeing positives in several leading indicators such as pending sales and mortgage applications.”

In line with data from the latest RE/MAX National Housing Report, a recent survey published by the National Association of REALTORS® Research Group found 45% of members surveyed said their markets are slowly entering recovery, and 28% reported conditions hotter than normal.

A potential headwind, however, is available housing supply. Inventory dropped 27.9% year over year, pushing the Months Supply of Inventory to 1.9 from the previous report low of 2.7 months set in May. The number of homes for sale is at lows not seen consistently since early 2018.

“The biggest challenge continues to be lack of inventory, and over time we may see some gains around people wanting a different living environment after spending so much time at home this year,” Contos added. “There’s also some potential in the idea that with changing workplace dynamics, underused commercial spaces could be transformed into residential properties. Creative solutions like that may provide some relief for inventory constraints as well as affordability issues.” 

Home prices remained steady in June, according to the RE/MAX report. June’s Median Sales Price of $275,000 is up 1.9% year over year, the lowest year-over-year price change of any month since December 2018’s 0.4% drop.

Some highlights of the latest data found in the RE/MAX National Housing Report:

1.     Home Sales Post Near-Record Turnaround

Overall, U.S. home sales returned to near seasonal levels – just 6.9% lower than last June, which was the third-highest sales month of 2019. All of the report’s 53 metro markets posted gains over May, and a third of them topped last June. Leading the year-over-year sales percentage increase were Tulsa, OK at +15.9%, Little Rock, AR at +14.6%, and Dallas/Ft. Worth, TX at +9.3%.

2.     Sales Prices Held Steady

In June 2020, the median of all 53 metro Median Sales Prices was $275,000, up 0.8% from May 2020 and up 1.9% from June 2019. While there was an increase in price, June saw the lowest year-over-year price change of any month since December 2018’s 0.4% drop. Only one metro area, Des Moines, IA at -1.3%, saw a year-over-year decrease in Median Sales Price. Two metro areas increased year-over-year by double-digit percentages: Miami, FL at +11.1% and Indianapolis, IN at +10.0%.

3.     Buyer’s Markets Came Up Empty

A six months supply indicates a market balanced equally between buyers and sellers. In June 2020, of the 53 metro areas surveyed, zero metro areas reported a months supply at or over six, which is typically considered a buyer’s market. The number of homes for sale in June 2020 was down 5.3% from May 2020 and down 27.9% from June 2019. Based on the rate of home sales in June 2020, the Months Supply of Inventory decreased to 1.9 compared to 2.7 in May 2020 and 3.2 in June 2019.

If you’re thinking it’s time to search for a new place to call home, you aren’t the only one. A RE/MAX agent can provide help, information, guidance and expertise on all things related to real estate if you’re looking to buy or sell this summer.

SELLING A HOME DURING UNUSUAL TIMES

RE/MAX real estate agents report what they’re seeing and what actions sellers can take now.

The current spread of coronavirus (COVID-19) and the efforts to contain it have impacted almost all aspects of daily life – and real estate transactions are no different. Yet despite current circumstances, real estate agents are still seeing sellers and buyers move forward with their plans in what is historically an active spring market.

“Precautions have changed, and people are doing life differently, but the demand and decision to buy a home is currently still very strong,” says Kerron Stokes, Manager of RE/MAX Leaders & Team Leader of Resource Group in Centennial, Colorado. “Our team has taken on two new listing clients and three new homebuyer clients this week, and have new buyer consults set up next week as well.”

Yet even with willing sellers and eager buyers, the current U.S. government guidelines recommend social gatherings be limited to fewer than 10 people – among other safety measures – which means selling a home this spring may look differently than in years past.

“It’s going to require being creative and innovative, but there are still ways for real estate agents to interact with listing clients and potential buyers by leveraging technology,” Stokes says.

Ready to sell? Keep calm and log on.

With COVID-19 at the forefront of many sellers’ minds, for the time being, many home tours will start online. But according to Stokes, that’s nothing new and can be a powerful tool in marketing a home to buyers.

“A lot of these virtual tactics are things we’ve already been deploying for 5-6 years for clients who can’t be in a physical space,” Stokes says.  

