The National Association of Realtors annouced a 5.5% increase in existing home sales nationally during September. This is a glimmer of hope that we have hit bottom and may see a light at the end of the tunnel.
Since it did take some time before the Memphis Homes market was effected by the national epidemic of foreclosures and bubbles bursting, it will also take some time before Memphis home sales will feel any effect from a turnaround in the national market. It's kind of like a trickling down effect. The downturn in housing nationally started in 2005, but the Memphis market did not really start downturning until the middle of 2006. The reason is that our market here is normally much more stable and has no skyrocketing home values that will burst as do other markets around the country. Once sales pick up in other markets, our home sales will pick up some steam as well.
Times and conditions seem to be working towards a recovery of some type. A mix of low rates, lower home prices, and tax credits makes a perfect opportunity for first time home buyers and investors to jump into the home buying market. The biggest home discounts are of course foreclosures and distress sales. Other homes on the market may only have 5% to 10% decreases as these are sellers who are selling due to normal life events and not due to distress. Home inventory is till higher than normal, but latest figures show that listed homes are now down by 25% from their highs just a few months back.
The market appears to be headed for better times, but we may not see the best results until after the elections and after the holidays.
Tuesday, October 28, 2008
Thursday, October 23, 2008
My Memphis Home Needs to be More Appealing to Snag a Home Buyer
The combination of a high-rate of foreclosures, qualified buyers being farer and few in between, and with record amounts of homes inventory to compete with; sellers must up the ante to convince potential homebuyers that their property offers what many want most: Top value for dollar and move in ready. If your Memphis Home needs some help, then read on.
Here are some fast inexpensive fixes that will help your home standout with homebuyers. In the past 8+ years, most new homes in our area have included items that use to be considered upgrades. Granite or hard surface counter tops, stainless steel appliances, tile, wood flooring, hand textured & finished walls, crown molding, the list goes on. For those of us selling our homes built before these construction trends, and whose homes may have Formica counter tops, painted appliances, worn carpeting, some tile, wallpaper, and other dated items, then you may need to invest some time, and possibly money to compete with homes selling with these and more upgrades.
Buff up curb appeal. You’ve heard it before, but it’s critical to get buyers to want to look on the inside. Be objective. View your home from the street. Check the condition of the landscaping, paint, roof, shutters, front door, windows, and even how window treatments look from the outside. Clean your windows inside and out, it’s well worth the time & effort. The home’s first impression is on the photo seen in the MLS and then when walking up to your front door. Knock down the cob webs and hose it down to clean it up.
Paint is cheap and an easy way to update. Don’t get too avant-garde with jarring pinks, oranges, and purples. Recommend soft colors that say welcome, and lead the eye from room to room, with flatter and neutral tones. Remove dated wallpaper that you are use to and freshen up each room.
Upgrade the kitchen and bathroom. These make-or-break rooms can spur a sale. Make each of these rooms squeaky clean and clutter-free. Update the drawer pulls, sinks, and faucets. Besides the living space and floor plan, these two rooms absolutely must stand out.
Buyers favor wood over carpet. Consider installing a wood veneer or laminate, as these are popular and less costly than more expensive styles of hardwood flooring. Replace worn vinyl kitchen floors with new updated vinyl squares or better yet, tile.
Clean out and organize closets. Start sorting and organize your piles. Donate old clothing to charity or have a yard sale. Closets must be only half-full so buyers can visualize fitting their stuff in.
Update window treatments. Buyers want light and views, not dated, fancy-schmancy drapes that darken. To diffuse light and add privacy, consider energy-efficient shades and blinds.
Hire a home inspector.
Do a preemptive strike, since busy homeowners seek maintenance-free living. Fix problems before you list the home and then display receipts and wait for buyers to offer kudos to sellers for being so responsible. It’s also a nice perk to a buyer as you may have just saved them the cost of a home inspector.
Here are some fast inexpensive fixes that will help your home standout with homebuyers. In the past 8+ years, most new homes in our area have included items that use to be considered upgrades. Granite or hard surface counter tops, stainless steel appliances, tile, wood flooring, hand textured & finished walls, crown molding, the list goes on. For those of us selling our homes built before these construction trends, and whose homes may have Formica counter tops, painted appliances, worn carpeting, some tile, wallpaper, and other dated items, then you may need to invest some time, and possibly money to compete with homes selling with these and more upgrades.
Buff up curb appeal. You’ve heard it before, but it’s critical to get buyers to want to look on the inside. Be objective. View your home from the street. Check the condition of the landscaping, paint, roof, shutters, front door, windows, and even how window treatments look from the outside. Clean your windows inside and out, it’s well worth the time & effort. The home’s first impression is on the photo seen in the MLS and then when walking up to your front door. Knock down the cob webs and hose it down to clean it up.
Paint is cheap and an easy way to update. Don’t get too avant-garde with jarring pinks, oranges, and purples. Recommend soft colors that say welcome, and lead the eye from room to room, with flatter and neutral tones. Remove dated wallpaper that you are use to and freshen up each room.
Upgrade the kitchen and bathroom. These make-or-break rooms can spur a sale. Make each of these rooms squeaky clean and clutter-free. Update the drawer pulls, sinks, and faucets. Besides the living space and floor plan, these two rooms absolutely must stand out.
Buyers favor wood over carpet. Consider installing a wood veneer or laminate, as these are popular and less costly than more expensive styles of hardwood flooring. Replace worn vinyl kitchen floors with new updated vinyl squares or better yet, tile.
Clean out and organize closets. Start sorting and organize your piles. Donate old clothing to charity or have a yard sale. Closets must be only half-full so buyers can visualize fitting their stuff in.
Update window treatments. Buyers want light and views, not dated, fancy-schmancy drapes that darken. To diffuse light and add privacy, consider energy-efficient shades and blinds.
Hire a home inspector.
Do a preemptive strike, since busy homeowners seek maintenance-free living. Fix problems before you list the home and then display receipts and wait for buyers to offer kudos to sellers for being so responsible. It’s also a nice perk to a buyer as you may have just saved them the cost of a home inspector.
Tuesday, October 14, 2008
Memphis Real Estate Market Trends
Where is the Memphis real estate market headed? With all the foreclosures and roller coaster ride on Wall Street, many home buyers and home sellers need to keep up with what they should expect from today's real estate market.
Urban areas are making a comeback, along with smaller homes. Many areas of downtown Memphis, midtown and East Memphis are still very popular. Shorter commutes give you more family time and cut down on the gas bill. Smaller homes offer lower utilities which have also recently increased in price.
Flipping properties is almost at a stand still, but that has not stopped investors from making timely and smart purchases while prices are low and sellers are anxious. So the strategy is buy and hold until the market picks up.
Many homeowners are going green by adding energy efficient bulbs, more insulation in attics, and on-demand hot water with the new tankless systems. Even builders have picked up on adding these green features to help sell their inventories.
We can all hope that the Feds have picked the right path to help straighten out the mess that they got us all into in the first place.
Urban areas are making a comeback, along with smaller homes. Many areas of downtown Memphis, midtown and East Memphis are still very popular. Shorter commutes give you more family time and cut down on the gas bill. Smaller homes offer lower utilities which have also recently increased in price.
Flipping properties is almost at a stand still, but that has not stopped investors from making timely and smart purchases while prices are low and sellers are anxious. So the strategy is buy and hold until the market picks up.
Many homeowners are going green by adding energy efficient bulbs, more insulation in attics, and on-demand hot water with the new tankless systems. Even builders have picked up on adding these green features to help sell their inventories.
We can all hope that the Feds have picked the right path to help straighten out the mess that they got us all into in the first place.
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