How to Buy & Sell at the Same Time in Today’s Crazy Market

 

You want to move but where will you go?!  This is one of the most common concerns we hear from our homeowner clients who really want to move to another neighborhood but fear that they will sell and not have a home to move to.  We get it.  This is when education of what’s happening in the market is so important.   Finding a great real estate team that is successfully managing this transition for their clients is key to making this happen. 
 
We can help!  See just a few options below and call us to find out about our Hassle-free Sell/buy Program that is working for so many of our clients, including:
 

Call, text or Email us to find out about our Hassle-free Sell/Buy Program that is working for so many of our clients, including:

• Minimal showings with record sale prices

• Little to no repairs

• Flexibility & time to find your next home via our proven lease-back program!

 
– Stacy Kitchell, Managing Broker  
 

Options to Make Selling & Buying Work in This Crazy Market

  1. Purchase a new construction or spec home. We have represented many clients who have done this. 
  2. Buy land and custom build. We have worked with many builders and lenders to help clients buy lots and build new homes.
  3. Negotiate a Lease-back (a.k.a. Post-sale occupancy agreement). One of our most successful tools for sell/buy clients.  We have negotiated 75+ lease-backs for our clients, recently at below-market or FREE rent – and for as long as 2 years! 
  4. Submit a contingent offer. Offers with a contingency to sell your current home.  Not well received from sellers in our current market but we have pulled it off for clients in the past 6 months. 
  5. Move into a short-term rental. Requires a double move. Allow flexibility – and a temporary break from home ownership.  Things to consider: Time limit on real estate tax portability cap and more.
  6. Discuss seller financing. We have successfully constructed seller/owner financing purchases for clients.  Depends on seller’s financial position in their home.
  7. Use a HELOC. If you have enough equity in your home… We can help determine is this will work for you.  
  8. Work out an extended closing period. Sometimes acceptable to the seller.  Depends on your circumstances.
  9. Explore less competitive areas/price points – We can share these areas with you!
  10. Use a bridge loan – Can be an expensive option. Call us to learn more.
 
Questions? Send us a note via our Contact Us Page.  Thank you for visiting and have a great day!  
– Kitchell Group Staff

____________________________________________________________________________________

The Kitchell Group is an award-winning team with almost 400 homes and $125M in volume sold.  We are a cohesive group of financially savvy, technologically strong Realtors and we use this knowledge to provide great advantage to our clients.  We cover 6 counties in Tampa Bay, including Hillsborough, Pinellas, Pasco, Manatee, Sarasota, Hernando and Polk.  We specialize in Florida new construction, Florida pool homes, Florida 55+ communities, Florida custom homes, Florida bungalows, Florida townhomes, Florida beachfront condos, Florida waterfront homes and more!  Because of our large number of transactions closed with homebuyers and home sellers, we have a vast amount of real estate knowledge to share with our clients to help them have one of the safest, lowest stress and financially educated experience around.  And we are nice and fun to boot.  We LOVE our clients and they often become family to us!  Let us welcome you into our family.  🙂

 

To Start Your Award-Winning Experience Contact Us Today at 813-693-1003

            

 

Flood Determination Reports – How they can help remove or reduce your flood insurance cost

 

In August 2021, FEMA updated federal flood maps causing many Florida residents to see a change in their flood zone.  In some cases, homeowners saw higher premiums and their lenders requiring them to now carry flood insurance on their homes – or to carry greater coverage due to a higher risk designation. 
But sometimes, FEMA flood designations are wrong.  A Flood Designation Report can help you determine if your flood status is correct – and if it’s not, you can appeal FEMA’s designation.  Read this document about Flood Determination Reports and how they can help.
Other helpful links:

FEMA – Procedure for Challenging Your Flood Zone

Forbes.com – What water-related damage is typically covered/not covered in homeowner insurance policies

 
Questions? Send us a note via our Contact Us Page.  Thank you for visiting and have a great day!  
– Kitchell Group Staff

____________________________________________________________________________________

The Kitchell Group is an award-winning team with over 400 homes and $125M+ in volume sold.  We are a cohesive group of financially savvy, technologically strong Realtors and we use this knowledge to provide great advantage to our clients.  We cover 6 counties in Tampa Bay, including Hillsborough, Pinellas, Pasco, Manatee, Sarasota, Hernando and Polk.  We specialize in Florida new construction, Florida pool homes, Florida 55+ communities, Florida custom homes, Florida bungalows, Florida townhomes, Florida beachfront condos, Florida waterfront homes and more!  Because of our large number of transactions closed with homebuyers and home sellers, we have a vast amount of real estate knowledge to share with our clients to help them have one of the safest, lowest stress and financially educated experience around. 

And we are nice and fun to boot.  We LOVE our clients and they often become family to us!  Let us welcome you into our family.  🙂

 

To Start Your Award-Winning Experience Contact Us Today at 813-693-1003

            

 

Growing Share of Listings on Market 30+ Days (Incl. 6 FL Metros)

Welcome and thanks for visiting!  