He cites investors, or potential buyers that work irregular hours, as an example.

“We’ll FaceTime them at work so they can ask questions about the property.”

According to Ryan Smith, Broker/Partner of RE/MAX Properties in Western Springs, Illinois, video tours between agents and buyers have been a useful tool in a variety of market conditions. Especially with current health concerns, he says more agents are using virtual tours to help reduce the number of buyers walking through a property.

“Things can look differently in photos than even a FaceTime call,” Smith says. “It can help narrow down properties in a buyer’s price range so they know which ones they want to see in person.”

If an interested buyer is ready to visit a property, Smith still recommends limiting the number of people that tour a listing.

“Agents aren’t bringing caravans of people into a home,” Smith says. Only when a buyer is seriously considering putting in an offer can additional stakeholders return to see the listing.

“Agents have to be aware and smart – wash hands more often, use hand sanitizer, avoid touching your face and do more calls on speaker phone to avoid phone-to-face contact,” Smith says.

When it comes to preparing to sell your home, the best place to start is clearing the clutter. Clutter includes all of those things we have a tendency to save that we no longer use that just lie around or take over extra space in our homes. 

We’re all guilty of saving things in our homes, garages and basements that we forget we even still have. However, the more you declutter, the cleaner and more spacious your home will appear to prospective buyers and the quicker it will sell. If just thinking about it makes you feel overwhelmed, here are a few easy steps to get you started.

• Step 1: Set a schedule: You are much more likely to stick to a routine, whatever it may be, if you work on a schedule. In addition, this allows you to clean when you can minimize interruptions and maximize your time.
• Step 2: Do one room at a time: If you can visualize what you want, you will be better able to achieve it. By setting goals for each room, you can note the things that need changing and work toward that goal one day at a time.
• Step 3: Create a deadline to finish: When do you hope to have your home ready for showing? One week, two weeks or even a month? Depending on your schedule and the amount of clutter that you have, it may take anywhere from a few days to a few weeks before you can kick back and relax again. You may want to enlist the help of friends and family if you are on a short time schedule.
• Step 4: Start small: The clutter in your home didn’t appear overnight, and it won’t disappear overnight either. If you start small, you will be less likely to get frustrated and give up midway through your cleanup.
• Step 5: Categorize your clutter: When cleaning, it’s important to categorize your items into groups. By separating the items that you want to keep, toss and donate, you will be able to move through your clutter quickly and efficiently.
• Step 6: Letting go: A good rule of thumb for uncluttering your home is to get rid of anything that you haven’t used within the past year. If it’s still useful, consider donating it to a good cause or having a garage sale. Otherwise, toss it.
• Step 7: Pack it up: Since you’re planning on moving anyway, pack up those items that you can’t part with but don’t need to use any time soon. You can either put them in storage until your move or confine them to a designated space in your garage, basement or attic. Buyers will perceive that you’re a family that is organized, ready to move and it is less to pack once you sell your home.

When you’re ready to move, give us a call. We’ll help you sell your current home and then find the one you want.

When you’re selling a home, the elbow grease you put in to keeping it clean and neat can come with an added bonus: a quicker sale.

Even though most homeowners wouldn’t dream of leaving dirty dishes in the kitchen sink or clothes on the bathroom floor when potential buyers will be coming by, there are five areas of the home that often get overlooked.

1. The garage.To make your garage show well, get rid of everything you don’t need and organize the rest. Hang your tools neatly on a pegboard, arrange paint cans on shelves and suspend holiday decorations from racks attached to the ceiling. This helps the space shout “storage solutions!” to buyers who crave them. Give the space a thorough cleaning, and you’re ready to throw open the doors and entice garage-hungry buyers.


2. The backyard.Don’t miss the opportunity to wow buyers who want an eye-catching, outdoor living space. Clean the barbecue and set the patio table for guests. If you have a hot tub, run it and leave the top off to allow guests to picture themselves taking a long, hot soak. If you do nothing else, give your backyard a thorough cleaning. Hose down the patio, mow the lawn, rake the leaves, replace dead plants and pick up pet droppings.


