Housing Market to “Spring Forward”

Just like our clocks this weekend in the majority of the country, the housing market will soon “spring forward”! Similar to tension in a spring, the lack of inventory available for sale in the market right now is what is holding back the market.

Many potential sellers believe that waiting until Spring is in their best interest, and traditionally they would have been right.

Buyer demand has seasonality to it, which usually falls off in the winter months, especially in areas of the country impacted by arctic temperatures and conditions.

That hasn't happened this year.

Demand for housing has remained strong and is currently three times stronger than last year at this time.

The National Association of REALTORS (NAR) recently reported that the top 10 dates sellers listed their homes in 2014 all fell in April, May or June.

Those who act quickly and list now could benefit greatly from additional exposure to buyers prior to a flood of more competition coming to market in the next few months.

Bottom Line

If you are planning on selling your home in 2015, meet with the A-Team to evaluate the opportunities in your market.

5-Year Outlook

Home Prices: A 5-Year Outlook

  

With inventory presently below historically normal levels, current & future home prices have been the topic of many real estate conversations. The most recent Home Price Expectation Survey was just released; giving insight into where experts believe prices will be leading up to 2019.

Every quarter, Pulsenomics surveys a nationwide panel of over 100 economists, real estate experts and investment & market strategists about where prices are headed over the next five years. They then average the projections of all 100+ experts into a single number.

Here are some highlights from their latest survey:

• Home values will appreciate by 4.4% in 2015.
• The cumulative appreciation will be 19.3% by 2019.
• That means the average annual appreciation will be 3.6% over the next 5 years.
• Even the experts making up the most bearish quartile of the survey still are projecting a cumulative appreciation of 11.7% by 2019.

Individual opinions make headlines. We believe the survey is a fairer depiction of future values.

by The KCM Crew 

Housing Opportunity

2015: A Year of Housing Opportunity

Many believed that when the housing market crashed, so too would the desire of American’s to own a home again. Many reports have shown that, especially among younger generations, the American Dream of homeownership is still very much alive.

Julián Castro, Secretary for HUD, recently summed up what it means to own a home in a speech at the National Press Club.

"Homeownership is still the cornerstone of the American Dream — a fact you can see in the lives of everyday folks.

It’s a source of pride. It’s a source of wealth, providing both a nest and a nest egg. And it strengthens communities and fuels growth in the overall economy."

Castro appropriately named his speech, “2015: A Year of Housing Opportunity”, a theme that rang true throughout.

“Opportunity is not an abstract concept - it's a path to a more prosperous life, and housing often serves as its foundation. T.S. Elliot once said that "home is where one starts from."

“A home is often a primary source of wealth in a family… Having a home is generational way to pass that wealth on. We want people responsible enough to own a home to have that opportunity.”

Bottom Line

“Over the years-through decades of economic downturns and wars-the American people have always held on to this Dream, and always will.”

As the economy continues to improve, more and more Americans will qualify for homeownership, allowing more families to obtain the American Dream
.

by The KCM Crew

Five reasons to sell now

Is spring closer than we think? Depending on which Groundhog you witnessed, you may have less time than you think to get your home on the market before the busy spring season.

Many sellers feel that the spring is the best time to place their home on the market as buyer demand traditionally increases at that time of year. However, the next six weeks before spring hits also have their own advantages.

Here are five reasons to sell now.

1. Demand is Strong

Foot traffic refers to the number of people out actually physically looking at homes right now. The latest foot traffic numbers show that there are currently more prospective purchasers looking at homes than at any other time in the last 12 months, which includes last spring’s buyers’ market. These buyers are ready, willing and able to purchase… and are in the market right now!

Take advantage of the buyer activity currently in the market.

2. There Is Less Competition Now

Housing supply just dropped to 4.4 months, which is under the 6 months’ supply that is needed for a normal housing market. This means, in many areas, there are not enough homes for sale to satisfy the number of buyers in that market. This is good news for home prices. However, additional inventory is about to come to market.

There is a pent-up desire for many homeowners to move, as they were unable to sell over the last few years because of a negative equity situation. Homeowners are now seeing a return to positive equity as real estate values have increased over the last two years. Many of these homes will be coming to the market in the near future.

Also, new construction of single-family homes is again beginning to increase. A recent study by Harris Poll revealed that 41% of buyers would prefer to buy a new home while only 21% prefer an existing home (38% had no preference).

The choices buyers have will increase in the spring. Don’t wait until all this other inventory of homes comes to market before you sell.

3. The Process Will Be Quicker

One of the biggest challenges of the housing market has been the length of time it takes from contract to closing. Banks are requiring more and more paperwork before approving a mortgage. There is less overall business done in the winter. Therefore, the process will be less onerous than it will be in the spring. Getting your house sold and closed before the spring delays begin will lend itself to a smoother transaction.