Although the article below reveals that the average Days on Market over 30 days  in six (6) major metro areas of Florida, including 52.7% of Tampa listings, that does not have to be YOU!  The Kitchell Group is beating that average 4-fold at only 7.5 average Days on Market for our July listings! 

Let us show you how.  Please reach out when you or your family/friends need us.  And thank you for all the great referrals in 2022!  We sincerely appreciate it and it has been an honor to serve your family, friends and neighbors.  😊 

KITCHELL GROUP STATS FOR JULY:

  • Average DOM for our listings = 7.5 days.  ½ THE MARKET AVERAGE FOR JULY
  • All listing sales set RECORD PRICES in their neighborhoods – We have consistently done this for years in almost every neighborhood we’ve sold in. 
  • All listing clients received lease-backs (buyers renting back home to sellers) to allow an easier transition to their next home.  We’ve done 9 lease-backs this year and approx.. 70-80 overall.
  • NO REPAIRS were required by sellers.
  • All homes appraised.
  • All homes closed in approx. 30 days. (quick closings w/lease-back flexibility)

Thanks for visiting and please reach out with any questions!  We love hearing from you and truly want to help you understand this unusual market we are experiencing.  We are statistic driven.  Ask away!

Stacy Kitchell, Managing Broker
RE Broker & Former Corp. RE Accountant/RE Financial Analyst
Check out Stacy’s profile at: Stacy’s LinkedIn Profile

Man looking at real estate listings on a laptop

Growing Share of Listings on Market 30+ Days

The six Fla. metros included in the July report had days-on-the-market averages greater than 30 days, ranging from an average 52.7% of Tampa listings to 72% in Miami.

SEATTLE –– The share of U.S. home listings that stayed on the market for at least 30 days without a contract was up 12.5% year-to-year in July, according to a Redfin study. Nationwide, 61.2% listings were on the market for at least 30 days; a year earlier, it was 54.4%.

According to report economists, it’s the first year-over-year increase in “stale” housing supply – defined as homes on the market for a minimum of 30 days – since the beginning of the pandemic and close to the biggest uptick in Redfin’s records, which go back to 2012. The only time it increased more (13.9%) was in April 2020, when the pandemic ground the housing market nearly to a halt.

In the six Florida metro areas included in the study, days-on-market ranked both higher and lower than the national average. However, one metro, Fort Lauderdale, had quicker sales in July compared to one year earlier:

  • Jacksonville: 59.3% on the market 30+ days – a 21.2% year-to-year increase
  • Tampa: 52.7% on the market 30+ days – a 18.6% year-to-year increase
  • Orlando: 55.6% on the market 30+ days – a 15% year-to-year increase
  • West Palm Beach: 65.2% on the market 30+ days – a 10.1% year-to-year increase
  • Miami: 72% on the market 30+ days – a 1.8% year-to-year increase
  • Fort Lauderdale: 63% on the market 30+ days – down 0.9% year-to-year

The change reflects a housing market that now faces 5%-plus mortgage rates and a shaky economy. In June, mortgage rates rose to 5.8% before dropping slightly during the month of the study – to 5.4% in July. The change has pushed more buyers to act quickly, but it’s also pushed more sellers to list their home before the market cools.

The total number of U.S. homes for sale was up 4% year over year in July, the biggest increase since mid-2019 – but that’s largely due to homes staying on the market longer. The number of new listings coming into the system dropped 6%.

“People want to know whether we’ve officially shifted from a seller’s market to a buyer’s market. While there’s not a clear line separating those two ideas, homes sitting on the market longer is a point in buyers’ favor,” says Redfin Deputy Chief Economist Taylor Marr. “Buyers can take their time making careful decisions about homes without worrying so much about bidding wars, offering over the asking price and waiving contingencies.”

However, it’s a different story for sellers. They’ve “spent the last two years hearing about their neighbors’ homes getting multiple offers the day they go on sale,” says Marr. “Now they need to price lower and get back to the basics of selling a home, like staging and sprucing up painting, to get buyers’ attention.”

The number of listings over 60 days old also increased, up by 6.8% year-to-year (31.4% to 33.5%). It was the first increase since the beginning of the pandemic.

The uptick in time-on-the-market can also be misleading right now since it’s a year-to-year comparison. In July 2021, the market was red hot, and a typical home went under contract in 15 days – close to the fastest on record – and demand pushed prices to surge even as the total number of home sales declined.

The share of housing supply that was stale was stable before the pandemic, with any fluctuations largely due to typical seasonal patterns.