3. The closets, cupboards and drawers.If you could be a fly on the wall during an open house, you’d be amazed at the number of people who open drawers and cupboards. Sure, some of them are just being nosey, but others want to see how much space they offer. Remove as many items as possible from closets, cupboards and drawers. Invest in shoe racks to keep the closet floors clutter-free. Use drawer dividers to separate items as needed. Clean your cupboard shelf surfaces, especially those in the kitchen, to remove dust and food residue. Fold linens and towels and stack them neatly in the linen closet.


4. The laundry room. Soapy shelves, dryer sheets littering the floor and piles of dirty laundry on top of the dryer are all signs of a well-used laundry room. Unfortunately, these are turnoffs for buyers. Store the detergent and other cleaning supplies in bins or baskets lined up neatly on the shelf. Clean lint and dust off the walls and wash down the washer and dryer.


5. The appliances.Most owners shine up the fronts of their appliances before listing their homes, but they forget about the interiors. Whether appliances are included in the sale or not, folks will open them to take a peek inside. If anything inside of your refrigerator looks more like a science project than yummy leftovers, throw it away. Wipe down the walls and clean the produce bins. Come to think of it, don’t forget the top of the refrigerator, too. A lot of dust can collect up there. Give the stove and oven the same treatment, wiping off accumulated grease and baked-on food.

House hunters know the minute they walk in the door if they want to see more of the home. A clean house gets them excited about taking a tour and possibly making an offer.

Money is a delicate issue. How much we earn and how much we owe is information many of us prefer to keep close to the vest. If you’re concerned about detailing your finances to your real estate agent, rest assured that there’s plenty of privacy in the client/agent relationship. 

Contact us if you have questions about buying a house or selling one. Your RE/MAX Realty Affiliates real estate professional can guide you – with discretion – toward your next home. 

Real estate agents don’t need, or expect, you to disclose everything about your money. That said, we must understand your overall situation to help guide you to a home that’s within your budget.

An agent’s job is to negotiate a home purchase or sale on your behalf, keep the transaction on track and help you navigate real estate paperwork. Our strength lies in understanding home values, and property and neighborhood features. Home financing is an altogether separate story from a home search or sale; therefore, agents usually don’t delve into your finances to crunch the numbers.

Leave it to the lender

Agents are happy to let your mortgage lender handle the financial questioning. A loan officer at a bank or mortgage company calculates your maximum purchasing power and your monthly payments based on your loan application, financial documentation and debt-to-income ratio.

Be prepared to supply your lender with your last two years of tax returns, recent pay stubs, bank statements and investment accounts. Agents then present a lender-generated preapproval letter to listing agents, indicating the amount you’re able to borrow.

We’re happy to answer all of your real estate questions. Just give us a call!

We all have fantasy images of our dream house. These images may be hard to let go of when buying a home, especially when all you can afford are homes that, well, let’s just say need some TLC.

That’s when it’s important to keep in mind that the fixer-upper you’re looking at could have the potential to someday become your dream house. It’s just one advantage fixer-uppers can offer. Below are a few others.

1. Lower price: A home that needs work likely will be less expensive. Such properties rarely list at full market price.
2.  Fewer competitors: Many buyers are unwilling or unable to put a lot of work into a house. This creates the perfect opportunity to snatch a bargain – a major advantage welcomed in particular by first-time homebuyers or house hunters competing for homes in areas with low inventory.
3.  A blank canvas: With a fixer-upper, you call the shots as to how the house will eventually look. You don’t have to settle for a home that reflects someone else’s taste. Plus, if you do some of the work yourself, you’re automatically awarded bragging rights.
4.  Quicker equity: If you renovate the home shortly after you buy it, you may increase its value quickly. Equity provides many financial benefits, from raising your personal net worth to giving you an opportunity to refinance sooner, if needed.
5.  The possibility of renovation loans: Ask your lender about the Federal Housing Administration’s 203k loans that provide homeowners with funds specifically for fixer-upper projects. The loans, the 203k Streamlined Mortgage and the full 203k Mortgage, are available for homes with needs ranging from cosmetic improvements to extensive structural work.

We’re also here to help, so don’t hesitate to ask for guidance when you’re ready to buy. Or sell.