Homebuyers face ‘most competitive market in recorded history’

Rising real estate costs, demographics shifts, and low inventory have hamstrung homebuyers for years. But according to Danielle Hale, chief economist for Realtor.com, this spring buying season may bring buyer frustration to a boil.

“I think it’s fair to say this is the most competitive housing market we’ve seen in recorded history,” says Hale. “There’s record low inventory and strong interest from buyers in getting into the housing market. There are a lot of buyers, and not a lot of sellers.”

According to Hale and other economists and real estate industry observers, many factors have created this “imperfect storm” of high demand and low supply. Underbuilding had been a key factor, due to cost, labor shortages, and zoning and regulatory barriers to new construction.

“We’ve been paying the bill for underbuilding for some time, and every year, it gets worse,” she says. “We’re not only not keeping up, we’re falling further behind.”

This excerpt taken from Curbed.com to read more please click HERE.

Looking to sell? Upgrades that deliver the most value (cost vs. value)

These Upgrades Deliver the Best Value

There’s no doubt that home improvement projects can add significant value to your home, but not all upgrades are a worthwhile investment. While some projects will basically pay for themselves, others won’t even get close — coming in at a loss.

If you want to improve your home’s aesthetic while also boosting its value for a future sale, you’ll want to choose your projects carefully. Make sure to heed these stats before deciding which ones to tackle.

Highest ROI Home Improvement Projects

Your best bet: Focus on curb appeal. Upgrades to exterior areas saw serious growth over the last year. Wood deck additions, stone veneer installation and new garage doors offer the highest return on your investment.

  1. Garage Door Replacement: Average Cost $3,470 | Cost Recouped 98.3 percent
  2. Manufactured Stone Veneer: Average Cost $8,221 | Cost Recouped 97.1 percent
  3. Steel Entry Door Replacement: Average Cost $1,471 | Cost Recouped 91.3 percent
  4. Wood Deck Addition: Average Cost $10,950 | Cost Recouped 82.8 percent.

Lowest ROI Home Improvement Projects:

What projects might be best to skip? On average, backyard patios, master suite additions and major kitchen remodels net low returns.

  1. Backyard Patio: Average Cost $54,130 | Cost Recouped 47.6 percent
  2. Master Suite Addition: Average Cost $256,229 | Cost Recouped 48.3 percent
  3. Major Kitchen Remodel: Average Cost $125,721 | Cost Recouped 53.5 percent
  4. Bathroom Addition: Average Cost $83,869 | Cost Recouped 54.6 percent

As you can see, there’s a pretty big difference in the projects that deliver and the ones that just don’t measure up. Make sure to do your research and choose your home improvement projects carefully before moving forward — especially if you plan to sell your home down the line.

Thing about selling your home? The W. Scott Sheppard team is always here to help! Call today for your free home evaluation. Stacy 856-364-0772

Home Prices: Boom Continues, but Leveling Out Needed

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The boom is continuing for home prices, with a gain in March of 6.5 percent, according to the S&P CoreLogic/Case-Shiller Indices.

The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index’s 10-City Composite, which is an average of 10 metros (Boston, Chicago, Denver, Las Vegas, Los Angeles, Miami, New York, San Diego, San Francisco and Washington, D.C.), rose 6.5 percent year-over-year, an increase from 6.4 percent in February. The 20-City Composite—which is an average of the 10 metros in the 10-City Composite, plus Atlanta, Charlotte, Cleveland, Dallas, Detroit, Minneapolis, Phoenix, Portland, Seattle and Tampa—rose 6.8 percent year-over-year, which is comparable to February. Month-over-month, both the 10-City Composite and the 20-City composite rose, 0.9 percent and 1 percent, respectively.

“The home price increases continue, with the National Index rising at 6.5 percent per year,” says David M. Blitzer, chairman and managing director of the S&P Dow Jones Indices Index Committee.

“Looking across various national statistics on sales of new or existing homes, permits for new construction, and financing terms, two figures that stand out are rapidly rising home prices and low inventories of existing homes for sale,” Blitzer says. “Months-supply, which combines inventory levels and sales, is currently at 3.8 months, lower than the levels of the 1990s before the housing boom and bust.

“Until inventories increase faster than sales, or the economy slows significantly, home prices are likely to continue rising,” says Blitzer. “Compared to the price gains of the last boom in the early 2000s, things are calmer today.”

“The solid gain in home prices of 6.5 percent in March added roughly $150 billion to housing wealth during the month,” said Lawrence Yun, chief economist at the National Association of REALTORS® (NAR), in a statement. “The continuing run-up in home prices above the pace of income growth is simply not sustainable. From the cyclical low point in home prices six years ago, a typical home price has increased by 48 percent, while the average wage rate has grown by only 14 percent. Rising interest rates also do not help with affordability; therefore, more supply is needed to level out home prices. Homebuilding will be the key as to how the housing market performs in the upcoming years.”

This excerpt from RIS media: To Rea More Click Here