© 2022 Florida Realtors®

Questions? Send us a note via our Contact Us Page.  Thank you for visiting and have a great day!  
– Kitchell Group Staff

____________________________________________________________________________________

The Kitchell Group is an award-winning team with 400+ homes and $125M+ in volume sold.  We are a cohesive group of financially savvy, technologically strong Realtors and we use this knowledge to provide great advantage to our clients.  We cover 7 counties in Tampa Bay, including Hillsborough, Pinellas, Pasco, Manatee, Sarasota, Hernando and Polk.  We specialize in Florida luxury, new construction, mid-range single family homes, 55+ communities, custom homes, historic bungalows, townhomes, downtown condos, beachfront condos, waterfront homes and more!  Because of our large number of transactions closed with homebuyers and home sellers, we have a vast amount of real estate knowledge to share with our clients to help them have one of the safest, lowest stress and financially educated experience around.  And we are nice and fun to boot.  We LOVE our clients and they often become family to us!  Let us welcome you into our family.  🙂

 

To Start Your Award-Winning Experience Contact Us Today at 813-693-1003

            

 

What Do These Interest Rate Hikes Mean to Home Sellers and Buyers?

Welcome Message from Stacy Kitchell

Managing Broker of Kitchell Group and former Corporate Real Estate Financial Analyst (linkedin.com/in/stacy-kitchell-2065903a)

Welcome and thank you for visiting our website!  Lots of great information for you below.  We are here to educate you and, if you choose, to consult with you on what is the best course of action for you.  Maybe it is doing nothing at all – and that is okay.  We want to get to know you and to help you when the time is right.  My team and I have grown our business based on doing what’s best for our clients and potential clients.  That hasn’t and won’t change. 

An advantage of working with our firm is the financial knowledge, appraisal knowledge and transaction experience we have, which has created wealth for many of our clients over the years and, much to their surprise, provided a surprisingly smooth home selling or buying experience.  We truly hope to have the opportunity to work with you and to enhance the life of you and your family.    

For our past clients, hello!!  🤗😍 I hope you enjoy the article below and reach out any time for recommended vendors, advice on upgrades, updates on the market or even info on public/private schools, doctors, etc.  We have a wide network and we’re here for you!  And thank you,, as always, for your business.  😊

Warmest Wishes,

Stacy Kitchell

 

 

What’s going on with interest rates and how will that affect home sellers and home buyers in Tampa Bay? 

 

6/30/2022

by Stacy Kitchell

Managing Broker of Kitchell Group and former Corporate Real Estate Financial Analyst (linkedin.com/in/stacy-kitchell-2065903a)

_______________________________________________

OK, first — the big message here is that there is no need to panic.  Yes, as Goldman Sachs predicted early in the week of 6/12/2022, the Federal Reserve increased the federal funds rate by a historical .75%, the largest one-time increase since 1994.  In addition, The table below shows Goldman Sachs’ projected Fed Rate increases in the coming months.   

It is important to understand that long-term rates for fixed-rate mortgages are not directly correlated to the federal funds rate.  Therefore, if the federal funds rate increases by .75%, it DOES NOT mean that long-term interest rates for 30-year fixed rate mortgages will increase by the same rate. 

  • Long-term fixed rate mortgages – are more closely tied to the 10-yr. U.S. Treasury Bond.  The difference between long-term mortgage rates and the 10-year U.S. Treasury Bond represents the additional risk investors believe they bear for holding long-term mortgage debt vs. the 10-yr. U.S. Treasury Bond.  Great article to read: How Interest Rates Are Set (Source: Bankrate.com
  • Short-term Interest Rates – The federal funds rate is more closely tied to shorter-term rates such as home equity lines of credit, credit cards, car loans, adjustable rate mortgages, and savings accounts. So, pay off those credit card balances and consult a mortgage broker to discuss potential benefits of refinancing an adjustable rate mortgage, if you have one.

As of 6/30/2022, after the .75% Fed Rate increase, the Freddie Mac average loan commitment rate was 5.70% (source: https://www.freddiemac.com/pmms). So, about a .50% increase as of 6/30/2022 – not .75%.   However, this rate changes daily based on investors’ perception of risk among other factors.   

Based on a $400,000 loan balance and the Freddie Mac Avg. Loan Commitment rate as of 6/30/2022, monthly mortgage payments have increased by approx. $117.74/mo.  With each Fed. meeting (7/26-7/27, 9/20-9/21, 11/01-11/02, 12/13-12/14), I will update the table below, so mark your calendars to visit for updates.  

WHAT INCREASING RATES MEAN FOR HOME SELLERS IN TAMPA BAY

  1. As shown above, buyer monthly mortgage payments will be much higher but wages will most likely not keep up at the same rate and this could put downward pressure of sale prices. 
  2. Less multiple offer situations, an increase of Days on Market and an increase list-to-close time frames/absorption rates. less showings/lower attendance at open houses (all of these are already happening in many neighborhoods in Tampa Bay).
  3. Stock markets may be volatile.  STOCK MARKET INDEXES ARE DOWN SIGNIFICANTLY YEAR-TO-DATE.  As of 6/30/2022, Dow Jones (-17.75%), NASDAQ (-30.98%), & S&P 500 (-22.92%).  Consequently, many people are feeling less wealthy, including out-of-state buyers (e.g.  Northeast, California, Midwest), who’ve been paying in excess of appraised value for homes which could also negatively impact future sales prices. 

