Posted by Stan Jones on Wednesday, March 30, 2022 at 7:53 AMBy Stan Jones / March 30, 2022Comment
Have You Said....."I'm Just Going To Wait For The Market To Cool Down"?
PLEASE READ BEFORE IT'S TOO LATE
We talk withbuyers and sellers daily. For those who are waiting the resounding reason, on the front end, is a good one. The market is just too crazy and I'm going to wait until prices (and the market) cool down.
Please take a long hard look at the numbers below and decide for yourself if the short term market pain of today is worth the long term extended pain for a long future.
Market Price Projection - Over the next four years home prices are projected to RISE. This was projected before the huge increase in inflation. So these numberes will likely be adjusted soon to account for a more steady appreciation. Currently home prices are projected to go 35% in the next five years! WOW!
Let's just say home prices stay steady and do not appreciate. The next factor is a dagger right in the middle of the heart of the 'I'm going to wait' strategy.
Interest Rates - in the past 90 days mortgage interest rates have increase 1.25%. Let's put some match to this for perspective because the FED has made it crystal clear that these increases are just beginning. Projections are 9 increases over the next year. (NINE MORTGAGE INCREASESOVER THE NEXT YEAR) ----- Click for Mortgage Calculator
$400,000 MORTGAGE - INTEREST rate 3.25% (est tax at $3k and ins at $1k) - Monthly payment) $2074.15
$400,000 Mortgage - Interest rate 4.50% (est tax at $3k and ins at $1k) - Monthly payment) $2360.07
Posted by Stan Jones on Thursday, July 8, 2021 at 9:04 AMBy Stan Jones / July 8, 2021Comment
Seller's Market - Why The Phrase "I'm Just Going to Sit Tight and Not Sell!" Could Be Very Costly
Everyone can agree The real estate market is one of the hottest on record. The combination of a Record shortage of homes and a Record number of buyers in the market for a home has climaxed into an explosion in home prices. Why in the world would anyone want to buy a home in this market correct?
Well, you might want to pause for just a minute and evaluate a couple variables before hitching your decision on that wagon. Could be that decision could be very costly. Let me explain.
1. Home prices - in the past 12 months home prices have increased an average 14.1%. What??? A more normal appreciation is 4-6% appreciation. And most economist are projecting the recent spike to calm down...so for the sake of running fair numbers we will present a more 'average' appreciation.
Let's use 5% appreciation to help explain what is could like moving forward. A home valued at $300,000 would cost $315,000 12 months later. Two years later that value would be approx. $330,750. That's a cost of $15,000 for one year wait and $30,750 for a two year wait. (NOTE-Most economist are projecting the appreciation to be higher than 5%)
2. Interest Rates - This is the BIGGEST FACTOR to consider in all variables studied. Any seller/buyer should study this above all other variables. It's the most costly and the most value add possible to your wallet. So, let's run the numbers. 3% interest rate on $300,000 home (for this example we will assume $300,000 is the loan amount...
Hope you are well and making it through the turmoil caused by the corona virus! The downtime has been very nice. At the same time it sometimes brings anxious feelings.
There is much misinformation and lots of good information to learn on a daily basis. Real estate may or may not be a thought for you right now. We wanted to keep you updated anyway incase you wanted to know. First, noone has a crystal ball as to what this will do to the real estate industry. Some say it will only stir it on more after this settles down. Some say it will make prices drop drastically. And some fall anywhere in between.
To be certain it WILL have some affect on us and the industry. If nothing more it was interrupt the next few weeks with the normal flow of showings. Our offices remain open at the current time and we are continuing to work hard to service all of our clients. Yet our Open status looks different. We are prepared to complete virtual showings, virtual meetings and virtual appointments.
Everyone is doing their part to 'slow the curve'. From everything we hear and are learning about this situation the more clarity we are getting to stay home and keep your distance from people for an extended period of time. Then, and only then, will we see businesses/restuarants/etc. re-opening and get back to a more normal flow of life.
The longer it takes, obviously the worse for our market and for everyone.
If you’ve listened to any local news media over the last four years, you’ve been hearing that we’re absolutely in a seller’s market.
However, we’ve done some research and have found that it’s shifting right now toward a neutral market—perhaps even a buyer’s market. We tracked this by using an absorption report that we receive on a monthly basis. On top of this, we’re also seeing an increase in the average days on market for listed homes.
This means that if you’re looking to sell your home within the next three to five years, you should seriously consider getting it sold before the market shifts to favor buyers.
If you have ideas for any video topics we should cover, let us know! Otherwise, feel free to reach out to us with any questions you have or for more information. We look forward to helping you.
Posted by Stan Jones on Wednesday, November 28, 2018 at 10:43 AMBy Stan Jones / November 28, 2018Comment
Words of Wisdom from Preston Murphy..... please read.
Winter is coming ???? [for the real estate market].
...by the way, it lasts for YEARS, typically. Longer than many of you have been practicing.
As you see from the photo, from October 2006 to March 2012 our industry LOST almost 30% of the agent population.
?? Are you prepared? ?? Will your business survive the impending shift?
In light of ‘4 million reasons’, most Realtors are currently relying on two things to prop up his/her business in our current market:
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1?? the most robust market we’ve seen in a decade (not actually skill-based results). You happen-upon someone who wants to buy, sell, or invest in real estate because it’s the “thing to do” & you think your business is growing. It’s not. Don’t get caught in that trap.
...and, btw, we’re actually on track to close fewer deals this year in the USA versus last year (in case you were thinking things are still on the way up nationally)
2?? many of you are also relying on your brokerage’s...
Posted by Stan Jones on Wednesday, November 1, 2017 at 2:18 PMBy Stan Jones / November 1, 2017Comment
It's getting close to the end of the year and we thought it would be an excellent time to look back on the last 6 months and see what are the Best Selling Neighborhoods In Dacula GA For 2017. You might remember that we looked at the Dacula GA Real Estate market earlier. As a courtesy to you we include more than a top 10 because Hamilton Mill and Apalachee Farms will likely also lead the pack due to the number of homes for sale that they have at any given time in Dacula, GA.
Best Selling Neighborhoods In Dacula GA For 2017
Hamilton Mill - This the perennial leader in home sales of course. With 77 homes sold in Hamilton Mill in the past 6 months, it's the clear winner. The average price of homes for sale in Hamilton Mill that sold was $386K. Which also tops this list.
Apalachee Farms - Seemingly playing second fiddle to Hamilton Mill in terms of sales and quantity and frankly publiciity, Apalachee Farms sold 25 in 6 months with an average price of homes for sale in Apalachee Farms coming to $347
Best Selling Neighborhoods In Dacula GA For 2017 NOT Named Hamilton Mill
Daniel Park - We often refer to Daniel Park as Dacula's best kept secret but after reviewing the numbers, it's clearly not a secret to anyone. With 18 homes sales in 6 months and an average price of homes for sale in Daniel Park at $305K... the cat...