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Friday, September 3, 2021

New Trend: Existing Homes over New Construction

 

Surprising Shift Favors Homeowners: Buyers Now Prefer Existing Homes

Surprising Shift Favors Homeowners: Buyers Now Prefer Existing Homes | MyKCM

In April, the National Association of Home Builders (NAHB) posted an article, Home Buyers’ Preferences Shift Towards New Construction, which reported:

60% of people who were looking to buy a home in 2020 said they'd prefer new construction to an existing home.

However, it seems buyers are now shifting their preferences back to existing homes.

The latest Consumer Confidence Survey reveals the percentage of Americans planning to buy a home in the next six months is virtually the same as it was back in March. However, the percentage that plan to buy a newly constructed home is lower for that same period.

NAHB confirms this sentiment in their latest Housing Trends Report. The organization explains that existing homes are now the top preference among today’s buyers. Here’s a breakdown of those findings:Surprising Shift Favors Homeowners: Buyers Now Prefer Existing Homes | MyKCM

Why the shift?

There are several reasons why buyer preference is shifting. Here are two that impact purchasers looking to move in now:

  • The process may move faster. Builders may not be able to guarantee when the house will be complete and ready for move-in due to supply chain challenges with materials like lumber and appliances. If you buy an existing home, not only is it ready, it also likely has a refrigerator, range, and other necessary home appliances already.
  • There are no unexpected costs during the buying process. With the price of land, labor, and lumber being so volatile, many builders are including an escalation clause in the price negotiation to cover rising expenses. With an existing home, the final price you will pay is negotiated upfront.

Bottom Line

If you’re a homeowner looking to sell, your house is more attractive to a greater number of buyers as compared to earlier in the year. This might be the time for us to connect to discuss the possibility.

Tuesday, March 16, 2021

Seniors Need A Plan!

Check my resource guide for seniors and their families. As a designated Senior Real Estate Specialist (SRES), I am here to help you and your families navigate the next step in your adventure. Click on the link below: 

 Moving On - Housing Related Resources for Seniors

Monday, January 25, 2021

2021 Housing Forecast


 Housing Forecast for 2021

At the end of 2019, forecasters were predicting a stellar 2020 for the housing market. Then came the global pandemic, which created chaos and uncertainty and derailed a booming economy into a recession. The economic recovery has been v-shaped so far, but this isn’t the end. And as the economy unfolds, it has produced clear winners and losers among the different sectors. 

One of the big winners has been the housing market, which saw home sales and prices hit decade-plus highs following decade lows in the span of just a few months. Expect housing’s winning streak to continue in 2021 as seasonal trends normalize and some of the frenzied momentum fades thanks to affordability challenges, like mortgage rates increasing. 

Other wild cards are in play as the gap between the employed and unemployed grows. Combine this with the expiration of the CARES Act and eviction moratoria. Along with the housing market, the economy could take another hit, especially if a flood of for-sale homes suddenly shows up.

You need a local agent who has the experience and knowledge to sell a home in any market but especially during this still unpredictable environment. If you’re contemplating selling your home, call me at 408.580.6219 or email at connie@conniefoley.com to get the real value. It could be more than you think. In the meantime, see what the forecasters at realtor.com are saying for 2021.

Springtime Refresher

As the seasons change, the needs of our homes change with them. To help us maintain our homes’ value and the long-term functionality of key features such as HVAC and gutters, we have prepared a simple maintenance list for you. You can schedule time in your calendar throughout the first few months of the year or hire a professional.

- Schedule your HVAC inspection to ensure its efficiency and lifespan.

- Clean out your gutters for spring showers to flow without buildup.

- Improve curb appeal with some spring plantings and trim any broken branches.

Update Your Office

As many people across the country have begun working from home, here are some fun side projects you may want to tackle. They may help you enjoy your space more and make it more your own.

- Pick a new fresh paint color for your office space.

- Select new curtains or blinds for your viewing pleasure.

- Declutter your bookcases, shelves, or tables with stylish organizers.


Tuesday, November 17, 2020

What should you know about Prop. 19?

 


Proposition 19 has Passed… What you should know 



• Effective April 1, 2021, allows homeowners 55 or older, those with severe disabilities, and victims of wildfires and natural disasters to transfer their tax assessments anywhere within the state of California to a primary residence of equal value with no property tax increase, or a more expensive primary residence with an upward adjustment within two years of the sale of the original primary residence. 

• Increases the number of times that these eligible homeowners can transfer their tax assessments from one to up to three times. 

• Effective February 16, 2021, requires that inherited homes that are not used as principal residences, such as second homes or rentals, be reassessed at market value when transferred to children or grandchildren. 

• Allocates additional revenue or net savings resulting from the ballot measure to wildfire agencies and counties. 

Proposition19 builds off of Proposition 13, passed in 1978, which limits property taxes to 1% of a home’s value, based on the year the house was purchased. Proposition 13 also restricts the amount that taxable value can go up every year to 2%, even if a home’s market value increases much more. 

Currently, as soon as residents move to a new home after living in their old home for a long time, their property tax increases by a lot — this is the issue that Proposition 19 seeks to address. Proposition 19 allows homeowners who are 55 or older to transfer the taxable value of their old house to a new home of equal value or a more expensive home, thereby avoiding the big jump in property taxes they would otherwise face. This is designed to encourage seniors to enter the real estate market. 

Proposition 19 also changes tax reassessments on inherited properties. Currently, under Propositions 58 and 193, primary residential homes are not reassessed when transferred to heirs, so any property that is benefitting from the low tax rates created by Proposition 13 would continue to benefit if a parent passes the property to a child or grandchild. Rental properties or vacation homes can also currently be transferred from parent to a child or grandchild with the first $1 million tax basis exempt from re-assessment when transferred. 

However, Proposition 19 makes it no longer possible for inherited homes to maintain the same low property tax rate enjoyed prior to the inheritance if the heir does not move into it as a primary residence. Children who inherit their parents’ home, but only intend to keep it as a second home or rent it out, would see a big increase in property taxes under Proposition 19. Further, when the inherited property is used as the recipient’s principal residence, but has a market value of $1 million more than the property’s taxable value, an upward adjustment in assessed value would occur. 

Thursday, October 1, 2020

Charming Single Family Home in Willow Glen

Updated and Move-in ready! 3 bedroom, 2 bath home on a Willow Glen tree-lined street. 
WELCOME TO 1465 MAXINE AVE




For more information, please contact me! I'm here to help.