But, no one (including me) has a crystal ball to predict the future…  We definitely recommend speaking with your financial advisor and accountant before making any final decisions.  

Kitchell Group Recommendations:

  • Sellers Who Are Selling & Buying –  Sell now or soon.  If you need or want to move and want to own, while prices are strong and before future interest rates increases.  Negotiate a lease-back on your current home (sell and then lease-back for a few months from the new owner) to give you time to look for a new home.  We have negotiated over 75 lease-backs and 7 lease-backs already this year.   Call us to discuss!
  • Sellers Selling & RentingSell now or soon.  Home sale prices may level off or go down and rents are expected to go up due to less buyers qualifying to buy homes.  Call us to discuss a plan of action.
  • Sellers Who are Selling Only (2nd home/inherited home)Sell now or soon before prices are affected by interest rate increases.  Call us for a free estimated value.  And – check with your CPA for potential capital gains tax impact.
  • Investor SellersDepends on your long-term goals, if property is paid off, your specific tax bracket/needs.  Consult with a financial advisor or CPA to make a plan.  Also, depending on where your current home is, you could sell in a weaker area and invest in a growing area.  Call us for info on fast-growing or up-and-coming areas of Tampa Bay and questions to ask your CPA on possibly avoiding capital gains tax.  If you need a CPA recommendation, please reach out.

WHAT INCREASING RATES MEAN FOR HOME BUYERS IN TAMPA BAY

  1. Interest rates are projected to increase several times this year – Timing is key!  Rate increases may reduce the price range you can afford.  Home prices in Tampa may not decrease for many months or even this year since we are still a top destination city (#2 in country in June 2022).  
  2. Less Competition for Homes Could Be An Advantage for Buyers – Some buyers who don’t need to buy or are nervous are stepping back, resulting in less competition and opportunity to negotiate.  Our listings in June were the first in a while NOT to receive multiple offers.  Days on Market are increasing.  Buyers have to be in the game to win.     
  3. Builders Are Slashing Prices to Sell Homes in Fast-Cooling US Markets – Builders are already seeing less demand and are offering more incentives (a good thing for buyers) and they have increased their marketing, too. I started noticing 2 weeks ago that I was receiving a LOT more marketing Emails from MULTIPLE builders – some I have not heard from in months or 1+ years since homes were selling themselves.  
  4. Cheaper to Buy Than to Rent – Since many buyers won’t be able to qualify for affordable homes due to interest rate increases, rents are predicted to rise.  

Kitchell Group Recommendations:

  • First-time homebuyers – Buy now if you can afford it but don’t become house poor.  Timing is key.    Call us to brainstorm and receive a free financial analysis of new and resale home purchases.
  • 2nd Home Purchases – Wait, unless money is no issue and you have cash.  Interest rates on 2nd homes are increasing due to banks considering 2nd homes a higher risk in the future.
  • InvestorsDepends on your long-term financial goals.  Consult with a financial advisor or CPA to make a plan.   Call us for info on fast-growing or up-and-coming areas of Tampa Bay and questions to ask your CPA on possibly avoiding capital gains tax.  If you need a CPA recommendation, please reach out.
 
Questions? Send us a note via our Contact Us Page.  Thank you for visiting and have a great day!  
– Kitchell Group Staff

____________________________________________________________________________________

The Kitchell Group is an award-winning team with almost 400 homes and $125M in volume sold.  We are a cohesive group of financially savvy, technologically strong Realtors and we use this knowledge to provide great advantage to our clients.  We cover 6 counties in Tampa Bay, including Hillsborough, Pinellas, Pasco, Manatee, Sarasota, Hernando and Polk.  We specialize in Florida new construction, Florida pool homes, Florida 55+ communities, Florida custom homes, Florida bungalows, Florida townhomes, Florida beachfront condos, Florida waterfront homes and more!  Because of our large number of transactions closed with homebuyers and home sellers, we have a vast amount of real estate knowledge to share with our clients to help them have one of the safest, lowest stress and financially educated experience around.  And we are nice and fun to boot.  We LOVE our clients and they often become family to us!  Let us welcome you into our family.  🙂

 

To Start Your Award-Winning Experience Contact Us Today at 813-693-1003

            

 

2022-2023 Pro Football Schedule (Go Bucs!)

   

 

Are you ready for some FOOTBALL?!!!!!!!!!!!!!!!!!!  Let the games begin and GO BUCS!  