4. There Will Never Be a Better Time to Move-Up

If you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by over 23.5% from now to 2019. If you are moving to a higher priced home, it will wind-up costing you more in raw dollars (both in down payment and mortgage payment) if you wait. You can also lock-in your 30-year housing expense with an interest rate below 4% right now. Rates are projected to be a full point higher by the end of 2015.

5. It’s Time to Move On with Your Life

Look at the reason you decided to sell in the first place and determine whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should?

Only you know the answers to the questions above. You have the power to take back control of the situation by putting your home on the market. Perhaps, the time has come for you and your family to move on and start living the life you desire.

5 reasons why Chicago is the best

With the winter we are having in Chicago it’s hard not to think about leaving but the second that thought pops into my mind I remember all the reasons why I love this city. Here are 5 reasons why Chicago is the best place to live.

1. The food! Chicago, hands down, has the best pizza in this country. It is a bold statement and pan pizza may not be for everyone but even our thin crust is second to none. We also named a hot dog after our city. There is a right way to prepare a hot dog and The Windy City has it down. No ketchup, raw onions, tomatoes, sport peppers and celery salt, equals the best baseball game ever! For those interested in a more sophisticated dining experience, Chicago is also home to some of the top rated, award winning restaurants in the nation.
2. Our sports teams. Chicagoans take pride in their sports teams even if we are not always winning championships. All of our sports teams have had their highs and lows but the fans are always behind them 100%, even if they haven’t won anything in the past century. No matter if your interest is football, baseball, basketball, hockey or even soccer; Chicago has a team for that. In this city, we take our sports very seriously!
3. The lakefront. Chicago becomes a booming city in the summer and the lakefront is the place to be. Between the divvy bike rides, lakefront runs, weekend festivals, or even just hanging out at the beach, there is no better place to be in the summertime. During these winter months it’s hard to remember what this city is like in the summer. When that magical day (usually in March) finally rolls around and the temperature finally goes above 40, Chicagoans see the light at the end of the tunnel.
4. Arts and entertainment. Chicago has some of the best museums in the country. You can mosey through the Art Institute, browsing modern and contemporary works of art or head over to the Science and Industry museum for a more interactive experience. The Shedd Aquarium is a must see, with over 25,000 fish and some of the largest indoor aquariums in the world. Chicago is also home to some of the best concerts in the nation. Lollapalooza, Wave Front, and North Coast are just a few of the music festivals we host throughout the summer months.
5. Lastly, what makes this city the best are the people. I am not sure if we are all humbled by the harsh winters or if we just like to fit the stereotype that all “Midwesterners are friendly” but the people in this city love being from here. No matter where I go in this country, I am always proud to say that I am from Chicago!

Existing Home Sales Report

Goodbye, Granite

Goodbye, Granite: The 6 Hottest Countertop Finishes

The graybeard of high-end design is increasingly déclassé. Here's what's coming to force it into retirement.

For years, granite has been the go-to material for high-end countertops. Despite its expense, weight, and ubiquity, it still remains the countertop of choice.

But at EuroCucina 2014, there was a huge variety of granite alternatives on display. From stainless steel to tempered glass, from ceramic to wood... we’ve seen the future of your kitchen, and it’s not granite.

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Tempered Glass

German design house Leicht showed off a lovely tempered glass countertop in a number of its model kitchens. The thick, translucent material is tough and has a pleasant tactility, while still remaining easy to clean. According to company reps, it’s also available in a huge variety of colors.

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Ceramics

Leicht also made use of ceramic counters, which one representative described as the “closest thing you can get to indestructible.” The material is scratch-resistant, easy to clean, and cool but not cold to the touch. And the dark gray finish we saw paired beautifully with the wooden surround.

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Nanotech Materials

The most unusual alternative countertop we saw at EuroCucina came from Italian designer Arrital, courtesy of Arpa Industriale. Referred to as a “nanotech matte material,” the Fenix NTM countertop is anti-reflective, anti-fingerprint, self-healing, and soft to the touch without being... well, soft. It felt great under our hands, and looked great in Arrital’s modern kitchens.

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Wood

We saw solid wood and wood-finished countertops everywhere at the show, often contrasting with or overlaid on a stone or synthetic material. Everything from mahogany and ebony to light pine and bamboo was used, and often paired with matching cabinetry to create a minimalist yet warm look. In some cases, wood was even paired with granite, though that was less common.

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Stainless Steel

Look, stainless is nearly as played out as granite. In fact, we just ran a whole story about why it’s probably a terrible idea to overdose on gleaming silver in your kitchen. But plenty of designers at EuroCucina made a virtue out of this particular vice and made stainless countertops look fresh and new again.

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Tile

When it comes to countertop finishes, tile is pretty old school. It’s a style that’s generally beholden to a certain era or area—both of the places I lived in Santa Fe had them, for instance. At least one designer at EuroCucina is aiming to bring them back. Minacciolo’s Minà multi-function island employs a beautiful mosaic tile top with subtle hues of red and orange.