Feeling ‘Stuck In Place’? You Aren’t Alone… And There’s Hope!

 

Whether you are a renter who is searching for your dream home or a homeowner who feels like your only option is to renovate, you have at least one thing in common: feeling stuck in place.

According to data from the National Association of Realtors’ Profile of Home Buyers & Sellers, the average amount of time that a family stays in their home remained at 10 years in 2017. This mark ties the highest marks set in 2014 and 2016. Back in 1985, when data was first collected on this subject, homeowners stayed in their homes for an average of only 5 years.

There are many reasons why homeowners have decided to stay and not to sell. A recent Wall Street Journal article had this to say,

“Americans aren’t moving in part because inventory levels have fallen near multidecade lows and home prices have risen to records. Many homeowners are choosing to stay and renovate, in turn making it more difficult for renters to enter the market.” 

Sam Khater, Deputy Chief Economist for CoreLogic, equated the lack of inventory to “not having enough oil in your car and your gears slowly [coming] to a grind.”

Historically, a normal market (in which prices increase at the rate of inflation) requires a 6-7 month supply of inventory. There hasn’t been that much supply since August of 2012! Over the course of the last 12 months, inventory has hovered between a 3.5 to 4.4-month supply, meaning that prices have increased and buyers are still out in force!

Challenges in the new-home construction market have “helped create a bottleneck in the market in which owners of starter homes aren’t trading up to newly built homes, which tend to be pricier, in turn creating a squeeze for millennial renters looking to get into the market.”

“Economists said baby boomers also aren’t in a hurry to trade in the dream homes they moved into in middle age for condominiums or senior living communities because many are staying healthy longer or want to remain near their children.”

So, what can you do if you feel stuck & want to move on?  Call the Stovall Team today and don’t give up! If you are looking to move-up to an existing luxury home, there are deals to be had in our local market. Demand is strong in the starter and trade-up home markets which means that your house will sell quickly. Work with the Stovall Team to build in contingencies that allow you more time to find your dream home; the right buyer will wait.  Our intimate knowledge of the communities and schools allows the Stovall Team to guide clients as buyers and create strategic marketing for sellers. The Stovall Team’s passion for real estate teamed with savvy negotiating skills and utmost devotion to clients is second to none. Call us today to discuss your real-estate needs at 714.343.9294 [email protected] and Visit StovallTeam.com

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Compromise Isn’t Always Key

When buying a home, there is a lot to take into consideration. Often, buyers have to compromise and generally do not get everything on their wishlist. Here are three items we recommend buyers not compromise on.

  1. THE FLOOR PLAN
  2. THE SCHOOL DISTRICT
  3. THE NEIGHBORS

Our intimate knowledge of the communities and schools allows the Stovall Team to guide clients as buyers and create strategic marketing for sellers. The Stovall Team’s passion for real estate teamed with savvy negotiating skills and utmost devotion to clients is second to none. Call us today to discuss your real-estate needs at 714.343.9294 [email protected] and Visit StovallTeam.com

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The Difference An Hour Makes

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Scouting for Food, November 4, 2017

Scouting for Food is our annual food-collection drive benefiting Second Harvest Food Bank. Scouting for Food takes place on two consecutive weekends. On the first weekend, Scouts distribute bags and/or door hangers to let their neighbors know about the drive. On the second, Scouts revisit those houses to pick up bags full of canned food, cereal, pasta, peanut butter, juice and other nonperishable items. The food is then delivered to Second Harvest Food Bank where it is distributed to needy families throughout Orange County.

It’s happening on Saturday, November 4th. Last year local Boy Scouts and Girl Scouts collected 52,085 pounds of food in Orange County– let’s see if we can beat that and go for 60,000 pounds in 2017!

 

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Moving With Kids

When purchasing or selling a home, home buyers and sellers with children under the age of 18 have unique needs.  Our intimate knowledge of the communities and schools allows the Stovall Team to guide clients as buyers and create strategic marketing for sellers. The Stovall Team’s passion for real estate teamed with savvy negotiating skills and utmost devotion to clients is second to none.   Call us today to discuss your real-estate needs  at 714.343.9294  [email protected]  and  Visit StovallTeam.com 

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Moving-Up To A Luxury Home? Now’s The Time!

The best time to sell anything is when demand is high and supply is low.

If your house no longer fits your needs and you are planning on buying a luxury home, now is a great time to do so! We recently shared data from Trulia’s Market Mismatch Study which showed that in today’s premium home market, buyers are in control. The inventory of homes for sale in the luxury market far exceeds those searching to purchase these properties in many areas of the country. This means that homes are often staying on the market longer which can eventually lead to a price change.

Those who have a starter or trade-up home to sell will find buyers competing, and often entering bidding wars, to be able to call your house their new home. The sale of your starter or trade-up house will aid in coming up with a larger down payment for your new luxury home. Even a 5% down payment on a million-dollar home is $50,000.

But not all who are buying luxury properties have a home to sell first.

In a Washington Post article, Daryl Judy, an associate broker with Washington Fine Properties, gave some insight into what many millennials are choosing to do:

“Some high-earning millennials save money until they are in their early 30s to buy a place and just skip over that starter-home phase. They’ll stay in an apartment until they can afford to pay for the place they want.”

The best time to sell anything is when demand is high and supply is low. If you are currently in a starter or trade-up house that no longer fits your needs and you are looking to step into a luxury home, now’s the time to list your house for sale and make your dreams come true.

Sources: KCM, Stovall Team, Washington Post

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