 

 

Questions about real estate, return-on-investment for upgrades you’re considering, recommended vendors, discounted or wholesale home improvements, school info, college/SAT tutors/advisors and more? We want to help our community.  Send us a note via our Contact Us Page.  Thank you for visiting and have a great day!  
– Kitchell Group Staff

____________________________________________________________________________________

The Kitchell Group is an award-winning team with almost 400 homes and $125M in volume sold.  We are a cohesive group of financially savvy, technologically strong Realtors and we use this knowledge to provide great advantage to our clients.  We cover 6 counties in Tampa Bay, including Hillsborough, Pinellas, Pasco, Manatee, Sarasota, Hernando and Polk.  We specialize in Florida new construction, Florida pool homes, Florida 55+ communities, Florida custom homes, Florida bungalows, Florida townhomes, Florida beachfront condos, Florida waterfront homes and more!  Because of our large number of transactions closed with homebuyers and home sellers, we have a vast amount of real estate knowledge to share with our clients to help them have one of the safest, lowest stress and financially educated experience around.  And we are nice and fun to boot.  We LOVE our clients and they often become family to us!  Let us welcome you into our family.  🙂

 

To Start Your Award-Winning Experience Contact Us Today at 813-693-1003

            

 

Top 10 Trends in 2021- What Florida Homebuyers Want

Greetings, Real Estate Fans (We love real estate, too!)!
  
See the infographic below, published by Florida Association of Realtors.  We are seeing many of these trends in our transactions – and have been for the past 6 months.  And – below are some of the top trends our team is seeing in Tampa Bay.  With our marketing-savvy team, we have hit many home runs by focusing on matching the best features of our clients’ homes to the current trends of Florida homebuyers.
  

Kitchell Group Top Trends

  • Pools – We are seeing increased premiums being paid for pools, with a differential of $30,000-50,000 being paid for homes with pools vs. homes without pools, up from $15,000 – $25,000 (depending on the quality of the pool).
  • Large Backyards – Preferably fully-fenced for personal privacy, pets and children.
  • Home Offices – If you have a home office in your home – or a space to easily/inexpensively convert to a home office (like an underutilized living room), you have an advantage.
  • Bonus Rooms – A place for kids (and adults!) to escape to for a movie, recreation or quiet time.
  • Proximity to Nature/Outdoor Activities – Places to escape today’s stresses for exercise, downtime and to make memories with friends and family.   
  • Newer Roofs –  Roof age dramatically impacts insurance premiums.  Insurance has increased 25-30% in the past year for homes with roofs older than 10 years.  We have worked around this for many seller clients with old roofs, but it’s getting tougher.  Also, scheduling contractors has become a real chore.  And costs have increased, as have completion times.
  • Updated Kitchens – People are cooking at home so much more.  And with limited contractor availability, increased material costs (and a stressed supply chain), upgrading kitchens is a daunting task right now.

The above list is everchanging, so feel free to reach out to us for the latest trends and ideas on how you can best market your home for the highest price.  We’re not just setting records prices in this tight market.  We’ve been doing it for many years now. 

Until next time, be healthy, make great memories, laugh often and spread kindness.

– Stacy Kitchell, Managing Broker

 

Courtesy of the Florida Association of Realtors ®

Should I Sell and Buy Now with These Low Interest Rates?

Isn’t the article below what many of us have been thinking?  I’ve been debating this with our clients for months now.   Are we at the top of the market?  Or will prices continue to rise and I will end up paying more for my new home if I buy 6 months from now and where will interest rates be at that point?  Aahhh… if only I had a crystal ball.

IMPACT FROM COVID

With COVID still in around, lifestyle needs/wants rapidly changing and Florida real estate becoming a hot commodity in recent months due to demand for outdoor space and lower income and real estate taxes, it’s truly hard for we Floridians to predict.  We are in unchartered waters.    

WHAT WE ARE SEEING IN OUR BUSINESS – RECORD VOLUME, CONTINUING ACTIVITY & GROWTH IN OUT-OF-STATE BUYERS

We closed 40% of our business in 2020 in the 4th quarter of last year (Oct-Dec).  And – the market is still moving, even in January (usually a quiet month).  We continue to put buyer clients under contract and we have several new listings activating, with new calls every week.  We just picked up a client from Alaska and have and are representing many buyer clients from New York,  Massachusetts, New Jersey, Michigan, Indiana.  We’ve had inquiries on our listings from many other states, including California.  My team and I continue to look for clues in our current deals and those of our fellow Realtors.  And – I am reading and listening to economic news on a daily basis.  

Read the article below, published in December.  Chances are, you, like many of our clients, have been thinking the same thoughts.

– Stacy Kitchell, Managing Broker

Courtesy of the Florida Association of Realtors ®

Realtor reviewing paperwork with a client outside a home

Joe Raedle / Getty Images

 

2021 Florida Real Estate Forecast

 

The following is a terrific article on the latest predictions for major Florida real estate markets.  Our team has experienced, first-hand, the incredible growth in activity – even is the past quarter.

WHAT YOU ARE READING IN THE NEWS IS HAPPENING

  • Not only did we close $5M in sales in the 4th quarter (typically a slower period), many of our buyer clients are originating from the Northeast U.S., Midwest and Great Plains.  We are also receiving offers on our listings from out-of-state buyers (mainly (Northeast/Midwest/some Southwest).  
  • COVID, high state income taxes/real estate taxes in other states – plus workers’ abilities to telecommute (possibly permanently in some cases) – is causing people to rethink where they want to live.   
  • Buyers are growing their home footprints to accommodate the additional space needed for both home office(s) and bonus spaces for families. 
  • Amenities are also a driving force.  Homes with private conservation views, pools, and acreage are in high demand and community outdoor amenities such as dog parks, walking paths and proximity to parks, water, boating and kayaking are especially attractive. 
  • Baby Boomers are moving down at a rapid pace and both smaller-to-medium sized single family homes and 55+ communities with low-maintenance villas are primary targets for them. 
  • Florida real estate checks a lot of these boxes and with our great weather, beaches/water and no state income taxes, all lenders, Realtors and appraisers we have talked with over the past 3 months are feeling the increase in demand.   
  • I believe that the above factors are a significant force behind the projected numbers below.

Read on for more on the anticipated growth of Florida real estate in 2021…

– Stacy Kitchell, Managing Broker

*****************************************************************************************************

Courtesy of the Florida Association of Realtors ®

DECEMBER 2, 2020

 

‘Tis the Season for Predictions: Realtor.com Is First

Economists predict a 5.7% U.S. price increase and 7% growth in sales, but a closer look at 9 Fla. metros finds varying predictions. They range from a projected 1.5% sales growth (4.3% price) in Cape Coral-Fort Myers to 11.6% sales growth (4.7% price) along the Space Coast.

ORLANDO, Fla. – What will the real estate market look like in 2021? In December, national economists start rolling out their predictions, with the first, realtor.com, publishing their expectations first.

Amid COVID-19 uncertainty, 2021 will be a robust sellers’ market for U.S. buyers as home prices hit new highs (+5.7%) and buyer competition remains strong, according to the realtor.com’s 2021 housing forecast.

Their economist expects inventory to make a slow yet steady comeback, providing buyers with some relief. However, increasing interest rates and prices will make affordability a challenge throughout the year.

“The 2021 housing market will be much more ‘normal’ than the wild swings we saw in 2020,” says realtor.com Chief Economist, Danielle Hale. “Buyers may finally have a better selection of homes to choose from later in the year but will face a renewed challenge of affordability as prices stay high and mortgage rates rise. With less cash and no home equity, millennial and Gen Z first-time buyers will be impacted the most by rising home prices and interest rates. While waiting until the fall or winter months of 2021 may mean more home options to choose from, buyers who can find a home to buy earlier in the year will likely see lower prices and mortgage rates.”

Many of realtor.com’s predictions, however, assume the COVID-19 pandemic will be under control within the first half of the year.

Realtor.com’s 2021 housing market forecast

  • Mortgage Rates – Up to 3.4% by year end
  • Existing Home Median Price Appreciation – +5.7%
  • Existing Home Sales – +7.0%
  • Single-Family Home Housing Starts – Up 9%
  • Homeownership Rate – 65.9%

Realtor.com also provides a breakdown of predictions by metro area, and it varies for the nine Florida metro areas included – from a projected 1.5% sales growth (4.3% price growth) in Cape Coral-Fort Myers to 11.6% sales growth (4.7% price growth) in the Palm Bay-Melbourne-Titusville metro area.

2021 predictions for Florida markets

  • Cape Coral-Fort Myers: 1.5% growth in sales, 4.3% increase in prices
  • Deltona-Daytona Beach-Ormond Beach: 5.4% growth in sales, 6.3% increase in prices
  • Jacksonville: 9.4% growth in sales, 5.0% increase in prices
  • Lakeland-Winter Haven: 5.1% growth in sales, 4.9% increase in prices
  • Miami-Fort Lauderdale-West Palm Beach: 3.7% growth in sales, 7.1% increase in prices
  • North Port-Sarasota-Bradenton: 10.3% growth in sales, 6.6% increase in prices
  • Orlando-Kissimmee-Sanford: 10.1% growth in sales, 5.8% increase in prices
  • Palm Bay-Melbourne-Titusville: 11.6% growth in sales, 4.7% increase in prices
  • Tampa-St. Petersburg-Clearwater: 8.7% growth in sales, 7.5% increase in prices

What 2021 will be like for buyers?

Buyers will find some relief in 2021 as more homes hit the market, but many will struggle with affordability as home prices continue to rise. Mortgage rates will slowly rise toward 3.4% and no longer offset prices as much. The time it takes to sell a home will slow from the late 2020’s frenzy, the economists predict, but fast sales will remain in many parts of the country. It will also be more challenging than 2020 for first-time homebuyers.

What will 2021 be like for sellers?

Sellers will still hold the upper hand throughout 2021. Home prices won’t grow as fast as they did in 2020, but steady increases will continue to push them to new highs. Sellers who list can expect their home to sell relatively quickly in 2021. Many sellers who are also buyers should have their next home lined up before listing.

Forecast 2021 housing trends

  • Millennials will continue to drive the market while Gen-Z become market players. Older millennials will likely be trade-up buyers while the larger, younger segment of the generation age into their key home buying years. The oldest members of Gen-Z will turn 24 in 2021 and their impact on the market will only continue to grow from here.
  • Affordability will become a growing obstacle. Buyers in 2020 received a huge boost when mortgage rates pushed to new lows, but a lack of inventory and strong demand drove prices up, erasing most of that boost. Buyers will need to act with a sense of urgency if they want to lock in a low rate before home prices increase even more in 2021.
  • Inventory will begin the slow road toward recovery. A lack of for-sale homes has plagued the U.S. housing market for the last five years. The problem intensified in 2020, in large part due to an estimated shortfall of nearly 4 million newly constructed homes heading into the year, as well as sellers pulling back due to COVID-19. The number of homes for sale is expected to slowly rebound in 2021, but the road to recovery will be long because the market has to make up for multiple years of declines. While additional homes will hit the market in 2021, it won’t be enough to tip the scales in favor of buyers.
  • Suburbs will shine if remote work stays around. As COVID-19 lockdowns gripped many of the nation’s largest cities, it sparked intense buyer interest in suburban homes, further exaggerating a trend that had been slowly emerging over the last couple of years. The big question is what demand will look like once a coronavirus vaccine is widely available. If companies require workers to return to the office, demand may wane. Conversely, if companies commit long-term to remote work, demand for these homes could see an additional boost in 2021.

Wildcards that could shake things up in 2021

  • COVID-19: The deck is stacked with wildcards for 2021. The most impactful will be the U.S.’s ability to control and contain the spread of COVID-19 as well as distribute a vaccine. Additional lockdowns and quarantines could put a dent in housing inventory and sales, slowing the market and putting increased pressure on buyers. Conversely, if a vaccine is rolled out quickly, it could lead to better than expected sales and a strong increase for home prices and inventory.
  • Double dip recession: The possibility of a double dip recession is still in play for 2021. As the U.S. continues in a K-shape recovery, a gap is widening between those with and without jobs, as well as industries recovering well versus those seeing a continued lack of business. In the short term, this could lead to less consumer spending. In the long term, this could impact the U.S. housing market as “would-be” buyers disappear from the market, cooling demand and driving down home prices. The current question is how long the K-shape can diverge before the impact begins to cascade into the broader economy and other previously less-affected sectors such as housing.

© 2020 Florida Realtors®

 

Fla. Had a Listing Shortage Pre-COVID – and It Still Does

Fla. Had a Listing Shortage Pre-COVID – and It Still Does

In 2008, Fla. had too many new homes; but in early 2020, there were too few. Even if buyer demand falls slightly, a still-low supply will likely push home prices higher.

NEW YORK – Housing prices aren’t expected to drop significantly during the COVID-19 pandemic, in part because Florida is facing a statewide housing shortage.

Florida Realtors says that builders have been cautious since the last recession. Florida Realtors chief economist Brad O’Connor says new home sales are down 30% to 40% statewide, but he says there’s a key difference between the housing market of today and the one 10 years ago.

“When we went into the great recession, builders. … all across the United States had massively overbuilt homes,” O’Connor says. However, builders learned their lesson a little too well, and now the state now has a shortage of housing.

“So let’s say the demand for housing falls, houses will still be scarce … So the prices won’t fall as much as they did last time when there were so many houses to choose from,” O’Connor explains. “We haven’t seen a bunch of people leaving their houses on the market and selling for a lower price. What they’re doing is pulling their houses off the market for a couple of months and waiting for all this craziness to go away, and then they will try to put their homes back on the market and sell for a similar value to what they have it posted for now.”

In Tallahassee, local real estate agent Hettie Spooner says there’s not enough housing under $300,000. She has seen people pull their houses off the market during the COVID-19 pandemic, but she believes it’s a temporary trend, noting that Tallahassee has a steady draw from its government offices and universities.

O’Connor agrees that the COVID-19 pandemic will have an impact on the housing market across the state – but that it will pass eventually.

Source: WUSF News (05/02/20) Gaffney, Robbie

© Copyright 2020 INFORMATION INC., Bethesda, MD (301) 215-4688

Seller Resources


Selling Your Home
(…and Possibly Buying Another One, Too!)
Selling your home and moving can be a real challenge.  We want to help make your experience as painless as possible by taking most of the burden off of you.  We are an award-winning real estate team and we provide our clients with exceptional service and a clear advantage in the selling of their homes because of our strong real estate background, education, and experience.  We invite you to meet our team and to read our testimonials.

What makes us different?  Below are just a few things we think set us apart from other Realtors:

  • Higher Sales Prices Than Most Other RealtorsOver the past 5 years, our team has averaged 3-10% higher prices than the average Realtors in all the neighborhoods in which we work.  The differential in price alone can pay for our fees!  We have many real life cases where we sold an owner’s home for $10,000-$20,000 more than the last sale price of a similar home in the same neighborhood. We list higher because we don’t want to leave our sellers’ money on the table
  • Experience – We have 25+ years of experience in real estate and in the past 5  years, we have sold over $50M+ in sales.  In 2015 and 2016, approx. 50% of our business is from home purchases and 50% is from listings/home sales. So, we are well-versed in what both buyers and sellers are doing and thinking.
  • Transitioning from Selling Your Home to Buying a New Home – Timing is EVERYTHING.  We understand that many sellers have a concern about the timing of selling their home and finding and moving to a new home.  We have done this many times and it is one of the things we do really well for our clients.  We negotiate certain requirements into our contracts for sellers to provide flexibility in their move dates, but that still allows them the freedom to buy and move when they want to do so.  Our selling clients love this!  We will share some ideas with you at your listing appt.
  • We Contest Appraisals for Our Selling Clients… and Win!We have contested appraisals for our seller clients and won!  This is necessary when a buyer agrees to a certain sales price and the property appraises below that sales price.  We have found that not all Realtors will take the time to gather the information to challenge an appraisal or, in many cases, they may not know how to present the correct information in a professional manner in order to win.  We go the extra mile, which has resulted in higher prices for our selling clients.  
  • Home Preparation – A key ingredient to your home sale!  We do our best to only recommend minor, inexpensive improvements for your home.  We are currently in a seller’s market in most areas of Tampa Bay, and inventory has been lower than average, so we see very little need for expensive upgrades, just meaningful ones.  We know what those are.  Our sellers are amazed at what just a few hundred dollars can do.  And we can usually estimate the approximate value of a particular upgrade, because we understand the appraisal side well.  
  • We Capture Great Photos of Your HomeOh the TERRIBLE photos we all see on the Internet!  We don’t want you to be a victim of this.  This is a HUGE pet peeve for us and photos are one of the top reasons buyers will or will not come to see your home.  The listings with the best photos get the most showings and the most showings produce the most (or multiple offers), resulting in the highest price possible for you.  We also spend HOURS editing your photos to infuse light, sharpen images, enhance color and crop photos at angles that make your rooms look as large and spacious as possible.  We use a PROFESSIONAL GRADE camera (not a camera phone or regular digital camera like most Realtors) and a $1,000+ wide angle lens which helps to make your home look more spacious, too.  Ask agents what they are using to take your photos.  We are happy to provide samples of our work.
  • We Generate More Showings – Our listings average 5-7 showings per week for the first 2-3 weeks and then are under contract within 2-4 weeks – even though we price our listings agressively high.  Again — great photos generate the maximum number of listings which increases your ability to find the PERFECT buyer who will pay the highest price for your home.  
  • Our Listing Descriptions are Key – We consider the listing description as important as preparation and photos.  Listing the key elements that make your home different – and more valuable – is essential.  We also strive to create an emotional experience when buyers read your description.  The goal is to draw the most buyers in to see your home.  
  • We have Unique, Custom Tools to Educate our Seller Clients on the Market – As a result of our strong IT knowledge, we provide a custom, report, hand-crafted for each individual client that no other Realtor provides, we call our “Seller’s Market Snapshot” report.  This report provides the most crucial information to determine value, pricing trends, days on market, etc., It contains active, pending and sold homes within the specific market or neighborhood, a map showing the location of each home, a grid listing each home and all critical details appraisers consider, and a live link to each home’s listing so that owners can view photos of the home to compare it to theirs.  We then explain why their home is different and how to maximize on those unique qualities.  Contact us for a complimentary market snapshot for your home. You will quickly see why this report is such a great resource to our seller clients. 
  • Financial Analysis – We spend a lot of time preparing professional financial analysis of your estimated net proceeds at closing prior to listing your home so that you can plan.  If you are purchasing after you sell your home, we present a sell-buy analysis for you so you can see the complete financial picture.  We are usually within 1-3% of our estimates, usually erring on the positive side for our clients so that there are no financial surprises.
  • Organization – We know being organized reduces stress for our clients.  To assist with this, we provide a Listing Process Checklist to our seller clients to show them the various phases of the sales process with detailed steps so that they can track our progress and, after the contract is secured, the buyer’s process (inspections, appraisal, etc.).  We find that it’s a stress-reliever for our clients to know what to expect and also what action items they will have during the process. 
  • We Have a Team – We have a team dedicated to our seller clients to help with all aspects of your home sale from marketing to managing offers and supporting closing activities.  We work as a team to assist you at any time!
  • Showing Analysis & Feedback – We provide regular updates on showings to assist our selling clients in understanding how buyers are perceiving their home so that any adjustments can be made as necessary to allow for the best showing experience and, ultimately, the best offer price.  We can provide you with actual showing reports so that you can see that we do what we say we are going to do.
  • We LOVE Working With Our Clients – Last but not least!  Our favorite thing – our clients!  🙂  We really do love getting to know each and every one of our clients and we love making business connections between clients when it makes sense, too.  Every one of our clients is unique and interesting to us and that is what makes this so fun!  We look forward to hopefully meeting you!

Please call us for a free consultation.  We want to help you receive the most money for your home and make your transition as easy as possible! 

813-693-1003

  The Kitchell Group